For a Built Environment Developer: Smart Environment Developers - Business Plan Example

Individual reflective report s Submitted by s: Executive summary Smart Environment Developers seeks to become a prominent developer and deliver key projects that will contribute meaningfully to its area of operation. The overall strategy of the company is founded on a continuous process of improvement that entails creating objectives, measurement of results as well as provision of feedback in order to facilitate additional progress and growth. The head offices of SED are located within the local area and the management of the company is highly qualified with extensive experience. The people who will lead the management team have amassed more than twenty years of experience in the construction industry, especially in environment development. Products From years of experience, the owners of SED have come up with sophisticated solutions to bidding, materials and scheduling for the development of some of the most complicated constructions that are being undertaken presently. The company seeks to employ versatile and entire adaptable approaches for various configurations of development. All the people in the company including the managers, owners, general contractors as well as sub-contractors among other are supposed to acknowledge the considerable savings in terms of costs of material and labour through utilizing the construction systems and methods of the company. The market The housing market has experienced considerable growth in the past decade with records being set in terms of the sale of new-site single-family houses, which was a considerable gain from the previous decade therefore creating an excellent opportunity for expansion in the industry (Andersson, Pettersson and Strömquist, 2007, p. 23; Smith and Munro, 2013, p. 111). Smart Environment Development seeks to quickly foster marketing alliances with the leading companies in the industry while at the same time pursuing new sales of the services it offers in regards to residential and commercial development. The marketing approach will emphasize on securing contracts at various level including the city, state and federal levels. The company plans to adopt a direct sale approach, relationship selling as well as the use of sub-contractors in order to serve its targeted market. These are the most suitable approaches since they are characterized by shorter time to market, decreased capital requirements as well as rapid access to the already established distribution channels. Financial consideration The company expects to surpass its breakeven point in the in the third quarter of its first year and regardless of the initial expenditures that are supposed to promote its sales, the cash account of the SED will be expected to continue being healthy. SED expects a considerable amount of money in sales revenue and realistic net profits by the third year. Mission The mission of Smart Environment Development is to become the preferred partner for its customers, workers as well as suppliers and to in order to achieve this goal, the company will work hard towards profitable growth, excellence in its operations, satisfaction of customers as well as a strong position for the brand. Objectives To be working in two development projects in the first year of establishment To work on one building renovation process in the first year To attain at least five percent profitability by the second quarter of the second year Success drivers The company believes the main drivers of success will include: 1. Use of the most current material and tools to ensure quality for the customers and the company 2. Enlightening the customers and giving them valued advice in the process of the environment development planning phase (Ordóñez de Pablos, 2013, p. 219) 3. Assisting to confirm the research done by the customers in regards to market targeting and particular sectors 4. Supervising logistics linked to the project that may include arrangement for local transportation as well as scheduling meetings among others (Sims and Veres, 1999, p. 197) 5. Allocating the actual work to expert and highly qualified contractors and sub-contractors Company Summary To begin with, the company has calculated the gross development value to be 1,620,000 pounds and the net development value to be 1,526, 850. Product and services SED will sell its services to customers who are associated with environment development as well as construction and the employees of the company will come up with specific construction drawings, which will be used as the blueprints for the schedule, sequence of working and materials required for the development project. The owners, along with the general contractors and developers will be able to make significant savings in terms of the costs of materials and labour using the approaches that have been developed by SED. The approached created by SED offer general adaptability at prices that are cost effective and the drawings that will be made available to the contractor will stipulate the order of development and construction including the areas where various elements will be located while at the same time advising clients of various allowable rates. In order to operate in the market with minimum overhead costs, SED is planning to use sub-contractors in some of its operations as well as independent professionals for its construction and building project (Uher and Davenport, 2009, p. 201). In regards to safety, emphasis will be on the prevention of accidents as a means of demonstrating commitment. Additionally, the company will endeavour to reduce any conceivable hazards and risks that may lead to injury to individuals or illnesses since the company prides in making sure that safety and health are not compromised. Market analysis There are more than five hundred thousand companies in the UK whose operations are in one way or another associated with the area of environment development. Majority of these companies are small and have less than ten employees since small contractors usually employ an average of four workers. The construction industry has relatively more opportunities than numerous other industries for people who wish to own and run their own businesses. Currently, the local area continues to boom with numerous development projects by private and public sources and there has been a significant overall growth in the past decade, which is projected to continue for the next few years. This state of affairs creates a feasible market from SED and the company will focus on the development of office buildings, which is the segment that is characterized with the fasted growth in the area of commercial development. In the long term, the company will venture into selling building material to contractors and through progressively establishing itself as a company that provides materials. SED will seek to widen and strengthen its scope in the environment development. In the initial stages, it will concentrate on buying supplies for its environment development projects then utilize the completed projects to market and display the superiority of the materials and the personalized methods used in their design and