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07 18th, 2009| 
They were very similar to their predecessors; except that the metal furniture was now brass instead of iron, and the musket had a new lock with some minor modifications meissen porcelain louis xiv . The Royal cypher, when used, was the ‘A R’ of the reigning sovereign porzellan clock spain . The barrel of the musket was forty-six inches, or slightly longer than the James II pattern computers internet blog .
With the issue of these arms slings were fitted to all muskets for the first time trestle table lyre base .
The universal use of flintlocks in the Army, as well as on private firearms, resulted in the flint industry becoming of prime importance british longcase makers . It was a very ancient industry directoire sofa . The art of chipping, or `knapping’, flints had been practised in neolithic, times, when arrowheads, spearheads, axes, tools, etc cast regency period candlestick ., had been manufactured from the flint deposits at such places as Brandon in Suffolk antique neoclassical furniture side cabinet . For many years, however, there had been little requirement for flint, except for the comparatively low standard stone used for ordinary ignition epergne art deco glass . The arrival of flintlock arms created a new and increasing demand for high-quality flint marc duplantier . Nevertheless the process available was tedious and inefficient, and yielded indifferent flints indian vernacular furniture . Gradually the art was re-learnt, and by the end of the eighteenth century English flints had become famous throughout Europe antique hot water plate warmer . In 1686 a Government factory was established important pieces art deco furniture .at Brandon, and all flints for the Army were made there during the whole remaining life of flintlock firearms drawing ornaments for furniture .
Until the early eighteenth century flints were generally made from the brown flintstone which was gathered from the fields antique tables small . This broke rather easily, for its irregularity in grain made it brittle empire gateleg table . The much superior black flint was subsequently discovered at depths of from 5o to zoo feet, and from about the middle of the eighteenth century all flint was quarried antique paper mache pedestal table .
Flints were divided into different sizes according to the type of weapon sheriton clock . As far as the Army was concerned, these consisted of the musket, the carbine and the pistol; and they were each again divided into ‘Best’, ‘Second’ and ‘Common’ according to their quality, which was assessed by the colour of the stone (the darker the better) and by the regularity of the shape antique kidney table lion ball legs . A good flint knapper could gauge the size of a flint by the naked eye to within a sixteenth of an inch and could trim it to a chisel edge 18th century trestle table .
`Best’ flints could be expected to give from forty to fifty shots, without fear of a misfire, whilst ‘Common’ flints would only give about half this number ornate italy shell spoon . Most musket flints were the cheap ‘Common’ variety redwood trinket box .
Flints were sold by the thousand and were packed in half casks, which held 2000 of t1w musket size, 3000 of the carbine and 4000 of the pistol antique spanish sideboard .
In the seventeenth century it was the practice of both officers and other ranks to wear their side arms when off duty identify antique paper mache trays . When the bayonet was added to the sword it appears that there must have been some temptation to use this handy little weapon in local brawls with the civil population century furniture chinoiserie dining table chair credenza . This is reflected in the following order which was promulgated in 1687:
`For the prevention of mischief that may happen by the carrying of bayonets We hereby strictly forbid all officers and soldiers of what quality soever within Our pay or entertainment to carry a dagger or bayonet at any other time than when such officer or soldier shall be upon duty or under their arms upon pain of being punished at Direction of a Court Martial and the officers and commanders in chief of Our several regiments, troops and companies and Governors of Our Garrisons are hereby required to cause these Our commands to be forthwith read and published at the head of each respective regiment, troop and company that all persons may give obedience thereunto meissen figures on bronze bases .
`Given at Our Court at Whitehall the 4th day of March,
1686/7
`By His Majesties Command antique meissen porcelain .’
It is quite likely that this order was drafted personally by King James II furniture design . It is very like the tone of some of his letters dealing with military organization and administration antique posset pots .
Grenadiers and Musketeers seem to have worn swords throughout Marlborough’s campaigns draw-leaf tables . The armament of a Grenadier was particularly impressive; for it comprised (according to the Exercise of hoot of 16go) firelock, bayonet, sword, hatchet and grenades antique french campaign chair .
There is an interesting hint of regimental insignia on swords in a notice of a deserter in the Post Man in 1703 care of antique oak chest woodworm rot . The man belonged to Lord Lucas’s Regiment (later the 34th Foot) and is described as wearing a sword with brass mounting and an ‘L’ on the shell norman bel geddes desks . How far this was a common practice is not known sarcophagus chests andre-charles boulle . The detail on a sword depended entirely on the taste of the Colonel, and the swords for a regiment were, in fact, purchased by the Colonel out of the money allowed him by the Government for the provision of all clothing, swords and necessaries of the other ranks under his command antique maple drop leaf dining table .
The Duke of Marlborough would allow no weapon other than the sword to be used by mounted troops jupe patent mechanism . The pistol he regarded as the enemy of effective cavalry action antique victorian writing table . Brigadier-General Richard Kane, in his Discipline of Horse of 1745, said:
`They should handle their swords well, which is the only Weapon our British Horse makes use of when they charge the enemy; more than this is superfluous empire revival benches . The Duke of Marlborough would allow the Horse but three Charges of Powder and Ball to each man for a Campaign, and that for guarding their Horses when at Grass, and not to be made use of in action roman tripod table .
`Dragoons should be well instructed in the use of arms, having often occasion to make use of them on foot; but when on horseback, they are to fight as the Horse do sheraton period cutlery urn .’
The type of swords supplied to the cavalry, however, does not seem to have been beyond criticism baroque paper mache plate . In 1691 Sir Albert Cunningham, Colonel of the 6th Dragoons, wrote to the Secretary at War, ‘We want good broad cutting swords with three-barred hilts’ how drop leaf table evolved . In 1706 Colonel J designs for dressing table glasses . Crofts of the Royal Dragoons said in a letter that, ‘It was impossible to get flaming (i antique pembroke tables .e antique dining table stored legs . curved) blades but I pitched upon the best sword for service I could find’ antique duncan phyfe mahogany coffee table with brass claw feet . A year later his successor, Colonel St barrel leg oak dining table .-Pierre, wrote “chest of drawers” +cherry +1840s . ‘The swords are good, but a handfull too short, there is no dealing with the French but with good swords, they have excellent ones antique wooden handle forks . We are resolved, whatever it cost, if we come to Baralina and can find German blades, to buy them and put them upon our handles, which are large enough clarice cliff aj wilkinson teardrop plate .’
It is apparent that there must have been considerable variety in the swords carried by the cavalry japanese tray table w/ folding legs . There is a tantalizing bill of 1689 for a steel horseman’s sword with a rich gilt handle, apparently belonging to the loth Horse secession style furniture .
