Business plan of Global Estate Corporation
Global Estate Corporation (GEC) is an emerging business enterprise focusing expert support and consultancy services in housing sector for the public, primarily aiming cross street and adjacent locality, as an important potential access area. The initial offered service comprises consultation services for the owners and onsite project supervision.
As per records, maintained by Australian Bureau of Statistics site, there have been over 1000 sanctions for housing in September 2013, according to a study. This finding has been complimented by the location registers, which show a notable increase in the market.
GEC has chosen most appropriate sales channels to attain optimum coverage in a minimum cost. Association with media and further business allies in the same sector such as business awareness platforms; expo and exhibitions without establishing an office setup everywhere, so as to cover the vast target area and prospect development opportunities.
An optimistic cash flow has been indicated by financial projections within six months of function and break even will take place just by the first year.
To offer a comprehensive service, while facilitating the customers to have trouble free building of housing and develop investment options involving a compassionate society.
Supply specialized services to persons / bodies aiming on the building of a residence.
These specialized services include:
- Consultation services for the owners
- Onsite project supervision
- Survey facility for individual site
- Drafting and architecture
- Complete Interior designing
- Landscape designing
- Legal consultation
- Financial consultation
- Maintenance and facilitation services
The primary focus of the company is on housing construction projects.
The company will offer two major services in the first phase.
- Consultation services for the owners
- Onsite project supervision
“Consultation services for the owners”, intends to offer facilitation to the customers as they find the way to deal with a demanding course of constructing housing. This facilitation is offered directly to the customer without any direct interaction with the chosen builder. Experts with notable experience in the construction process and accessible resources will give advice and refer to applicable facilitation services which could be accessible for the clients at a comparatively small cost.
Onsite project supervision service will offer rather dynamic facilitation to the customer by adopting larger responsibilities, playing a role of an agent for the customer and linking them with their chosen builder. This service will provide 2 facilitation levels, foreseen in this product
- The company will handle daily correspondence with the builder and arrangement of independent checks
- Project management as rather inclusive service related to the decision making, cost management, follow-ups on the timelines, extensive supervision activities needed to make sure that the builder provides timely and cost efficient solution while maintaining the quality at the same time.
Before starting any new business it is important for the company to analyse the competition in any industry, as failing to realize and analyse the level of existing competition might result in the overall failure of the business. It is therefore important for GEC to do proper analysis on the level of competition that exist and be prepared for the competition. One strategy to overcome competition is to offer services unlike others or to have services that no other company has to offer.
Due to the developing of more new areas, a lot of new companies are expected to enter in the same industry. The overall cost of starting such business is not too high, as for such reason a lot of new entrants are seeking to capitalize on the growing market. Though already existing companies are threats for any business, however at the same time one cannot ignore the competition that one can face from new entrants in the market.
For any industry in any market, there are always the possibilities of having threats from substitutes. Though in the case of GEC there are not many substitute service providers unless the clients decide to go and deal with the specialized service providers directly. GEC can capitalise on such scenario by building strong relationship with its suppliers so one company alone can only offer the services.
Suppliers & Buyers
In any industry, regardless of its size both buyers and suppliers have almost the same amount of influence. Buyers usually play their role in determining the success of any product or service, whereas the role of suppliers is also essential as with their help the cost can be minimised or one can have competitive edge over others. As for such reason, buyers and suppliers both are of most importance in the establishment of Global Estate Corporation. However, for some aspects buyers are slightly of more importance, as they will be the main target market. The business is aiming to offer Consultation services, Onsite project supervision, Survey facility for individual site along with Designing services. To offer such services, GEC will seek the assistance and support of suppliers, as for this reason it is important to select suppliers of such services from the aspects of prices.
This analysis has been conducted in Melbourne city and where, the housing industry is highly progressive. Focusing on the number of persons, expected to be residing in Victoria for upcoming years, Melbourne assets Investment site shows through projected figures; prepared by the Australian Bureau of Statistics (ABS), that Victoria will be home to an additional 405,100 households by 2020. For a purpose to please demographic need, the stock of housing in Victoria may require a growth by an estimate of 45,000 homes per year through to 2020″ (Australian Property Investor Planning, 2014). In addition, the August 2011 Mercer consulting group report placed Melbourne as the most liveable city in the world last year (Wikipedia, 2014).
Considering our business carefully, we envisage making it a blend of diverse parts in one boundary. Furthermore, to the best of our knowledge, the current market has no similar business to put forwards these kinds of services together.
Initially we will concentrate on under construction hamlets having residential properties. These kinds of areas can be used for out sourcing to improve the Project Management movement. The company will also handle the property with issues among the owner and a second party, i.e builder, private examiner, etc.
