Real Estate Management Business Plan
MSN Real Estate (MSN) is an Oregon-based real estate company that will offer benchmarked rental units for the Eugene, Oregon community. MSN’s units will balance safety, cutting edge features, and a positive atmosphere for all tenants. These rentals will be provided with unmatched levels of customer service and attention. Sales are projected to be substantial in year one growing moderately by year three.
MSN will target three distinct customer segments. The largest segment that they will service is University of Oregon students. This segment is growing at 7% a year with 18,000 prospective customers. This segment is especially attractive since most of the local rental properties that are geared toward students are run down, poor quality units. The second market segment is local professionals who are increasing at 4% and have 12,000 potential members. The last segment is faculty and staff of the University. This section has a 5% growth rate and 6,000 potential customers.
MSN will initially focus their efforts on buying and developing existing properties. Once the properties are purchased, each unit will be hard wired with Internet access, state-of-the-art amenities will be installed, and safety measures will be implemented ensuring a cutting edge, safe environment. This course of action will be initially pursued as a way to efficiently utilize capital and establish a reputation within the community. Future projects may include custom build outs.
MSN will be led by Shawn Menashe and Nathan Koach. Shawn has a bachelors degree in Economics and received his MBA from the University of Oregon. Following school, Shawn went to work for one of the largest property management companies in the area. After seven years with [name omitted], Shawn had risen up to Vice President of Operations. It was his time at [name omitted] that provided Shawn with valuable industry insight and experience. Nathan brings different skills sets to the company, coming from a customer service background. At the young age of 21, Nathan had already completed his undergraduate degree and went to work for Voice Stream Wireless. After six years at Voice Stream, Nathan had been promoted to the Director of Customer Service for the Salem, Oregon center. In this position Nathan managed Voice Stream’s 200 person customer service department. This experience provided Nathan with incredible customer attention skills that he will leverage for MSN.
- Encouragingly substantial sales in year one and growing steadily through year three.
- Gross margin moderate and improving over the span of the plan.
- Net profit/sales to be positive by the second year.
- Have a crime rate of 0.
MSN Real Estate provides high-quality, comfortable rental units in Eugene and other areas of Oregon. MSN’s apartment units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. Our company is dedicated to a hassle free living environment in which our tenants can enjoy all of the benefits of safe, attractive, and inviting units. Unlike many other realty companies that are solely concerned with turning profits, our primary objective at MSN is to maintain the highest level of customer satisfaction that is achievable. Tenant safety, happiness, and comfort are our main goals. MSN maintains competitive market prices, while working toward expanding the number of units owned, and increasing total profits earned. Within the company we will strive to work as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer satisfaction is an intricate part of MSN’s success, so is employee satisfaction. That is why the founders of MSN Real Estate believe that employee satisfaction will make the company a success and will be the key to their longevity.
Initial focus will be to buy and develop existing apartment complexes. We will modify and remodel the acquired real estate so as to meet MSN standards and increase long-term assets and income. Housing units will predominantly be located in the University neighborhood targeting both students and professionals. MSN fosters the ideals of the importance of tenant needs along with healthy and understanding relationships and a professional commitment to satisfaction.
1.3 Keys to Success
- Safe, quality housing that provides state-of-the-art amenities at competitive prices.
- Maintaining open communication between MSN and its customers in order to ensure the highest level of customer satisfaction and long lasting reputation within the community.
- To continue to expand the number of units owned and maintained, while also increasing the level of profits for both MSN and its investors.
MSN Real Estate is an enterprise that is involved in numerous aspects of the industry. Primary experience and expertise is in the development of high-quality, lower cost living for students and professionals seeking the most up-to-date technologically advanced living environment. An area of intense training and attention is the importance of strong customer service.
The first property purchased by the company is a 40-unit apartment building on the corner of Hilyard and 14th in Eugene. It is relatively close to the University, so will be easily rented to capacity nine months out of the year. For the remaining three months, the price of rent will be reduced and we will aim to remain at 60% capacity.