Towards the end of the seventeenth century there was some improvement in the gunpowder antique wood trestle table with leaves . The proportions were altered to six parts of saltpetre to one each of charcoal and sulphur antique console table carved wood . But the most noteworthy advance was in the quality of the saltpetre goldscheider ceramic figurines+made in austria. 1920 . Previously it had been chiefly obtained by the laborious and probably uncongenial task of washing out earth collected from underneath long-established dung-hills drop leaf table stable base . It was now imported from foreign countries where it could be found in a free state 3 leg drum table with leather top .
BROWN BESS
At some period in the earlier part of the eighteenth century there appeared the most famous weapon that was ever placed in the hands of the British soldier 3 leg drum table with leather top . This was the musket which became popularly known as ‘Brown Bess’ “edwards & roberts” furniture satinwood . The actual date of its introduction is unknown edwardian satinwood combination wardrobe . It*is popularly supposed to have been designed in the reign of Queen Anne 19th century mechanical desks . Nevertheless there is an old tradition that the musket was chosen by the great Duke of Marlborough when he was Captain-General and Master-General of the Ordnance german art deco porcelain harlequin . The earliest one known to the author is in the Tower of London, and bears the date 1717 on the lock plate 1920’s walnut buffet, four drawers .
The origin of the name is as much a mystery as Brown Bess’s date of birth, and there have been many theories to account for it antique gateleg card table . However, the ‘brown’ probably referred to the colour of the weapon, or part of it; and this was most likely the stock, which was of walnut wood stained a reddish brown 17th century drop leaf table . The stocks of all the British Army’s previous firearms had been black sofas . It has been said, also, that the barrel was browned by pickling in an acid bath asian chest with fake drawers . It may have been issued in this condition, but during most of the years when this musket was in use the barrel appears to have been highly polished; in accordance with the British Army’s normal practice with any piece of metal, unless ordered to do otherwise 1800’s library table . Bess’ may have been a mere term of affection; on the other hand it may have been derived from ‘buss’,a German word for a gun and used in ‘arquebus’ and `blunderbuss’ antique english tea tables .
That such a gun should acquire a nickname was, however, almost inevitable french oak, “barley twist” chest of drawers . It was noteworthy in two respects antique card table brass feet folding . It had the beautiful lines of the private fowling-pieces of the day, and, for ease of handling and for performance, it was the finest smooth-bore firearm in any army for the whole of its active existence antique hexagon ladles . These qualities undoubtedly earned the affection of the soldiers who handled it, and if troops become fond of a piece of equipment, maintenance and cleanliness present few difficulties antique wooden pot cupboard .
Of Brown Bess Mr glass front marquetry cabinet . Scurfield in a notable article on ‘British Military Smoothbore Firearms’, which he contributed to the journal of the Society for drmy Historical Research, says: ‘I have seen and handled many muskets of the eighteenth century, and have no hesitation in saying that for workmanship, handiness and appearance (much more important in those days than in these) the Old English musket was, as the armament of the “common soldier”, unsurpassed 1940’s marble tables . Compared with her predecessors and contemporaries, such as the French Model 1717, which was not radically altered until 1754, Brown Bess has the grace of a fowling-piece, the lightest stock compatible with capacity to stand up to a campaign, well-shaped moulded brass furniture, and a lock which had a reputation for giving fewer missfires, “flashes in the pan”, than that of any other military firearm georgian serving tables . Wherein lay the superiority of the English lock is now quite beyond ascertainment; but modern amateurs of historic arms, such as the late Major H vincennes gilded porcelain asian design . R 19th century lion claw pedestal table . S expensive marble tables . Brown, Mr 19th century apostle spoon . Mark Dineley, and others, confirm that it is less unreliable in igniting the charge than any other military lock they have experimented with anitque side cabinet .’
The barrel length of the first model was about 451 or 46 inches malard furniture . The bore was 11, or a shade over •75 calibre 18th c, hot water plate . The bullets vere 131 or 14 to the pound, which would slip easily down a barrel of this diameter a & s smee finsbury . The mounts were brass throughout jean dunand pottery . These comprised the buttplate, small shield (or escutcheon), side plate (on the side opposite the lock plate to receive the latter’s screws), trigger guard and four ramrod pipes apartment for milliner suzanne 1929 . The ramrod was of wood with a brass tip muller freres primavera . The butt-plate was a heavy moulded piece, and, in conjunction with the light fore-end, served to keep the balance of the gun fairly well back in spite of the long barrel small square drop leaf table with 2 chairs . The lock was of an improved type with a steel bearing, or ‘bridle’, to support the tumbler and prevent it from pressing against the lock plate antique wine cooler and stand . The escutcheon, which was on the top of the small of the butt, was primarily intended to take the screw which passed right through the small from the rearward extension of the trigger guard art nouveau cupboard . It was also frequently engraved or stamped with the company letter and individual number antique canning jars with good luck on them . The lock plate, which was of iron, bore the crowned Royal cypher, and, in addition, either the word ‘Tower’ or the contractor’s name empire drum night table . This was to become the standard practice for many years cabriole legs . Previously the Royal cypher had been, as already mentioned, limited in its use king charles silver flatware . The contractor’s name had sometimes appeared, but often the plate was devoid of any inscription gilbert rhode . The word ‘Tower’ indicated that the arm bearing it had been assembled at the Tower of London from parts supplied by contractors 1940’s art deco black and gray lacquer bedroom set prices . At a later period arms were similarly assembled in Ireland at Dublin Castle, and the lock plates were marked ‘Dublin Castle’ century furniture drop leaf table . Those arms made and assembled by contractors sometimes had the date of manufacture after the name of the maker 17th century georgian sideboards .
The bayonet was of the same basic pattern, with triangular blade, as that adopted in the reign of Queen Anne; but it was much improved matthew boulton roast cover . The socket was four inches long; and the blade length was now seventeen inches, and remained so until about z 70 spanish revival italian walnut trestle library table . The scabbard was of leather, and carried suspended from a cross-belt over the right shoulder baroque style depression furniture with walnut and walnut veneers . Another cross-belt over the left shoulder supported a cartridge pouch and two brass pickers for cleaning the vent silver tray with top .
