Century 21 Real Estate Company Essay.

Prepare a business plan for the real estate company known as Century 21.

The project or mission

The main aim of the project will be to increase the sales of the real estate agency in the coming years and grow in a steady manner. It will also try to increase its gross margin of profit in a substantial manner so that the plan can be improved after a period of time. It will also try to reduce the level of crime rates that are associated with real estate business to a greater level.

Century 21 will try to provide posh and comfortable rental units to the residents who are looking out for properties in the major areas of Canada such as Quebec. The company provides modern furnishings with the latest technological advances so that it can help the customers in gaining an advantage after purchasing the product. The company tries to provide better level of services so that the customers can be satisfied to a great extent. This results in increasing their business portfolio as well (Piketty 2015).

The success of the company depends mainly on the level of technology that is being provided to the customers so that it can help them in gaining an advantage in the market. It will also result in increasing the level of satisfaction among the customers, which will increase the longevity of the company in the current Canadian market (Castells 2014).

The company makes it a point to hire the best candidates so that it can help its customers to get a better explanation of the products and services that they are dealing with so that it can result in increasing their level of interest towards the properties. The manager of the company has a better knowledge of the properties that belong to the company so that the customers can be segregated according to their needs and choices. This helps in narrowing down the customers according to their needs and preferences (Mera and Renaud 2016).

The manager of the company is also well-versed with the policies and procedures that the company follows so that it can be abided in a proper manner. The team of employees who are working under him is also trained in a proper manner so that it can result in attracting the main clients towards the company. The manager has been working with the company for the past 10 years, which has allowed him in gaining better level of experience with respect to the Canadian market. This has allowed him in understanding the candidates who are best-suited with the expertise in influencing the customers in purchasing the products and services of the company (Hoesli and Reka 2013).

The promoter

The company follows a hierarchical structure of ownership, which allows the management in taking full control over the policies and procedures that will be formulated for the business. The owners of the company will be responsible in delegating the duties and responsibilities to the employees so that it can be divided in a proper manner according to their level of expertise (Dibrell, Craig and Neubaum 2014). This organizational structure also allows in narrowing the span of control so that the managers can report the important concerns to the senior management that needs to be addressed on a priority basis. The communication pattern is also clear, as the management sends information regarding the jobs that need to be done and the employees provide the feedbacks up on completing it. This helps the company to function in an organized manner (Jeston 2014).

Century 21 is a Limited Partnership business operating in Canada and also provides opportunities for franchising. The company is a registered trademark that is owned fully by Century 21 Real Estate LLC. The offices of the company are also operated and owned through the registered trademarks of Century 21 Real Estate LLC.

The external environment of the real estate industry can be explained with the help of the political scenario, as it has a major impact on this industry. There are indiscretions to a great extent on the policies and procedures that are with respect to the real estate industry due to the trade-offs between the issues related to environmental degradation and planning the civic amenities in a proper manner (Chadwick 2013).

There are other political issues as well such as the problems that are related to the purpose of development such as the acquisition of the land and the partnership between the private and public firms. These issues are very much prevalent in the real estate industry with respect to the political scenario.

The economic condition is also developing on a rapid manner due to the rise in the information technology that is having a positive influence on the real estate industry. It has resulted in increasing the level of construction work within the urban areas. Another major factor is that the level of income has also increased in the hands of the middle class sections, which has resulted in a rapid growth of urbanization in the real estate scenario. The factor of inflation also needs to be taken in to consideration, as it affects the pricing policy of the real estates as well (Robson 2015).

The company’s organizational and legal structure

There has been a rise in the purchasing power of the middle class people in the society that has allowed them in enjoying better tastes within the society. The rise in the capital has also allowed them in shifting to better homes equipped with the latest technologies so that they can live in a peaceful manner. The Canadian population is gradually increasing, which has shown a shift of the population from the rural to the urban areas (Bowell and Heap 2013).

