Running header: BUSINESS PLAN 1
BUSINESS PLAN
14
Garden City Real Estate Consultants
Name
University
Contents
i.Abstract3
1.0 Business Description3
1.1 Business name3
1.2 Business Location3
1.3 Ownership4
1.4 Products and services10
1.5.1Table of productst10
2.0 Marketing6
2..1.1 Customer segmentation……… 7
2.1.2 Individual Customers ……… 7
2.1.3 Institutional Customers ……… 7
2.1.4 Other Customer ……… 7
2.2 Marketing strategies ……… 7
2.2.1 Products ……… 7
2.2.2 Advertisementr ……… 8
2.2.3 Promotion ……… 8
2.2. SWOT Analysis ……… 9
3.0 Financial management ……… 10
3.1 Pre-Operational Cost ……… 10
3.1.1 Cash flow projection for the year 2013 ……… 11
References……………………………………………………………
…………………………15
ABSTRACT
Real estate business has been one of the growing businesses in
the world’s economy. This can be attributed to the ever
growing population which has perhaps led to the need for
housing and other related facilities. The business requires
patience and a high level of skills, because it entails valuing of
property market value, based on a number of parameters. The
fact of high demand for more housing facilities does not mean
that there is a ready market. Therefore not everyone can enter
the real estate market and product tangible profits. Real estate
business is a risky affair and one needs to have skills and an
elegant understanding in risk management.
1.0 Business Description
*Add Business Description*
1.1 Business Name
The name of the business will be Garden City Consultants. The
name is derived from the fact that the Company will be offering
a range of real estate services from house construction,
facilitating renting of properties and landscaping as well as
interior designs (Darian 2003). The name is meant to resonate
well with potential clients in the sense that when they visual a
garden city, they see a beautiful dream home with well-
manicured lawns and flower beds. The mission statement of this
business will be “HIGHER GROUNDS FOR HIGHER GOALS”.
The business will would seek to satisfy customers by setting
trends that would not be able to be attained by rivals.1.2
Business location
It will be located at Newton town in Kansas State. Newton is
not a big town as such but it is located in a centralized place
where most people living inside the rural schemes have to pass
by before them head on to the other bigger cities like Wichita,
and it is the town that is a central point for people connecting
on their way to their work places and businesses. The business
will be located near the next to Hutchinson community College
terminus which is also close to the county Hospital, Several
other businesses are already operating within the same point,
though they are not well because the area just opened up
recently, they seem to be doing relatively well. There are
various factors that motivated the choice of this location. Some
of them include the ready market from the College staff and
students. Currently there are no enough hostels to house the
ever increasing population of the college and most of the staff
commutes from other cities and town (Fabian 2007). The office
is close to these potential customers such that we would be able
to reach them and get them houses or constructions services
were applicable. Another reason is that this location has less
competition bearing in mind that it is a new place that is coming
up and most big companies in this line are based in big cities.
The infrastructure here is also well developed with accessibility
guaranteed and therefore clients can easily reach the office.1.3
Ownership
The business will be owned by an individual as sole proprietor.
Garden city consultant will be a registered private Company
with the owner acting as the direct, the business however hopes
to enlist at the stock market in the future and maybe at that
time, it may incorporate other people but for now the business
would strictly be owned and managed by one person who will
be responsible for loses and profits plus carry out any other
duties and responsibilities (Saleemi 2009). The owner will
enjoy advantages like enjoying all the profits alone and also
have the autonomy of making decisions such that he not need to
take a long time consulting others. Since he will answerable to
himself, the owner of the business will exercise full authority in
the daily running of the business. The business will also create
employment because I will need to hire a legal person, office
administrator, constructors, valuers and other people in charge
of support services.
1.4. Products and services
Garden city consultants as a real estate company will work hand
in hand with other companies like legal firms, mapping and
surveying as well as government agencies in charge of urban
and rural development. The main services that the company will
be dealing with include, acquiring space on behave of customers
and carrying out all the transactions on behave of the customer,
another one would be to find accommodation for customers on
request, giving landscaping and interior design services and
advising customers on the best methods of financing home
ownership. The summery of this is shown bellow.
