Detailed Business Plan for Century 21 Real Estate in Canadian Market

This report presents a comprehensive business plan for Century 21 Real Estate in the Canadian market. It begins with an executive summary and outlines the company's mission to increase sales and profitability. The plan details the organizational and legal structure, emphasizing a hierarchical ownership model and franchise opportunities. An analysis of the external environment, including political and economic factors, is provided, along with an assessment of the competitive landscape, including key players like RE/MAX. Marketing strategies focus on identifying and targeting specific customer segments, particularly Russian clients, and utilizing print and online media. The report also includes financial forecasts and a cash flow analysis to support the proposed business strategies. The plan aims to help Century 21 maintain its market position in Canada.

Running head: BUSINESS PLAN
Business Plan- Real Estate, Canada
Century 21
Name of the Student
Name of the University
Author Note

1BUSINESS PLAN
Table of Contents
Executive summary....................................................................................................................2
The project or mission................................................................................................................2
The promoter..............................................................................................................................3
The company’s organizational and legal structure.....................................................................3
The external environment..........................................................................................................4
The real estate market and the competition............................................................................5
Marketing...................................................................................................................................6
The operation of the business.....................................................................................................8
Financial Forecasts.....................................................................................................................9
Cash flow...............................................................................................................................9
Reference List..........................................................................................................................11

2BUSINESS PLAN
Executive summary
The main aim of the report is to make a business plan for the real estate company known as
Century 21. The company has been operating in the Canadian market and has a loyal base of
customers. The business plan will help the company in understanding the project that the
company will recently undertake so that it can help in attracting the clients. The promoter has
been appointed by the company so that the employees can be managed in a proper manner.
The promoter also has a better knowledge regarding the activities that needs to be taken up by
the company so that it can help in earning the maximum profits.
The organizational and legal structure of the company has also been discussed so that it will
help in understanding the way in which the company works in the market. The external
environment in which the company is performing has also been discussed so that it can help
in understanding the functioning of the industry as a whole. This has resulted in
understanding the level of competition that is present in the market so that proper marketing
strategies can be taken up to maximize its volume of sales.
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

3BUSINESS PLAN
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 promoter
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 company’s organizational and legal structure
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

4BUSINESS PLAN
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
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

5BUSINESS PLAN
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).
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).
The real estate market and the competition
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).

6BUSINESS PLAN
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 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.
Marketing
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

7BUSINESS PLAN
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).

8BUSINESS PLAN
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 operation of the business
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

9BUSINESS PLAN
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).
Financial Forecasts
Cash flow
Twelve-
month cash
flow Company
21
Fiscal
Year
Begins:
Jan
-18
Pre-
Start
up
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
Tot
al
Ite
m
EST
Cash on
Hand
(beginning
of month)
550,0
00
1,10
0
243,
750
250,
400
195
,30
0
610,
500
390
,05
0
320,
480
324
,16
0
113,
410
119
,16
0
300,
410 243,660 243,
660
CASH
RECEIPT
S
Cash Sales 1,000
,000
1,50
0,00
0
500,
000
305,
000
1,2
00,
000
750,
000
425
,00
0
750,
000
350
,00
0
950,
000
1,2
50,
000
900,
000 500,000
Collections
fm CR
accounts
100,0
00
400,
000
1,00
0,00
0
1,10
0,00
0
700
,00
0
550,
000
750
,00
0
480,
000
600
,00
0
100,
000
228
,00
0
110,
000 100,000
Loan/ other
cash inj.
350,0
00
350,
000
350,
000
350,
000
350
,00
0
350,
000
350
,00
0
350,
000
350
,00
0
350,
000
350
,00
0
350,
000 350,000
TOTAL
CASH
RECEIPTS
1,450
,000
2,25
0,00
0
1,85
0,00
0
1,75
5,00
0
2,2
50,
000
1,65
0,00
0
1,5
25,
000
1,58
0,00
0
1,3
00,
000
1,40
0,00
0
1,8
28,
000
1,36
0,00
0
950,000 0
Total Cash
Available
(before
cash out)
2,000
,000
2,25
1,10
0
2,09
3,75
0
2,00
5,40
0
2,4
45,
300
2,26
0,50
0
1,9
15,
050
1,90
0,48
0
1,6
24,
160
1,51
3,41
0
1,9
47,
160
1,66
0,41
0
1,193,660 243,
660
CASH
PAID
OUT
Purchases
(merchandi
se)
200,0
00
250,
000
250,
000
250,
000
250
,00
0
250,
000
250
,00
0
250,
000
250
,00
0
250,
000
250
,00
0
250,
000 250,000
Purchases
(furniture)
563,0
00
450,
000
250,
000
200,
000
350
,00
0
150,
000
100
,00
0
100,
000
100
,00
0
100,
000
100
,00
0
100,
000 100,000
Purchases
(appliances
)
447,0
00
305,
000
300,
000
302,
250
125
,00
0
240,
000
120
,00
0
100,
000
50,
000
75,0
00
90,
000
45,0
00 39,000
Gross
wages
(exact
withdrawal)
550,0
00
550,
000
550,
000
550,
000
550
,00
0
550,
000
550
,00
0
550,
000
550
,00
0
550,
000
550
,00
0
550,
000 550,000
Payroll
expenses
(taxes,
etc.)
55,00
0
55,0
00
55,0
00
55,0
00
55,
000
55,0
00
55,
000
55,0
00
55,
000
55,0
00
55,
000
55,0
00 55,000

