CPPDSM5012A/5032A

Develop a strategic business plan in the real estate industry Assignment

What you need to do

To successfully complete this Assignment you must answer the following questions to demonstrate your knowledge. The assignment will be granted a result of “Competent” if the learning outcomes are achieved or “not yet competent” if not. If a result of “Not Yet Competent” is achieved you will be given the opportunity to resubmit your assignment.

You’re Task

The tasks in this unit are designed for you to demonstrate your understanding of strategic business & market planning for property agency.  This assignment forms assessment 1 in both CPPDSM5012A & CPPDSM5032A.  Each assessment builds on the previous one so do not submit assignment two (Strategic Plan) and assignment three (Marketing Plan) until you have received feedback on this submission.

In this task you are to undertake some analysis that will become the basis for a proposal to open a new real estate agency in your area. You will be expected to provide detailed answers that reflect your sound understanding of the topics raised and demonstrates a clear vision of the agency discussed in your proposal.

Assignment Questions

Question 1

Find a favourable location for your proposed agency. Discuss the location providing justification as to why you have chosen that location including the address of the property including its size, facilities, parking and public access as well as justifying your choice including details of area competition.

If no properties are available in your chosen location, model your office location on a location that you would occupy if it were available.

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Question 2

State the legal business structure the agency will operate under including justification of why you have you chosen this structure?

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Question 3

Identify the geographical areas and market segments that the agency will service. Provide reasons why you have made your choices.

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Question 4

Will you be purchasing or leasing the business premises you have identified? Give reasons why.

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Question 5

Identify the anticipated initial staffing levels of the agency. Your answer should address the number of staff, their job positions and functions. You should also include a brief profile of each of the job positions and justification for each position.

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Question 6

Design the interior layout of your proposed premises in detail. This should include all areas (staff, public, parking, etc.) and include a sketch of the floor plan and include a budget for fitout and set up.

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Question 7

Develop a budget for start up costs. This should be in the form of a spreadsheet and identify the start up items (e.g. network and comms cabling, furniture, leasing costs, initial advertising, etc.) their approximate cost and whether capital items will be leased or purchased.

This should include a description of all equipment you will require for your office, whether the items will be purchased or leased and why you chose this method. Add these items to your budget including a projection of their costs over the first 12 months.

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Question 8

What licenses do you require to run the business you plan under the structure mentioned above?

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Question 9

Describe the market (geographic and demographic) that your agency will operate in. You should assess the size of the market, the sub-section(s) you will be targeting, your potential market share and income potential. This description should include an analysis of the activities (i.e. prospecting) you will need to do to achieve the income (from settled sales) you will require from your business.

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Question 10

Describe your competition identifying their current market presence and market share, their fee structure, current marketing thrusts and their likely responses to you opening a new business in competition to them.

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Question 11

Outline your business objectives for the first three years remembering that objectives must be specific and measurable.

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Question 12

Complete a break even analysis projecting the operating period before you will achieve break-even based on your projections

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Question 13

Create a worksheet outlining your projected operating income and outgoings for the first twelve months. Be sure to including all outgoings ensuring your figures are current (i.e. wages meet current Award rates and conditions.

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Question 14

Set out your calculation of the total capital (i.e. equity + borrowings) you will require to sustain your business until it starts making a profit, including a contingency for short falls in expectations.

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