1.5.1 Table of products
Item
Size
Price Range
Landscaping
30 by 60 compound
60 by 80 compound
Above 80 by 80
100 dollars
300 dollars
5000 dollars
Construction
Full scale
Medium
Small scale
10 million dollars
5 million
2 million
Consultancy
Housing
Finance
Other service
10000 dollars
3000 dollars
500 dollar
Chapter 2
2.0. Marketing
Just like many new Companies, Garden city will carry out an
extensive marketing plan so as to create awareness and
visibility within the Newton area and other outside areas as well
, a well-executed marketing plan will ensure that the company
gets more customers and also create loyalty and strong brand .
For us to be able to achieve will carry out the following
activities;2.1 Customer segmentation2.1.1 Individual customers
The individual customers who will be targeted by the company
includes those that will come for finance advice and general
information seeking, some of them will be those that would
perhaps want the company to find them a house for renting or
landscaping. Other individual customers are those that may
want to have their interior designs done or their lawns
landscaped.2.1.2. Institution customers
The Company will also deal with institutions like schools or
churches as well as other Companies (Smith 2000). For example
a school may want to get hostels for their students or they may
want the construction of a block, in such cases we look at them
as institutional customers. Churches may also want to have their
churches constructed or landscaped, or they can also ask for
landscaping and interior designs.2.1.3. Other customers
The Company will factor in other customers like non-
government organization that may ask for services on behave of
others, such services may include our company being engaged
as an outsourced consulting firm to oversee the construction of
orphanages or foster homes for their clients.2.2 Marketing
Strategies
2.2.1. Product
The business will use the product as one of the marketing mix
because this is what potential customers would look at, there
will be displays and models that will be shown during some
open days when customers will be invited for an open day to
experience the kind of services that are offered by the
Company. The customers will also be able to interact with the
staff and ask questions about the products and this will help in
increasing the market base.2.2.2 Advertisement
Advertising is a form of communication intended to persuade an
audience (viewers, readers or listeners) to purchase or take
some action upon products, ideas, or services. It includes the
name of a product or service and how that product or service
could benefit the consumer, to persuade a target market to
purchase or to consume that particular brand. These messages
are usually paid for by sponsors and viewed via various media.
Advertising can also serve to communicate an idea to a large
number of people in an attempt to convince them to take a
certain action.
The business will carry out advertisement by buying space in
the newspapers and some airtime in the electronic media so as
to reach many people outside the town, the approach of
advertising that the business will take is persuasive because the
main aim will be to convince new customers to buy our services
2.2.3 PromotionPromotion is one of the four elements of
marketing mix (product, price, promotion, distribution). It is the
communication link between sellers and buyers for the purpose
of influencing, informing, or persuading a potential buyer's
purchasing decision. The Business will adopt this method so as
to reach potential clients and create a customer base that is
loyal, we will run promotional activities that will enable the
customers to participate so as to experience the mutual
relationships, the specific activities would include running
raffles and giving extra services for example if a customer
requests for a construction service, we give free landscaping,
however, it is good to know that this will be a short term
strategy so that the profits of the business is not affected
much.Promotion can be done as;
· Above the line promotion: Promotion in mass media(e.g. TV,
radio, newspaper , internet,) advertiser pays an advertising
agency to place the advertisement.
· Below the line promotion: All other promotion. Much of this
is intended to be subtle enough for the consumer to be unaware
that promotion is taking place. E.g. sponsorship, product
placement, sales promotions, personal selling, public relations,
trade shows.
2.2. SWOT analysis
The market will be analyzed based on the variables within the
Company and in relation to competition, the reason as to why
the business will have to do this is so that it can be in a
position to ascertain its market share hence predict the future
trends in terms of sales . SWOT analysis is a very important
way of identifying your business community’s strength and
weakness and opportunities, threats your business might face .
The SWOT analysis is versatile.it can be used to analyse
personal strengths, challenges, threats and opportunites to help
you focus your activities in areas where you are strong and to
help plan and compensate for other areas. One of the major
streghths of Graden city is that the owener underatnds the
trends within the secotr of real estitate having worked as a
realitor for many years, this is important because he will be in a
position to analyse and underatnsd the market for growth.