The company will offer two major services initially; consultation services for the owners and onsite project supervision, till satisfactory stabilization of the business. The technical services are planned to be out sourced through external vendors. For project management, the business owners are trained to hold this component of the business. Ultimately, restricted hamlets will be catered with the higher rate of expected income.
We intend to expand our business in the coming years to cover second phase services mentioned above. Furthermore, hiring technical construction team to handle development demands and growing the business to embrace new services.
According to Australian Property Monitors (APM), Melbourne’s outer hamlets persist to be the ideal location for new home construction. On the above ground, the main office will cater three main areas:
- Site A
- Site B
- Site C
To increase productivity and efficiency of the company, 2 electronic channels will be introduced for distribution.
The customer service centre will provide direct and rapid support to the customers. An automated answering machine with recorded list of services will lead the customers directly to the particular sections. The list will be designed in a simple way having ability to help all the customer of diverse ages, cultural background, education and conduct. Keeping the customer on waiting is strongly discouraged.
The website will be utilized as online distribution source, which may be highly beneficial. This way the Company will be able to target large no. of customers, not only in Australia, but also potential immigrants all around the world, who are in search of such facility. This will also help to explain the offering in thorough detail for those who have little awareness regarding property business, but are keen in building.
Further to this, it has become really hard to survive in the current business scenario, due to increasing competition. For that reason, the company has planned to functionalize the website to handle the component of e-commerce, which has high potential in upcoming years. The expected benefits of e-commerce are as follows.
- A chance for customers to choose sets of services, matching their requirements.
- Special offers for online customers who may visit the website frequently. Online offer may require lesser time as compared to the need of direct time from the team members.
- An opportunity for the visitors to pay online, having a secure and clear payment process.
Direct dealing is the most important part of customer handling, as several customer prefer face-to-face contact, considering more substantial, transparent, and reliable. Therefore, our strategy for this source is as follows:
- The sales representatives will spread over land auctions to locate the customers
- The service will be introduced to real estate agents, architecture firms and private builders to be referred to their customers.
- A mechanism will be introduced to conduct consultation meetings for specific cases, which cannot be solved by phone, or, on customer preference for face-to-face communication.
- The project managers will pay visit to the customer’s property.
The company offers a distinctive service to clients planning to build a house. Valuing the customer on top is the core value and part of the mission. This customer focus will help targeting the customer by the programme designed to fill the facilitation gap in the market and attract customers to sign-on for the higher quality services.
By conducting widespread market and sales research the company offer a great chance in a major gap within the accommodation sector.
The company is ready to fight all the risks to serve the customer to the best possible level.
Wikipedia. (2013 April). World’s most livable cities . Retrieved 2012 йил 28-April from Wikipedia: http://en.wikipedia.org/wiki/World’s_most_livable_cities
Wilson, A. (2014 4-April). Melbourne takes lead in new home building. (Fairfax Media) Retrieved 2012 йил 25-April from Domain: http://news.domain.com.au/domain/real-estate-news/melbourne-takes-lead-in-new-home-building-20110404-1cuax.html
Australian Bureau of Statistics. (2013 2-April). Building Approvals, Australia, February 2012. Retrieved 2012 йил 25-April from Australian Bureau of Statistics: http://www.abs.gov.au/ausstats/[email protected]/mf/8731.0
Australian Government. (2013 April). Planning Templates. Retrieved 2012 йил April from www.business.gov.au: www.business.gov.au
Australian Property Investor Planning. (2012). Melbourne Investment Property. Retrieved 2012 йил 28-April from Australian Property Investor Planning: http://www.propertyinvestorplanning.com.au/melbourne.htm
Kick, M., & Ooi, D. (2000). Conversations on building a home. Victoria, Australia.
Realestate.com.au. (2012 йил 3-May). Land For Sale in Hoppers Crossing, VIC 3029. Retrieved 2012 йил 3-May from realestate.com.au: http://www.realestate.com.au/buy/property-land-in-hoppers+crossing%2c+vic+3029/list-1?source=refinements
Wikipedia. (2012 йил April). World’s most livable cities . Retrieved 2012 йил 28-April from Wikipedia: http://en.wikipedia.org/wiki/World’s_most_livable_cities
Wilson, A. (2011 йил 4-April). Melbourne takes lead in new home building. (Fairfax Media) Retrieved 2012 йил 25-April from Domain: http://news.domain.com.au/domain/real-estate-news/melbourne-takes-lead-in-new-home-building-20110404-1cuax.html