Business Plan for Property Firm Relocation and Funding

This assignment presents a comprehensive business plan for Lurot Brand, a property firm planning to relocate. It begins by describing the chosen legal structure as a sole trader and justifying its appropriateness. The plan includes detailed financial information, such as cash flow projections, designed to secure funding from a bank for the relocation to Birmingham. The business plan comprehensively outlines the reasons for relocation, market analysis, and operational strategies. Additionally, the plan addresses budget management, new finance sources, and human resource management. The assignment provides a detailed financial analysis, including expense breakdowns and revenue projections, to demonstrate the financial viability of the relocation. The business plan covers all the necessary aspects, from the executive summary to the conclusion, to ensure the financial stability and growth of the business in the new market.

PROPERTY BUSINESSES

Table of contents
Introduction 3
Describing the chosen legal status (corporate structure) of the business in detail 3
Preparing financial information that is sufficient to raise the funding 3
Creating a full and comprehensive business plan 9
Describing the management of not only the budgets of the organization but also the new sources
of finance once secured as well as the human resources employed 10
Management of new sources of finance 14
Conclusion 15
References 16
Page 2 of 14

Introduction
Property business or real estate business is a high profit earning business which requires a high
amount of financial funds and resources to operate the business in a formidable manner. It is to
be said that through the use of financial resources property business such as building property
and acquiring land is done. Hence financial or money management is very much needed by a
company to decide its operational efficiency in this industry. Lurot Brand is a company based in
the UK which is real estate and lettings agent within the UK market. The company is looking
forward to relocating its business to a new city which will help in better exposure to the firm's
business and will help the business in growing their business in different parts of the country.
Describing the chosen legal status (corporate structure) of the business in
detail
The company was established in the year 1971 by Antoine Lurot as it operates in the real estate
business and is estate agent for people In London. The company holds a legal status under the
Sole Trader category in which the proprietors of the company is solely responsible for the
company's operation. The company also made it is business evident by registering itself in
accordance with "Memorandum of Association" and "Articles of Association. The company is
sole trading and service providing company which has a single proprietor which is in hierarchical
system of the firm. The operates as a real estate agent in which it assists the company in buying
and selling of property whereas the company also helps the customer in getting lettings and rent
properties (Renz, 2016).
Page 3 of 14

Preparing financial information that is sufficient to raise the funding
In order to raise fund, cash flow will be prepared which will give a clear description of the
further business which the company will conduct after relocating itself. The cash flow will also
show the increase and decrease in cash balance show the financial profitability of the stated
venture. The cash flow shows the amount of financial which will be gained from the operations
of the firm in new market. The loan will be gained from the bank and the following loan will be
paid off through the use of cash inflow which the company will earn from its operations. The
company will tend to take a long term loan which will decrease the overall debt burden over the
firm hence 10 years will be a time in which the company will pay of its debt.
Cash Flow for Lurot Brand
Particu
lars
Mar
ch
Apri
l
May June July
Aug
ust
Sept
emb
er
Octo
ber
Nov
emb
er
Dece
mber
Janu
ary
Febr
uary
Openi
ng
balanc
e of
cash
£
1,00,
000.
00
£
2,96,
500.
00
£
3,26,
150.
00
£
3,58,
765.
00
£
3,94,
641.
50
£
4,34,
105.
65
£
4,77,
516.
22
£
5,25,
267.
84
£
5,77,
794.
62
£
6,35,
574.
08
£
6,99,
131.
49
£
7,69,
044.
64
Add:
Reven
ue
Page 4 of 14

