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Property Management - Development
Business Plan

MSN Real Estate

1.0 Executive Summary
Highlights
2.0 Company Summary
3.0 Services
4.0 Market Analysis Summary
Market Analysis (Bar)
5.0 Strategy and Implementation Summary
5.1 Competitive Edge
5.2 Marketing Strategy
5.2.1 Positioning Statement
5.2.2 Pricing Strategy
5.2.3 Promotion Strategy
5.2.4 Distribution Strategy
5.2.5 Marketing Programs
5.3 Sales Strategy
5.3.1 Sales Forecast
Sales Forecast
Sales Monthly
5.3.2 Sales Programs
5.4 Strategic Alliances
5.5 Milestones
Milestones
6.0 Management Summary
7.0 Financial Plan
 
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5. Strategy and Implementation Summary
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5.0 Strategy and Implementation Summary [back to top]

MSN will focus on the three previously mentioned market segments: university students, local area professionals and university faculty and staff.

Our target customer is usually looking for higher end living facilities that foster a safe, enjoyable, and convenient environment. They are technology savvy and have a desire to have access to the technological amenities that we provide.

5.1 Competitive Edge [back to top]

We start with a critical competitive edge: there are very few apartment units that offer the same level of quality and technological amenities as MSN properties. We also have a very high regard for customer service; something that is unparalleled in this industry. MSN believes it is essential that the customer feels he/she is being treated with the utmost care and urgency. All staff and personnel go through a training program that teaches many of the skills needed for successful client relations and customer service.

5.2 Marketing Strategy [back to top]

Marketing in a highly competitive housing industry depends on the recognition of excellence, as well as a point of difference to display our units in an individualized light. MSN will build a reputation upon these components.

We will develop and provide a living environment of unmatched proportion. It starts with the commitment to customer satisfaction and fulfilling their demands. Our commitment to quality and comfort includes safety and 24-hour customer service. The aspect of our living developments that differentiate MSN from all other real estate companies is our focus on maintaining the most advanced technological innovations on the market for our tenants.

5.2.1 Positioning Statement [back to top]

For people who desire high-quality living with all the technological amenities available, only MSN real estate properties will be able to fulfill their needs and desires at an affordable price. Unlike most other property management companies, MSN is committed to guaranteeing customers full satisfaction, with 24-hour on-staff service, live answering service, and a website that handles all complaints instantly.

5.2.2 Pricing Strategy [back to top]

MSN's pricing will be at the top of what the market will bear. We are competing with large firms who have similar complexes. Our prices will be competitive with these larger firms while maintaining the high level of quality and expert management.

Prices are based on average unit value of $400 and average monthly sales of about $56,000. MSN, however, must try to follow market pricing trends in order to maintain a competitive advantage.

5.2.3 Promotion Strategy [back to top]

MSN's most successful promotion will come in the form of word of mouth. Since we will own real estate, we will be highly visible to the public. Since our complexes will be in the upper echelon of quality and livability, word will spread through the community about our unique appeal.

Along with word of mouth, our most consistent form of promotion will come from ads in local publications, specifically, The Oregonian, The Daily Emerald and The Register-Guard, as well as smaller magazines and circulations. We will also be personally promoting our product within the community.

5.2.4 Distribution Strategy [back to top]

We will focus on providing high-quality living in convenient locations with a wide customer base. It is also important that we remain at the upper echelon in the quality range when compared to competitors. We can only do this by organizing and implementing a sound plan that will assume responsibility for the functionality and appearance of MSN properties. We will have an updated Web site for anyone interested in the properties.

5.2.5 Marketing Programs [back to top]

Our most important marketing program is customer word of mouth. The only way to truly know the quality of our units is through experience; hence we must maintain the highest level of customer satisfaction. Rewards will be given to clients or customers that refer new clientele to the company. We confidently believe that the high level of quality that MSN will provide can attract a strong demand for our units.

