SAMPLE COMPANY Business Plan for E-2 Visa Contact: Applicant Email: xxxxx@xxxx.com Mob: XXX-XXX-XXXX Business Plan
Property Management | BUSINESS PLAN Sample Company Table of Contents EXECUTIVE SUMMARY ..................................................................................................... 4 Nature of Business .................................................................................................................... 5 Supervising of houses................................................................................................................ 5 Estate Management Service ..................................................................................................... 6 Real Estate Brokerage ............................................................................................................... 7 THE US COMPANY DETAILS .............................................................................................. 8 Company Ownership ................................................................................................................. 8 Company Location ..................................................................................................................... 9 Management Summary........................................................................................................... 10 INDUSTRY ANALYSIS ...................................................................................................... 11 Property management market ............................................................................................... 11 Google Trends ......................................................................................................................... 14 Summary ................................................................................................................................. 16 INVESTMENT & FINANCIAL DETAILS .............................................................................. 17 Applicant Investment Details .................................................................................................. 17 Financial Highlights ................................................................................................................. 17 OPERATING PLAN .......................................................................................................... 18 The Company strategy to get clients ...................................................................................... 18 Pricing and revenue................................................................................................................. 19 Stuffing Needs ......................................................................................................................... 19 Operation costs ....................................................................................................................... 20 FINANCIALS.................................................................................................................... 21 CONCLUSION ................................................................................................................. 24 APPENDIX: YEAR 1 FINANCIALS BY MONTH ................................................................... 25
Property Management | BUSINESS PLAN Sample Company LIST OF TABLES Table 3 Personnel projections................................................................................................. 20 Table 4. Monthly wages by year ............................................................................................. 20 Table 5 Monthly general costs ................................................................................................ 20 Table 6 Personnel forecast...................................................................................................... 21 Table 7 Profit and Loss statement .......................................................................................... 21 Table 8 Cash Flow statement .................................................................................................. 23 Table 9 Profit and Loss Statement .......................................................................................... 25 Table 10 Cash Flow.................................................................................................................. 26 Table 11 Balance Sheet ........................................................................................................... 27 LIST OF FIGURES Figure 1 Areas of Company’s Activities ..................................................................................... 5 Figure 2 Commercial real estate transactions in the US.........................................................11 Figure 3 The US Property Management Market Revenue Dynamics .....................................12 Figure 4 The Florida Property Management Market Revenue Dynamics .............................12 Figure 5 Median Single-Family Home Prices...........................................................................13 Figure 6 Google Trends Index ................................................................................................. 14 Figure 7 Interest to property management by regions of Florida ..........................................15 Figure 8 Industry revenue of real estate agents and brokers in Florida.................................16 Figure 10 Revenue structure ................................................................................................... 19 Figure 11 Break – Even Analysis .............................................................................................. 22
Property Management | BUSINESS PLAN Sample Company Executive Summary Over the previous years, many factors have contributed to the current housing market condition in the United States. Several areas in the south faced decreasing ability to house local residents and employees. Vacant homes are gradually being purchased by residents of the northern United States and Canada. This is a group of “Winter visitors” or “Snowbirds” - seasonal travelers (usually retirees) who migrate to areas with warmer climates during the winter months. To ensure successful ownership and using of houses while they spend most of their time in their base regions, snowbirds need services of the property management company, who will supervise their homes, monitor their condition, supervise the operation of alarms, service the houses and perform repairs and preparations for the arrival of the owners. This business plan deals with such tasks. The concierge business that Mr. Applicant are establishing aims to serve the Snowbird’s needs.
