Detailed Business Plan: Real Estate Agency in Leeds, UK

This report presents a comprehensive business plan for a real estate agency, focusing on the Leeds, UK market. The plan begins with a business idea centered around providing affordable residential homes, targeting middle-class customers. It includes a PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors impacting the business. The report details a launch event, outlining activities and a budget. Marketing objectives, target markets (working bachelors and young couples), and marketing strategies are defined. The marketing mix is also discussed. Operational, tactical, and strategic business decisions are outlined, along with resource allocation and information management. Financial projections, including revenue and expenses, are provided. The plan emphasizes competitive advantages, focusing on affordable housing options in a competitive market. The business will be a sole trader to ensure individual decision making and protection of strategies.

Foundation Business
Essentials - Introduction

TABLE OF CONTENTS
TASK 1............................................................................................................................................1
A. Business Idea..........................................................................................................................1
TASK 2............................................................................................................................................2
PESTLE Analysis........................................................................................................................2
TASK 3............................................................................................................................................4
A. Description of Launch Event.................................................................................................4
B. Budget.....................................................................................................................................4
TASK 4............................................................................................................................................5
Marketing Objectives..................................................................................................................5
Target Markets ...........................................................................................................................6
Marketing Strategies...................................................................................................................6
Marketing Mix............................................................................................................................6
TASK 5............................................................................................................................................7
Operational Business Decision...................................................................................................7
Tactics Business Decision ..........................................................................................................8
Strategic Business Decision........................................................................................................8
TASK 6............................................................................................................................................9
Resources....................................................................................................................................9
Information among suppliers......................................................................................................9
Analysing consumer post sale.....................................................................................................9
REFERENCES..............................................................................................................................11

TASK 1
A. Business Idea
Business Idea is regarding opening up of Real Estate Agency which will provide many
kinds of services related to lending residential homes on rents or lease as it has high scope for
growth. Apart from that, provides many best choices to the customer for buying house according
to their budget (Six factors influencing the UK property market in 2018, 2018). This agency will
be build up at Leeds on high street and online availability of services will also be there. As it
provides easy access to all offerings that agency will save time of customers. Major objective of
the business is to serve residential buildings to individuals who are seeking budget friendly
places to live. Also, focuses on developing a bond trust between buyer and seller through quality
service. With Globalisation, the scenario of urbanisation has been introduced due to which
demands of residential buildings in a city is increasing. As a result, sellers are selling at very
high cost which makes difficult for customers to buy them at such prices. Competition in this
sector is very high due to presence of strong and established rivals who already have a strong
base of buyers. Following are the competitors in Real Estate Sectors
Rival Real Estate Agency Achievements
Baratt Homes Awarded as Homebuilder of the year at Sunday
times British Homes Awards and is regarded to
be one of the top agency
Bewley Homes Has build up their reputation for excellence as
well as innovation. They have completely
changed lifestyle of buyers. Also, having huge
base of customers.
Bloor Homes Works on providing a new locations to
customers and are known for serving
customers by providing them homes according
to their needs and preferred location.
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This business plan is regarded to be best option as these competitors does not provide
budget friendly homes to customers and our idea focuses on providing best homes to middle-
class customers.
B. Objectives
 To provide residential homes to customers at affordable prices.
 To formulate strategies for effective promotion of businesses
 To increase the sales by 10% within 3 months\
 To formulate plans for customer engagement
As the first objective focuses on providing residential homes to buyers according to their
needs as well as budget. Due increase in expenditure, lifestyle of people has become very costly
in present scenario. Hence, every individual searches a compact home which is affordable. Also,
there are certain factors such as security and maintenance which can be at risk in big homes.
Apart from that, it is very essential to conduct effective promotions of business in order to attract
potential customers of target market (Housing market, 2018). Strong competitive environment,
makes very difficult for every new entrant to reach out to their potential buyers. This can only be
achieved through effective marketing of business with implementation several strategies. This
parameter determines the success of the business idea in practical purpose. Therefore, major
focus should be on this aspect.
