Sakshi chaudhary Sarthak khanna Surveen kaur sodhi

Real Estate Management Business Plan

PCS Real Estate

Executive Summary
PCS Real Estate is a small town (Baraut-u.p.) -based real estate company that will offer flats for the middle class and lower middle class families. . These flats 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.

The Market PCS will target customer segment who can afford home at the range of 4 lakh to 8lakh. The largest segment that the service is lower middle class families. This segment is fast growing, potential segment.

. Strategy PCS will initially focus their efforts on buying and developing existing or new properties. Future projects may include more apartment with different segment .

Management Team PCS will be led by Sakshi chaudhary, surveen kaur sodhi and Sarthak khanna. Sakshi has a bachelors degree in B.sc. (Maths) and received his MBA from the IIPM. Sakshi has good financial management skills. Surveen brings different skills sets to the company, coming from a customer service background. Sarthak has good skills in IT field

1.1 Objectives 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.

1.2 Mission
PCS Real Estate provides high-quality, comfortable flats in Baraut and other areas of U.P.

PCS'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 customer can enjoy all of the benefits of safe, attractive, and inviting units.

Unlike many other realty companies in metro cities that are solely concerned with turning profits, our primary objective at PCS is to maintain the highest level of customer satisfaction that is achievable.
.

Customers happiness, and comfort are our main goals. PCS maintains good and affordable market prices, while working toward expanding the number of units owned, and increasing total profits earned.
Initial focus will be to buy and develop existing and new apartment. We will modify and remodel the acquired real estate so as to meet PCS standards and increase long-term assets and income.

1.3 Keys to Success Safe, quality housing that provides state-of-the-art amenities at affordable prices. Maintaining open communication between PCS 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 PCS and its customers.

Company Summary

PCS Real Estate has primary experience and expertise is in the development of high-quality, lower cost living for lower middle class families 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 20-units flats building on the corner of market, which is at foot step distance .

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.

Start-up Requirements Start-up Expenses

Legal

(municipal+ registry )

Rs. 30,000+67250=97250 4,00,000 .00 10,000.00 20,000.00 00.00 60,000.00 11,25000 40, 00,000. 1,00,000 1,00,000 2,25000 61,37,500 .00

Architect fees Stationery etc. Brochures Consultants Insurance land ( 4500rs./yard*250 yard ) Construction Elecricity water Other (ad+ staff) Total Start-up Expenses

Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets

15,00,000.00 11,25000.00 35,12,000.00 61,37,000.00

Start-up Funding Start-up Expenses to Fund

Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date

15,000,00.00 11,25000.00 6137000.50

11,25000.00 50,00,000.00 0 15,00,000

Liabilities and Capital

Liabilities Current Borrowing Long-term Liabilities Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Sakshi , surveen and sarthak 00.00 00.00 61,37,000.00 00.00 00.00

61,37,000.00

Additional Investment Requirement Total Planned Investment

0 61,37,000.00

Total Capital

61,37,000.00

Company Locations and Facilities

PCS headquarters will be established in A-quality office space in the area of Baraut, u.p.. . 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. . The company is currently in the final stages of purchasing its first land of RS. 11,25000(4500 rs/ yard* 250rs.), a 20 flates building on the corner of Baraut. In Year 2 the company will purchase its second facility. It is currently in discussions with the owners of a 4 to 5apartment building in Baghpat, . It is difficult to predict changes in the building values over the long term.

Services
PCS 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 customers and the management via an PCS Web page and a 24-hour, call-in answering service.

Competitive Comparison
PCS's competitive advantage is as follows: We offer a higher level of quality in our units than the average unit in the city. This allows for those residents who do not want their living situations to inhibit , comfort or enjoyment of their life. 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 PCS will encounter will be average lower cost flat units.

Sales Literature
PCS 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 PCS. It will also contain some human interest stories about our complexes and the residents. Will also advertise in the local newspapers including Dainik jagran, Amar ujala, and Hindustan times. 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.

Future Services
In the future, PCS 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 PCS expansion.

Market Analysis Summary

PCS Real Estate's main consumer base will be primarily lower middle class famillies . who will benefit from the flats's unparalleled level of quality, location. These customers will be looking for safe, high-quality environments that can foster the type of atmosphere needed for every one.