Another incentive that we will use is the early move-in bonus program. Anyone that signs their lease before June 15th will receive a free month as well as two parking spaces. This will encourage people to try and beat the rush of people who move in later. It will also give the appearance of increased demand.

5.3 Sales Strategy [back to top]

Sales in our business is based upon providing customers with a living concept fitting of their needs. We must be in touch with the needs and desires of our clientele in order to best attract a consistent flow of incoming residents.

5.3.1 Sales Forecast [back to top]

The following table and chart gives the forecasted earnings for MSN Real Estate apartment rental units. We perceive a gradual increase in the total number of units over the next year. As time goes on, the monthly per-unit rental price will slowly ascend, coupled by the decline in cost over time, producing an increased per-unit profit.

From our opening in January to June, we expect that all units will be completely rented out. In the summer months we anticipate fewer student tenants, so we have planned on a rent lowering process to entice renters to stay. Also, we will only rent on yearly leases to ensure that all rented units remain filled year round. With the estimated profits from the previous months the annex will be completed in September, adding 14 more units to the total of 54.

Sales Forecast
Unit Sales199920002001
Single Units311350394
Double Units174212242
Quad Units129154168
Luxury Suite295460
Other000
Total Unit Sales643770864
    
Unit Prices199920002001
Single Units$404.98$410.00$420.00
Double Units$806.78$816.00$828.00
Quad Units$1,174.42$1,200.00$1,220.00
Luxury Suite$674.14$689.00$699.00
Other$0.00$0.00$0.00
    
Sales   
Single Units$125,950$143,500$165,480
Double Units$140,380$172,992$200,376
Quad Units$151,500$184,800$204,960
Luxury Suite$19,550$37,206$41,940
Other$0$0$0
Total Sales$437,380$538,498$612,756
    
Direct Unit Costs199920002001
Single Units$260.00$225.00$214.00
Double Units$428.00$400.00$378.00
Quad Units$511.00$498.00$478.00
Luxury Suite$302.00$287.00$284.00
Other$0.00$0.00$0.00
    
Direct Cost of Sales199920002001
Single Units$80,860$78,750$84,316
Double Units$74,472$84,800$91,476
Quad Units$65,919$76,692$80,304
Luxury Suite$8,758$15,498$17,040
Other$0$0$0
Subtotal Direct Cost of Sales$230,009$255,740$273,136

Sales Monthly

Click to Enlarge

5.3.2 Sales Programs [back to top]

Our sale program will include sales awards for length of lease agreements, maintaining a full capacity status, and customer service awards for those who best exemplify MSN's commitment to customers. We will also award existing customers for referring new clientele to the company.

5.4 Strategic Alliances [back to top]

We depend on our alliance with Rumex contracting services to develop our housing units, as well as Richards Architecture to assist in the layout and design of our units. Familian Northwest also is a key factor in our development process for their continuous fair sales program when we need building supplies.

5.5 Milestones [back to top]

The accompanying table lists our company's milestones, including dates, management responsibility, and budgets. This table indicates our expectations from the company as well as outlining our plan for start up. The table shows the anticipated divisions that are to occur within the company as it grows, as well as an increase in units owned.

This is an initial assessment, and MSN will continually adjust in order to sustain our business in all the different departments.

Milestones
MilestoneStart DateEnd DateBudgetManagerDepartment
Complete incorporation1/30/19987/30/1998$12,000Shawn Menashe (CEO)Admin/Managment
Financially Organized Institution2/28/19982/28/2000$2,500Nathan Koach (CFO)Finance
Brokerage Unified4/1/19994/00/00$10,000Joe NashBrokerage
Expansion (UNITS)8/24/19984/24/1999$150,000Shawn MenasheDevelopment
Earnings ($200,000)1/31/199912/31/1999$1,000Nathan KoachFinance
Acquisition (Bought C&R Reality)7/30/19987/30/1999$500,000Shawn MenasheBrokerage
Other1/1/19981/1/1998$5,000MSNAdministration
Totals  $680,500  

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