2.1 Start-up Summary
The total start-up expenses include legal, stationery, architect, brochures, consultants, insurance, rent, construction, expensed equipment, etc. Start-up assets required include short-term assets (truck, cell phone, etc.), and initial cash to handle the architect and contractor fees prior to opening. Additional cash is needed to pay all zoning fees and governmental regulations.
Long-term asset purchases and the assumption of long-term liabilities are anticipated.
2.2 Company Ownership
MSN Real Estate will be created as a Limited Liability Corporation based out of Portland, Oregon. It will be owned by its principal investors, Shawn Menashe and Nathan Koach. Shawn Menashe is the acting CEO and holds a 40% stake in the company. Nathan Koach is the acting CFO and holds a 40% share of the company as well. The other 20% is held by silent investors.
2.3 Company Locations and Facilities
MSN headquarters will be established in A-quality office space in the downtown area of Portland, Oregon. This will be the heart of our company, with satellite locations in Beaverton and Eugene, Oregon. We are also installing an in-house Internet server and 24-hour answering service so that all customer or business communications are dealt with in an expedient and fluid manner. Within any living development with more than 32 units a representative of the company will be located.
The company is currently in the final stages of purchasing its first building, a 40-unit apartment building on the corner of Hilyard and 14th in Eugene. The price of this building is $1.2 million. The company will make a down payment $120,000 and spend an additional $75,000 on renovation. This building houses mostly 2-bedroom units with average per unit price of $775 per month.
In Year 2 the company will purchase its second facility. It is currently in discussions with the owners of a 20-unit apartment building in downtown Portland, OR. It is difficult to predict changes in the building values over the long term, but it is estimated that we will be able to purchase this building for $570,000.
MSN offers on-site security guards who patrol the grounds during evenings, nights, and early mornings. We also offer an on-site repair service. There will always be an open line of communication between the renters and the management via an MSN Web page and a 24-hour, call-in answering service.
3.2 Competitive Comparison
MSN’s competitive advantage is as follows:
- We offer a higher level of quality in our units than the average unit on campus. This allows for those residents who do not want their living situations to inhibit their studies, comfort or enjoyment of campus life.
- Each unit will be fully wired to the Internet via available modem jacks and/or ethernet access. If the residents desire to have the best Internet access, we will give them that option.
- Our marketing and advertising costs will be low due to simple marketing strategies. However, the owner’s expertise in visual layout and communications will help create a unique and aesthetic product for the customer.
- The main competition MSN will encounter will be average lower cost apartment units.
3.3 Sales Literature
MSN will have brochures available at all offices. These will give the customer a general outline of our units and will explain the benefits of our units. We will also have a monthly newsletter that we will send out to our clients. This newsletter will inform the clients as to the growth and outreach of MSN. It will also contain some human interest stories about our complexes and the residents.
Will also advertise in the local newspapers including The Daily Emerald, The Register-Guard, and The Oregonian. Our marketing strategies are simple but aim to reach a large amount of people. The layout of our publications and advertisements will have a sophisticated and contemporary look without being overly formatted.
MSN’s key fulfillment will be provided by management’s dedication to a higher quality product. This is achieved through the solid network of contractors, and cutting edge architects who are all dedicated to helping MSN. We are hard workers who have a solid backing from our developers.
We will maintain a pool of professionals in which to pull from for our needed services. This will help us develop a rapport with our contractors as well maintaining our high expectations.
MSN real estate will have the most up-to-date technology provided both to the customers and to the subcontractors and other clients.
Ethernet ports and/or modem jacks will be installed in each unit developed by MSN.
Access to a 24-hour copy/fax center located on the premises.
Each unit will contain an emergency panic alert that will automatically go through to the manager and the local police department.