The real estate businesses use the latest technologies so that it can help in cutting down the overhead costs to a great extent. This allows them in completing the work at a faster pace and within the time limit as well. This has also resulted in increasing the level of profit for the real estate companies that are operating in the Canadian market (Wheelen et al. 2017).

There has been a recent rise in the rate of interest in the real estate industry operating in the Canadian market due to the changes in the mortgage regulation. The Canadian Real Estate Association (CREA) is an association that collectively represents the brokers and the sales agents that are present in the real estate industry and the average price of the housing was around $503,000 in the start of 2017. There was a steady decline of sales in areas across Canada and British Columbia as well as Alberta, Nova Scotia and New Brunswick. Newfoundland and Quebec on the other hand had showed an increased in the sales activity by 1.5 and 0.9 percent respectively (Johnston and Bate 2013).

The buyers will be gaining in a positive manner, as there will be a huge opportunity to get in to the market before the rate of interest rises for the mortgaged properties. The townhouse and the condo market segments will be gaining a lot due to the opportunities that are available to the buyers to spend less in purchasing the properties (Dumas et al. 2013).

The sellers on the other hand are struggling due to the drop in the level of sales of the real estate properties. They have to provide better incentives to the buyers so that they can be attracted towards the products and services that are being provided by the company. Currently it can be seen that almost 47 percent of the mortgage holders need to renew their mortgages so that they can keep the property to themselves. The level of competition in the market is more towards the buyers, as they have better opportunity in purchasing the products whereas the sellers need to influence the potential customers (Goffee and Scase 2015).

The external environment

The major competitors of the company are RE/MAX, Sotheby’s International and Coldwell Banker, as they are also trusted companies within the real estate industry. They have been operating in the market for a long period of time and has a strong base of customers in the Canadian market.

The company needs to increase its marketing strategies by identifying the target market in a proper manner, as it will help the company in increasing the potential markets as well. The identification of the target market will help the company in selling its products and services in an easy manner, as the income levels and the other variables of the customers will be known to them. The identification of the target market will also provide the opportunities to the company to sustain itself on a long-term manner (Burns and Dewhurst 2016).

The company will be targeting the Russian clients, as they are interested in purchasing the properties due to their higher spending capacity. The company will be hiring an employee who have a better understanding of the Russian language so that the level of communication can be done in a proper manner. The use of their local dialect will help the company in connecting with the clients in a proper manner. This will also increase the level of trust among the customers as well. The company will be mainly targeting the customers who are Russian athletes as well as the coaches and the referees. This will be done as they have the capacity to purchase the products and services that are being offered by the company (Argenti 2018).

The company also has a strong presence in the Canadian market, which is through the various marketing tools that are used by them. The company will be advertising intensively through the print and online media so that it can help in attracting the potential clients. The use of newspapers and magazine advertisement in different dialects will help the company in attracting the foreign customers so that it can help in selling the products and services of the company. The use of the print media for advertising the properties will be influential in attracting the retired people as well, as they like to read the daily news in the morning (Jeston 2014).

The use of the online media will help the company in advertising their products in their official websites as well as in the social media sites. The use of Facebook, Twitter and YouTube will be useful in attracting the clients as most of the customers in the modern world are hooked on to these social sites. This will help the company in spreading their messages to a large number of people so that the market can be attracted in a proper manner. The new videos that will be uploaded by the company in the social networking sites will help the potential customers in getting to know about the products of the company. This will also result in increasing the potential customers of the company, as they will be aware of the products that are being provided by them (Bowell and Heap 2013).

The real estate market and the competition

The technical team of the company is also very strong that will help in making the advertisements more creative in nature, which will attract more number of prospective clients. The designing of the website will be done in a creative manner with the right choice of colours so that it can result in attracting the clients towards the products and services that are being offered by them (Johnston and Bate 2013).

The business will be operated from the various offices that are present in the market so that it can help in attracting different prospective clients who are situated in different parts of the market. The employees will be given the responsibilities of managing and handling the customer base according to the geographical areas so that the work load can be divided between them. This will help in distributing the work in a proper manner so that the company can increase its level of attraction among the customers and its profit level as well (Dumas et al. 2013).

