MYRE Tips

6 tips for business plan projections

MYRE
Jul 26, 2023
Article cover image

The analysis of business plans primarily defines real estate strategies. These business plans involve various scenario-based hypotheses that facilitate your future decision-making. How can you make these simulations quicker and more readable? Let's explore the best practices.

What is a business plan? 

A business plan is a set of hypotheses that can be used to analyze business multiples and IRR (internal rate of return) or the long-term returns on a given scenario. Asset and fund managers rely on simulation and forecasting tools to analyze business plans. Their main challenge is to choose the best strategy within the best timeframe; given today's economic instability, being proactive is essential in real estate management.

How to efficiently design and analyze business plans? The following 6 tips will help you tackle these challenges using MYRE.

1. Make sure the desired outcome is clear.

Every business plan must reflect the desired outcome, which is the primary goal of your strategy. Your goal could be to achieve lower costs or higher profitability, optimize your building's occupancy, and so on. The desired outcome serves as a guideline when developing hypotheses. Later, you may have to update these goals to ensure they align with each step of your portfolio's lifecycle.

2. Automate the calculation of your analytical data

Use automated calculations to make your business plan prospective in a timely manner. By doing so, you will benefit from direct insights into fluctuating factors that impact your Key Performance Indicators (KPIs).

3. Use interactive simulation tools

Interactive and flexible tools allow you to edit your data to simulate, analyze and compare your different scenarios with just a few clicks.

4. Standardize your calculation methods

Using a single reference point, you must standardize all calculations to compare various business scenarios. Additionally, a standardized algorithm helps you create business plans in no time by duplicating an existing calculation system or by using management data rather than starting from scratch.

5. Making sure your data stays up to date after each investment

Asset managers can keep their strategy up to date by connecting the simulation tool with the already available data. In sum, since simulations are based on existing data, there is no need to re-enter any information at a later point in time.

6. Go for a user-friendly tool

An ergonomic tool will always improve your browsing experience. Not only does it speed up the creation of prospective business plans, but it also makes it easier to analyze and compare scenarios. In other words, a user-friendly solution allows you to visualize your business plan easily while clearly revealing all your strategic options, a key factor when transferring files from one asset or fund manager to another.

We hope our six recommendations will help you choose the right management tool, considering flexibility and ergonomics. Our specialists are always ready to assist you, so feel free to contact us!

The integrated and innovative solution that empowers Real Estate players

Take control over your real estate assets, optimize its management, boost its performance, and drive its value.
Have a taste of the platform
Image article

What's new

MYRE takes stock of 2023 and wishes you all the best for 2024

The year 2023 was marked by constant changes to the application and the arrival of new customers. 2024 is already full of plans for future functionalities.
Image article

What's new

Optimize your management with the new automated "one shot" chargeback function

Manual entry of service charges is now automated on MYRE, saving significant amounts of time. Property managers can now concentrate on higher value-added tasks.
Image article

What's new

New features in the "expenses" module: simplified data entry and improved ergonomics

The executive summary is available, a summary of expenses in Good to Pay status, accessible by clicking on a view button.
See more news