3.6 Future Services
In the future, MSN will look to give each department within the company the opportunity to become a more independent entity. This will make expansion efforts more efficient, and will provide specialists in their departments the chance to become more focused in their field.
We are in the process of conducting surveys in order to determine the best possible markets for MSN expansion.
Market Analysis Summary
MSN Real Estate’s main consumer base will be primarily students at the University of Oregon who will benefit from the apartment’s unparalleled level of quality, location, and technological amenities. We will also be marketing to local area professionals and recent graduates, along with faculty and staff at the University. These customers will be looking for safe, high-quality environments that can foster the type of atmosphere needed for scholastic and professional success.
4.1 Market Segmentation
MSN’s largest market segment in the Eugene area will be students of the local universities. These students will be the most likely to desire the technological amenities that our company offers. We expect this to be the largest growing segment with a growth rate of about 7%. Local professionals are another large segment. They will be attracted to the units because of the same technological needs, but will also be attracted to the comfortable, well maintained living environment. MSN offers units that provide a quality “hub” between college graduation and home ownership. We expect this segment to grow at a rate of about 4% with a more frequent turn over.
Local university faculty and staff represent the third and smallest identifiable segment, but contain the second highest growth rate. Proximity and quality will entice this segment which we expect to grow at a rate of 5%.
4.2 Target Market Segment Strategy
We believe that our unparalleled level of quality and technological amenities put MSN into a niche of its own. This will be the focal point of all our marketing and advertising efforts. These segments are also easily reached through local newspapers and publications, as well frequent open house displays.
It is essential for MSN patrons to understand that their needs are our priority.
4.2.1 Market Trends
This industry is constantly evolving and leaving many inflexible companies stagnant. One of the major trends is the need to adapt to technological advancements as well as maintaining the overall appearance and condition of the complexes.
Another important trend is adapting to higher density housing in smaller areas due to urban growth boundaries, etc. MSN is dedicated to following these trends while maintaining the level of comfortable livability that sets us apart from our competitors.
4.2.2 Market Growth
The market for high quality, reasonably priced apartment units has been growing at a rate of 6.7% since 1996. Oregon’s rental rates have remained even, averaging $697, or $.79 per square foot, during the fourth quarter of 1997. The Oregon market is experiencing rapid employment growth that is fueling demand for apartments, but not many new units are emerging. Not only is MSN pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in Oregon.
4.2.3 Market Needs
Each of our targets need the quality, convenience, service, safety, comfort and technological amenities that can only be found at our living complexes.
The student segment needs a quiet safe atmosphere that fosters a quality learning environment. They also need the convenience of location and on-site amenities.
The professional segment needs a living environment that separates them from the noisy, dirty inconvenience of average apartment living. Most professionals are on their way to home ownership or movement to a larger city, so they need housing that will let them feel like they are getting the quality that they need.
The faculty/staff segment also has similar needs. They need to feel separation from the noise and unkept conditions of most near-campus housing. Along with the students, they also need a place to feel safe and one that fosters convenience.
Real Estate Business Plan Sample
This detailed sample plan will assist you in drawing up your own business plan for any start up real estate company.
Real Estate Brokerage Sample Business Plan
Starting up your real estate brokerage does require planning and this includes having a business plan similar to this one.
Real Estate Brokerage Business Plan
RJ Wagner & Associates Realty, Inc., is an S corporation domiciled in the state of Texas. This corporation is capitalized by one single stockholder and one principal investor, Regina Wagner. Regina Wagner is a licensed broker and the sponsoring broker for this firm. The licensed broker of this firm will sponsor licensed real estate agents (independent contractors) in the state of Texas. This corporation will formalize the real estate services offered.
RJ Wagner & Associates Realty, Inc., will open its doors for operation in July. The office is located in Houston, Texas (Champions area) in the Greenwood Square Shopping Center, to provide services to the higher income section of Metropolitan Houston.