Property Management | BUSINESS PLAN Sample Company Nature of Business SAMPLE COMPANY LLC will provide all maintenance and management needs with services ranging from home-watch to hurricane preparedness to window washing and pressure cleaning. The Company will do business in three sequentially related areas: • Homewatch services - the supervising condition of houses • Estate management - house maintenance, repairs, and additional services • Assistance to clients in buying, selling, or renting houses. Supervising of houses Targeted to Winter visitors who need someone to watch their home while they are away, Homewatch service consists of home inspections by our fully licensed, bonded, and insured specialists. This service is intended for clients who want to know that their house is OK. Receiving regular reports, they feel comfortable. The following services are provided: • Walk the entire exterior of the property • Perform visual inspection-report any obvious landscape concerns • Report any broken sprinkler heads • Perform a visual inspection of pool and spa looking for excessive dirt, discoloration, water level • Listen for any unusual noise coming from pool equipment and look for any leaks • Look for signs of storm damage • Look for signs of intrusion Figure 1 Areas of Company’s Activities
Property Management | BUSINESS PLAN Sample Company • Look for signs of pest infestation close to the house • Report broken windows • Report any trees down, weeds in the pavers, mold on driveway and patio • Report excessive or loud noises coming from A/C units • Check mail and bring indoors: bring in any packages, etc., left at the door SAMPLE COMPANY LLC will use a CRM system, helping to email a report immediately after the inspection, including photos and a filled checklist. After every inspection, the Company will send a report confirming the house was visited and checked. This service will be provided to customers monthly - $XXX per house per month. Estate Management Service This service ensures that clients' homes are maintained well. The Company will take care of any home improvement needed. It will take care of everything from getting the supplies and assembling necessary equipment to ensure the client's complete satisfaction. Offered services: • Appliance Installations • Assembling • Blind / Curtain Installations • Caulking • Door Repairs • Drains Unclogged • Garage Maintenance • Hanging Pictures • Locks • Porches • Pressure Washing • Shelving • Shower / Tub Seats • Etc.
Property Management | BUSINESS PLAN Sample Company Hurricane Preparation Another critical service is Hurricane Preparation. Any house in Florida needs to be prepared for hurricane season. SAMPLE COMPANY LLC will help customers get their houses ready for any storm. The Company staff will inspect houses inside and out to secure all furniture that may become airborne in high winds, close all hurricane shutters, and take all necessary steps to defend houses from the effects of a hurricane to their most total capacity. Interior House Cleaning One of our most popular estate management services is housekeeping and interior cleaning. The interior home services are designed to keep the house maintained to the client’s requirements. The services include: • Window and Mirror Cleaning • Carpet Cleaning • Upholstery and Drapery Cleaning • Marble and Stone Care • Appliance Repair And so on, including filling up the refApplicantators before the owners arrive. Real Estate Brokerage As the Company will work closely with the owners of the houses, it will be informed beforehand of their needs in real estate transactions - when someone wants to sell, buy, rent or lease a house. Since Applicant Applicant is an experienced real estate agent, the Company will provide such services to its clients, receiving for this mission a fee.
Property Management | BUSINESS PLAN Sample Company The US Company Details SAMPLE COMPANY LLC is a real estate management firm that will provide services for Winter visitors maintaining their houses and providing them with various other services. The Company registered in the state of Florida on May XXth, 20XX. Company Ownership SAMPLE COMPANY LLC is owned by Applicant(XXX%) Mr. Applicant is Israel national. Mr. Applicant has a 30-year of experience in company management. Starting as an AZ owner-operator, he gravitated towards a position where he dispatched and managed a company with over XX truck drivers. Mr. Applicant is experienced in logistics and a broad range of business segments from the industry. This includes Client Relations (a range of over XXX contacts between Canada and the US) and Government Rules for International Shipping. Since 19XX Mr. Applicant owns Applicant Truck Transportation Inc. He used to compete successfully in a province full of transportation companies, building the clientele from the ground up. Now Mr. Applicantis very respected in the industry and contracts with large businesses. Mrs. Applicant Applicant about 30 years worked in the financial district of Toronto. After that, her focus shifted to the growth of Applicant Truck Transportation Inc. business. She’ll be a COO company. Mrs. Applicant has been a part of this business and has helped ensure this business thrives. Within my 15 years of working with the business, she gained expertise in Bookkeeping, accounting, and customer relations. Over XX years ago, Mrs. Applicant attended Ontario Real Estate College and graduated as a Sales Representative. Her education in sales and property management will help me succeed in the SAMPLE COMPANY LLC business.
