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Haystax R.H Business Plan 2020

Haystax R.H Business Plan 2020

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Haystax R.H Business Plan 2020

  1. 1. The Haystax Mortgage (RH) Inc. business plan. Table of Contents Company Analysis What is Haystax? Haystax RH Immediate Expansion Plan Long-Term Expansion Plan Business Model Mission/ Vision Statement Market Opportunity Industry Analysis Canadian Mortgage Broking Industry Overview Industry Performance Impacts of COVID-19 in Canadian Mortgage Industry Industry Outlook Key Industry Trends Products and Services Segmentation Market Analysis Market Overview Canadian Mortgage Major Markets Digital Mortgage Brokerage Marketplace Boom 1 of 26
  2. 2. Millennials Approach Local Target Markets GTA(Greater Toronto Area) Housing Market Mississauga Competitive Analysis Competitive Overview Major Competitors SWOT Analysis Marketing Plan Marketing Overview Marketing Goals Online Marketing Initiatives Direct Marketing Initiatives Sales Projection Operational Structure Corporate Information Corporate Structure Conclusion 2 of 26
  3. 3. What is Haystax? Haystax is Canada’s first Online Mortgage Marketplace powered by Artificial Intelligence. We match Customer's mortgage needs with lender guidelines for automatic online pre-approval. Every applicant is offered with 3 best lender options for their unique mortgage situation all from the comfort of their mobile device. Most industries have evolved and moved online, however, the Canadian mortgage industry has not advanced in this direction. Haystax is shifting the paradigm and dynamic and responsive technology is launching this industry into the 21st Century. Haystax's principal investor Mr. Paul Therien, one of Canada's most recognized mortgage leaders, founded Haystax Financial Inc. because he believes Canadians deserve a transparent online process with impartial lender choice. Haystax's technology knowing "it's time that Al systems with social intelligence, machine learning, and a predictive process provide consumers with fast and easy access to homeownership." Haystax Mortgage has access to a full range of mortgage sources and is dedicated to finding the right loan -with the best rates, terms, and costs- to meet our clients' unique needs. We provide an online solution with personal service and specialized knowledge of mortgage options and trends. Haystax RH Haystax R.H has been created as a dedicated and wholly owned franchise of Haystax Financials Inc initially focusing on the geographic boundary of Ontario, Canada since January 2020. We primarily focus on the mortgage markets of Toronto, Ottawa & Mississauga. . Haystax RH Mortgage combines the power of world-class technology with their guarantee that allows franchisees and their teams to seamlessly integrate technology into their business. This provides Canadians with better access to mortgages, while enhancing the ability of mortgage professionals to provide exceptional advice to their customers. The Haystax EXIT program is a unique program that allows mortgage professionals and franchise owners to build tangible, saleable, equity in their business that is backed by a written guarantee from Haystax Financial Inc. This guarantee can be used to sell their business to a third party, or alternatively, Haystax Financial Inc. will provide them with the buyout. 3 of 26
  4. 4. Haystax RH is an outstanding mortgage brokerage firm serving the lending needs of real estate professionals, builders and individual homebuyers. We have access to a full range of mortgage sources and are dedicated to finding the right loan -with the best rates, terms and costs- to meet our clients' unique needs. Haystax RH provides superior personal service to buyers. Our responsibility as mortgage professionals is to determine what a customer's financial goals are, not just quote a rate. We have access to hundreds of loan programs, allowing us to arrange the most beneficial solution... whatever the buyer's needs may be. Objectives & Goals ● To provide a high-quality service so that customers will perceive great value. ● To expand into the national market. To obtain additional funding to fuel the expansion. ● To become one of the premier equity lenders serving individuals with less than perfect credit or who are self-employed in GTA and Ontario. ● Statewide Mortgage plans to closely monitor changing technology to be certain that the company is using the latest and most cost-effective tools to keep up with current trends in the marketplace. ● To provide Mortgage with at least CAD 1 Million in retained earnings over the next five years. ● In addition to the above goals, we will survey our customers and make changes in our programs and add services to meet their changing ideas in the marketplace. Immediate Expansion Plan The Canadian mortgage market has changed substantially in the past 20 years: trust companies have been taken over by banks; small virtual banks have offered new mortgage products;, and brokers now play an important role in matching borrowers and lenders. Our major expansion plan aims to recruit 100 new Agents/brokers in 2021. We are looking to Recruit twenty five new Sub-Franchises in the GTA in 2021 and recruit and attract another twenty five each year thereafter for the next five years. The company's vision is to build a state-of-the-art mortgage processing application and Internet site that will in itself become the defacto standard for executing the mortgage process. The site will provide all users with real-time access to any customer application in process. This seamless sharing and managing of information provides more profitable management of the loan pipeline, enhanced customer service, and substantial 4 of 26