The prospective clients will be informed regarding the properties that they are looking for within their purchasing capacity so that the ideal choices can be shown to them. This will help in increasing the probability among the customers in acquiring the properties provided by the company. The customers will be shown different properties within a 15-day period so that it can help them in selecting the best-suited property within their budget along with the necessary applications that they want within the product. This will help in increasing the level of satisfaction among the customers as well (Goffee and Scase 2015).

Since the company has been operating in the Canadian market for a long period of time, it has resulted in creating a loyal base of customers, which also created a positive impact on the net profit of the company. The loyal customers are also notified through mobile messages and e-mails so that they can get to know the properties that are being provided by the company according to their level of price range. This has also created a niche market segment for the company where the customers are using word-of-mouth referencing in advertising the products to their friends and families (Robson 2015).

Twelve-month cash flow						Company 21							Fiscal Year Begins:	Jan-18
	Pre-Startup EST	Jan-18	Feb-18	Mar-18	Apr-18	May-18	Jun-18	Jul-18	Aug-18	Sep-18	Oct-18	Nov-18	Dec-18	Total Item EST
Cash on Hand (beginning of month)	550,000	1,100	243,750	250,400	195,300	610,500	390,050	320,480	324,160	113,410	119,160	300,410	243,660	243,660
CASH RECEIPTS
Cash Sales	1,000,000	1,500,000	500,000	305,000	1,200,000	750,000	425,000	750,000	350,000	950,000	1,250,000	900,000	500,000
Collections fm CR accounts	100,000	400,000	1,000,000	1,100,000	700,000	550,000	750,000	480,000	600,000	100,000	228,000	110,000	100,000
Loan/ other cash inj.	350,000	350,000	350,000	350,000	350,000	350,000	350,000	350,000	350,000	350,000	350,000	350,000	350,000
TOTAL CASH RECEIPTS	1,450,000	2,250,000	1,850,000	1,755,000	2,250,000	1,650,000	1,525,000	1,580,000	1,300,000	1,400,000	1,828,000	1,360,000	950,000	0
Total Cash Available (before cash out)	2,000,000	2,251,100	2,093,750	2,005,400	2,445,300	2,260,500	1,915,050	1,900,480	1,624,160	1,513,410	1,947,160	1,660,410	1,193,660	243,660
CASH PAID OUT
Purchases (merchandise)	200,000	250,000	250,000	250,000	250,000	250,000	250,000	250,000	250,000	250,000	250,000	250,000	250,000
Purchases (furniture)	563,000	450,000	250,000	200,000	350,000	150,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000
Purchases (appliances)	447,000	305,000	300,000	302,250	125,000	240,000	120,000	100,000	50,000	75,000	90,000	45,000	39,000
Gross wages (exact withdrawal)	550,000	550,000	550,000	550,000	550,000	550,000	550,000	550,000	550,000	550,000	550,000	550,000	550,000
Payroll expenses (taxes, etc.)	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000	55,000
Supplies (office & oper.)	25,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000
Repairs & maintenance	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500	12,500
Advertising	65,000	67,000	62,000	60,000	25,000	50,000	55,000	64,000	35,000	17,500	27,500	32,500	48,000
Car, delivery & travel	12,000	12,000	12,000	12,000	12,000	12,000	12,000	12,000	12,000	12,000	12,000	12,000	12,000
Accounting & legal	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000	10,000
Telephone	5,000	6,500	7,500	4,000	4,250	3,500	1,820	3,570	8,500	14,500	12,000	6,000	5,700
Utilities	3,150	3,100	3,100	3,100	4,800	1,200	1,500	1,500	1,500	1,500	1,500	1,500	1,500
Insurance	2,250	2,250	2,250	2,250	2,250	2,250	2,250	2,250	2,250	2,250	2,250	2,250	2,250
Taxes (real estate, etc.)	27,000	27,000	27,000	27,000	27,000	27,000	27,000	27,000	27,000	27,000	27,000	27,000	27,000
Interest	1,250	1,250	1,250	1,250	1,250	1,250	1,250	1,250	1,250	1,250	1,250	1,250	1,250
Miscellaneous	5,750	5,750	5,750	5,750	5,750	5,750	5,750	5,750	5,750	5,750	5,750	5,750	5,750
SUBTOTAL	1,983,900	1,807,350	1,598,350	1,545,100	1,484,800	1,420,450	1,254,070	1,244,820	1,170,750	1,184,250	1,206,750	1,160,750	1,169,950	0
Loan principal payment	10,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	10,000
Owners' Withdrawal	5,000	100,000	145,000	165,000	250,000	350,000	240,500	231,500	240,000	110,000	340,000	156,000	4,000
TOTAL CASH PAID OUT	1,998,900	2,007,350	1,843,350	1,810,100	1,834,800	1,870,450	1,594,570	1,576,320	1,510,750	1,394,250	1,646,750	1,416,750	1,183,950	0
Cash Position (end of month)	1,100	243,750	250,400	195,300	610,500	390,050	320,480	324,160	113,410	119,160	300,410	243,660	9,710	243,660