Market Segmentation
PCS's largest market segment in the Baraut area will be small middle class famillies. We expect this to be the largest growing segment with a growth rate of about 7%..

Market Analysis contd

Year1 Potencial 18000 customers growth(lowe r middle class families) 7% Year2 19260 Year3 20608 Year4 22051 year5 23595

Market trends
This industry is constantly evolving and leaving many inflexible companies stagnant by providing home loans facility. Another important trend is adapting to higher density housing in smaller areas due to urban growth boundaries, etc.

Market growth
The market for high quality, reasonably priced flats units has been growing at a rate of 6.7% since 1996. Baraut's rental rates have remained even, averaging Rs5.5 lakhs. . Not only is PCS pioneering this particular niche of affordable quality living, but it is capitalizing on the strength of the current economic growth in U.P.

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. 1. ladies needs a quiet safe atmosphere that fosters a quality l environment. They also need the convenience of location and on-site amenities. 2. The students and old persons need a living environment that separates them from the noisy, dirty inconvenience of average apartment living.. 3. The other 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.

Strategy and Implementation Summary

PCS will focus on the three previously mentioned market segment:. Lower middle class and middle class families. Our target customer is usually looking for higher end living facilities that foster a safe, enjoyable, and convenient environment. They are technology savvy and have a desire to have access to the technological amenities that we provide.

Competitive Edge
No competitors yet , only we are stepping in real estate.

Marketing Strategy
Marketing Strategy Marketing in a highly competitive housing industry depends on the recognition of excellence, as well as a point of difference to display our units in an individualized light. PCS will build a reputation upon these components. We will develop and provide a living environment of unmatched proportion. It starts with the commitment to customer satisfaction and fulfilling their demands. Our commitment to quality and comfort includes safety and 24-hour customer

Sales Programs Our sale program will include customer service awards for those who best exemplify PCS's commitment to customers. We will also award existing customers for referring new clientele to the company.

Management Summary
Organizational Structure
PCS Real Estate depends on an organized division of responsibilities in order to run an efficient, diversified enterprise. Main decisions and responsibilities will be on company holder. They will focus on maintaining high quality and a cohesive business entity. Top division managers will be given specific responsibilities such as marketing, finance, strategic management, or research and development.

Management Team
PCS Real Estate is completely departmentalized. The main departments are finance, marketing, management, and research and development. Surveen kaur and sarthak , assumes the responsibilities of the CFO, while her counterpart, Sakshi chaudhary, will be responsible for the duties of CEO. The company will make all decisions in accordance with the company mission. Employees are delegated tasks based upon their specialty

Financial Plan
We want to finance growth mainly through cash flow. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days. We can't push our clients hard on collection days. Therefore, we need to develop a permanent system of receivables financing, using one of the established financial companies in that business.

Key Financial Indicators

The following chart indicates our key financial indicators for the first three years. PCS foresees growth in both unit rentals as well as increasing the percentage of growth margin. PCS 's cash flow depends on the monthly collection from the renters. We allow for a 25-day grace period, after which unpaid accounts will inhibit our cash flow. However, since we collect on a monthly basis, cash flow should maintain at a steady level.

Projected profit and loss

Projected Profit and Loss The projected profit and loss for PCS is shown on the following table. Sales are increasing in 2010 and continue steadily after the second year. We show a net profit in 2011. We are projecting a healthy gross margin for the first year. This is an aggressive projection that will help our efforts to keep total cost of sales low while increasing gross margin. We will also have very low marketing costs, due to the public exposure to the units, and good word of mouth around the university area.

Particulars
Sales Rs. 0

Year1

Year2
30Lakh
0

Year3
80lakh

Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Legal Architect fees Stationery etc. Brochures 400000
6600 20,000

1.25 lakh 0 1.25 lakh 28.75 lakh 95.83% 98.13% 0

1.50 lakh

0 0 0 0

1.50 lakh 78.5 lakh

97250

0
3300 20000

0
1000 20000

Insurance
land Construction Elecricity water Other(Adv+Staff) 75000 74300

60000
1,125,000

60000
0

60000
0

30 lakh.

10 lakh
75000 25000

0 0 0 74300

25000 74300

THANK YOU