  5. 5. gains in productivity. Long-Term Expansion Plan Haystax R.H's is aiming to be one of the top five mortgage brokerage firms in Ontario and an online mortgage marketplace for the residents of GTA. Haystax R.H is motivated to expand in one hundred most prominent cities/ neighborhoods of the GTA. We are striving to grow by providing opportunities for more small businesses to join and thrive in the network as the country works together. Business Model The company's business model focuses on a unique strategy called Task-Trigger-Task. There are two primary components to the company's approach, the technical infrastructure that the company will utilize and the methodology, which is the core to the environment that will be created. Both of these components utilize the Task-Trigger-Task business model. The technical infrastructure consists primarily of the web-based environment. In this environment, customers will utilize a system that is made up of tasks, which occur in the mortgage loan process. These tasks often occur concurrently, and in many cases, specific tasks must be completed before other tasks can start. The relationship of these predecessors and successors is defined by the Task-Trigger-Task business model. The technology that Haystax developed will automatically monitor this process, and manage to a successful conclusion the pre-defined relationships of which tasks trigger which tasks. As a methodology, the Task-Trigger-Task business model will drive the customer-oriented approach for the company. The technology will identify which tasks have or have not been concluded. The operational management team will closely monitor the results and will escalate any tasks or triggers that are not concluded within a preset time frame. This is the key differentiation between Haystax R.H and its competitors. No other company has built a business model that so effectively ties the operations of the company to its infrastructure. Our Mission and Vision Our Mission Statement “Within a culture of support and loyalty, we seek to create a transparent 5 of 26
  6. 6. consumer-centric environment that provides an exceptional client experience, that encourages and compels users to promote us with five-star reviews and referrals.” Our vision is to build a mortgage brokerage and loan services brand that will become the number one choice for individuals, smaller businesses, and corporate clients in the Greater Toronto Area. Our vision reflects our values: integrity, security, service, excellence, and teamwork. Our mission is to provide professional, reliable and trusted mortgage brokerage and loan services that assist individuals, start-ups, corporate organizations, and non-profit organizations in sorting out their mortgage and loan-related concerns. We will position the business to become one of the leading brands in the mortgage brokerage and loan services line of business in the whole of Ontario, and also to be amongst the top ten mortgage brokerage and loan services firms in Canada within the first five years of operations. Market Opportunity The Canadian mortgage market currently represents approximately $1.55 trillion of residential mortgage credit provided by banks, credit unions institutions, and lenders. Mortgage brokers play a critical role in helping Ontarians navigate this complex process, that for many, represents the largest financial decision of their lives. According to Mortgage Professionals Canada, about 28% of Canadians use a mortgage broker to arrange their mortgage. As of December 31, 2018, there were 1,221 mortgage brokerages, 2,765 mortgage brokers, 11,745 mortgage agents, and 210 mortgage administrators licensed in Ontario under the MBLAA. Industry Analysis Canadian Mortgage Broking Industry Overview The Canadian mortgage market has changed substantially in the past 20 years: trust companies have been taken over by banks; small virtual banks have offered new mortgage products;, and brokers now play an important role in matching borrowers and lenders. At the end of 2017, the Canadian mortgage market had grown to more than $1.5 trillion, representing almost forty percent of total outstanding private sector credit. The market is 6 of 26
