Business Plan for Meadow Real Estate - Case Study Example

?Business Plan Unit Business Plan: Meadow Real E Executive Summary Meadow Real E (MRE) is a start-up company in the Atlantic City in New Jersey. The mission of MRE is to provide housing and rental unit services in Atlantic City community. Meadow real estate offers a full-fledged services to its customers including a company title and a mortgage. The rental and housing services will provide an excellent atmosphere, cutting edge features and safety for all customers. These services will be provided with supreme levels of customer attention and service. The sales of the company are expected to be extensive in less than one year but expected to rise reasonably within two years. Meadow Real Estate will be a limited liability company and will be registered in the state of New Jersey for the purposes of paying taxes. It also plans to be leveraged through loans and private investment. MRE plans to begin offering its services from January 2012. Its main clients will be families and aged couples who are looking for a spacious and cool environment to raise their families. Additionally, MRE offers an inclusive real estate, title and mortgage services to our diverse customers. We expect to be the dominant sellers of condos, rental houses, new homes and family apartments, in addition to, offering a variety of services in order to facilitate the selling and purchasing of real estate including: Transfer of Titles Appraising Preparation of property Loan approval and Mortgage consulting Databases for home searching Mission Statement The mission of MRE is to provide to provide housing and rental unit services in Atlantic City community, located in North of New Jersey. The company will offer a wide range of services, which include title and mortgage. Our main objective is to maintain a high level of satisfaction of our clients which is achievable. Happiness, safety, and comfort are our primary goals. Vision Statement MRE vision is to provide excellent home services to its client. It also aims to create a minimum of 99% of satisfaction rate of the customer in order to establish a relationship that is long-term with our customers as well as market the company through a word of mouth. Values Statement We value our reputation as a company and therefore, we cultivate the ideals of tenant’s needs importance. This comes along with an understanding and a healthy relationship as well as professional MRE commitment to satisfy its clients (Abrams, 2003, Pg 417). Business Detail Our company maintains uncomplicated model but still provides excellent living environment to its clients. The housing and rental services are a reflection of fast technology expansion and need for good housing quality. MRE is dedicated to giving its customers an environment that is free from daily hassles where they can enjoy benefits of inviting, safe, and attractive units. We still strive to maintain a market that is competitive in terms of prices; while at the same time expand our rental and housing units, which we own in order to increase profit. However, we also value satisfaction of our employee just like the customers as part of the company success. This is because we believe that satisfaction of our employee will lead to the company’s success and the main reason for its durability (Abrams, 2003, Pg 417). The caretaker of the rental and apartment units will be available full time to customers as a company representative in order to make sure that our customers’ requirements and needs are met and exceeded. Market Research New Jersey is flooded with Real estate business but MRE assume that none of them offers the quality we that we intend to offer. This business is highly competitive, with a number of upcoming similar businesses, which offer the same services. However, we have an opportunity to step ahead of them properly by making sure that our houses are of high quality, in addition to, selling them at reasonable prices. The company will also be marketing to other professionals living within the area that are looking for a high-quality and safe environment that can fit the atmosphere they need to raise their families. Organizational structure and Delivery The service and structure of MRE is also not complicated. We are a consumer-based company where we establish and maintain contacts with the mortgage companies and other residential services. We offer our customers titles, moving consultation, appraisals, consultation, community information, and sales preparation. Ethics practices & Guidelines The company will be registered in the state of New Jersey for the purposes of paying taxes, as one of the most important ethics that is required in this kind of business (Abrams, 2003, Pg 417).We do not tolerate any bad ethics, like discrimination. We treat every customer as equal, regardless of his or her race, religion, and sex. Additionally, we treat our clients with a high level of integrity, respect, and honesty, in terms of keeping our offices open, making sure that both our customers and staff are happy and maintaining a good relationship with the community that surrounds us. We will also make sure that our prices are not overcharged in any way. Licensing and regulatory It is obvious that for every business to operate, it needs to be licensed and regulated. Therefore, MRE will be a registered private limited liability company. Our titles and mortgage services are also in accordance with the law, to make sure that we do not give our customers anything that is fake and to avoid any complications with the government. All housing, rental and condos should be licensed on their own as well as the land which they are built on. We aim at having a high standard of clarity and quality service that will not be taken for a ride by operators that are unscrupulous. Sales forecasting In a real estate business, we depend on clients who need housing services. As MRE, we need those customers who need apartments, rental houses, as well as retirement houses to live with their families. However, we may be affected by hard economic times that exist, but at the same time we may be saved by retirement couples and families who are in need of a cool and decent environment to raise their families from, as well as spend their retirement days. Since this is a housing business, we will not depend on seasons like winter or summer. We are all weather kind of business and therefore, we intend to operate at all times. Distribution plans and collaborations We plan to make sure that our offices are located in all places across the New Jersey, in order to reach as many customers as possible. Marketing our housing services to as