Credibility and reputation excel with the broker of this firm, with a published real estate book and real estate organizational programs placed in the Houston Association of Realtors and the Dallas Association of Realtors bookstores and superstores. For the past year novice licensed agents have enjoyed the organizational tools and guidance offered in the book Texas Real Estate/The Mobile Mentor.
The primary objectives of our organization are to:
- Become a profitable organization allowing us the freedom of taking advantage of other real estate investment opportunities as they become available.
- Recruit and hire self-motivated, success-oriented, and hardworking sales agents.
- Maintain an office of at least 15 sales agents who meet the previous requirements.
- Develop a solid, corporate identity in our specified targeted market area.
- To establish good working relationships and begin working as a team, promoting communication and suggestions from all participants.
- Become one of the top brokerage firms in operation in the Champion area by our third year of operation, or before.
- Realize a positive return on investment within the first 12 months.
We believe the above-mentioned objectives are obtainable because of the professionalism of the manager and sales associates this corporation will hold. Individuals gaining a real estate license leave school with the knowledge of the real estate laws and procedures. The turnover rate in this business is high since agents have no training outside the laws and regulations of the business itself. Once they have a license, only then, they may obtain the sales and marketing training that is needed upon entering the profession. This training is available at a high price to the agent. When starting out, most agents are not able to obtain this training at the high prices set forth, and without the proper training the average earnings of a beginning real estate agent is very low in comparison to industry standards.
The office environment we will be providing will be productively arranged yet inviting to the agent as well as the client. There will be a location in the office each day with a daily marketing routine/schedule to follow. Agents have the opportunity to be guided each day through a marketing plan to gain clients. They may choose to follow the guidelines and training provided or they may follow their own daily routines. We will be supplying a program allowing the new agents to earn more than the average real estate agent by providing guidance and stability.
If an agent with our company sets a goal to obtain only one seller and one buyer for the month, on an average of $150,000 sale on each side, would earn the agent $6,750 per month X 12 months = $81,000 per year. Regina’s goal as the broker is to assist each agent in conquering this goal.
The same sales as noted above would profit the corporation $2,250 per month X 12 months = $27,000 for the year X 15 agents = $405,000. This is not including sales from the active broker of this corporation which would be $4,500 commission from each side to total $9,000 (100%) to the corporation. The broker will receive a salary from the corporation.
This plan is written as a guide for starting and managing this new business, and will also serve as the basis for a separate, detailed marketing plan. Following is a summary of the main points of this plan.
The objectives of RJ Wagner & Associates Realty, Inc., are to generate a profit, grow at a challenging and manageable rate, and to live up to the ethical codes set forth by the Texas Real Estate Commission.
The first mission of RJ Wagner & Associates Realty, Inc., is to first recruit Texas real estate agents. The agents choosing this firm will receive top commission allowing them more financial advantage for advertising in order to gain more business.
The ongoing mission will be to assist both homeowners selling their homes, as well as homebuyers purchasing the home of their future, by providing professional and personal assistance. Ensuring customer’s best interest are always of the utmost importance.
The keys to success for RJ Wagner & Associates Realty, Inc., are marketing and networking, responsiveness and quality of customer service and generating repeat customers.
We wish to establish a successful partnership with our clients, our staff members, and our title companies, that respect the interests and goals of each party.
The local market for this business, while not new, is wide open for new and expanding brokerage firms.
An initial financial analysis of the viability of this venture shows outstanding promise and results. Several sources note that the real estate business has proven to be quite lucrative in today’s fast-paced world.
While so doing, the company will always continue to strengthen its position in the target market area by providing superior customer service to clients and to sales associates.
In conclusion, as shown in the highlights chart to follow, this plan projects rapid growth, as additional agents join, and high net profits over the next three years. Implementing this plan, in conjunction with a comprehensive and detailed marketing plan, will ensure that RJ Wagner & Associates Realty, Inc., rapidly becomes a profitable venture for the owner as well as for the contracting agents.