  7. 7. dominated by Canada's six major banks, although this has not always been the case. Recent research at the Bank of Canada has analyzed the Canadian mortgage market in this context. The purpose of the research is to understand how the interaction of market structure, product differentiation, and information frictions determines rates in the Canadian mortgage market. Mortgage brokers became important participants in the lending process. Brokers typically earn between 1 and 1.3 percent of the value of mortgages that they bring to a lender. The share increased from less than ten percent to over thirty percent in recent days. This suggests that a large number of consumers sought the help of a broker when shopping for a mortgage. The mortgage brokers are involved in one out of every three transactions in Canada right now. A report by Canada Mortgage and Housing Corporation says (61%) of buyers who used a mortgage broker said they did so either to get a better interest rate, (52%) to save time, and (50%) because of the advice they received. The rise of the online mortgage brokerage and aggregators are adding more value to the industry. 7 of 26
  8. 8. Impact of COVID-19 in Canadian Mortgage Industry: COVID-19 has changed the way we do business in the short-term. In economic timelines, the shock from COVID-19 was instantaneous as governments moved to reduce face-to-face activity. Housing transactions disappeared almost overnight. The way we do business has changed and may have profound effects on the way we will do business in the future. However online mortgage brokers and online lending solutions bridged the gap between borrowers and lenders. For this reason, Haystax is perfectly positioned to have exponential growth with its online platform in this industry. ● National home sales rose 7.2% on a month-over-month (m-o-m) basis in December. ● Actual (not seasonally adjusted) activity was up 47.2% year-over-year (y-o-y). ● The number of newly listed properties climbed 3.4% from November to December. ● The MLS® Home Price Index (HPI) rose 1.5% m-o-m and was up 13% y-o-y. ● The actual (not seasonally adjusted) national average sale price posted a 17.1% (y-o-y) gain in December. Industry Outlook Many broker networks in Ontario reported, market activity across the province is estimated to remain very steady in 2021, with the potential for average sale price increases of between seven and twelve percent in regions like London (ten per cent), Kitchener-Waterloo (seven per cent), Hamilton-Burlington (seven per cent), Niagara (twelve percent), and Kingston (ten percent), Cornwall (ten percent) and Thunder Bay (ten percent). This is being attributed to high demand and low supply, coupled with shifting home buying trends toward local liveability factors such as more space, larger yards, and closer proximity to amenities like parks. Remote working and work from home culture have pushed a setback in the commercial real estate but the residential real estate segment has seen a drastic rise in price and attracted a lot of first time home buyers, as a fact 35% of the transactions in 2020 were made by first time home buyers. 8 of 26
  9. 9. Key Industry Trends Our research finds that "mortgage loan", "mortgage broker", "residential mortgage" are the hottest keywords in google search throughout 2020. Homeowners are showing interest in moving towards more spacious and liveable neighbourhoods. Google Keyword Trends Most preferred sub-regions where the search pinged from. 9 of 26
  10. 10. Products and Services Segmentation Haystax R.H offers a variety of services within the scope of the mortgage brokerage and loan services industry in Ontario. Our intention of starting our mortgage brokerage firm in the Greater Toronto Area is to leverage the opportunities available in the city and its surroundings. We are well prepared to make profits from the industry and we will do all that is permitted by the law in Canada to achieve our business goals, aim, and ambition. Our business offerings are listed below; ● Brokering residential mortgages ● Brokering commercial and industrial mortgages ● Brokering home equity loans ● Brokering equipment financing arrangements ● Brokering residential mortgages online ● Brokering mortgage refinances online ● Brokering home equity loans online ● Providing an online mortgage marketplace ● Providing other related loan from mortgage consulting and advisory services 10 of 26
  11. 11. Market Analysis Market Overview The mortgage brokerage and loan services industry is indeed a very large industry and of course, it is one industry that works for individuals and businesses across different industries. If you are conversant with the trend in the mortgage brokerage and loan services industry, you will realize that loads of people are leveraging on the services provided by the industry to empower themselves and their businesses. The truth is that, without the services of players in the mortgage brokerage and loan services industry, it will be pretty difficult for some individuals and even start-up businesses to access loans or save-up to purchase a property. They are responsible for helping individuals and businesses bypass the bureaucracies involved in obtaining loans from banks and other financial institutions et al. Another notable trend in the mortgage brokerage and loan services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry. So also, the mortgage brokerage and loan services industry has benefited from the advancement of online platforms. