The Video Transcription:
In addition to the 10 appendices detailed earlier, we would also include specific appendices in respect of the construction industry. These might be obvious to you but I’ll repeat them in either case.
- Include a full copy of the planning permission for the development project.
- Include a site location map as a separate appendix. As explained earlier in the seminar, people buy into maps. They would like to say “Oh, that’s where my auntie used to live, that’s where I used to drive by there when I was a young person”, etc. That helps them buy in and believe in your business plan.
- I would have a site layout plan also included to show where all individual buildings are located within the development.
- Again, people need to understand the development project so I would include site floor plans for each house, apartment or commercial unit included in the development.
- I would include also a schedule of specifications of finishes for each of the completed buildings in the development. This can be where most of the costs are within finishes.
- I would also include an independent sales agent report concentrating on the local competition, what properties are selling for in the area, the likelihood of you achieving your sales, values, etc.
- I personally include a very detailed spreadsheet of the construction cost of the project. This would be in more detail than what would be outlined in the profit & loss account projections, almost down by trade and development, etc. And I certainly don’t just put so much per square foot. That’s the lazy of way doing it. There will be little different idiosyncrasies between each development.
- I also detail out the development cost because that’s where projects tend to go wrong under underestimating of the development cost and a lot of them have to be done initially on a project. So I would detail out the development costs you know, be that the roads, the footpaths, the lighting, the sewerage, etc.
- And then finally I’d include in a detailed budget for the show house, what’s going to cost to complete the show houses or the number of show houses.
Download the “Business Plans/Seminar” PowerPoint Presentation below.