The cartridge used with the Brown Bess musket consisted of a tube of stout cartridge paper, sealed at both ends with pack thread antique scroll maker . It contained six to eight drams of powder and also a lead bullet saxony flowers 1700s . antique octagon table with twelve legs . This type of cartridge had been in use for some time by mounted troops derby porcelain figurines mark r 1762 . The soldier bit off the rear end of the cartridge, squeezed a small portion of the powder into the flash-pan and emptied the remainder down the barrel art deco glass vase . He then inserted the bullet and rammed it with the paper cartridge on top as wadding antique chinese chamber pot . With this method of loading the soldier could fire about two to three rounds per minute; but the loose-fitting bullet ‘limited the range of reasonably accurate fire to some fifty yards making pottery . Various unauthorized methods of loading to ease the soldier’s task and speed up the rate of fire had been adopted with the matchlock musket at least as early as the reign of Charles I wodden chair dining table leaf design . The powder was poured into the barrel and the bullet dropped on top of it without the use of wad or ramrod antique mahogony carved dressing table . The charge was then firmed home by banging the butt on the ground winthrop china cabinet . Range and penetration, of course, both suffered double scroll legs desk art deco .
The same procedure was adopted with the flintlock, but as the powder used was fine enough to be used for both primer and charge, the private soldier, ever a genius at finding laboursaving devices, managed to eliminate another of the normal loading tasks early soft paste teapots . Having shut the pan after firing, he discovered that banging the butt on the ground not only consolidated the charge but also sent sufficient powder through the touchhole into the pan to prime the musket haviland france deco cup . The rate of fire was increased to from four to five rounds a minute, but there was a considerable proportion of misfires owing to insufficient powder reaching the pan, and the fire was horribly inaccurate wood antique tripod table glass top 1950 .
In certain circuirfstances loading with a loose bullet withoui wadding was a recognized practice, and was known as loading with ‘running ball’ antique gateleg table new york . Sentries’ arms loaded with running ball, for instance, could be unloaded by holding the barrel downwards and letting the bullet run out myott son & co blue hanley est: 1880 . If the wadding was inserted the only way of unloading was to discharge the musket gate leg table oak antique round .
Even Brown Bess, the best of smooth-bore muskets, could not compare in accuracy or speed of fire with the old English long bow greek marble console table . Colonel Hanger, in his book To d11 Sportsmen of X 814, said: ‘A soldier’s musket, if not exceedingly ill-bored (as many are), will strike the figure of a man at 8o yards; it may be even at a hundred; but a soldier must be very unfortunate indeed who shall be wounded by a common musket at 150 yards, provided his antagonist aims at him; and as to firing at a man at 20o yards with a common musket, you may as well fire at the moon and have the same hopes of hitting your object a dutch walnut and burr-walnut longcase clock . I do maintain and will prove, whenever called on, that no man was ever killed at 20o yards, by a common soldier’s musket, by the person who aimed at him antique empire table .’
In about 1841 a special test was carried out by the Royal Engineers to find out what Brown Bess could really do primevera crackle glaze bird . The results were not impressive art noveau furniture . The range of the piece was-an), thing from ioo yards to 700, according to the elevation of the barrel antique dining room table rectangle +connected double pedestal . At every elevation tried, however, there was at least a hundred yards’ variation in the possible range, and at some elevations this exceeded 300 yards bronze chair french . At iSo yards a target about twice as high and twice as broad as a man was hit three times out of four art deco writing sets . At any greater range, even with the musket fixed in a rest, this same target was not hit at all regency card table value . At a range of 2 5o yards a target twice as wide again was fired at, but of ten shots none registered a hit and no one discovered where they went goldscheider figures women . This test certainly bore out Colonel Hanger’s contention, In addition to the inaccurate shooting of the flintlock, there were always some misfires; and in a lengthy test carried out in 1834 against a percussion musket these worked out at i in 6-1pL burr walnut art deco dresser bakelit .
Nevertheless, for the close-order fighting, short ranges and volley firing of its day Brown Bess was a great weapon; and few viewed its supersession without regret
It was not till 1794 that any new pattern musket was introduced, but as this event took place during the Napoleonic wars, when firearms were at a premium, there was no question of Brown Bess being withdrawn from service antique walnut tall boys . In fact, the old musket must have been in the hands of a large proportiop of the British infantry until the reduction of the Army after the battle of Waterloo 17 century dining tables .
The modifications which were effected during this long career were comparatively few ” american card table” . The most important was the reduction of the barrel length to forty-two inches somewhere about the middle of the century islamic arts ivory inlaid wood cabinet . However, there was no immediate replacement of the forty-six-inch barrel muskets, and some of these were undoubtedly still in service at the time of the American War of Independence antique music stand london . Mr rent baroque wood carving furniture . Scurfield, irx citing the evidence of American students of military affairs for this, mentions an interesting theory as to the use of the long muskets square walnut and burr elm coffee table . He says: ‘Several such amateurs have informed me that among arms left in the United States after the Revolution are a number of extra long firelocks which they describe as “British Grenadier Muskets” wedgwood forgeries . I see no reason to doubt the accuracy of this statement, except perhaps spanish revival italian walnut trestle library table . that part of it which links the long musket with Grenadiers; although my informants were knowledgeable collectors of arms, it may be a romantic embellishment 1940s enamel chronographs .
Presenting the Plan d3sf4wr6gk
Joe had created a business plan for a new gourmet mustard venture. He had spent a great deal of time developing the business initially and very little time putting together a business plan itself. It took Joe a good long while to learn the importance of the look of the plan. It almost cost him everything.
Joe’s plan was a visual mess. The margins were only half an inch wide. Joe had learned in school that wide margins on term papers meant you didn’t have anything to say. In the world of academia, the narrower the margins, the more words per page. More words per page meant more content, which to his professors meant that more work had gone into the effort. And by this measure (instead of an actual reading in some cases) a better grade was received. And so, consequently, Joe felt that with narrow margins and a cramped style the brilliance of his plan would be revealed.
Instead, the opposite was true. The first venture capitalist to receive the plan took one look at the tightly spaced and crowded first page and set the whole thing aside. All Joe received was a letter saying the investment didn’t fit their profile. He never learned it was the presentation of the plan itself that didn’t fit their standards.
The second venture capitalist to receive the plan was a stickler for consistency, neatness, and grammar. Joe’s plan was inconsistent in the formatting of tables, charts, and section headings. It was stapled together in a fairly sloppy fashion. Joe had not bothered to spell-check. By the time the second venture capitalist saw his second spelling error, he had had enough. The whole plan was set aside, and Joe again received a letter saying the investment did not fit their profile.
Joe was perplexed. He had done a great deal of work putting everything in place. He was ready to start shipping cases and cases of the product. He felt like he wasn’t getting a straight answer. He needed to know why the venture guys didn’t relish his gourmet mustard.