Ownership of the business will be Sole Trader type. There are several advantages which
are associated with this type of possession. As individual is free to take decisions and there is
less chance of conflicts. Also, amount of profit which would be earned is not divided with
another person. Strategies which are involved in business have complete protection from any
kind of unauthorised access. Therefore, there is no risk of leaking confidential information.
Legal Structure can also be easily changed as per the circumstances without intervention of any
other person. Cost related to starting up a business is very low. Also, there is no need for
conferring with other individuals for decision making.
TASK 2
PESTLE Analysis
There are some factors which are taken into consideration for analysing as it affects
tendency of business to serve their customers properly. These aspects of macro environment are
discussed as below:
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Political Factor- Political Scenario of a locality affects the expansion of a business.
When these conditions are favourable for commercial idea than business can be easily expanded
in that particular area. Apart from that, political pressure might restrict several operations that are
regarded to be very necessary for establishing Real Estate Agency.
Economical Factor- There are many aspects in an economy such as inflation rate,
recession, barriers in trading which impacts living standard of a person living in that particular
location. As buying home is not considered to be that much easy because it involves spending
lots of amount which might be very difficult to raise for many individuals and directly affects the
sales perspective of business. With the boom in an economy, natives earn a good amount that
makes them capable of buying residential homes from several Real Estate Agencies. This aspect
provide many benefits to this business by effective increase in their sales.
Social Factor- Society of every locality is very different and their needs as well as
choices also varies. Therefore, it is required to make strategies and offer them services according
to their preferences only. Real Estate Sector is deeply affected by this aspect because this is
purely service based industry and has to work according to requirements of customers (Emerging
Trends in Real Estate®: Europe 2018, 2018). Therefore, strategies for sales should be
formulated according to social factor only. Every decision taken can be influenced due to
employees as they belong to different cultures that might lead to make their perception varied.
Technological Factor- Advancement in technologies is regarded to be very compulsory
for achieving efficiency and effectiveness in performing business activities. Obsolete methods
can make a business to be more outdated. As business in this sector provides online access to
customers that requires advanced techniques. It improves the procedure of handling every
activity in such a way that and provides outcomes which is cost and time effective.
Legal Factors- These aspects can hinder or foster business to get established at particular
location. As there are many legal procedures which are needed to be followed by every business.
Such as keeping up documents, license and other governmental permissions for facilitating
commercial trade. There other kinds of policies which are related to establishment of business in
that locality, which are needed to be followed for smooth procedure. Apart from that, strict laws
restrict business in many perspective. Therefore, it is very important to conduct investigation
regarding legal requirement for related business.
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Environmental Factors- Location of the office is the most important factor that can
affect the attraction of customers and related sales. Therefore, for setting up a business it is very
essential to focus on place as well. Easy access to customers can make effective maximisation of
sales. Apart from that, accessibility should be very easy and within the reach of individuals so
that they can easily approach to office without any problem. Hence, it is very important that
appropriate locality must be chosen for building up store of business.
TASK 3
A. Description of Launch Event
At the inaugural day of the business an event will be organised. This will be done to
make people aware of the business which is going to be started in market. A social gathering is
conducted for about 20 people who are associated with this sector and other prestigious
developers of the area with whom collaborations can be proceeded. A business presentation will
be organised where all services will be described to them along with their concept for which it
has been chosen. There will be servings of sizzler as well as main course for all delegates that
will be accompanied by complete hospitality. Event will be conducted at Weekend so that no
individual can have problem to attend that day in after noon. Also, it will be organised on site.
Business representation will be proceeded as every essential information will be conveyed to
individuals to make them understand about vision and mission of the idea (House prices, 2018).
Intention of spending money on food as well as little entertainment will make meeting interesting
and also would lead to create a positive impact. This would lead to develop a strong impression
on guest.
A good reputation would provide many benefits in market such as a building up of trust worthy
relation with them.