Property Management | BUSINESS PLAN Sample Company Due to her knowledge and experience in Real Estate, Mrs. Applicant has won many Sales awards within her current brokerage. Over the last eight years, Mrs. Applicant expanded and offered property management services to Canadian clients who own(ed) vacation properties in Florida. As personal favors, she arranged repairs and installers for storm shutters. This knowledge and experience formed the basis for the creation ща SAMPLE COMPANY LLC Company Location The Company is registered at XXXX, XXX/XXX
Property Management | BUSINESS PLAN Sample Company Management Summary As the Investor & CEO, Mr. Applicantwill plan, direct, and coordinate the Company’s operational activity. Ру will hold a key role in developing the entity and business activity to achieve its growth targets. Specifically, Mr. Applicant will be responsible for the following: • Direct, plan, and implement policies, objectives of the Company to ensure continuing operations, maximize returns on investments, and increase business productivity. • Direct and coordinate the Company operational activity • Establish, implement and revise policies and procedures • Plan and fulfill the client's relations strategy • Analyze operations to evaluate company performance, potential cost reduction, policy change • Review and analyze administrative and financial reports Mr. Applicant will also be responsible for forging lasting relationships with clients, networking, and overall growth initiatives. His professional experience will play a vital role in the successful development of the Company. As an Investor & COO, Mrs. Applicant Applicant will be responsible for the real estate management concept. Specifically, she will be responsible for the following: • Selecting property objects to manage • Directing and coordinating pricing/sales/provision of services • Monitor revenue and profits • Market the Company’s business • Direct and coordinate financial and marketing activities, increase the efficiency of the Company • Advising the Company clients in the field of real estate operations • Organizing the cooperation with contractors, property managers, real estate brokers, and service providers that work diligently to ensure a successful property management process from start to finish.
Property Management | BUSINESS PLAN Sample Company Industry Analysis Property management market The demand for the Company’s real estate projects is also confirmed by current statistics of business related to real estate projects. Figure 2 shows the volume of commercial real estate transactions in the United States. The data presented show that the market recovered fully after the 2009 crisis. The clientele of visitors to real estate sites exceeds 120 million, confirming demand for real estate projects in the United States. The real estate industry in the United States has also been growing steadily since 2021. Figure 2 Commercial real estate transactions in the US
Property Management | BUSINESS PLAN Sample Company The CAGR value1 since 2012 is 5.1%, which on average exceeds the growth rate of the US economy. After a slight decline in 2020, industry experts predict further growth until 2024. Property management in Florida is even better than in the US (see Fig. 4). 1 Source: Statista Figure 3 The US Property Management Market Revenue Dynamics Figure 4 The Florida Property Management Market Revenue Dynamics
Property Management | BUSINESS PLAN Sample Company The data presented show that the growth rate of the real estate market is 7.4 percent per annum. Most of the market is private property management. This is due to the nature of property ownership in the southern United States, particularly with the decreasing ability to house local residents and employees. Resident-occupancy dropped from 61% in 2000 to 46% in 2017. The number of homes occupied by year-round residents has also declined. A reason for this is rising in home prices and rents. In 2020, the median single-family home price in the state of Florida was 290,000 US dollars, up from 145,000 US dollars in 2012 (see Fig. 5). In 2021 the median price rose ut to 314 thousand dollars2. Despite this consistent growth in home prices, in 2020, there were 310,378 single-family homes sold in Florida, up from 203,426 homes in 20123. As a result, an increasing number of homes in Florida are being purchased by residents of Canada and the north of the United States. 2 Source: FloridaRealtors 3 Source: Statista Figure 5 Median Single-Family Home Prices