Another streghth is that the location is exeriencing growth
such that more and more housing solutions are needed to help
in mitigating the shortage. Howver the busiess has some
weakenesses too and one of them is that the business may not
find it easy to penetrate some markets in other cities because
there are more experienced businesses operating there. For the
Competitors ,some of them like the Sunbeam Bros has been in
business for a long time and they have a hostory of success
across many cities, this means that they are likely to pause a
serious threat to the business. As for threats the major threat is
just the main competitor. The business would also opportunity
to grow especailly now that the Newton area is till experiencing
growth.
Chapter 3
3.0. Financial management
Refers to estimating the future income, expenses and assets, a
financial plan usually refers to the means by which assets will
be acquired to cover future expenses for instances through
earning, borrowing or using saved cash. Can also be an
estimation of cash needs and a decision on how to raise the
cash, such as through borrowing or issuing additional shares in
a company.
3.1 pre-operational costs
ITEM
Dollars
Licenses
40
Office repairs and partitions
100
Insurance
50
a. Operating expenses table
*These numbers are way off! $30 for rent?*
ITEMS
Dollars
Legal fees
35
Staffs
112
Transport/Maintenance
80
Rent
30
Telephone
100
Total
357
Projected yearly sales
3.1.1 Cash flow projection for the year 2013
*Doesn’t fit on page*
ITEMS
J
F
M
A
M
J
J
A
S
O
N
D
TOTAL
Beginning cash
-
580.00
1,160.00
1,740.00
2,320.00
2,900.00
2,480.00
2,060.00
1,640.00
1,020.00
400.00
1,780.00
18,080.00
cash sale
158,211
158,211
158,211
158,211
158,211
158,211
158,211
158,211
158,211
158,211
158,211
158,211
1,898,532
Debtor
35,000
34,000
34,000
34,000
34,000
33,000
33,000
33,000
33,000
33,000
35,000
33,000
404,000
Total cash
193,211
192,791
193,371
193,951
194,531
194,111
193,691
193,271
192,851
192,231
193,611
192,991
2,320,612
cash purchase
111,455
111,455
111,455
111,455
111,455
111,455
111,455
111,455
111,455
111,455
111,455
111,455
1,337,460
electricity
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
250.00
3,000.00
Rent
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
6,000.00
Maintenance
1,000
1,000
1,000
3,000
Creditors
200
200
Salaries
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
576,000
Loan
5,556
5,556
5,556
5,556
5,556
5,556
5,556
5,556
5,556
5,556
5,556
5,556.
66,672
Loan interest
556.00
556.00
556.00
556.00
556.00
556.00
556.00
556.00
556.00
556.00
556.00
556.00
6,672.00
Tax 16%
25,314
25,314
25,314
25,314
25,314
25,314
25,314
25,314
25,314
25,314
25,314
25,314
303,768
Total
192,631
191,631
191,631
191,631
191,631
191,631
192,631
191,631
191,831
191,631
191,631
192,631
2,302,772
Net Profit
580
1,160
1,740
2,320
2,900
2,480
2,060
1,640
1,020
400
1,780
360
18,440
References
Saleemi, S. (2009). Writing an effective Business plan. Nairobi:
Salemi Publishing House.
Smith, D. (2000). The role of a business plan. Oxford: Oxford
University Press
Darien, G. (2003). Planning for a successful Business. London:
Macmillan
Fabian, S. (2007). Why businesses fail. New York: NYP
Sales volume Jan Feb March April May June July
Augast October NovemberDec 100 34 12 32 33
56 40 37 34 45 45

Running header BUSINESS PLAN 1BUSINESS PLAN .docx

  • 1.
    Running header: BUSINESSPLAN 1 BUSINESS PLAN 14 Garden City Real Estate Consultants Name University Contents i.Abstract3 1.0 Business Description3 1.1 Business name3 1.2 Business Location3 1.3 Ownership4 1.4 Products and services10 1.5.1Table of productst10 2.0 Marketing6 2..1.1 Customer segmentation……… 7 2.1.2 Individual Customers ……… 7
  • 2.