RJ Wagner & Associates Realty, Inc., is a new company that provides high-level expertise in real estate sales in the state of Texas. It will focus initially on homesellers and homebuyers, as well as in-house sales agents. Our customer service philosophy is unique. In a philosophic sense, RJ Wagner & Associates Realty, Inc., has three distinct customer groups: sellers, buyers, and agents.
Sellers of real property are our first customers. Listers of properties (sellers) pay commissions from the sale of their property and are the direct clients of the real estate brokers. We will never lose our focus that clients who have retained RJ Wagner & Associates Realty, Inc., to list and sell their properties are our first obligation.
Our second real customer is the buyer of residential real estate. We will provide superior personal services to buyers.
Our third real customer is the licensed real estate sales agent. It is the agent’s job to provide a professional service to both sellers and buyers, specifically in this order. Therefore, it is the direct responsibility of RJ Wagner & Associates Realty, Inc., to provide service to our sales agents.
As it grows, it will take on new agents providing them with a highly competitive commission earnings, as well as providing them with a support service that will allow for more productive time in order to gain clients at a faster pace. Hence motivating productive licensed agents in the real estate arena. As it grows, it will look for additional marketing techniques to offer clientele and serve the public in the high standards handed down by the Texas Real Estate Commission.
2.1 Company Ownership
RJ Wagner & Associates Realty, Inc., has been formed as an S corporation domiciled in the state of Texas. This corporation is capitalized by one single stockholder and one principal investor, the owner and broker of this firm, Regina J. Wagner.
2.2 Start-up Summary
Our start-up costs are outlined in the following chart. Said start-up costs derive from website design, office equipment, main computer station (complete with all realtor information for agent usage), stationery, legal costs, furnishings, office advertising and services, and expenses associated with opening our first office. The start-up costs are to be financed by direct owner investment and credit.
At RJ Wagner & Associates Realty, Inc., our principal service consists of selling residential real estate in a targeted market area. Our services provide our clients with an international network of buyers and sellers through the multiple listing service (MLS). Because of our capabilities to network with other brokers, we will sell homes faster than our clients could if they tried to market their home without the assistance of a licensed real estate agent.
In addition, our customers will list their homes with our agency because of our aggressive and highly-skilled professionals. We will continuously have an above-average sales force to generate and close residential listings.
The owner and broker of RJ Wagner & Associates Realty, Inc., is committed to success in the real estate market and adheres to the strict rules handed down by the Texas Real Estate Commission. Our high level of commitment will enable the company to attract top professionals as sales associates and clients looking to buy and sell residential real estate.
Agents with this firm will be provided with the following services:
- Top commissions.
- 24/7 hour office access.
- Own Web page.
- Marketing/sales guidelines to follow each day.
- Personal goal setting training
- Professional/commercial office setting in a highly visible and reputable location in the city of Houston.
- 24-hour answering service.
- Free inside/outside panoramic photography of each property listing. All photos are placed on HAR/MLS (Multiple Listing Service) and to the Internet realty sites.
- Full broker support.
- Professional flyer will be furnished complete with property photos for advertisement.
- Yard signs will be supplied and installed for the agent.
- Flyer distribution to other broker sites/agents.
Sellers will be provided with the following services:
- Free CMA (Comparative Market Analysis).
- Inside/outside photos in panoramic view placed on MLS (Multiple Listing System) and real estate Internet sites. This allows potential buyers to view our seller’s property online.
- Advertising in local real estate publications.
- We design an attractive pamphlet with all property information, room dimensions, tax information, a letter from the seller, and a complete history of the home for potential buyers to read while viewing the property. This pamphlet is for the seller to keep or to give to the new owner when the home sells.
- Attractive yard signs with flyer tubes attached for potential buyers driving by.
- “Just Listed Post Cards” mailed to surrounding neighborhoods.
- Listing flyers distributed to other broker sites.