Property Management | BUSINESS PLAN Sample Company Google Trends To assess the growth potential of the property management market, we conducted an analysis using the Google Trends service to assess the interest of Google search engine users in real estate The values on the Y-axis indicate the level of interest in the topic. The most significant historical number of queries corresponds to the index of XXX; all other indices are calculated as the ratio of the current number of queries to the highest. According to the Google Trends User Guide, a score of over 50% indicates high interest in the topic. To assess interest in the real estate market, we analyzed the Google search for “property management” over five years. Region of search - Florida. The results are presented in Figure 6 below The chart shows that since 2016 the average value of the index has been 68, and in the summer months has been close to 90. The Google Trends index has never fallen below 50. Consequently, interest in the topic can be characterized as high. Figure 7 below shows the distribution of interest by location within Florida. Figure 6 Google Trends Index
Property Management | BUSINESS PLAN Sample Company As can be seen, the people most interested in real estate management livу шт Fort Myers-Naples and Tallahassee The potential demand also makes it possible to estimate Internet queries on a subject of interest. The following table shows the number of requests related to the planned business. The total number of requests is almost XXX thousand per year. Consequently, there is a sufficiently large market for the services offered by the Company. Table 1 Request Quantity Property management Property management company Housekeeping Home care services Hurricane preparation Total Based on these data, we may assume that real estate management projects will demand in the coming years. The statistics on the activities of real estate agents presented in Figure 8 below suggest that this type of activity will also bring a high profit to the Company. Figure 7 Interest to property management by regions of Florida
Property Management | BUSINESS PLAN Sample Company This statistic shows that the real estate brokers business in Florida is one of the fastest-growing industries in the state. Summary The statistics presented in the market analysis show that the USA and Florida's property management is actively growing at a rate exceeding the US economy’s growth rate. It indicates the high demand for the planned services. The main conclusions of the section: • The value of the real estate in the state is constantly increasing at a high rate. Therefore the owners are well-off people. • The real estate management market is in an active growth stage. Over the past eight years, the market has grown by 98%. The CAGR exceeded X%. • People in Florida show a high interest in the topic of real estate management. • Real estate brokerage is growing fast in Florida. The general conclusion from the industry statistics analysis is that the Company’s business is in demand in the Florida economy. Figure 8 Industry revenue of real estate agents and brokers in Florida
Property Management | BUSINESS PLAN Sample Company Investment & Financial Details Applicant Investment Details The Applicants shall make an initial investment of capital, contemporaneously with the execution of this Agreement, as follows: NAME CONTRIBUTION % OWNERSHIP XXX Applicant Cash: $XXX,XXX XXX% Table 2 Spendings as of today dollars warehouse leasing vehicle leasing website development Financial Highlights The following table and graph illustrate the business goals of the Company during the next five years: Table 3 Major highlights 2021 2022 2023 2024 2025 2026 Total Revenue Gross Margin Operating Expenses EBITDA Net Profit Profitability Ratios Gross Margin/ Revenue EBITDA/ Revenue Net Profit % Net Cash Flow Cash Balance
Property Management | BUSINESS PLAN Sample Company Operating plan The Company strategy to get clients The Company will aim to use the following strategy and every tactic available to acquire clients: • Existing clients Being an experienced specialist шт real estate, Mrs. Applicant has a wide range of Canadian “snowbird” clients who know her and will be ready to work with her Company in the future. These clients will ensure the Company starts its business, gradually increasing the number of customers. • Online Marketing The Company will use means such as: 1. Website creation and development 2. Search Engines Optimization 3. Social Media Marketing 4. Content Marketing 5. PPC advertising • Building strategic partnerships The Company plans to actively cooperate with partners that work with the same target audience but offer other services and are not competitors. Due to XXX Applicant’s experience in establishing a partnership in his previous business, it will be his duty in the Company.
