Real Estate - Business Plan

Real Estate - Business Plan

Executive Summary

We are going to present a business plan for a hypothetical real estate company, ABC Properties, planning to relocate to a new location for strategic reasons. ABC is currently based in Edgware, London, but due to various factors, planning to relocate to Bromley, London. Being a corporate real estate company, their businesses include buying, selling, renting out and building new housing projects, mostly in Edgware. The reasons for relocating are due to low demand for new housing projects in Edgware as a result of market saturation in the area. Although the average wages are expected to be even higher in the south eastern part of London after the recent growth, it is expected increase in profits will outweigh the increase in employees costs (BBC, 2012, pp.nd). The ABC Properties started their operations almost ten years ago and has been finding it increasingly difficult ever since global recession hits the world markets. After finding a considerable slump in their annual profits, the higher management is planning to relocate as this seems to be a viable option.

In this report, we are going to present a detailed business plan in response to the plan of relocating ABC Properties to a new place. We will discuss all the relevant details in order to present a thorough business plan covering all the relevant factors. Where relevant, we will also provide references from external sources to support our viewpoint..

Competitive Environment3

Reasons for Relocation4

Corporate and Legal Structure6

Financial Overview8

Human Resource Management11

Marketing, Advertising and Selling Strategies12

Conclusion14

References15

Competitive Environment

ABC Properties is finding it difficult to compete in a low growth area of Edgware, London. On the other hand, prices have soared in the last few years in Bromley, London and as a result there has been a marked increase in real estate market activity (Telegraph, 2013, pp.nd). Building housing projects was a major source of profit generation for ABC Properties, with more than 50% of all profits generated. The low demand for new residential places hampered ABC Properties growth making it increasingly difficult to survive in such market conditions. It is believed that ABC Properties has the expertise and experience to relocate to Bromley, London and start their projects instead of their current operations in Edgware. This is still a good time to enter into the south-eastern London real estate market, as with UK's economy slowly picking up pace, real estate prices are expected to increase even further in the south-eastern parts of London (OECD, 2013, pp. 1).

There are several real estate companies already operating in London. ABC Properties must need to face this competition and create their own market. For that, it is important to first point out the target market. One potential residential area where ABC Properties may start its building projects is in East London. With the saturation of residential areas in Edgware, people have started looking towards other areas including Bromley. This area is well connected to other parts of the ...