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry. Consumer Trends Among Mortgage Broking The mortgage brokerage and loan services industry is indeed a very large industry and of course, it is one industry that works for individuals and businesses across different industries. If you are conversant with the trend in the mortgage brokerage and loan services industry, you will realize that loads of people are leveraging on the services provided by the industry to empower themselves and their businesses. The truth is that, without the services of players in the mortgage brokerage and loan services industry, it will be pretty difficult for some individuals and even start-up businesses to access loans or save up to purchase a property. They are responsible for helping individuals and businesses bypass the bureaucracies involved in obtaining loans from banks and other financial institutions et al Background image Another notable trend in the mortgage brokerage and loan services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry. So also, the mortgage brokerage and loan services industry has benefited from the advancement of online platforms. Going forward, increasing 11 of 26
  12. 12. product penetration and of course an expanding customer base is expected to drive growth in the industry. The Big-8 Canadian Mortgage Markets When we look at a market share from a regional perspective there's a clear distinction between the Big-8 Ontario markets (see map above) and the rest of Ontario. The Big-5 banks have remained popular in the bigger Ontario markets and made significant increases in 2017. No study about Ontario mortgage markets is complete without at least a glance at Toronto - with 22% of the entire market of Ontario, it is just too big to ignore. Digital Mortgage Brokerage Marketplace Boom The COVID-19 pandemic and the resulting nationwide lockdown forced the country's mortgage lenders—like many businesses across the country—to adjust their operations in this unprecedented and brave new world of conducting business. Practically entire workforces were told to work from home, which tested the abilities of lenders to keep business operations running smoothly. At the same time, they faced unprecedented demand for customer support when mortgage deferrals were first announced. Not only was technology employed to support the shift to mobile work environments, but it played an important role in facilitating the rapid adoption of a more digitized mortgage process for clients. Lenders quickly implemented greater capabilities for things like 12 of 26
  13. 13. digital signatures for commitment letters, pre-authorized debit forms, closing documents, and a variety of other documents. Before this pandemic, Canadians were already moving to a more online-focused mortgage experience, where they could more easily compare mortgage rates and products between lenders. The pandemic has forced Canadians to increasingly move the rest of their lives online, even those that have been reluctant to do so. As a result, we expect the trend of increasingly online mortgage experiences to continue. Fixed and variable rates are currently at historic lows, in an effect to stimulate the economy. Until both the Canadian and global economy is close to fully recovered, we expect these rates to stay low. Only once we see more positive news around both the economy and the ongoing pandemic do we expect mortgage rates to start rising again. Here are some interesting behaviors of mortgage consumers online: Age Demographics for Online Mortgage Inquiries in Canada: ● Average age 38 ● Oldest age:90 ● Youngest age: 19 13 of 26
  14. 14. Most active Mortgage Originations 14 of 26
  15. 15. Millennial's Approach Millennials in Canada are facing a very different home-buying environment than their parents. Soaring real estate prices, high levels of student debt, and precarious employment are making it difficult for young people to get into the housing market. Despite these challenges, a recent survey found that eighty percent of Canadian millennials want to own their own home, Surprisingly twenty seven percent already do. The average first-time buyer in Canada is thirty six years old. The pandemic Has Increased Home Buying Intentions Among Young Canadians. Haystax RH is currently positioning itself to be a leader in Millennial home purchases. With the introduction of online pre-approvals with actual banks competing for their business to Real Estate shared equity programs that assist the home buyers with up to 20% down payment. At Haystax we are looking to be more than your typical Mortgage brokerage. Local Target Market The demographic and psychographics composition of those who need the services of mortgage brokerage and loan services firms cuts across individuals, small businesses and large corporations. Haystax R.H will initially serve small to medium-sized businesses, from new ventures to well-established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading mortgage brokerage and loan service firms in Canada. As a standard and licensed mortgage brokerage and loan service firm, Haystax R.H. offers a wide range of mortgage brokerage and loan-related services hence we are well trained and equipped to services a wide range of clientele base. Our target market cuts across businesses of different sizes and individuals. We are coming into the industry with a business concept that will enable us to work with individuals, small businesses and bigger corporations in and around Toronto (GTA) and other cities in the province of Ontario. Below is a list of the businesses and organizations that we have specifically designed our products and services for; 15 of 26
