Things have changed a lot in the intervening years. Today, the extremely rigid Franchise Disclosure Document, which is proffered by a franchiser before any agreement is pursued, must contain a preordained list of 23 items. Most franchise agreements run 75 pages or longer. Compared with these highly-formatted documents, a franchise business plan tends to be much shorter and focus on the dream.
The Company will be offering a unique service to property investors, homeowners, and tenants. CPW Investments was registered as a limited liability company LLC within the state of California, and will abide by all city and state business laws.
Reynolds will share ownership with the parent company, Dynamic Capital of China. The initial phase will include setting up the business. Reynolds will establish phone, Internet, and power service to the new location. He will also purchase computers, printers, software, and office furniture to support daily business activities.
The second phase will include building long-term relationships. Relationships will be built through networking and focusing on real estate brokers, mortgage lenders, property management companies, real estate attorneys, insurance agents, appraisers, and property inspectors.
These companies will be at the heart of what CPW Investments will need in order to meet both renter and investor demand.
Ray Reynolds will serve as owner and operator of the business. He has received a broad level of work experience and knowledge that has allowed him to be perfectly positioned to broaden the scope of his business entities. He is also a real estate investor and realtor.
His expertise is in acquiring undervalued and underperforming multifamily housing stock. The company works diligently to locate properties that have a good valuation, require little repairs, and are in growing neighborhoods.
Once a property has been purchased, Initial investment business plan Investments will hold onto the property until the valuation increases by eight percent. This ensures that properties are sold and sizeable return is received. In addition, CPW Investments will be responsible for legal tax, title work, insurance, escrow, and other requirements associated with the sale of a property.
For those properties purchased but not yet sold, CPW Investments will provide property management service that will include property maintenance and renter selection.
CPW Investments will hire a property manager to manage each property before it has reached a set valuation.
The ideal property manager will closely work with the property and ensure that all renters have met specific guidelines with respect to renter requirements. Property investors will be the last stream of income. Typically, CPW Investments will receive ten percent commission for locating an available property that is not listed on any of the current property listing websites.
Since very few real estate businesses offer this type of service, CPW Investments expects to use this as a key advantage. Reynolds expects property investors to reach out to the company once word-of-mouth has spread throughout the industry. This will be a win-win situation for both the property investor and for CPW Investments.
The Market The demand for housing has been on the rise since the fall of when the housing sector began showing signs of economic weakness.
Home buyers are finally moving back into the housing market as interest rates continue to be at their historic lows. First time buyers and those looking to reestablish their credit, are finding valuable properties in good neighborhoods, closely located to schools and shopping centers.
Home prices are increasing moderately and are expected to remain at about five percent through Property investors have been the most important aspect of the housing market.
Their all-cash purchases have minimized the need for mortgages and helped increase property values simply by snapping up distressed or valuable structures. They will continue to help drive the market into Marketing and Sales Since real estate is a people-oriented business where direct contact is most effective, CPW Investments will utilize person-to-person contact, networking, and referrals as the main avenue of contact with its target market.
Through an aggressive online advertising campaign, CPW Investments will attract customers that are seeking to rent, buy, or purchase as an investment. Therefore, this is expected to be a long-term business, meaning that it will take six months to a year before a property will sell.
For those properties that do not meet the eight percent valuation, CPW Investments plans to rent the property until valuations are met and the company can sell. Financial Projections Projected sales are expected to grow exceptionally well under the leadership of Mr.
Based on his experience, Mr. Reynolds will be able to grow the business the first year by implementing an aggressive marketing campaign and word-of-mouth advertising as the primary sources of advertising.
Profits will be equally impressive as Mr. Reynolds maintains costs while exploiting revenue growth. After, profits will move consistently higher through the first three years of operations. Profits will be above 23 percent for the first three years.Dec 13, · Essential numbers or your financial plan might be simpler for an initial assessment than the projected sales, spending, and cash flow that are normally part of a Lean Business Plan.
For an initial assessment, just do a sales forecast/5(5). If you are thinking of buying into a franchise, you must review the business plan with an eye toward learning whether there will be enough revenue to .
This article is part of our “ Business Planning Guide “ —a curated list of our articles that will help you with the planning process! What is a business plan? In its simplest form, a business plan is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals.
The initial phase will include setting up the business. This will include locating office space, hiring an accountant/administrator to help with client calls, general office work, and accounting.
In addition, Mr. Reynolds will establish phone, Internet, and power service to the new location. An initial investment is also called start-up capital.
It is the money a business owner needs to start up a firm. It may include the business owner's own money, money borrowed from a variety of sources, including family and friends or banks, or money raised from investors.
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