One of Joe’s friends offered to hook him up with a venture capitalist who would give him a straight and honest appraisal of the plan. Joe jumped at the offer and overnighted the plan that afternoon,
In three days, Joe met with Jessica, a well-dressed, no-nonsense professional investor. Jessica got right to the point. Joe’s plan was a disaster. It was difficult to read because it was too cramped, without any relieving white space. It was a jumble of type styles and inconsistent formats. The binding with off-centered staples was not neat or professional. Jessica said the entire product reflected poorly on Joe and his business. And in a game where first impressions are crucial, Joe’s current first impression would never lead to a second one.
Joe was crestfallen but thanked Jessica for her candor. He muttered he would probably lose his orders for 100,000 cases. Jessica immediately picked up on the comment. What 100,000-case order? Joe elaborated that he had received several purchase orders from the likes of Safeway and Wal-Mart. The buyers loved this gourmet mustard and were awaiting shipment.
Jessica asked Joe why the purchase orders weren’t included in the supporting materials. Joe didn’t realize the documents themselves were important. He had mentioned the orders at the bottom of page 27. Jessica scoldingly told Joe he was hiding his light under a bushel. Orders of that magnitude should be mentioned on page 1 and attached as supporting material exhibits.
Joe smiled. Did she think he had something? Jessica was now tearing through the financials, the management section, and all her other favorite parts of a business plan. She was starting to appreciate the opportunity in front of her.
As it turned out, Jessica’s firm invested in Joe’s business. And in the process, and very fortunately, Joe came to fully appreciate the importance of plan presentation and the inclusion of important supporting materials.
Your First Impression
The first impression many people will get of your business is your plan’s appearance. Do you think a potential investor or lender will look differently at a business plan that is neatly bound and formatted for ease of understanding compared to one that is written margin-to-margin in purple crayon? What impression do you want to give? Here are a few hints for a good-looking plan:
• Use white (or very light-colored) paper.
• Margins should be at least one inch (but less than two inches) all the way around.
• Font styles should be kept to a minimum (no more than three).
• Colors should be used conservatively (photos and complicated graphics are exceptions). Black print and one or two accent colors are best.
• Pages should be printed on one side only.
• The entire document should be single-spaced with double spaces between paragraphs.
• Don’t be afraid of white space.
• Use bulleted points whenever you can.
• Be consistent with formatting of tables, graphs, charts, titles, and section headings.
• Use neat, professional binding—no staples.
• Use a spell-checker.
• Get someone you trust to look through and read the plan.
• Include a table of contents at the beginning and an index at the end.
Your cover sheet should include all the information a reader will need to get ahold of you (company name, address, and phone number; names, titles, addresses, and phone numbers of owners) as well as the company logo, the date the plan was prepared, and the name of the person who prepared it.
Length
It’s ironic that it takes a 200-page book to explain how to write a succinct business plan. Typical business plans average between twenty to forty pages, including support materials. (Others, of course, maybe longer.) On the surface, it may seem unnecessary to do all the research and planning and organization we suggest, but think of your business plan as a crucible. The research, planning, and organization are the components you focus on in order to create a successful business. A winning business plan not only maps out the keys to a successful business but, more important, addresses the unique aspects of your business in a way that will serve your unique temperament, goals, and experience while simultaneously meeting the needs of investors and financiers.
So how long should your business plan be? The answer is simple: as long as it needs to be. How do you know how long it needs to be? You do the preliminary footwork. This book is an excellent first step. Then start writing. As you write it all out, you’ll get a sense of how long feels right. And again, have trusted friends review your work. They’ll help you determine which areas need to be fleshed out and which ones need to be pared down.
Presentation
Business plans are meant to be seen. Whether you wrote your plan to attract funding or to help with management, you will need to show the plan to someone.
• The plan’s appearance reflects your commitment to creating a winning business plan.
• The plan’s content is far more important than its appearance, but it won’t be read if it lacks a professional look.
If you wrote your business plan in order to attract funding and/or investment, you will need to get the plan into the hands of the people who can decide whether or not to give you money Most of us are uncomfortable when it comes to talking about money. Many of us were taught that it is rude to talk about something so crass. But if you want someone to give you a loan or invest in your company, you will have to get over your upbringing because you can’t just mail out your plan and hope for the best.
If you want loan or investment approval, you will need to schedule meetings to present your plan. Don’t think that just having the meeting and leaving the plan for the decision makers to read will cut it. Don’t leave something as important as your business’s future to chance. Decision makers may promise to read your plan and give it consideration, but you can’t be sure they actually will. The only way to be sure that your potential investors or funders get your message is to present it.
The presentation of your business plan should be a business meeting, a formal presentation. Even if the potential investors are your parents and your little brother, you want to present your plan in a serious and professional manner. (Remember, you can’t advertise for people to come to this meeting.) But for your preexisting audience—your friends and family and any professionals you’ve been in touch with—you might want to use a conference room. This room can be at the potential investor’s or lender’s office. If not and you lack the facilities, try borrowing space from a friend or renting a conference room. You might want to use presentation equipment, such as a computer/projector for your PowerPoint presentation. You should give your audience hard copies of your plan as well. When is up to you.
You can have the plan delivered before the meeting so that your audience will have time to formulate questions, though you run the risk of them making a negative decision before you have a chance to highlight all your positive points. Try having the plan delivered just the day before the meeting so your audience can become familiar with it without enough time to make a decision. Or you can hand out the plan at the beginning of the meeting, though here you run the risk of your audience reading while you are trying to present. Either way, have copies of your presentation slides to hand out so your audience can follow along.
Your slides and their corresponding handouts should contain short, bulleted points and be in the same visual style as your plan. Your presentation should be less formal than your plan in that you don’t want to sound like you are reading. Try to make it as much like a story as you can. Practice your presentation and get feedback from people you trust to give You honest opinions before you go before people who can make or break your business. Keep in mind that your audience can read—your slides and your handouts—so you don’t have to. Let your slides be reminders for your talk. Let them remind you what points you want to make and then expand from there.
If you wrote your business plan to aid in management, who sees the plan will depend on your business, your style, and your goals. Obviously, if the whole business is comprised of you and your spouse, there don’t need to be a lot of secrets. But if yours is a business with a rigid hierarchy with decisions made only at the top level, you might want to limit access. You might choose to share your plan with management only or show employees on a need-to-know basis. You might distribute a version of the plan (say, a version without financial detail, but with graphs and percentages instead), or you could include sections of the plan in your employee manual. It is entirely up to you. Odds are you will want to consider the twin needs of protecting sensitive information and building a sense of ownership, and only you know how to do so.