  16. 16. ● Real Estate Investors ● Churches and other religious organizations ● Corporate Organizations ● Individuals and households ● Entrepreneurs GTA (Greater Toronto Area) Housing Market The average selling price in Greater Toronto was $929,699 in 2020, up 13.5 percent from $819,279 compared with 2019. The number of homes sold in 2020 in the Greater Toronto Area totalled 95,151, up from 87,751 in 2019, and the third-best year on record. Average price was up in 95% of areas between January and June 2020, compared to the same period in 2019. Double-digit increases were reported in 60% of 416 districts and in 50% of 905 districts. 16 of 26
  17. 17. Mississauga Mississauga's mortgage market is constantly shifting, and it offers a wide variety of mortgage products. Mississauga home price rose to $880,374 in 2020 (Jan. 1-Oct. 31) compared to $760,345 in 2019 (Jan. 1-Dec. 31). In 2021, we can expect an increase of 4% in average price to approximately $1,150,588. The average cost of home or condo ownership in Mississauga continues to climb to record highs despite the ongoing COVID-19 pandemic and resulting economic uncertainty. The average sale price for dwellings of all types in Canada's sixth-largest city came in at $919,295 across 8,711 sales in 2020, according to the latest market statistics from the Toronto Regional Real Estate Board (TRREB). 17 of 26
  18. 18. Competitive Analysis Competitive Overview We are quite aware that to be highly competitive in the mortgage brokerage and loan services industry means that we should be able to make available easy to access mortgage loans; bypassing the difficult to surmount hurdles of obtaining loans from the bank and other financial institutions. Haystax R.H might be a new entrant into the mortgage brokerage and loan services industry in Canada, but the management staff and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified mortgage brokerage and loan services consultants in Canada. These are part of what will count as a competitive advantage for us. Lastly, our employees will be well taken care of, and their welfare packages will be amongst the best within our category (start-ups, mortgage brokerage and loan services firms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. 18 of 26
  19. 19. Major Competitors Haystax Financials Inc's franchise program ensures no two franchises of the brand are competitive with each other in the same geolocation due to conflict of interest. There won't be any major competitor offering the same services as we do within the same location. However, the online mortgage marketplace is a growing business model and most of the online marketplaces don't have physical offices. We consider the following online mortgage brokerage firms/ marketplace as our competitors. ● RATESDOTCA - https://rates.ca/ ● INTELLIMORTGAGE - https://intellimortgage.com/ ● BUTLER MORTGAGE - https://www.butlermortgage.ca/ ● NESTO - https://nesto.ca SWOT Analysis Haystax RH engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well-structured mortgage brokerage and loan services firm that can favorably compete in the highly competitive mortgage brokerage market in Ontario. Part of what the team of business consultants did was to work with the management of our organization in conducting a SWOT analysis for Haystax R.H. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Haystax R.H; Strength: Aside from our robust business network with financial lending institutions and players in the real estate industry, our core strength lies in the power of our technology. Our Al powered mortgage lender-borrower matchmaking algorithm picks three best lenders who will most likely willing to work with the applicant's financial needs. Our team; With a collective experience of 40+ years in the mortgage industry our team can go all the way to give our clients value for their money; a team that is trained and equipped to pay attention to details and to deliver excellent returns for the business. We are well-positioned and we know we will attract loads of clients from the first day we open our doors for business. 19 of 26