many people as possible is our main objective. The company will also be reevaluating and updating a company’s information over the year in order to give our customer’s information that is accurate. In case our housing facilities are fully booked we will make sure that we retain the customer’s information. In case we get a space in future or direct him or her to another similar company that maybe of help to him or her. This can only be done by having a business competitor with whom we shall establish a good working relationship. By so doing we will be gaining a positive rapport with our customers, as well as increase diplomacy with our competitors, in the sense that they can also refer customers to us in the near future.We believe that two businesses can grow and build each other by doing business in a respectable manner. Staffing and scheduling The company needs 35 employees to meet the entire needs of our customers in every estate. This will help us get information and feedback from each housing facilities, for the management to resolve, identify, flow of the business, reaction of our customers in terms of our services and potential setbacks. We want to make sure that everything runs smoothly, to allow us know our employees and customers better. We will also make sure that our employees are well paid in order to keep them in their work but at the same time make profit after the sale of the houses excluding all the expenses. Our accountant will be responsible for bookkeeping, so as to make sure that our taxes, licenses are paid accurately as well as making sure we work with the budget. Start-up costs Our start-up costs will be expensive because we need architect, legal, stationery, consultants, rent, insurance, equipments, truck, and funds for contractors and cash to hire architects before opening. To add to this, we need cash to pay the government fees and zoning regulations. Purchases that are both long-term liabilities and assets will be anticipated. Start-up expenses Item Value (U.S. $) Architect cash $20,000 Brochures $ 1,625 Stationery $ 1,400 Consultants $15,750 Legal fees $15,500 Rent $12,000 Insurance $8,000 Equipments $3,500 Construction $ 425,000 Other expenses $ 4,250 Total $687,025 Budget Allocation &Revenue Projections Fiscal Year Revenue projections and budget allocation that the company requires is modest. This will include expenses and other cash that we need in order to support our daily operations until our revenues come to a level that is accepted. Most real estate companies come from investment management and other investors from private companies, but we have a current loan from Commercial Bank investments, to pay within a period of three years. We assume that the company will gain its profit by the end of first year after we open but we do not predict any cash flows that are serious. MRE believes that during the first two years, we will have an average profit every month from each of our segments. Year1 Year 2 Year 3 Year 4 Blue- sales Red-Gross Margin Green-Net Profit Quarter 1 Start-up loan-$400,000 Start up expenses -$687,025 Rent services $3,500.00 Operating expenses Architect cash -$20,000 Brochures - $ 1,625 Stationery - $ 1,400 Consultants -$15,750 Legal - $15,500 Rent -$12,000 Insurance-$8,000 Equipments-$3,500 Construction -$ 425,000 Other expenses -$ 4,250 Total $687,025 Quarter 2 Rent services $3,500.00 Architect cash -$20,000 Brochures - $ 1,625 Stationery - $ 1,400 Consultants -$15,750 Legal - $15,500 Rent -$12,000 Insurance-$8,000 Equipments-$3,500 Construction -$ 425,000 Other expenses -$ 4,250 Total $687,025 Start-up loan repayment-$100,000 Quarter 3 Rent services $3,500.00 Architect cash -$20,000 Brochures - $ 1,625 Stationery - $ 1,400 Consultants -$15,750 Legal - $15,500 Rent -$12,000 Insurance-$8,000 Equipments-$3,500 Construction -$ 425,000 Other expenses -$ 4,250 Total $687,025 Start-up loan repayment-$100,000 Quarter 4 Rent services $3,500.00 Architect cash -$20,000 Brochures - $ 1,625 Stationery - $ 1,400 Consultants -$15,750 Legal - $15,500 Rent -$12,000 Insurance-$8,000 Equipments-$3,500 Construction -$ 425,000 Other expenses -$ 4,250 Total $687,025 Start-up loan repayment-$100,000 Information Technology (IT) Data and Needs Requirements We do not need many requirements in IT. We only need a computer in each of our offices, in order to keep our records, customer information, book-keeping, tax liabilities, revenue generation in order to help us keep track of all our expenses and allow transparency in the business. We will also need the computers to perform calculations, analysis, forecasting and allocate funds from our budget. We expect MRE to have the latest technology that will be provided to both our contractors, outside clients and customers. For example, we require a 24hr fax and copy that will be put on all our buildings. Each unit will also be installed with a panic emergency alert automatically to the local police and manager personnel and modem jack or port for MSN. Quality Management &Assurance The company’s quality will be a reflection of what we represent in term of our housing services. In order to follow up on this, we will make sure that the management of the MRE visits the various facilities twice in a year, in order to obtain feedback considering our services. We will also be able to cite if any house or facilities needs repair or any other service regarding that matter. Additionally, this will help us conduct a thorough observation with all our employees to check on their work quality. Our housing facilities and design must also be of high quality and therefore, each and every facility and stone must be kept clean and in good condition. In case of any falls, we will make sure that we repair with immediate effect or replaced. Longevity & Sustainability Challenges According to (Abrams, 2003, Pg 417) new business always falls after their first year. This is because most of them fear to risk in some new areas of the business; do not have any vision and misallocation of funds. Since we largely depend on our customers to buy and rent our housing services, we may be at risk if we do not get our targeted customers within a period of one year after we start the business. However, we have organized the company in such a way that we will handle both decline and growth of our sales. By maintaining good relations with our staff, we believe that this will help us hit the business with good quality of our services. We estimate that during the first year we will make an average sale, but still make profit. Work cited Abrams, Rhonda M. The Successful Business Plan: Secrets & Strategies. Palo Alto, Calif: The Planning Shop, 2003. Print.Pg 417 Read More