Property Management | BUSINESS PLAN Sample Company Pricing and revenue The Company’s revenue is forecasted as follows: Income from the Home Watch business (by subscription) is estimated at $XXX per house per month, with progressive growth of up to XXX houses under management. The additional services (such as hurricane preparation, repair service, etc.) are forecasted as XXX% of subscription revenues. Real estate commission fees are forecasted as X% of a deal with an average house price of XXX thousand dollars (equal to the 2020 single-family house median price). The revenue structure of the Company is shown in Figure 10. Figure 9 Revenue structure
Property Management | BUSINESS PLAN Sample Company Stuffing Needs The number of employees in our team will stay permanent throughout the project period. The crew will consist of X people, starting with four employees (CEO, COO and two workers) in the first year: • CEO (X employee) • COO (X employee) • Workers (X employees) Table 1 Personnel projections 2021 2022 2023 2024 2025 Management personnel CEO COO Worker Total Table 2. Monthly wages by year Wages per month, $, 2021 Wages per month, $, 2022 Wages per month, $, 2023 Wages per month, $, 2024 Wages per month, $, 2025 Wages per month, $, 2026 CEO COO Worker Operation costs The Company operating costs consist of general expenses. Detailed costs information about the composition of costs can be found in Table 5. Table 3 Monthly general costs dollars Office Rent Office Supplies SEO Content generation Web hosting Antivirus Business email subscription Professional subscriptions
Property Management | BUSINESS PLAN Sample Company Financials Table 4 Personnel forecast 2021 2022 2023 2024 2025 2026 Year-end personnel count CEO COO Worker Total personnel ($ per month) CEO COO Worker Personnel costs CEO COO Worker Total costs The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals revenue minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses. Table 5 Profit and Loss statement UM 2021 2022 2023 2024 2025 2026 Gross revenue dollars COGS dollars Salary and wages dollars General costs dollars Other expenditures dollars Total costs dollars Earnings before interest, taxes, depreciation and amortization dollars Amortization dollars Earnings before interest and taxes dollars Interest paid dollars Profit before taxes dollars Federal self-employment tax Federal net income tax dollars State (FL) net income tax dollars Net profit dollars Profit accrual dollars
Property Management | BUSINESS PLAN Sample Company The chart below demonstrates when the Company is expected to become profitable. Break-even occurs when revenue equals expenses. According to the financials, period five will be the point at which break-even will occur. As we can see in some periods, expenses exceed revenue because the Company’s payments are directly connected with capital investment projects in real estate. The following depictions of the Company’s projected cash flow show that the Company expects to maintain sufficient cash balances over this five-year plan. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “noncash” items and exclude funding and investment illustration. Figure 10 Break – Even Analysis
Property Management | BUSINESS PLAN Sample Company Table 6 Cash Flow statement 2021 2022 2023 2024 2025 2026 Cash at the beginning of the period dollars Cash received from customers dollars COGS dollars Operating profit margin dollars Salary and wages dollars General costs dollars Interest paid dollars Taxes dollars Cash flow from operating activities dollars Land dollars Building costs dollars Purchase of equipment dollars Other expenditures dollars Cash flow from investing activities dollars Proceeds from capital contributed dollars Proceeds from loan dollars Payments on loan dollars Cash flow from financing activities dollars Net cash flow dollars FCFF dollars Cash at the end of the period dollars
Property Management | BUSINESS PLAN Sample Company Conclusion Summarizing the business plan data and results: • The industry of property management is growing, with a relatively high CAGR of X,X%. • The project’s investment period is short, and the Company may start working in the second half of 2021. • Company owners invested $XXX,XXX, and the Company will reach a breakeven point in the fifth month after the start of sales. The total Company profit will equal $XXX,XXX - big enough to make the investment idea attractive. Based on all mentioned above, it can be concluded that financing of the project is a productive investment with low risk.
25 Appendix: Year 1 Financials by Month Table 7 Profit and Loss Statement Month 1 2 3 4 5 6 7 8 9 10 11 12 Gross revenue COGS Salary and wages General costs Other expenditures Total costs Earnings before interest, taxes, depreciation and amortization Amortization Earnings before interest and taxes Interest paid Profit before taxes Federal self-employment tax Federal net income tax State (PA) net income tax Net profit Profit accrual
26 Table 8 Cash Flow Month 1 2 3 4 5 6 7 8 9 10 11 12 Cash at the beginning of the period Cash received from customers COGS Operating profit margin Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow FCFF Cash at the end of the period
27 Table 9 Balance Sheet Month 1 2 3 4 5 6 7 8 9 10 11 12 Assets Fixed assets PP&E Investments in-progress Current assets Accounts receivable Inventories Cash TOTAL ASSETS Equity and liabilities Owner's equity Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
www.masterplans.ruRkJQdWJsaXNoZXIy MjcxODE=