    2.1.3 Institutional Customers……… 7 2.1.4 Other Customer ……… 7 2.2 Marketing strategies ……… 7 2.2.1 Products ……… 7 2.2.2 Advertisementr ……… 8 2.2.3 Promotion ……… 8 2.2. SWOT Analysis ……… 9 3.0 Financial management ……… 10 3.1 Pre-Operational Cost ……… 10 3.1.1 Cash flow projection for the year 2013 ……… 11 References…………………………………………………………… …………………………15 ABSTRACT Real estate business has been one of the growing businesses in the world’s economy. This can be attributed to the ever growing population which has perhaps led to the need for housing and other related facilities. The business requires patience and a high level of skills, because it entails valuing of property market value, based on a number of parameters. The fact of high demand for more housing facilities does not mean that there is a ready market. Therefore not everyone can enter the real estate market and product tangible profits. Real estate business is a risky affair and one needs to have skills and an elegant understanding in risk management. 1.0 Business Description *Add Business Description* 1.1 Business Name The name of the business will be Garden City Consultants. The name is derived from the fact that the Company will be offering a range of real estate services from house construction, facilitating renting of properties and landscaping as well as interior designs (Darian 2003). The name is meant to resonate well with potential clients in the sense that when they visual a garden city, they see a beautiful dream home with well-
  • 3.
    manicured lawns andflower beds. The mission statement of this business will be “HIGHER GROUNDS FOR HIGHER GOALS”. The business will would seek to satisfy customers by setting trends that would not be able to be attained by rivals.1.2 Business location It will be located at Newton town in Kansas State. Newton is not a big town as such but it is located in a centralized place where most people living inside the rural schemes have to pass by before them head on to the other bigger cities like Wichita, and it is the town that is a central point for people connecting on their way to their work places and businesses. The business will be located near the next to Hutchinson community College terminus which is also close to the county Hospital, Several other businesses are already operating within the same point, though they are not well because the area just opened up recently, they seem to be doing relatively well. There are various factors that motivated the choice of this location. Some of them include the ready market from the College staff and students. Currently there are no enough hostels to house the ever increasing population of the college and most of the staff commutes from other cities and town (Fabian 2007). The office is close to these potential customers such that we would be able to reach them and get them houses or constructions services were applicable. Another reason is that this location has less competition bearing in mind that it is a new place that is coming up and most big companies in this line are based in big cities. The infrastructure here is also well developed with accessibility guaranteed and therefore clients can easily reach the office.1.3 Ownership The business will be owned by an individual as sole proprietor. Garden city consultant will be a registered private Company with the owner acting as the direct, the business however hopes to enlist at the stock market in the future and maybe at that time, it may incorporate other people but for now the business would strictly be owned and managed by one person who will be responsible for loses and profits plus carry out any other
  • 4.
    duties and responsibilities(Saleemi 2009). The owner will enjoy advantages like enjoying all the profits alone and also have the autonomy of making decisions such that he not need to take a long time consulting others. Since he will answerable to himself, the owner of the business will exercise full authority in the daily running of the business. The business will also create employment because I will need to hire a legal person, office administrator, constructors, valuers and other people in charge of support services. 1.4. Products and services Garden city consultants as a real estate company will work hand in hand with other companies like legal firms, mapping and surveying as well as government agencies in charge of urban and rural development. The main services that the company will be dealing with include, acquiring space on behave of customers and carrying out all the transactions on behave of the customer, another one would be to find accommodation for customers on request, giving landscaping and interior design services and advising customers on the best methods of financing home ownership. The summery of this is shown bellow. 1.5.1 Table of products Item Size Price Range Landscaping 30 by 60 compound 60 by 80 compound Above 80 by 80 100 dollars 300 dollars 5000 dollars Construction Full scale Medium Small scale
  • 5.
    10 million dollars 5million 2 million Consultancy Housing Finance Other service 10000 dollars 3000 dollars 500 dollar Chapter 2 2.0. Marketing Just like many new Companies, Garden city will carry out an extensive marketing plan so as to create awareness and visibility within the Newton area and other outside areas as well , a well-executed marketing plan will ensure that the company gets more customers and also create loyalty and strong brand . For us to be able to achieve will carry out the following activities;2.1 Customer segmentation2.1.1 Individual customers The individual customers who will be targeted by the company includes those that will come for finance advice and general information seeking, some of them will be those that would perhaps want the company to find them a house for renting or landscaping. Other individual customers are those that may want to have their interior designs done or their lawns landscaped.2.1.2. Institution customers The Company will also deal with institutions like schools or
  • 6.
