How to Create a Business Plan for a Mortgage Producer

by Charles Crawford; Updated September 26, 2017
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Every new business needs a plan and mortgage originators or producers are no exception. Writing the business plan for your mortgage company forces you to consider important subjects early on, before they can develop into serious mistakes that may not be correctable. This is why it is so important for you, as the new company’s owner, to write the business plan yourself. The steps for creating your plan will differ from the sequence of the written plan. For example, the executive summary of the plan appears first, but you should write it last.

Steps in Creating a Business Plan

Step 1

Analyze your market. Consider trends in consumer spending and debt. Is there a strong demand for credit services in your market area? If so, that is a positive indication for your business. Develop a clear understanding of your potential customers. How strong is the competition?

Step 2

Write out your business objectives. This is a discipline that saves you from “fuzzy thinking” and helps you develop strategies for achieving your objectives. When you decide on the strategies, write them down as well. Be specific about what you and your team will have to do to achieve your objectives. You can review these objectives and strategies periodically to gauge your progress.

Step 3

Formalize the marketing strategies that will enable you to achieve your business goals. Include your policy on pricing your firm’s services, taking competitive pressures into consideration. Comment on how you will deploy advertising in various media and how you will use public relations techniques.

Step 4

Commit to financial projections for the next three to five years. The first year should be monthly projections, while later years may be stated quarterly or annually. Later comparisons against actual results will give you valuable information for ongoing planning purposes.

Step 5

Write a description of your business, based on the planning that you have already completed. This will have its own section in the business plan and should appear near the beginning.

Step 6

Assemble information on members of your management team and include it in a section near the end of the business plan. Be sure to include each person’s experience in the mortgage industry or related fields and their responsibilities in the company.

Step 7

Combine the most compelling information from the other sections into a strong executive summary. The executive summary is important in case you will be showing the business plan to others, such as potential investors in your business or bankers. Quite often the executive summary and the financial projections are the only sections that outsiders read.

Step 8

Arrange the sections of the business plan as follows: executive summary, business description, business objectives, market analysis, marketing strategies, financial projections and management.

About the Author

Charles Crawford, a former commercial banker, has been a business writer in New York since 1990. He has produced marketing materials for an executive outplacement firm, written the quarterly newsletter of a medical nonprofit organization and created financing proposals/business plans. Crawford holds a Bachelor of Arts in English and a Master of Science in international affairs from Florida State University.

Photo Credits

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