Carmens Real Estate: Financial Management Business Opportunity Plan

This presentation details the business plan for Carmens Real Estate, a startup real estate company in Houston, TX. It outlines the startup capital requirements, funding sources, and anticipated expenses. The presentation compares the advantages and disadvantages of starting a business from scratch versus buying an existing one, including brand recognition, customer relationships, and market reputation. It defines the company's objectives, target customer demographics, and marketing channels, with a focus on attracting buyers. The analysis incorporates insights from RE/MAX and Berkshire Hathaway, highlighting factors critical for success. The presentation also discusses the company's employee structure and the types of equipment needed for operations. Overall, the presentation provides a comprehensive overview of the business opportunity, analyzing market factors, competitive advantages, and strategic recommendations for Carmens Real Estate's success. The presentation includes financial projections, market analysis, competitor analysis and strategies.

Carmens Real Estate

Carmens Real Estate
 Carmens Real Estate is a new real estate that will open in July this year. The
estate is the first to cater in Houston, Texas. As our name depicts our aim is to
deal with property consisting of land and the buildings on it.
 The Carmens Real Estate is a full –service real estate, mortgage company
which is located at Houston, TX.
 The company will have the people of all different age groups serving
according to their age group and levels of income as its main clients.

Start up summary
 The start-up capital requirement of the Carmens Real Estate is approximately
$83000 and will be financed through investment from Woodville first national
bank.
 The expenses of the company includes rent, advertising, office supplies,
insurance and others.
 The investment will come from a loan from Woodville first national bank.

Start-up Business plan

Total funding requirement for the start-up
business
As per the bar graph presented in the previous slide,
 The start-up expenses of the company is $30,000 including total assets of
$53,000.
 The investment of the company is $20,000.
 The total liabilities of the company is $ 63,000.
 The liabilities of the company will be coming from outside source.
 The company will pay-off its long term loan through Woodville first national
bank in ten years.

Comparison of Advantages of operating a new
business and buying an existing one

Starting business from scratch
 One can be their own head –As you are starting your own business you can
make your own decisions without any interference and keep your own time.
 Freedom of new innovations– There is no restrictions, you can do what you
like and can create and build whatever you think is best for the company in
your way (Steingold & Steingold, 2019).
 No bad image of the company – As your business is a new start it has no bad
history with its suppliers and customers. Whereas if you are buying a business,
you can see some people not showing their interest in dealing with such
business because of their bad experience in past dealings.

Buying an existing business
 Brand- Operating an existing business can help you in buying a brand name.
 Providing Focus- If you are buying an existing business, you can start
working immediately and can focus on improving the profitability of the
business as soon as you engaged with it.
 Establishing Relationships- While you are purchasing an existing business,
you will also be getting ample support of the existing customer and supplier
that took many years of faith and trust to build.

Comparison of Disadvantages of operating a new
business and buying an existing one

Starting business from scratch
 When a business is started from scratch, there is no history related to it and
everything begin from scratch whereas if someone is buying a business, they
are getting something. All the facilities are available already such as capital,
equipment, staff members and premises (Terrel, 2017).
 The competitors may have more advantage and reputation in the market as
compared to the new startups and customer will prefer to buy their products.

Buying an existing business
 Operating an existing business can reveal the dishonesty related to the
business and if that particular business is not doing well, it might be kept
hidden by wrong statements by the owner and employees.
 The equipment might get old and obsolete and if there have been some new
technological changes, it can make the existing equipment useless.

Objectives of the Carmens Real Estate
The Carmens Real Estate have goals of three years which are as following:
 To reach at a break-even point in the upcoming years.
 Our main motive is to enlarge sour contract with other companies to broker
property of real estate in their respective zone.
 To set up a minimum 90% rate of customer satisfaction in order to develop a
long-term relationships with the clients and build the brand identity in the
market.