  20. 20. Weakness: As a new mortgage brokerage and loan services firm in the GTA, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated mortgage brokerage services industry; that is perhaps our major weakness. So also, we may not have enough budget to give our business the kind of publicity through digital marketing we would have loved to. Opportunities: The opportunities in the mortgage brokerage and loan services industry are massive considering the number of individuals, start-ups, and of course corporate organizations who can't afford to do without the services of mortgage brokerage and loan services. As a standard and well-positioned mortgage brokerage and loan services firm, we are well-equipped and ready to take advantage of any opportunity that comes our way. Threat: Some of the threats that we are likely going to face as a mortgage brokerage and loan services firm operating in Ontario are unfavorable government policies, the arrival of a competitor within our location of operations and a global economic downturn which usually affects purchasing/spending power. Our team is strongly motivated to overcome these threats other than to be optimistic that things will continue to work for our good. Marketing Plan Executive Summary Haystax R.H is a registered and licensed mortgage brokerage firm and a franchisee of Haystax Financials Inc doing business as Haystax Mortgage.ca located in the heart of the Greater Toronto Area. We have been able to secure a standard office facility in the heart of the GTA. We will offer services such as brokering residential mortgages, brokering commercial and industrial mortgages, brokering home equity loans, brokering equipment financing arrangements, brokering vehicle loans, brokering residential mortgages online, brokering mortgage refinances online, brokering home equity loans online, providing an online mortgage marketplace and providing related mortgage cum loan advisory and consultancy services. 20 of 26
  21. 21. We are aware that to run an all-round and standard mortgage brokerage firm can be demanding which is why we are well trained, certified and equipped to perform excellently well. Haystax R.H is a client-focused and result-driven mortgage brokerage firm that will provide broad-based mortgage brokering and loan brokering services at an affordable fee that won't in any way put a hole in the pocket of our clients. We will offer standard and professional services to all our individual clients, and corporate clients. We will ensure that we work hard to meet and surpass our clients' expectations whenever they patronize our services. At Haystax R.H our client's best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the mortgage brokerage and loan industry. Haystax R.H will at all times demonstrate its commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client's needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees, and for our clients. Our plan is to position the business to become one of the leading brands in the mortgage brokerage and loan brokerage services line of business in the whole of Ontario, and also to be amongst the top ten mortgage brokerage firms in Canada within the first five years of fully launching the business. This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Ontario is the right place to launch our mortgage brokerage firm before sourcing for clients from other cities in Canada. Our founding team has over forty + years of collective experience working at various capacities within the financial consulting industry with a strong bias for mortgages in Canada. 21 of 26
  22. 22. Marketing Overview We are mindful of the fact that there is stiff competition amongst mortgage brokerage and loan services firms in Canada, hence we have been able to hire some of the best business developers to handle our Online Sales and Marketing Strategies. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis, so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent service deliveries speak for us in the marketplace; we want to build an exceptional mortgage brokerage and loan service business that will leverage satisfied clients (both individuals and corporate on word of mouth advertisement from organizations). Our goal is to grow our mortgage brokerage and loan services firm to become one of the top 10 mortgage brokerage and loan services firms in Ontario which is why we have mapped out a strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the GTA (Greater Toronto Area) but also in other cities in Ontario. Marketing Goals Being an online mortgage marketplace most of our customer interaction and sales will be driven through online/ internet. We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market. Our digital marketing goals: ● 5k website visitors every month ● To achieve a 1:5 conversion ratio for every visitor ● 2.5k social media engagement every month ● Indexed in 1st page of Google for certain keywords Online Marketing Initiatives Haystax R.H is set to make use of the following online marketing and sales strategies to attract clients; ● Social Media Marketing ● Search Engine Optimization for Google page Ranking ● Digital Ads (Google, Facebook, Mortgage Forums, Twitter, Reddit) 22 of 26