B. Budget
Particulars
Details
(In £)
Amount
(In £)
No. of consumers 5000
average consulting price 650
Total revenue 3250000
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Less: Operating expenses
Purchase package 200
Advertisement space 250
Leaflet presentation 150
Purchase of Consumables 80
Purchasing an internet
domain 400
banners and billboards 300
Leasing vehicles 3350
Purchasing material 4000 8730
3 Course luxury meal 5000*50 250000
Total cash outflow 258730
Net cash flow 2991270
Capital investment 550000
Cl. Balance of cash 3541270
Interpretation: As per launching a Real Estate Agency on which, there will be
requirement of funds for the event and for initiating the business on the right phase. Thus, it has
been analysing that the business will earn through consulting the consumers regrading property
which will be around charges of £650 per head. Thus, it has been estimated that there will be
5000 consumers which are to be served by them. Charges payable on operating expenses will be
around £200 for purchasing package, £250 for advertisement space, £150 for leaflet presentation,
£80 for purchasing of consumables, £400 for internet domain, £300 for banners and billboards,
£3350 for leasing vehicles, £4000 for purchasing material and for serving the 3 course of luxury
meals which is around £250000. However, in relation with operating the business activities it has
been planned by the professionals that they will invest £550000 of capital funds in operations on
which the remaining closing balance of cash has been analysed as £3541270 (Millar and et.al.,
2017).
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TASK 4
Marketing Objectives
The major objective of the firm will be positioning of the services in such a way that it
focuses on quality as well as associated price. The range of cost related to residential homes will
be measured under the scope of affordability. It will be offered to market as this sector is very
huge and there is a wide scope for attracting potential customers in order to acquire large market
share. More focus will be on service value which will be provided to buyers at affordable cost.
Also, an attractive tag line for brand will be decided that will connect people with mission of
business.
Target Markets
The segment of market which will be selected for business will be working bachelors and
young couples of middle class planning to buy a new and compact home for starting their family.
Targeting will be based upon their affordability to buy new home. As major objective of
business to provide residential building at affordable cost and apart from this, there will be
another category of luxuries home which would be based upon choices of locality and will be
targeted to individuals from upper class segment in society (Read and Sanderford, 2017).
Services can be accessed through web based applications from where meetings can be arranged
that definitely saves up time and cost.
Marketing Strategies
Young married couples can be targeted through effective promotional strategy such as
advance promotional techniques such as Social Media Techniques which would be used for
attracting this segment by providing advertisement on these platforms where these people are
mostly engaged. Through this, one can easily reach to mass audience with less promotional
efforts. Majorly, digital media will be used for promoting business (Kociuba and Matacz,
2018). Apart from that, it saves time that might be consumed while using obsolete method for
promotion . The marketing mix which will be formulated for business will be same.
Marketing Mix
Elements Description Justification
Product/ Services Services of Home lending,
renting and leasing will be
As with introduction of
urbanisation, demands for
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provided to customers residential buildings in
increasing every day.
Therefore, this sector a has
wide scope of growth and
investing in such industry can
provide fruitful outcomes.
Price The prices would not be
specific. Affordability is the
major focus on pricing
strategy.
It is very important to decide
the range of prices according
to economic status of the class
which business is targeting. As
newly couples and working
bachelors from middle class
might have limited earnings.
Therefore, all such aspects are
taken in consideration.
Place In city of Leeds and at the
centre of the area,
It has been taken into
consideration that there should
be easy accessibility to the
office.
Promotion Digital Media As it would provide large
audience and it does not
consumes much time and even
cost too.
Process Services will be provided
through web based application
As it would lead to save time
of customers for accessing
them.
People Their will be agents for
facilitating the whole process.
For human interaction it is
very important to train
employees to handle their
problems and grievances
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effectively.
Physical Evidence There will be a proper
infrastructure for business.
An impactful ambience is
important to give virtual
tangibility.