While people involved with money will have a pretty good idea why you are showing them your business plan, employees might not. You might include your business plan presentation as part of a company retreat or have a special meeting just for the plan. Maybe you want to introduce the plan to everyone at once or department by department. Wherever you choose to have your plan unveiled, be sure you are present. You may choose to deliver the entire message yourself, or you might be better served using a team approach, with appropriate managers discussing different sections. Again, it comes down to your particular approach and your particular business. Regardless, be sure to explain what a business plan is and how it should be used, why you are showing it, and what you expect listeners to do with it. Similarly, if you use the plan as part of your training program for new employees, be sure that they are not just handed the plan cold but are given the same message you gave the others.
As your business and your business knowledge grow, take some time to check back in with employees to see how the plan is being used and how employees feel it is working. Get suggestions and comments from employ ees and then use that input to improve the plan. Let the plan work as a road map, a checkpoint, and a management tool.
Your Plan Is a Living Document
A business plan is an ever-changing, never-completed document. It is always in a state of revision. With the passage of time, expertise grows, markets change, customer bases alter, and technology continues ever onward. Anyone who reads your plan should get the most up-to-date and complete information you are capable of providing. This means that even after you write the last section of your plan, you need to continue to study the markets and stay abreast of industry, market, and economic trends. Just as your business will be in a constant state of flux, so, too, should your plan be.
Anticipating Problems
Ideally, any business plan, whether written for management purposes or to attract funding, will help anticipate problems that could strike your company. Are costs of supplies going up? Is technology getting cheaper? Is competition increasing or decreasing? What is the motion (if any) of your labor pool? What advertising trends seem to be coming around again? Where is the economy in its current cycle? Are your best-selling products peaking, or are they on their downward slide? Which products are showing new strength? Use your plan to draft alternate budgets so you will have some sort of road map if good times get bad or bad times get better. Use your plan to assess whether or not your current circumstances (good or bad) are short-term or long-term.
Supporting Materials
Supporting materials are all the documents that can help convince readers of your business plan that your business is worth their time and/or money.
The documents should be introduced or referenced in the text of the previous sections so that they can stand alone in this section. These documents should need no introductory or explanatory text in this section and therefore can be simply arranged and attached to the final plan or offered as a separate document to serious investors or appropriate personnel.
As you go through the process of writing your business plan, you will think of a host of materials that can help you make the argument (to yourself, your management team, or potential lenders and investors) that your business is a good risk. These documents give credence to your arguments, and they back up your numbers. They help show how you came to your decisions and how you will make your plan work. As you prepare the plan, you should keep a notebook close by to jot down the supporting documents you reference in other sections or that you think you might want to include. Be sure you include every document that you mention in your plan. Don’t make your readers search for the information they need in order to make an informed decision (ideally, the positive decision you want them to make). Some of the support materials you should consider are these:
• Resumes. Ideally, resumes are one page and include work history, education, professional affiliations and honors, and special skills. Include resumes for all owners/partners and corporate officers (whatever applies to your corporate entity).
• Letters of reference. Your letters of reference can come from past investors, lenders, or business acquaintances (people you’ve worked for or with, suppliers, distributors, etc.) or from nonbusiness acquaintances (but avoid letters from friends or relatives) and should be assessments of your business skills.
• Personal finances. While some practitioners suggest including a balance sheet of your personal financial history as well as that of other owners/partners, I am not keen on it. Keep your personal information as private as possible.
• Leases. Include any lease agreements you have for your business (such as those for buildings, vehicles, equipment).
• Contracts. Include any contracts for your business (such as loans, purchase agreements, service contracts, even maintenance agreements).
Remember Joe’s 100,000-case gourmet mustard order? That type pe of business validation is well placed in this section.
• Other legal documents. Include any other pertinent legal documents, such as copyrights, patents, trademarks, insurance policies, and articles of incorporation.
• Other attachments. Include any other documents or information that you have referenced in the body of your plan but that do not fall into any of the above categories. These would include demographic information, maps, and the like.
Depending on your business and the information available, you might also consider attaching:
• Glossary of industry terms
• Product information
• Additional or more specific marketing data
• Marketing materials (brochures, catalogs, etc.)
• Financial analyst reports
• Newspaper or magazine articles
• Company history
• Press releases
• Web pages
Not all plans will need the same information. Those written for management purposes will not need the resumes, letters of reference, or credit reports. Even plans written to attract funding will differ as different lenders or investors will want to see different information. It is best to prepare as much information as you can so that you can easily tailor copies of your plan for various readers and institutions. And please note that the plan found in the appendix is a somewhat abbreviated version for reasons of space. Your plan may have much greater detail.
here are three things that make a company great: their employees, their systems, and their structure. All three of those things have to be polished and excellent in order for any company to be successful. You cannot have one without the other. If you have the best employees in the world, they will do no good if sound systems aren’t in place for them to operate in. A great manager cannot be successful if they don’t have accounting support. Conversely, systems only work if a company has employees that are trained and can utilize those systems to create value. A company’s structure allows for seamless interaction between an employee and the company’s system. Structure allows an employee to know their role and to focus on being successful.
Employees
TRAINING
When you are evaluating which company you will hire to manage your property it can be easy to forget that you aren’t hiring just a company. You are hiring the people within that company. That was the mistake the owners of the West Phoenix property made. They hired a company that had a good reputation, but did not look past the macro to the micro. An interview with the person that was going to be actually on the ground, managing their investment, might have caused them to think twice. I would go so far as to say that the individual a company uses to manage your property is more important than the company itself. After all, you will be dealing primarily with the manager, not the company.
One sign that a company has good employees is the level of education they provide. All of my employees have monthly, ongoing training. I invest in my employees, knowing that the investment will foster growth in both my business and in my employees.
Take a close look at a prospective company’s training systems. A good company will have a training program that focuses on creating top-notch property management employees. For instance, Equity Residential, one of the nation’s largest management companies, has its own “university.” Through Equity University, the company ensures that all its employees attend and graduate from an intensive and standardized training program.
Other companies will utilize corporate trainers. I bring in a corporate trainer every month to work with my managers. She specializes in developing management skill sets in a fun and interactive way.
You might assume that all companies take the time to train and educate their employees. Unfortunately, that is often not the case. Too often companies leave it in the hands of their employees to train themselves. Beware of a company that doesn’t standardize and require training.
JOB SATISFACTION
Take a look at the management company’s employee retention. A good company attracts and retains good employees, If there is a lot of turnover in a company, you can bet there is something going on internally—and it probably won’t be good for your investment. Good companies know the value of their employees and strive to keep them happy and therefore with the company. I learned the value of this lesson firsthand.