  23. 23. ● Influencer Marketing PPC Search Engine Ads ● Affiliate Marketing Program (Client Referral/ Partnerships) ● List our business on yellow pages ads (local directories) ● Attend relevant international and local real estate, finance and business expos, seminars, and business fairs ● Create different packages for different category of clients (individuals, start-ups and established corporate organizations) in order to work with their budgets ● Leverage on the internet to promote our business Direct Marketing Initiatives A mortgage is a type of product that still demands some human interaction and personal touch. Our direct marketing initiatives cater to those customers who are looking for personal attention and direct services. ● Engage direct marketing approach ● Encourage word of mouth marketing from loyal and satisfied clients ● Introduce our business by sending introductory letters alongside our brochure to households, corporate organizations, schools, players in the real estate sector, and other key stakeholders in the GTA area ● Advertise our business in relevant financial and business related magazines, newspapers, TV stations, and radio stations. ● Install our Billboards on strategic locations all around the GTA. ● Engage in roadshow from time to time all around Ontario to promote our brand ● Distribute our flyers and handbills in target areas all around GTA ● Ensure that all our workers wear our branded shirts and all our official vehicles are well branded with our company's logo. Sale Projections and Forecast for coming years The fact that it is pretty difficult for the average individual and start-ups out there to obtain mortgage loans from banks and other financial institutions gives leverage to mortgage brokerage and loan services firms like ours. This goes to show that the potential to generate income for the business cannot be ruled out. We are well positioned to take on the available market in the GTA and on our online platforms and we are quite optimistic that we will meet our set target of generating enough income/profits from the first year of operations and grow the business and our clientele base beyond GTA to other cities in Ontario. 23 of 26
  24. 24. We have been able to critically examine the mortgage brokerage and loan services market and have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered in the field and some assumptions that are peculiar to startups in Toronto. Below are the sales projection for Haystax R.H, it is based on the location of our business and the wide range of mortgage brokerage and loan services that we will be offering; 24 of 26
  25. 25. ● First Fiscal Year 2021 $1,484,383 ● Second Fiscal Year 2022 $2,968,765 ● Third Fiscal Year 2023 $4,453,148 ● Fourth Fiscal Year 2024 $5,937,530 ● Fifth Fiscal Year 2025 $7,421,913 Operational Structure Sustainability and Expansion Strategy The future of a business lies in the number of loyal customers that have the capacity, and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a company, then it won't be too long before the business closes shop. One of our major goals of starting Haystax R.H is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. Haystax R.H will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken off. Our company's corporate culture is designed to drive our business to greater heights, and training and retraining of our workforce is at the top burner of our business strategy. In the future a profit-sharing arrangement will be made available to all our management and staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to helping us build the business of our dreams. Corporate Structure Haystax RH, is a mortgage brokerage and loan services firm that intended to start small in Toronto, but now aiming to grow big in order to compete favorably with leading mortgage brokerage and loan services firms in the industry both in GTA and Ontario. We are aware of the importance of building a solid business structure that can support the picture of the kind of world-class business we want to own. This is why we are committed to only hire the best hands within our area of operations. 25 of 26
  26. 26. Ordinarily, we would have settled for two or three staff members and settled for just online mortgage brokerage services, but as part of our plan to build a standard and world-class mortgage brokerage and loan services firm in Toronto, we have perfected plans to get it right from the beginning. The picture of the kind of mortgage brokerage and loan services business we intend on building and the business goals we want to achieve, is what informs the amount we are ready to pay for the best hands available in and around GTA as long as they are willing and ready to work with us to achieve our business goals and objectives. At Haystax R.H, we will ensure that we hire people that are qualified, hardworking, and creative, result-driven, customer-centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers). As a matter of fact, a profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions; ● Chief Executive Officer ● Mortgage and Loan Brokerage Consultants ● Admin and HR Manager ● Marketing and Sales Executive ● Accountant ● Customer Care Executive / Front Desk Officer 26 of 26

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