    churches as wellas other Companies (Smith 2000). For example a school may want to get hostels for their students or they may want the construction of a block, in such cases we look at them as institutional customers. Churches may also want to have their churches constructed or landscaped, or they can also ask for landscaping and interior designs.2.1.3. Other customers The Company will factor in other customers like non- government organization that may ask for services on behave of others, such services may include our company being engaged as an outsourced consulting firm to oversee the construction of orphanages or foster homes for their clients.2.2 Marketing Strategies 2.2.1. Product The business will use the product as one of the marketing mix because this is what potential customers would look at, there will be displays and models that will be shown during some open days when customers will be invited for an open day to experience the kind of services that are offered by the Company. The customers will also be able to interact with the staff and ask questions about the products and this will help in increasing the market base.2.2.2 Advertisement Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These messages are usually paid for by sponsors and viewed via various media. Advertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action. The business will carry out advertisement by buying space in the newspapers and some airtime in the electronic media so as to reach many people outside the town, the approach of advertising that the business will take is persuasive because the main aim will be to convince new customers to buy our services
  • 7.
    2.2.3 PromotionPromotion isone of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. The Business will adopt this method so as to reach potential clients and create a customer base that is loyal, we will run promotional activities that will enable the customers to participate so as to experience the mutual relationships, the specific activities would include running raffles and giving extra services for example if a customer requests for a construction service, we give free landscaping, however, it is good to know that this will be a short term strategy so that the profits of the business is not affected much.Promotion can be done as; · Above the line promotion: Promotion in mass media(e.g. TV, radio, newspaper , internet,) advertiser pays an advertising agency to place the advertisement. · Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, sales promotions, personal selling, public relations, trade shows. 2.2. SWOT analysis The market will be analyzed based on the variables within the Company and in relation to competition, the reason as to why the business will have to do this is so that it can be in a position to ascertain its market share hence predict the future trends in terms of sales . SWOT analysis is a very important way of identifying your business community’s strength and weakness and opportunities, threats your business might face . The SWOT analysis is versatile.it can be used to analyse personal strengths, challenges, threats and opportunites to help you focus your activities in areas where you are strong and to help plan and compensate for other areas. One of the major streghths of Graden city is that the owener underatnds the trends within the secotr of real estitate having worked as a
  • 8.
    realitor for manyyears, this is important because he will be in a position to analyse and underatnsd the market for growth. Another streghth is that the location is exeriencing growth such that more and more housing solutions are needed to help in mitigating the shortage. Howver the busiess has some weakenesses too and one of them is that the business may not find it easy to penetrate some markets in other cities because there are more experienced businesses operating there. For the Competitors ,some of them like the Sunbeam Bros has been in business for a long time and they have a hostory of success across many cities, this means that they are likely to pause a serious threat to the business. As for threats the major threat is just the main competitor. The business would also opportunity to grow especailly now that the Newton area is till experiencing growth. Chapter 3 3.0. Financial management Refers to estimating the future income, expenses and assets, a financial plan usually refers to the means by which assets will be acquired to cover future expenses for instances through earning, borrowing or using saved cash. Can also be an estimation of cash needs and a decision on how to raise the cash, such as through borrowing or issuing additional shares in a company. 3.1 pre-operational costs ITEM Dollars Licenses 40 Office repairs and partitions 100 Insurance 50
  • 9.
    a. Operating expensestable *These numbers are way off! $30 for rent?* ITEMS Dollars Legal fees 35 Staffs 112 Transport/Maintenance 80 Rent 30 Telephone 100 Total 357 Projected yearly sales 3.1.1 Cash flow projection for the year 2013 *Doesn’t fit on page* ITEMS J F M A M J J A S O N
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
    References Saleemi, S. (2009).Writing an effective Business plan. Nairobi: Salemi Publishing House. Smith, D. (2000). The role of a business plan. Oxford: Oxford University Press Darien, G. (2003). Planning for a successful Business. London: Macmillan Fabian, S. (2007). Why businesses fail. New York: NYP Sales volume Jan Feb March April May June July Augast October NovemberDec 100 34 12 32 33 56 40 37 34 45 45