TASK 5
Operational Business Decision
Major operational Business decision which is needed to be taken in order to improve
various operations of business is increasing sales of customers. It is very essential to improvise
the sales operations so that one can easily implement certain planning for attracting customers.
Apart from that identification of their needs, wants and requirements are very important so that
one can channelise all these aspects for eliminating all those factors which can hinder successful
sales operations. It is very essential to make this function of the company to be more powerful as
more profit would be generated that is required for strong financial stability. Sales has to be
maximised in order to acquire high market share in the industry and would be able to compete
with other strong rivals in market (Shatkin, 2016). This decision is taken for effective growth of
business within a decided time framing that is required to be achieved. Apart from this, every
aspects has to be checked which are related with dealing customers and also their engagement.
For this, all the strategies and tactics has to be enhanced for getting appropriate outcomes.
Process are needed to be evaluated and identification of all factors should be conducted for
making it more impactful at practical level.
Tactics Business Decision
For improving sales operation there is a requirement of implying several tactics which
can support strategies for making sales perspective more advanced. There is a requirement of
using appropriate tactics for promoting services of the business which is needed to be implied fro
successful planning. There are several means which can be used for effective promotion such as
Social media techniques can be used which would help to make customers more engaged
towards them. As frequent updates on numerous social media handles of the agency can help
individual to know about many aspects which are related to sales of the organisation. They
might be getting information regarding offers which company is providing to their customers for
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different services (Stubkjaer, 2017). Apart from that, customer care services has to improve
through providing personal experience to every customer so that they can ask their any queries
and complaint about their problems they might be suffering. So that effective solution can be
provided to them. This provides an effective personal experience which is needed to be taken in
consideration that helps to develop a good reputation of organisation. Thus building up their
brand image that helps to retain customers.
Strategic Business Decision
For improving the sales operation it is very important to formulate strategies which can
be defining of sales hierarchy, alignment of sales team accordingly. Development of go to
market strategies, identifying territories, distributing several accounts and development of sales
compensation structure. Customer engagement is considered to be very essential aspect that has
to be taken in consideration for retaining buyers. Apart from it, effective promotional strategies
should be made for successful marketing of services which would lead to attract a huge base of
potential customers in market. Also, brand awareness has to be created in order created effective
positioning strategies which can be required for establishing unique image in their mindset so
that it may influence them to avail their services. This is necessary because there are many
competitors which might be providing similar kind of services but it is crucial to persuade them
regarding what difference the company have from them and why every buyer should prefer them
over others. Apart from this, effective sales team can be appointed that would connect with
customers directly so that their problems can be solved instantly. Advanced technology can be
introduced that might help for effective sales planning.
TASK 6
Resources
In Real Estate Agency there will be requirement of human resources for performing the
operational practices. In relation with analysing the operational framework of an organisation
which will be considered to have effective activities and planning for performing smooth
business. In Real Estate Agency there will be requirement of skilled and talent Agents which will
analyse the requirement of consumers and suggest them the convenient place of property for
their concerns (Hitt and Duane Ireland, 2017). Along with this, salaries and timing for their jobs
have to be done in a manner that it will make appropriate operational rise in the firm
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Information among suppliers
It is required that, Real Estate Agency must have and online web site which will be useful
in performing online business (Abrate and Viglia, 2016). Along with this, professionals have
been approached towards implicating the process, policies and tactics to perfume the operations
as well as dealings with consumers. Therefore, as per considering information which are
delivered among suppliers who are mainly agents of business. They will have information related
with each consumer and the property on which they are going deal.
Analysing consumer post sale
To develop strategies for the adequate business operations ion which it is required that
the firm must have appropriate analysis and decisions making. It will be useful for bringing
sound control on operational practices as well as balancing the work accordingly. All the
employees of agents in Real Estate Agency has to be trained in aspect of meeting the
requirements of consumers and suggesting the satisfactory property as per their desire (Strategic
Business Decisions, 2018). It has been determined that as per the requirements, current trend and
preferences the professionals have to set their activities and bring the fruitful suggestions to
buyers.
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