At one point we converted one of my properties in Las Vegas from apartments to condominiums. When the property was almost sold out we contracted a home owners association to manage the property. An HOA is a little different from a multifamily management company in that they only manage the common area of the buildings since the units themselves are owned by individuals. HOA companies need to be well versed in legal and financial systems that are quite a bit different from other management types.
My company doesn’t perform HOA management, so we hired a company to do it for us. It was a disaster. I knew we were in for trouble when the manager quit a week after we hired the company. Then the new manager quit a couple months later. Both managers quit because of internal structure issues. They were frustrated with the company, which made them frustrated with their jobs, which made them leave.
Owners on the property started to grumble about the lack of maintenance. If you think it would be bad to deal with one angry owner, try 340 of them. HOA meetings turned into three-hour-long complaint Pests, as one owner after another came forward. Over the course of time this company was under our employment, we had five property managers come and go. Finally we said enough is enough, and fired them.
Systems
Earlier in the book we went into detail about sound property management systems and how to implement them. If you aren’t planning on managing your own property, then you had better be sure that the company you hire is firing on all cylinders when it comes to property management systems.
POLICIES AND PROCEDURES
One of the best ways to get a feel for a company’s level of professionalism is to take a look at a company’s documented policies and procedures. In my company, every manager on-site has a copy of a standardized policy and procedure manual. They are expected to know it by heart, educate their staff about it, and enforce the policies contained within it.
ACCOUNTING
Though a manual is good for detailing on-site operational systems, it is important to determine what kind of systems a company has in place for accounting as well. If a company doesn’t have an excellent, autonomously functioning accounting department, you can bet for sure that the employees on-site will not be able to do their job effectively.
I thank my lucky stars that when I first started in the property management business my company had excellent corporate accounting and support systems in place. Having those taken care of allowed me to focus on managing my properties without worrying about the accounting details. I collected the rent and paid the bills, while accounting produced reports for me that enabled me to make informed and effective decisions. I wouldn’t have survived without them.
Structures
The structure of a company determines its ability to operate successfully. I can think of nothing more important when it comes to a company’s structure than depth. You should be leery of a company that cannot absorb the loss of an employee in any of its departments.
Accounting is the most apt example for this. As an owner, the single most important correspondence you will receive from a property management company will be your monthly and annual financials—the report card. By now you know how important financials are. They tell the story of whether your property is succeeding or not, whether your investment is growing your wealth.
Financials are produced by the accounting staff at a property management company and should be sent to the owner by the 15th of the following month at the latest. When I first started in the property management business my company consisted of myself and an office manager that knew how to do accounting. Most property management companies that you will come across are small like mine was. Generally they will have two to five employees. In the early days, if my accountant were to leave at the end of the month, there would be no way that I would be able to get the financials out to my clients. I would have had no way to absorb the loss of my accountant.
In larger companies, however, the loss of a key employee is not nearly as crippling. The same accountant that I had in the early days of my company is still with me. She is now my regional accounting manager. She has been with me for over fifteen years, and is a major part of the growth of my business. God forbid she ever left, but if she did, my company would still function smoothly. She manages competent people who could step up and help, and my CFO could oversee the process. Financials would still be sent to my clients on the appointed day, and as far as my company’s operations are concerned, they would never know the difference. In a large company, even the loss of a key person can be absorbed and business will function as normal. That is not the case with smaller companies.
Don’t get me wrong, I’m not saying, “Don’t hire a small property management company.” Obviously, if people had followed that line of thinking I would never have gotten off the ground myself, and you wouldn’t be reading this book. For the record, there are a lot of quality small property management companies out there, and one of them may fit the management needs of your investment property perfectly. While depth will be an issue with these companies, that doesn’t mean that the benefits of a small company won’t outweigh the disadvantages.
For example, if you own a single-family investment property as my in-laws do, a large property management company won’t be your best bet since they are most likely managing large multi-unit buildings. In some cases they wouldn’t even consider taking on a single-family house. Such is the case with my company. The reason is that it would be too easy not to give your investment property the attention it deserves. It would often get put on the back burner. If I had an issue with a multi-unit account that brings in $5,000 per month in management fees and an issue with a single-family house account that brings in $ 100 per month, which property do you think I’d focus on? In the case of a single-family property, a smaller management company would be much more inclined to give your property the attention it would need to be successful. I can’t stress this enough: You should always hire a property management company based on what fits the needs of your property.
Finally, one last thing to take a look at when evaluating a property management company is the stability of its portfolio. Do they have properties that they have been managing for years, or is their portfolio a revolving door? You can bet that a management company whose portfolio is always shifting is probably not offering a satisfactory level of service.
You should have a pretty good understanding of the amount of work and effort that is involved in managing a property and whether it is for you. We’ve discussed the qualities you must have or develop—most importantly, assertiveness. You have analyzed your working situation and determined whether managing your own property is a reasonable and cost-effective use of your time.
If you decide that managing your own property is not for you, you now know the attributes you should look for when hiring a property management company. You’re now equipped with the tools to scrutinize another property and compare management companies’ systems. In this chapter, I will show another invaluable method for researching potential property management companies,
In that section, I showed you my own personal method of researching, which I group into three easy-to-define and easily understood categories:
Level 1 Research
Level 2 Research
Level 3 Research
Preliminary research that you can do from your own home. This would include Internet and publication research.
If Level I research leads you to like what you see, Level 2 research will be needed. This is the stage where you meet face-to-face with people in the know. Level 2 research is invaluable in verifying the information you gathered in Level 1. Level 3 research involves utilizing the experts you have already assembled on your team. Call them and run your information past them. They will give you valuable insights. This will allow you to remain objective and keep perspective.
Our intent in Portland was to purchase an apartment building and operate it through third-party management. Knowing my goal for my company to be the best property management company in the Southwest informed my decision to hire a company to manage the property in Portland.
If I spent so much time and energy in researching the property itself, why wouldn’t I spend the same amount of energy in researching who I would choose to manage my valuable asset? That is exactly what I did, and I used the three levels of research in my investigations.
Level 1 Research Finding the Players
Level I research is the preliminary stage of your process. By now you have profiled your property and determined its needs. You are ready to begin searching for property management companies that will be the best fit.
When I was first looking for a property management company for our Portland property, I started with the Internet. I love the Internet. I can’t imagine how I functioned without it. At the tip of my fingers is access to incredible amounts of useful information that would have taken weeks to assemble a few years ago.