- Circulated open house invitations (per seller approval).
- Supra System Computerized Lockboxes (we know when and who entered premises at all times).
- Excellent follow-up system on each showing.
- If no contract is submitted within the first listed month, we re-analyze our future marketing procedures with the seller.
Buyers will be provided with the following services:
- We match buyers to homes. We have an extensive questionnaire for our buyers to list their wants and needs. We then take this questionnaire and put the supplied information into our Passport program to match buyers to the homes matching their criteria. (Passport is the latest software available to licensed real estate agents and brokers in the state of Texas.)
- We go a step further with our buyers and we go on-site for them. We visit the homes of their choice and take inside and outside panoramic photos for their viewing. We can email the photos or have a face to face showing with the buyer. The buyer does not have to go on-site unless they choose to. We bring the home to them.
- We present their offers and comply with all negotiating for them.
Market Analysis Summary
RJ Wagner & Associates Realty, Inc., will be focusing on supplying homebuyers and homesellers professionalism and expertise in reaching a successful sale and/or purchase in their real estate needs. Our concentration also lies with our in-house agents. We feel by providing our in-house agents the support program they need our productivity should excel at a rapid pace.
Due to the strengthening of the economy in Houston area, more homebuyers today are looking to purchase homes. These changes in attitudes of homebuyers are a tremendous boost to real estate firms.
We are poised to take advantage of these changes, and expect to become a recognized name and profitable entity in the Houston real estate market. We chose to locate our office in the area of most revenue potential. Our targeted market area, the Champions area, shows stability and growth. We have a beautiful office, centered in the Champions area. This location will enable our sales associates to work in an area that will allow them to make more money in a shorter period of time.
The first quarter home values were up 8.8% from the same period in 2000, the Office of Federal Housing Enterprise Oversight says. The gain reflects an increase from the previous quarter, when residential real estate values saw year-over-year growth of 8.1%.
As stated in the Objectives section–we outline the profits to be gained with each agent striving for one seller and one buyer each month. We also state the extensive marketing plans, goal setting and training provided by this corporation to assist each agent in reaching this goal.
As stated in the Services section–we outline the services we will be supplying to the agents, sellers and buyers (all of which this corporation considers to be our customer).
As the outline following will indicate–our agents will earn top commissions, be supplied with the latest in marketing and advertising assistance, and have on-site broker assistance at all times. This coupled with the teamwork and excellent marketing programs provided, we feel we have a recipe for success.
4.1 Market Segmentation
Our most important market segment is the homeseller. The seller will be calling upon RJ Wagner & Associates Realty, Inc., for our excellent marketing strategies and techniques, and our ability to deliver personal consulting, professionalism and a follow up system.
As important would be the homebuyer. These buyers will be calling on RJ Wagner & Associates Realty, Inc., to “match” their criteria selections. This corporation will be previewing matching criteria homes for the buyer, thus providing the buyer with on-site viewing capabilities without actually visiting the home site.
Individuals desiring to lease will also be guided to lease properties of their matching criteria needs.
When referring a client outside our expertise range, we would search for a reputable and knowledgeable agent to assist them at their destination. When this corporation is the recipient of a referral–we would match the buyer to homes meeting his/her criteria specifications.
Last, but not least, would be the corporation in-house agents. We view each one as a customer and are sensitive to their needs. Tools, training, marketing techniques and strategies, and guidance needed is available at all times. Each agent will have the opportunity to be assisted in designing a work schedule that adheres to their work style, hence allowing greater productivity. All agents will receive on-site guidance in all areas needed.
4.2 Target Market Segment Strategy
We cannot survive just waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future.
Therefore, we need to focus our marketing message and our services offered. We need to develop our message, communicate it, and make good on it.
Home Real Estate Inspection Sample Business Plan
Having a business plan similar to this sample will get your home real estate inspection company off to a good start.