10BUSINESS PLAN
Supplies
(office &
oper.)
25,00
0
50,0
00
50,0
00
50,0
00
50,
000
50,0
00
50,
000
50,0
00
50,
000
50,0
00
50,
000
50,0
00 50,000
Repairs &
maintenan
ce
12,50
0
12,5
00
12,5
00
12,5
00
12,
500
12,5
00
12,
500
12,5
00
12,
500
12,5
00
12,
500
12,5
00 12,500
Advertising 65,00
0
67,0
00
62,0
00
60,0
00
25,
000
50,0
00
55,
000
64,0
00
35,
000
17,5
00
27,
500
32,5
00 48,000
Car,
delivery &
travel
12,00
0
12,0
00
12,0
00
12,0
00
12,
000
12,0
00
12,
000
12,0
00
12,
000
12,0
00
12,
000
12,0
00 12,000
Accounting
& legal
10,00
0
10,0
00
10,0
00
10,0
00
10,
000
10,0
00
10,
000
10,0
00
10,
000
10,0
00
10,
000
10,0
00 10,000
Telephone 5,000 6,50
0
7,50
0
4,00
0
4,2
50
3,50
0
1,8
20
3,57
0
8,5
00
14,5
00
12,
000
6,00
0 5,700
Utilities 3,150 3,10
0
3,10
0
3,10
0
4,8
00
1,20
0
1,5
00
1,50
0
1,5
00
1,50
0
1,5
00
1,50
0 1,500
Insurance 2,250 2,25
0
2,25
0
2,25
0
2,2
50
2,25
0
2,2
50
2,25
0
2,2
50
2,25
0
2,2
50
2,25
0 2,250
Taxes (real
estate,
etc.)
27,00
0
27,0
00
27,0
00
27,0
00
27,
000
27,0
00
27,
000
27,0
00
27,
000
27,0
00
27,
000
27,0
00 27,000
Interest 1,250 1,25
0
1,25
0
1,25
0
1,2
50
1,25
0
1,2
50
1,25
0
1,2
50
1,25
0
1,2
50
1,25
0 1,250
Miscellane
ous 5,750 5,75
0
5,75
0
5,75
0
5,7
50
5,75
0
5,7
50
5,75
0
5,7
50
5,75
0
5,7
50
5,75
0 5,750
SUBTOTA
L
1,983
,900
1,80
7,35
0
1,59
8,35
0
1,54
5,10
0
1,4
84,
800
1,42
0,45
0
1,2
54,
070
1,24
4,82
0
1,1
70,
750
1,18
4,25
0
1,2
06,
750
1,16
0,75
0
1,169,950 0
Loan
principal
payment
10,00
0
100,
000
100,
000
100,
000
100
,00
0
100,
000
100
,00
0
100,
000
100
,00
0
100,
000
100
,00
0
100,
000 10,000
Owners'
Withdrawal 5,000 100,
000
145,
000
165,
000
250
,00
0
350,
000
240
,50
0
231,
500
240
,00
0
110,
000
340
,00
0
156,
000 4,000
TOTAL
CASH
PAID OUT
1,998
,900
2,00
7,35
0
1,84
3,35
0
1,81
0,10
0
1,8
34,
800
1,87
0,45
0
1,5
94,
570
1,57
6,32
0
1,5
10,
750
1,39
4,25
0
1,6
46,
750
1,41
6,75
0
1,183,950 0
Cash
Position
(end of
month)
1,100 243,
750
250,
400
195,
300
610
,50
0
390,
050
320
,48
0
324,
160
113
,41
0
119,
160
300
,41
0
243,
660 9,710 243,
660
ESSENTIAL OPERATING
DATA (non-cash flow
information)
Sales
Volume
(dollars)
9,800
,000
6,60
0,00
0
5,80
0,00
0
1,50
0,00
0
2,7
00,
000
6,40
0,00
0
4,8
00,
000
4,80
0,00
0
4,8
00,
000
4,80
0,00
0
4,8
00,
000
4,80
0,00
0
4,800,000
4,80
0,00
0
Accounts
Receivable
1,485
,877
1,03
6,64
4
1,02
3,78
2
1,03
9,66
0
1,0
15,
267
1,09
7,64
2
1,0
94,
392
1,08
3,45
1
1,0
59,
498
1,07
9,08
9
1,0
01,
968
1,00
7,48
9
1,094,858
1,09
0,17
1
Bad Debt
(end of
month)
1,390
,149
1,01
6,23
6
1,06
4,44
8
1,02
9,28
0
1,0
29,
212
1,05
0,92
3
1,0
31,
775
1,00
8,54
0
1,0
80,
728
1,08
2,86
4
1,0
18,
279
1,01
8,67
6
1,029,976
1,04
2,75
9
Inventory
on hand
(eom)
1,303
,802
1,09
8,83
4
1,08
7,24
6
1,04
3,46
3
1,0
20,
805
1,04
8,90
9
1,0
80,
658
1,05
4,35
9
1,0
39,
915
1,03
1,67
2
1,0
22,
234
1,02
6,00
5
1,019,140
1,08
4,07
6
Accounts
Payable
(eom)
1,228
,282
1,00
8,21
4
1,01
4,18
5
1,02
0,93
5
1,0
14,
698
1,08
4,33
4
1,0
43,
153
1,08
5,80
6
1,0
43,
161
1,07
1,52
0
1,0
55,
168
1,06
9,67
2
1,036,358
1,02
1,60
0
Depreciatio
n
1,365
,476
1,03
8,28
6
1,02
1,41
1
1,08
7,23
6
1,0
26,
197
1,04
6,19
1
1,0
20,
950
1,09
8,90
4
1,0
52,
792
1,06
1,76
4
1,0
99,
010
1,08
9,06
3
1,098,855
1,08
3,07
8

11BUSINESS PLAN
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