construction. SED will foster marketing alliances with the key companies in the industry while pursuing new buyers for its services. Therefore, the market strategy will entail capitalizing on the future alliances of the company through securing contracts at various levels. The company will also employ a direct sales force, sub-contracting and relationship selling as a means of reaching its market. Market segmentation For the purpose of this paper, the target market that has been identified shall be segmented as follows: Development of office buildings General construction Analysis of service business The environment development industry can be divided into segments like general contractors, civil engineering, and other projects including the contractors in specialty trades such as painting, electrical work, carpentry and plumbing. Typically, construction is coordinated by general contractors who are dedicated to one form of construction like commercial or residential building. These general contractors are accountable for the entire job apart from specific portions of the work that are sometimes left out of the general contract. Even though general contractors may be involved in doing some portion of the work through their crews, in most instances, they sub-contract to companies involved in heavy construction or the contractors engaging in specialty trades. Typically, the contractors in specialty trade deal with a single trade like carpentry, painting or electrical work, or two trades that are closely linked to each other, like heating and plumbing. Apart from fitting their operations to the ones that are done by other trades, specialty contractors are not responsible for the structure of the project as they get their orders for their work from the general contractors, owners or architects. On the other hand, repairs are mostly done on direct orders from the owners or the architects. Smart Environment Developers will mainly focus its activities on: development of commercial buildings supply of building materials Summary of strategy and execution SED will employ a direct sales force, sub-contracting and relationship selling as a means of reaching the markets it targets. The owners of the company seek to emphasize to the customers that the company is involved in more than just general environment development and they coordinate entire constructions. The company is planning to advertise itself in both print and broadcast media as well as a website that will have the background of the company as well as contact information. There will be references to this website in all the other means of advertising that will be used by the company. Competitive edge Smart Environment Developers seeks to become a prominent provider of environment develop services in the local area and to attain this, it will make investment in numerous ways that will lead to competitive advantages for its customers through: conferencing before the job when requested helping in conceptual or technical designs helping in overseeing where other contractors have been employed organizing for staff and facilities that supervise projects Marketing strategy SED’s marketing strategy is the main driver for its success and includes: Emphasizing its name and exceptional services through advertisements Focusing on environment development as the initial and target market Utilize the completed project to display the company’s customized project management to the prospective customers Sales strategy In order to achieve success, the company needs to plan. Therefore, Smart Environment Developers will employ its strategies in order to be successful through: Assessing the potential of the company through structured processes Strategizing around strengths in order to maximize productivity and profitability Developing tactics that will aim at achieving success Evaluating the level of past successes in order to mark progress that will act as a guide for growth Implementing action plans for success that are aligned with the strategic goals of the management Management summary The management philosophy of the company will be founded on mutual respect and accountability and SED will use a structure that will inspire respect for the customers and other workers as well as productivity. SED will be take responsibility for its workers and sub-contractors, all the employees working for the company will viewed as individuals with their dignity and merit being respected and recognized by the company. The workers will be at liberty to complain or suggest solutions so that they can have a sense of security in their jobs. Additionally, Smart Environment Developers will give equal opportunities for employment and advancement to all its employees. The people employed at SED have a commitment to: Provide a safe work setting that will protect other workers, sub-contractors and the public Supply safety products to customers Constantly enhance the safety program of the company in order to decrease occurrence of accidents Encourage other workers to take part in initiatives that seek to prevent accidents and be accountable for their own and other people’s safety Comply with regulations and contribute to high standards of safety in the industry Monitor workplaces, enforce safe practices in the workplace and communicate the safety performance of the company Financial plan The managers and owners of SED have extensive experience in the local environment development industry and seek to make heavy investment in this new company and their amassed experience will make sure of success of the new venture. It will be imperative to monitor salaries and other regular expense to ensure the company is not affected by a shortage of cash to finance its operations. The company will assume a progressive growth in the market It will further assume a gentle financial progress It will also assume that there the economy will not crash thereby limiting access to the target market Projected Profit and Loss Smart Environment Development is in its infancy phase of development and this implies that initial projections have only been made on the basis of the sales projections as well as effective control measures that exist. It is expected that the monthly profits of the year will become positive by the tenth month even though the year will be closed with negative profit. This is essentially attributed to personal expenses that will include overhead costs and salaries. Projected cash flow For the project, the company has set its initial cash at 93, 150 so that it can be flexible in the manner that it handles any unforeseen changes in cash flow in the initial months to cover overheads. Bibliography Andersson, A., Pettersson, L. and Strömquist, U. 2007, European metropolitan housing markets, Springer, Berlin. Ordóñez de Pablos, P. 2013, Business, technology, and knowledge management in Asia, Business Science Reference, Hershey, PA. Sims, R. and Veres, J. 1999, Keys to employee success in coming decades, Quorum, Westport, Conn. Smith, S. and Munro, M. 2013, The Microstructures of Housing Markets, Taylor and Francis, Hoboken. Uher, T. and Davenport, P. 2009, Fundamentals of building contract management, UNSW Press, Sydney. Read More