ESSENTIAL OPERATING DATA (non-cash flow information)
Sales Volume (dollars)	9,800,000	6,600,000	5,800,000	1,500,000	2,700,000	6,400,000	4,800,000	4,800,000	4,800,000	4,800,000	4,800,000	4,800,000	4,800,000	4,800,000
Accounts Receivable	1,485,877	1,036,644	1,023,782	1,039,660	1,015,267	1,097,642	1,094,392	1,083,451	1,059,498	1,079,089	1,001,968	1,007,489	1,094,858	1,090,171
Bad Debt (end of month)	1,390,149	1,016,236	1,064,448	1,029,280	1,029,212	1,050,923	1,031,775	1,008,540	1,080,728	1,082,864	1,018,279	1,018,676	1,029,976	1,042,759
Inventory on hand (eom)	1,303,802	1,098,834	1,087,246	1,043,463	1,020,805	1,048,909	1,080,658	1,054,359	1,039,915	1,031,672	1,022,234	1,026,005	1,019,140	1,084,076
Accounts Payable (eom)	1,228,282	1,008,214	1,014,185	1,020,935	1,014,698	1,084,334	1,043,153	1,085,806	1,043,161	1,071,520	1,055,168	1,069,672	1,036,358	1,021,600
Depreciation	1,365,476	1,038,286	1,021,411	1,087,236	1,026,197	1,046,191	1,020,950	1,098,904	1,052,792	1,061,764	1,099,010	1,089,063	1,098,855	1,083,078

Reference

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Castells, M., 2014. Technopoles of the world: The making of 21st century industrial complexes. Routledge.

Chadwick, G., 2013. A systems view of planning: towards a theory of the urban and regional planning process. Elsevier.

Dibrell, C., Craig, J.B. and Neubaum, D.O., 2014. Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), pp.2000-2007.

Dumas, M., La Rosa, M., Mendling, J. and Reijers, H.A., 2013. Fundamentals of business process management (Vol. 1, p. 2). Heidelberg: Springer.

Goffee, R. and Scase, R., 2015. The Real World of the Small Business Owner (Routledge Revivals). Routledge.

Hoesli, M. and Reka, K., 2013. Volatility spillovers, comovements and contagion in securitized real estate markets. The Journal of Real Estate Finance and Economics, 47(1), pp.1-35.

Jeston, J., 2014. Business process management. Routledge.

Johnston, R.E. and Bate, J.D., 2013. The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.

Mera, K. and Renaud, B., 2016. Asia's financial crisis and the role of real estate. Routledge.

Piketty, T., 2015. About capital in the twenty-first century. American Economic Review, 105(5), pp.48-53.

Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.

Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management and business policy. pearson.

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