Before reading through this article, we advise that you read our article on how to write an effective business plan where we extensively discussed the dos and don’ts of writing a business plan.

In this article, we show a practical approach to how a business plan should look, specifically for a real estate business based in the United States; Golden Valley Real Estate (GVRE).

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Executive Summary

Opportunity & Problem

With advances in modern medicine, people are living longer. Once they raise children and retire, they go through a new phase in their lives where they find themselves enjoying their spouse and not having other responsibilities. They get a second chance to be disinterested youth. They need to find a place in their budget that helps them with this.

The solution

GVRE will provide housing services at the new Golden Valley retirement community, located northwest of Tucson, Arizona. GVRE is a real estate, mortgage, and title company.

The retirement industry has grown exponentially over the past two decades. The US population over the age of 55 is the highest at 21% and is growing at an average rate of 3% per year. In some parts of the country like the American Southwest, which has a large concentration of retirement communities, the growth rate is around 8%. And this percentage is expected to increase as the first generation of baby boomers begins to reach retirement age over the next decade. The United States Census Bureau estimates that the retirement industry, which includes homes, hospitals, special equipment, retirement recreation services, and more, costs $4.8 billion annually.

Our Belief

GVRE believes that the biggest threat right now is new market entrants who will want to invest in this high-growth industry. The entrants will be new, small businesses with less than 10 employees. However, the only advantage GVRE has is its unique ability to act as an agent for the Retirement Community. However, due to the high number of competitors and the low profit of each company, the competition is getting stronger.

The power of customers can be great in this industry because many customers are concentrated in our geographical area. Additionally, customers often want to "shop around" to find the best service and price.

Expectations

The company expects to make a profit in the first year and does not expect a major financial crisis. We believe that in the first three years, the average monthly profit in one part will be sufficient. We hope that about one sale per month will guarantee a break even.

Our solution

Golden Valley Real Estate, LLC (GVRE) is a startup in the Tucson area. It is GVRE's mission to provide housing services in the new retirement community of Golden Valley, located northwest of beautiful Tucson, Arizona. GVRE is a real estate, mortgage, and title company.

The company's main customers will be retired couples looking for a community that can provide useful services for their age and income level. Since Mrs. Egan is part of this demographic and knows and understands the needs of this market, she believes that she can attract these customers more than many other competitors.

Target Market

Market size and dimensions

GVRE will focus on one market area. This will be a retirement market for individuals and couples looking to retire in the Tucson area. As a retiree herself, Ms. Egan is passionate about her clients, providing insight and opportunities to help her clients better. The retirement industry has grown exponentially over the past two decades. The US population over the age of 55 is the highest at 21% and is growing at an average rate of 3% per year. The United States Census Bureau estimates that the retirement industry, which includes homes, hospitals, special equipment, retirement recreation services, and more, costs $4.8 billion annually.

Retirement companies are in thousands of small towns. These communities range from large corporations with brands to tens of thousands of small businesses in one location.

GVRE believes that the biggest threat right now is new market entrants who will want to invest in this high-growth industry. The entrants will be new, small businesses with less than 10 employees. However, the only advantage GVRE has is its unique ability to act as an agent for the Retirement Community. However, due to the high number of competitors and the low profit of each company, the competition is getting stronger.

Our biggest competitors are Bowditch Realty and RE/MAX. These companies affect us greatly because of their large capital or geographical proximity.

Market segmentation

GVRE will focus exclusively on the retired market segment. This means that the company will focus on buying and selling retirement homes in the Tucson area. This segment of the market has special needs and is almost always looking to find properties in purpose-built communities that cater to those special needs such as healthcare, hotels, entertainment, shopping, and other similar things. Being the primary dealer for the new Quadrant Homes retirement community in Golden Valley will allow GVRE to meet these needs.

Market research charts and graphs show the number of potential retirees moving to the Tucson area each year. We also include a small number of other customers who may want to use our services even though we focus on the marketing sector.

Competition

The retail industry is highly fragmented, with a large number of potential competitors. Our biggest competitors are Bowditch Realty and RE/MAX. Bowditch is an established company that has been in business for the past ten years, with a solid track record of quality service. It currently employs twelve workers and has long-term contracts with various construction companies.

This company is smaller than GVRE in terms of size and market capitalization. RE/MAX is one of the largest and most recognized real estate companies in the country. It has hundreds of users and a deep wallet that can be used to block any type of competition. Training habits and needs.

Customers generally deal with companies that sell products based on their reputation for professionalism and quality of work done in the past. This reputation is hard to get for a new company, unless their employees bring it to an old company, like ours. Price and availability are also important factors for acceptance, especially if the business is small.

Our benefits

GVRE provides real estate, mortgage, and title services to our diverse clients. By Quadrant Homes, Inc. As a sponsor of the newly completed Golden Valley retirement community, we will have a prominent position as a marketer of new retirement homes, apartments, and houses. In addition, we will provide a variety of services to support the purchase and sale of real estate, including the following:

• Home search database.

• Moving tips, quotes, plans, etc.

• Mortgage and loan advice before acceptance.

• Get comparative market research for potential buyers.

• Preparation of material.

Marketing Plan

GVRE will use radio, newspaper, and phone records, as well as a small group of business agents to generate sales and establish a presence in the Tucson area. Also, Quadrant Homes, Inc. will advertise itself, and all customers interested in Golden Valley Retirement Community will be referred to GVRE.

Sales strategy

GVRE management will focus on improving its contacts with various construction companies such as Quadrant Homes, Inc. creating a market. In addition, we will offer promotions of various free services such as initial surveys and information packages to generate sales once our advertising campaign begins.

Corporate Summary

GVRE will be a limited liability company registered in the state of Delaware for tax purposes. Its founder is Mrs. Susan Egan, a former RE/MAX representative, where she worked for 23 years.

The company plans to invest in private equity and some loans. Mrs. Egan is in the process of establishing this business as a 'lifestyle' business to supplement her retirement. The company has its headquarters in Tucson, AZ. Facilities include conference rooms and office space. The company plans to start offering its services in June 2003.

The company's main customers will be retired couples looking for a community that can provide useful services for their age and income level. Since Mrs. Egan is part of this demographic and knows and understands the needs of this market, she believes that she can attract these customers more than many other competitors.

Company Ownership

The company will be joined by Mrs. Susan Egan and her husband Daniel, who will provide equity. All other funds will come from loans.

*ATTACH FINANCIAL FORECAST HERE*

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