I started my online search with the local apartment association, the Rental Housing Association of Greater Portland (RHAGP). Just by going to their Web site I was able to access the contact information of over fifteen local property management companies. I printed out the page listing them and put it in my file.
Also on the RHAGP Web site I was able to read through the local newsletter and get a feel for the players in the local property management market. I printed out back copies of the newsletter and put those in my file too, to read on the plane. I used those for my Level 2 research in order to help me narrow down my list of whom to meet when I visited the city.
Not wanting to be limited to just local property management companies, I also visited the Web sites of some regional and national companies, such as Equity and HSC. Through browsing their Web sites, I was able to determine that each one of these companies had branch offices in Portland staffed with account representatives that I could meet with. I was also able to get a general history of each company, an idea of its business philosophy, and a listing of the properties that it managed in the Portland area. I took down the contact information and addresses of these apartments so that I could tour them while I was in Portland and contact their owners.
Contacting a property owner is an invaluable tool in your search for a property management company. It’s a safe bet that someone who is entrusting the value of their investment to a property management company will shoot straight with you when you ask them about the performance of that company In this case, one of the owners informed me that he was looking to make a change and was not happy with a company’s performance. I was able to confirm this feeling with a few different owners and used that valuable information to scratch that company off my list. Remember the old saying, “You have not because you ask not”? When it comes to real estate, asking an expert a simple question can save you millions of dollars.
Now that I had a good handle on the players involved in the Portland rental market, it was time to focus my list and decide who I wanted to meet when I traveled to the city for my Level 2 research. Again, I accomplished most of this from the comfortable confines of my office chair through the magic of the Internet and my phone.
The local property management companies that I had found online all either had a Web site or a phone number. By calling or browsing their Web sites I was able to determine which companies may be a good fit for my property and which would not. Once I had my list of companies that I was interested in, I called each of them and set up an appointment with one of their account representatives, letting them know I would like to meet them at their office.
Level 2 Research—Meeting the Players
The first thing I did when I arrived in Portland was … grab one of the famed local beers. Level 2 research is a blast. You get to travel to awesome cities and meet incredible people, and it can all be written off as a business expense. To me there is nothing more exhilarating than being able to travel to a new area, meet new people who will help me achieve my business goals, and either confirm or realign my thinking about a certain market,
As I mentioned, I had set up appointments to meet with property management companies before I even left for Portland. I had three companies in mind to manage the property and planned on spending a day with each in order to observe and to really sink my teeth into their operations. I had very clear objectives in mind and very specific things that I wanted to observe.
THE OFFICE VISIT
When looking to hire a company you should always visit its offices. This isn’t about cosmetics. Who cares if it has green carpet and you prefer gray. Visiting an office is all about observing the way in which the business operates. It is also an opportunity to review some documentation that will be vital in your decision-making process.
Keep your eyes open, and observe the office staff. Does it seem organized or chaotic? Is there an air of professionalism, and are the employees dressed neatly? Check to make sure there is a clean and efficient filing system. One company I visited had files stacked on tables. Needless to say I was not impressed. If a company can’t keep their paperwork in order, they definitely won’t be able to keep your investment in order. All of these small visual clues will give you insight as to how the company will manage your property.
Ask to use a conference room and sit yourself down with the employee manual and the property policies and procedures, Read them thoroughly and ask any questions that you might have about what, and what might not, be included in the material. Don’t be afraid to ask the tough questions. This is not a time to be timid. This company may be managing your valuable asset and you should investigate and learn as much about it as possible.
Meet with the manager and asset manager that will be assigned to your property should you hire the company. Remember what I said earlier, even more than the company itself, you will be hiring the people that will be physically working on your property. Ask them about their certifications and their experience in the industry, and ask to see proof and a list of references.
Inquire into the education systems that the company has in place and determine whether they are current in their involvement with the local trade association. Have them explain their philosophy when it comes to training. Oftentimes, when employees take training or an educational course they will receive a certificate of completion. Ask to see those certificates for the people who would be working on your property. You would be surprised, but a lot of times a company will say they are actively training their employees even when they aren’t. Don’t just take a company’s word. Trust but verify
Of course you’ll want to review the company’s accounting systems. These should be spotless. Don’t get involved with a company that doesn’t have a solid accounting staff. Determine what software the company is s using. An added benefit of hiring a management company is that they should have sophisticated financial software in order to provide you the owner with a high level of financial service. If they are running reports only through a rudimentary Excel spreadsheet you might want to think twice.
Talk with the accounting manager. Ask them what types of reports you will see on a monthly and annual basis, and get a feeling for their experience level and education, as well as that of their staff.
Find out what kind of financial services the company provides. Do they pay your mortgage for you? Do they handle the insurance and tax impounds? The more sophisticated the accounting systems the more likely you will be able to enjoy your investment hands-free, and that will allow you to follow Clubhouse
Staff
• On larger properties there will be a clubhouse that generally contains common areas for residents to use and houses the staff offices.
• Ask yourself what kind of first impression you get by walking into the clubhouse. Is it clean and free of clutter?
• Is it clear where the rental offices are, or do you have to hunt around hoping to find someone? Nothing is worse than a potential resident who has been touring apartments all day becoming frustrated because they can’t find a leasing agent.
• Observe whether there is rental material out for potential residents to review such items as floor plans, brochures, and rental pricing.
• When you walk into a rental office, someone should approach you immediately.
• Observe the staff, taking note of their appearance and demeanor. A good company will have employees who are professionally dressed, energetic, and give the impression that they are genuinely excited to show you the property.
• If you have a chance, observe the way in which the staff interacts with residents when they come into the office. A good way to do this is by shopping a property on the first of the month. Everyone will be coming in to pay rent.
• Ask lots of questions. Make sure the employees are well versed in not only the property but also the company’s policies and procedures. Unless they are newly hired, if a leasing agent can’t even tell the rent on the property floor plans without referring to a cheat sheet, or tell you how many units the property has, that may be a troubling sign, Collateral/ • On larger properties there will generally be
Marketing Materials marketing materials such as brochures, flyers, and business cards.
• Make sure these material are professional-looking, and not poor copies that appear in-house, Collateral is a huge factor in making a solid first impression. Never forget that people are not just renting an apartment, but a lifestyle.
• The marketing materials should be placed in an open and readily accessible place.
• Verify the accuracy of the marketing materials. Nothing makes a worse impression than having a leasing agent tell you that a rental amount or lease special is different from what is printed. Not updating printed materials is a serious sign of laziness.
Tours/Models • The most important factor for a prospective resident in determining whether to rent or not will be the model walk or touring of units.