Reven
ue by
operati
ons
£
1,50,
000.
00
£
1,65,
000.
00
£
1,81,
500.
00
£
1,99,
650.
00
£
2,19,
615.
00
£
2,41,
576.
50
£
2,65,
734.
15
£
2,92,
307.
57
£
3,21,
538.
32
£
3,53,
692.
15
£
3,89,
061.
37
£
4,27,
967.
51
Reven
ue by
ketting
s
£
90,0
00.0
0
£
99,0
00.0
0
£
1,08,
900.
00
£
1,19,
790.
00
£
1,31,
769.
00
£
1,44,
945.
90
£
1,59,
440.
49
£
1,75,
384.
54
£
1,92,
922.
99
£
2,12,
215.
29
£
2,33,
436.
82
£
2,56,
780.
50
Total
Reven
ue
£
2,40,
000.
00
£
2,64,
000.
00
£
2,90,
400.
00
£
3,19,
440.
00
£
3,51,
384.
00
£
3,86,
522.
40
£
4,25,
174.
64
£
4,67,
692.
10
£
5,14,
461.
31
£
5,65,
907.
45
£
6,22,
498.
19
£
6,84,
748.
01
Less:
Expen
ses
Operat
ional
Expen
ses
£
25,0
00.0
0
£
27,5
00.0
0
£
30,2
50.0
0
£
33,2
75.0
0
£
36,6
02.5
0
£
40,2
62.7
5
£
44,2
89.0
3
£
48,7
17.9
3
£
53,5
89.7
2
£
58,9
48.6
9
£
64,8
43.5
6
£
71,3
27.9
2
Admin
istrativ
e
expens
es
£
10,0
00.0
0
£
11,0
00.0
0
£
12,1
00.0
0
£
13,3
10.0
0
£
14,6
41.0
0
£
16,1
05.1
0
£
17,7
15.6
1
£
19,4
87.1
7
£
21,4
35.8
9
£
23,5
79.4
8
£
25,9
37.4
2
£
28,5
31.1
7
Page 5 of 14

Salarie
s
£
6,00
0.00
£
6,60
0.00
£
7,26
0.00
£
7,98
6.00
£
8,78
4.60
£
9,66
3.06
£
10,6
29.3
7
£
11,6
92.3
0
£
12,8
61.5
3
£
14,1
47.6
9
£
15,5
62.4
5
£
17,1
18.7
0
Rent £
5,00
0.00
£
5,50
0.00
£
6,05
0.00
£
6,65
5.00
£
7,32
0.50
£
8,05
2.55
£
8,85
7.81
£
9,74
3.59
£
10,7
17.9
4
£
11,7
89.7
4
£
12,9
68.7
1
£
14,2
65.5
8
Office
Suppli
es
£
2,50
0.00
£
2,75
0.00
£
3,02
5.00
£
3,32
7.50
£
3,66
0.25
£
4,02
6.28
£
4,42
8.90
£
4,87
1.79
£
5,35
8.97
£
5,89
4.87
£
6,48
4.36
£
7,13
2.79
Selling
Expen
ses
£
9,00
0.00
£
9,90
0.00
£
10,8
90.0
0
£
11,9
79.0
0
£
13,1
76.9
0
£
14,4
94.5
9
£
15,9
44.0
5
£
17,5
38.4
5
£
19,2
92.3
0
£
21,2
21.5
3
£
23,3
43.6
8
£
25,6
78.0
5
Registr
ations
expens
es
£
28,0
00.0
0
£
30,8
00.0
0
£
33,8
80.0
0
£
37,2
68.0
0
£
40,9
94.8
0
£
45,0
94.2
8
£
49,6
03.7
1
£
54,5
64.0
8
£
60,0
20.4
9
£
66,0
22.5
4
£
72,6
24.7
9
£
79,8
87.2
7
It
expens
es
£
4,50
0.00
£
4,95
0.00
£
5,44
5.00
£
5,98
9.50
£
6,58
8.45
£
7,24
7.30
£
7,97
2.02
£
8,76
9.23
£
9,64
6.15
£
10,6
10.7
6
£
11,6
71.8
4
£
12,8
39.0
3
Page 6 of 14

Mainte
nance
expens
es
£
3,50
0.00
£
3,85
0.00
£
4,23
5.00
£
4,65
8.50
£
5,12
4.35
£
5,63
6.79
£
6,20
0.46
£
6,82
0.51
£
7,50
2.56
£
8,25
2.82
£
9,07
8.10
£
9,98
5.91
Total
Expen
ses
£
93,5
00.0
0
£
1,02,
850.
00
£
1,13,
135.
00
£
1,24,
448.
50
£
1,36,
893.
35
£
1,50,
582.
69
£
1,65,
640.
95
£
1,82,
205.
05
£
2,00,
425.
55
£
2,20,
468.
11
£
2,42,
514.
92
£
2,66,
766.
41
Closin
g
Balanc
e of
Cash
£
2,96,
500.
00
£
3,26,
150.
00
£
3,58,
765.
00
£
3,94,
641.
50
£
4,34,
105.
65
£
4,77,
516.
22
£
5,25,
267.
84
£
5,77,
794.
62
£
6,35,
574.
08
£
6,99,
131.
49
£
7,69,
044.
64
£
8,45,
949.
10
The above cash flow shows the opening balance of cash and closing balance of cash which the
company will earn on a monthly basis. The expenses has also been discussed which the company
will incur subtracting it from income the profit of per month can be calculated.
Creating a full and comprehensive business plan
The company is looking forward to relocating itself in a new city which is Birmingham. The
company starts there to operate in that market due to the rising population in the city so that it is
able to develop a new customer base in a new country. The Relocation basically aims at
expanding the operational area of the firm as it will help in the company's diversification and will
help in gaining new markets for its estate business. As new properties are being built in the city
Page 7 of 14