Home Real Estate Inspection Business Plan
Inspection Connection is in the process of being formed as a Limited Liability Company owned and operated by Jacques Clouseau. This plan is written as a guide for starting and managing this new business. The following is a summary of the main points of this plan:
- The objective of Inspection Connection is to provide high-quality, ethical Home Inspection services which provide education and peace of mind for the clients while providing sufficient profit for Inspection Connection to continue operations.
- The mission of Inspection Connection is to provide friendly, professional, ethical and quality conscious Home Inspection Services to the community.
- The Keys to success for Inspection Connection will be maintaining visibility and offering high-quality services in a particular marketing niche.
- The local market for this type of business is not new, but offers plenty of opportunity for new Home Inspection businesses.
- An initial financial analysis indicates that the venture is viable and could generate sufficient profits to sustain operations.
As a service-oriented business, Inspection Connection will start with very low overhead, operating out of Mr. Clouseau’s home. Inspection Connection will advertise its high-quality inspection services for buyers, sellers, and home owners concerned about maintenance with bulk mailings to the targeted ZIP Codes, an informative website, and by becoming known locally as a real estate “expert” through writing columns for the local paper and attending real estate association meetings.
The largest single expense in the first year, aside from the owner’s payroll, is a CT licensure internship to be undertaken in summer, which will qualify Mr. Clouseau to do inspections in Connecticut, as well as New York. This expense will be paid with a low-interest-rate credit card, and repaid within 2 years from the cash flows of the business.
Inspection Connection expects to reach the break-even point in July, but will not show an annual profit in the first year, largely because of the internship expense. If sales can be maintained at year-end levels, the business will be very profitable in years 2 and 3, and will pay Mr. Clouseau a reasonable wage.
In conclusion, as shown in the highlights chart below, this plan projects promising net profits over the next three years. Proper marketing and relation management by Inspection Connection will ensure success.
The objectives of this business plan are:
- To provide a guide for starting and managing this Home Inspection business; a framework for developing a comprehensive marketing plan.
- The intended audience is the owner of the business only; this plan is not intended to obtain financing from outside sources.
- The scope of this plan is to provide detailed monthly projections for the current plan year, and yearly summaries for the following two years.
The objectives of Inspection Connection are:
- Education: To educate Home Buyers, Sellers and Owners about the systems and components of a home and about the importance of maintenance. Additionally, to provide the community with continuing education courses and seminars
- Quality: To provide quality services to the community in the form of professional Home Inspections.
- Profit: To generate sufficient profit to finance future growth and to provide the resources needed to achieve the other objective of the company and its owner.
My Home Inspection, LLC’s mission is to provide friendly, professional, ethical and quality-conscious Home Inspection services to the community. Inspection Connection will maintain membership with ASHI (American Society of Home Inspectors). Inspection Connection will continue to obtain education through accredited organizations and will provide education to the community through Home Inspections and by sponsoring seminars and educational events.
1.3 Keys to Success
The Keys to Success for Inspection Connection will be:
- Visibility – In order to succeed Inspection Connection will need to attend Real-Estate functions and provide educational opportunities to Real-Estate professionals and the community. Effective marketing will be a key factor to success.
- Quality services – It will be very important that Inspection Connection provide high quality Inspection services. In doing so, clients will be more likely to recommend our services to friends and family. With many Home Inspection companies to choose from, a positive reference from a satisfied client will direct future customers to Inspection Connection.
- Niche services – Based on data collected from MelissaData.com, if Inspection Connection were just offering Buyer Inspection Services, we would need to capture 5% of the existing Buyer Home Inspection Market in order to schedule 31 Inspections per month. By marketing inspection services that other Home Inspection businesses are not currently offering, such as Maintenance Inspections, Inspection Connection will only need to capture 2.5% of the existing Buyer Market and will focus marketing efforts on the Owner Market by advertising Maintenance Inspection services.
Inspection Connection will be a start-up venture with the following characteristics:
- Inspection Connection will be a Limited Liability Corporation.