• Make sure that the person who will be touring you gets all your information and fills out a guest card.
• Ask to see the models or the units for rent and Observe the sales presentation.
• Observe the condition of the models or units. Are they clean and stylish? Do they get you excited about living at the community, or are they forgettable?
• Is the person touring you commanding the tour, or do they seem uncomfortable?
• Again, ask lots of questions. Don’t interrogate them, but do pay attention to whether the employee remains attentive to your questions or whether they seem to be getting impatient.
• After the tour, the leasing agent should have immediately tried to get you to lease. The hard close.
Office
• While you don’t need to apply for an apartment, you should show interest and sit down with the leasing agent.
• Observe the condition of their offices. Are there files stacked everywhere, cups of half-finished coffee, and papers littering the desk? Do they have to make a space for you? Any signs of disorganization are bad.
Once you have visited the property management offices, talked to the staff, received advice from other owners, reviewed the policies and procedures, and shopped or visited sample properties, you will have a pretty good idea of who will be a good fit to manage your property. Now you should grab one more of the local brews or visit one more local attraction and head back home to begin the third level of research.
Level 3 Research —Picking Your Player
You can think of picking your management company like the NBA draft.
NBA players are valuable commodities. Think about all the work and preparation that goes into scouting an NBA player. Some teams follow a basketball player from the time they are in high school all the way through college—if they go to college. In some rare cases, players are scouted from junior high and on.
Teams will send scouts all over the country, paying them high salaries, keeping them in fancy hotels, and feeding them steak dinners. All this is done so that they can determine which player the team will eventually draft in order to pay even higher salaries, provide stays at even fancier hotels, and pony up on even steak-ier dinners. NBA teams will spend a lot of money in research just to try to pick the one player that will take them to the next level.
Why all the fuss? The NBA is a billion-dollar business, and the stakes are high when they get to the draft table and it’s their turn to pick a player. You may think that the player salaries are out of control, and you might be right. The fact of the matter is that the players make the owners insane amounts of money—if they play well. All the money a team invests in researching players comes back many times over if they make the right pick. Unfortunately, the odds aren’t that great.
Thankfully the odds are much better when you are picking a property management company, but the stakes are just as high. If you don’t do your research correctly or neglect to do it at all, then the results could be staggering. Remember the property in West Phoenix that my company took over because of our business relationship with the owner? That property was just 100 units, yet it cost them millions of dollars. They didn’t draft the right player, and the property failed because of it.
When hiring a third-party property management company I cannot stress enough how imperative it is that you make a wise, well-informed decision. That is why it is vitally important that you consult your team. Don’t just go by your observations. You need another set of eyes. That is just a sound business principle. Even in writing this book, I had a dozen close friends read the drafts and give me their honest opinions. If I had just finished a first draft and said, “This is as good as it can be,” I wouldn’t have felt good about the final draft.
Level 3 research is the time when you will be able to run your findings by your team of experts. Talk to your property management expert and show them your thought process on the companies that you will be picking. They may have some valuable insights that you might have missed. Have a lawyer review contracts. They will be able to help you avoid any hidden traps. Call and talk to industry players in the market where your property is located. They will have a good knowledge of the local companies and will be able to confirm or modify your findings. just by doing this, I guarantee you will be able to remove some companies from your list, and feel just that much more confident that you can make the right choice for the new player on your investment team.
And thank goodness that the cost for your research is a minor fraction of the cost an NBA team spends in their scouting. The biggest costs are the plane ticket and the hotel. These are a small investment for how many returns a solid property management company will afford. I love the process of researching, and I think you will too.
The Management Contract
Once you have completed your three levels of research and settled on the management company for your property, you will come to the hiring stage. This will involve negotiating the management contract.
First off, you should always have an attorney review any contract that you are going to sign. An attorney will be able to tell straightaway whether a company is trying to fleece you with hidden clauses or trick fee structures.
That said, there a few things that you should definitely keep an eye out for when evaluating a property management agreement.
FEE STRUCTURE
Be sure never to sign an agreement with just a flat fee structure. If a management company is not willing to put a stake in the financial success of your property, chances are they simply aren’t worth the paper their contract is written on. A company that charges a percentage fee of the income collected will be motivated to collect as much income as possible. That will mean more money in their pocket—and yours. That’s what I like to call a symbiotic relationship.
Also, it’s important to remember that the percentages will vary depending on the market your property is located in. If all the property management companies in a market are charging around 6 percent for a 100-unit building, it will do you no good to try to negotiate the fee down to 4 percent. It is your responsibility to know the market your property is in and determine what a fair percentage is.
ACCOUNTING SYSTEMS
Be sure the contract is clear on when rent will be collected, when it will be deposited, and where. It is important to make sure that your money will not be commingled with any other property’s money in the management portfolio.
Determine if the agreement is clear that you will have financial control over the property, and that you can set the guidelines on spending habits for the property. Most likely according to the approved budget, there should also be clear expectations for when and how the management company will report to you on a monthly and annual basis with financials. Dates should be clear as to when all financial reports are due, and it should be no later than the 15th of each month for the previous month’s operations. Be clear on the fees that should be collected and the dates on which they should be collected.
RESPONSIBILITIES
The management agreement should spell out clearly the responsibilities of the management company, and should have legal language for you as the owner if those responsibilities are not met. Remember the importance of getting everything in writing. Don’t settle for generalizations. It will be much better for both you and the company you are hiring if the expectations are detailed in the management agreement.
EXPIRATION
Finally, it is important to have a clear timeline set in the management agreement. Don’t sign multiyear agreements that lock you into a contract with penalties for early cancellation. The term of the agreement should be comfortable for you and match the needs of your property Make sure to note whether the management agreement has an automatic renewal clause. These are not necessarily bad in themselves, but you as the owner should remember the date so that you can review the performance of the company throughout the year before the contract renewal goes into effect.
Owner and Management Company: A Symbiotic Relationship
In the end, remember that you are responsible for your property and how it operates. A good management company will go a long way in taking the burden off you, but don’t think you can disappear from the picture and blame the management company if something goes wrong.
Part of the beauty of having a professional management company run your property for you is that you don’t have to sweat the details. Rather, you can focus on the few things that interest you such as financial review Make sure to meet frequently with your management team, and have them give you property updates so that you can address any concerns about the way in which your property is being managed.
If you follow these steps and do your homework, you will be able to enjoy the symbiotic relationship of owner and management company. Your investment will grow in value, and you will become freer to follow your passions while your wealth multiplies. I can’t think of anything better than that.
