Business Plan

HH Apartment Rentals Business Plan

GG Investment

January 5, 2012

Table of Contents

I. Executive Summary…………………………………………………………………………………….. 3

II. Business Profile ………………………………………………………………………………………….3

III. Industry Analysis………………………………………………………………………………………..3

IV. Service Offering …………………………………………………………………………………………4

V. Sales and Marketing ………………………………………………………………………………….. .4

VI. Financials ………………………………………………………………………………………………….5

VII. Vision, Mission and Goals…………………………………………………………………………..6

VIII. Brief Project Plan ……………………………………………………………………………………..6

IX. Conclusion………………………………………………………………………………………………… 6

I. Executive Summary

The proposed company, GG Investment, will offer quality residential properties on rent in the National Capital District, ABC. The company aims to fulfil the housing needs in the region. GG Investment apartment units will provide a combination of cutting edge facilities, excellent customer service, safety and a great environment for all the residents. The business plan provides an overview of the ownership, objectives, offerings, financial considerations and marketing strategies for the project.

II. Business Profile

GG Investment will be registered in ABC as a proprietary limited enterprise. The business will operate under the ownership of Mr. XY TT. Mr. TT has many years of experience in the real estate industry and has worked in different positions of responsibility over the years.

Initially, the firm will focus on three properties located in aa, bb, National Capital District, ABC. The project will be funded through a loan of USD x,000,000 from xyz bank and shareholders’ equity of USD x,000,000. Start-up assets for the project will be USD x,000,000.

The main office of the company will be located at xyz. Individuals in search of quality residential properties will be GG Investment’s primary customers. Our world-class housing units will offer comfortable accommodation at affordable prices. The firm is expected to begin providing services by April, 20xx.

III. Industry Analysis

There is a huge demand for quality and affordable housing across major urban hubs in ABC, especially in and around P B. With the development of these regions, more and more people are migrating to the area. The annual average population growth rate of the country is 3%. The population growth rate in the urban areas is even higher. This is the main driver for housing demand.

Housing prices are beyond the reach of many because of the high demand. The rate of population growth, migration to urban centres, low vacancy rates, the high prices of house construction, and high rentals all point towards the severity of the situation. GG investment aims to fulfil this unmet need.

At present, GG Investment does not face any major threats. Even if new competitors enter the market, high demand for housing services is likely to offset the possible threat. Small real estate firms will be the most probable future entrants in the industry.

GG Investment will target a broad segment of the market, which includes all the individuals looking for quality and affordable housing. GG Investment housing properties will provide a combination of worldclass amenities, safety and a great living environment.

IV. Service Offering

GG Investment aims to provide the best possible real estate services. Our offering includes:

Housing offered by GG Investment will not only be comfortable, but also affordable. This makes it a great choice for individuals belonging to the middle class. Moreover, the proposed property is conveniently located close to various commercial establishments. This will ensure that the residents need not go far to fulfil their basic necessities. The location is also ideal for those employed in the vicinity.

Modern amenities, cost effective rates, excellent maintenance services and proximity to commercial establishments along with the sustainability measures implemented in the property will make GG Investment housing one of the best possible choices for people in the area.

V. Sales and Marketing

GG Investment’s strategy is to enter the market with better and reasonably priced service packages, and establish long lasting relationships with clients based on exceptional services and affordability. In order to ensure high occupancy, the company will focus on leveraging various contacts in the real estate market.

GG Investment will make use of marketing channels like newspaper, phone directory and radio for establishing presence in the area. Benefits like security and excellent maintenance promoted through these channels will also help boost occupancy.

VI. Financials

Investment and expenses involved in the company will be moderate. The project requires an initial investment of USD x,000,000. Including the funds required to support business operations until the returns reach an acceptable level, the investment may come up to USD x,000,000. The project will be financed through a loan of USD x,000,000 from xyz Bank, to be repaid over the duration of ## years and shareholder equity of USD x,000,000.

With the growing demand for quality housing, returns from the venture are anticipated to be substantial during the first year and increase over the three-year period. The average profitability over the first three years is expected to be positive. Based on the firm’s profit and loss projections, net income by the end of the third year will be approximately USD xxx,xxx. The generated income will also be used to expand to further locations. The key financial projections have been provided below:

Project Profit and Loss (All figures in USD)

Year 1

Year 2

Year 3

Rent Income

Expenses

Payroll

Estimated Maintenance

Estimated Facilities Management Cost

Stamp Duty

Marketing – Mailers

Marketing – Outdoor Advertising

Marketing – Print

Marketing – Brochures

Total Operating Expenses

Depreciation

Earnings Before Interest and Taxes

Interest

Earnings Before Tax

Corporate Tax

Net Income

Projected Cash Flow (All figures in USD)

Year 1

Year 2

Year 3

(xx)

yy

zz

VII. Vision, Mission and Goals

Vision Statement

GG Investment aims to be a leading firm in the real estate industry. We endeavour to drive change through exceptional services and dedication to the community. Our aim is to not just meet, but exceed client expectations.

Mission Statement

Our mission is to provider real estate services of the highest quality at affordable prices. Customer oriented approach will help us fulfil this mission and ensure continuous improvement in service quality.

Goals and Objectives

GG Investment objectives for the next three years are as follows:

 VIII. Brief Project Plan

 The steps involved in the successful launch and completion of the project will include:

Milestone

Due Date

Secure Funding

By April, 20xx

Acquire Properties

By May, 20xx

Refurbish acquired properties

By June, 20xx

Assemble an efficient facility management team

By June, 20xx

Run marketing campaign

June – September, 20xx

Sign lease contracts

By October, 20xx

 IX. Conclusion

The proposed company, GG Investment, will offer quality hosing at affordable rates to ABCns. Population is increasing at a rapid rate in the urban areas of the country because of development. Thishas created a huge demand for cost effective yet comfortable housing. The company aims to fulfil this unmet demand. World-class facilities, excellent customer service, safety, efficient maintenance, sustainability measures and great environment are a few factors that will set GG Investment housing units apart from the others. We look forward to serving the middle class of the country and raising the standard of housing through our projects.