- The goal will be to start the venture as inexpensively as possible.
- Inspection Connection will be a home office start-up, utilizing one room in the owner’s home.
2.1 Company Ownership
Inspection Connection will be created as a Limited Liability Corporation, owned and operated by Jacques Clouseau.
2.2 Start-up Summary
The goal is to start-up as inexpensively as possible. Inspection Connection will incur most of the normal start-up costs related to Legal and Accounting filing fees and paperwork. The largest costs is the fee for the internship process that is required in order for the owner to obtain a License in the State of CT.
Initially, Inspection Connection intends to offer the following services:
- Buyer Home Inspection
- Seller (Pre-Listing) Home Inspection
- Maintenance Inspection
Optional “Add-In” services, offered in addition to the three main services listed above and at an additional fee, will be:
- Radon Testing (air and water)
- Termite Inspection
- Water Testing
- Well Inspection
- Septic Inspection
- Pool and Spa Inspection
Some of the services listed above, such as Septic and Well Inspection, may be sub-contracted out to reliable and qualified professionals with expertise in the specific field. All other services will be provided by the owner in a friendly, professional and ethical manner.
In the future, Inspection Connection may decide to offer the following services:
- Mold Survey / Sampling
- Home Energy Audit
- New Construction (In-Progress) Inspection
Market Analysis Summary
Inspection Connection will initially begin marketing services in Westchester County, NY while the owner completes the Internship Requirements for Licensure in CT. This will accomplish two objectives:
Inspection Connection will have some income while completing the CT Licensure Internship requirement
If Inspection Connection can complete 100 or more inspections in NY before January 2006, when the NY Licensure laws come into effect, it may be easier for Inspection Connection to obtain a NY License.
Once a Connecticut license has been obtained, Inspection Connection will be marketing services primarily in the county of New Haven, CT. More specifically, Inspection Connection has identified 23 towns, by ZIP code, which appear to have sufficient monthly home sales to support My Home Inspection, LLC’s entry into the market. This is explained in more detail in the next section.
4.1 Market Segmentation
Inspection Connection has divided the Home Inspection Market into three segments:
Most of the established Home Inspection Businesses are currently marketing to the Buyer and Seller segments, offering Buyer Home Inspection and Pre-Listing Inspection services. Inspection Connection intends to capture 2.5% of the Buyer and Seller segments which are small in comparison to the Owner segment. Inspection Connection has identified twenty three ZIP codes in New Haven County that, combined, averaged seven hundred home sales per month from January 2004 through February 2005.
Information gathered from the 2000 Census indicates that the there are 340,732 Housing Units in New Haven County, 66% of which are owner occupied, translating into 224,883 Owner Occupied Homes. By offering Maintenance Inspection services, Inspection Connection intends to market mainly to the larger and more stable Owner segment.
4.2 Target Market Segment Strategy
As mentioned in the previous section, Inspection Connection intends to market in all three segments, but will focus marketing efforts on the Owners segment, which is not being widely marketed to by the existing Home Inspection Businesses. The size of the Owner Segment and the fact that few existing Home Inspection businesses are marketing maintenance inspections to that segment, make it a very attractive niche.
4.3 Service Business Analysis
The Home Inspection Industry is selling time and knowledge. An Inspector spends a designated amount of time reviewing a property and educating the client about the property. The resulting Inspection Report, which is presented to the client, represents a transfer of knowledge.
4.3.1 Competition and Buying Patterns
Most of the competition in the Home Inspection Industry occurs in the Buyer and Seller segments. Inspection Companies need to maintain relationships with Real Estate professionals and rely on word of mouth in order to obtain business in those two segments.
The advantage of selling to the Owner segment is that direct marketing becomes possible in the following ways:
- Postcards directed to specific ZIP codes
- Informative column and Advertisement in local news papers
- Organizing informational and educational events within target communities
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