the company aims of getting better business circumstances in this city while operating in London
as well (Bekaert and Hodrick, 2017).
Now for the purpose of this relocation the company aims to take a bank loan for the local banks
which fund and finance the company's relocation activity. This will be the primary source of
funding through which the company will conduct its relocation operations in the new city of
Birmingham. As the company is a privately owned company there is no chance the cat firm can
raise capital through equities neither the company can go in a joint venture without restoring its
organizational structure. Hence the only option which is left to the company is taking debt from
banking and other financial institutions.
The company will take the debts and loans and will use it effectively to relocate its business in
Birmingham. The company through the funds will open new offices in the city and will market
its company within the new market which will help the company to gain customers. The
company will also use the fund provided by the institution to create a good network in the Real
Estate Industry which will help in the establishment of the firm in the new market.
The business also plans to market itself in the market for which it will conduct promotional
events which will help in creating a better network within the market. The funds will be invested
in the promotional activities of the firm which will increase the consumer base of the firm and
will help in the creation of better brand image within the market. The Funds will also be used in
the initial days of the company operates through which the company will conduct its buying and
selling activities.
The company will also hire employees in the new city to ensure that there are an evident amount
of employees to operate in the market. It can be said that through the use of the funds the
company will hire professional which will help the company in creating an effective workforce
Page 8 of 14

for the confirm which in turn will increase the operational efficiency of the firm within the new
market. In this way, the company will be able to market its company and conduct its operation in
the new market effectively and this will also help the company in establishing itself within the
market evidently (Finkler et al. 2018).
Describing the management of not only the budgets of the organization but
also the new sources of finance once secured as well as the human resources
employed
Management of budget
Budget For the new market
Operatio
nal
Expenses
£
25,0
00.0
0
£
27,5
00.0
0
£
30,2
50.0
0
£
33,2
75.0
0
£
36,6
02.5
0
£
40,2
62.7
5
£
44,2
89.0
3
£
48,7
17.9
3
£
53,5
89.7
2
£
58,9
48.6
9
£
64,8
43.5
6
£
71,3
27.9
2
Administ
rative
expenses
£
10,0
00.0
£
11,0
00.0
£
12,1
00.0
£
13,3
10.0
£
14,6
41.0
£
16,1
05.1
£
17,7
15.6
£
19,4
87.1
£
21,4
35.8
£
23,5
79.4
£
25,9
37.4
£
28,5
31.1
Page 9 of 14

0 0 0 0 0 0 1 7 9 8 2 7
Salaries £
6,00
0.00
£
6,60
0.00
£
7,26
0.00
£
7,98
6.00
£
8,78
4.60
£
9,66
3.06
£
10,6
29.3
7
£
11,6
92.3
0
£
12,8
61.5
3
£
14,1
47.6
9
£
15,5
62.4
5
£
17,1
18.7
0
Rent £
5,00
0.00
£
5,50
0.00
£
6,05
0.00
£
6,65
5.00
£
7,32
0.50
£
8,05
2.55
£
8,85
7.81
£
9,74
3.59
£
10,7
17.9
4
£
11,7
89.7
4
£
12,9
68.7
1
£
14,2
65.5
8
Office
Supplies
£
2,50
0.00
£
2,75
0.00
£
3,02
5.00
£
3,32
7.50
£
3,66
0.25
£
4,02
6.28
£
4,42
8.90
£
4,87
1.79
£
5,35
8.97
£
5,89
4.87
£
6,48
4.36
£
7,13
2.79
Selling £ £ £ £ £ £ £ £ £ £ £ £
Page 10 of 14

Expenses
9,00
0.00
9,90
0.00
10,8
90.0
0
11,9
79.0
0
13,1
76.9
0
14,4
94.5
9
15,9
44.0
5
17,5
38.4
5
19,2
92.3
0
21,2
21.5
3
23,3
43.6
8
25,6
78.0
5
Registrati
ons
expenses
£
28,0
00.0
0
£
30,8
00.0
0
£
33,8
80.0
0
£
37,2
68.0
0
£
40,9
94.8
0
£
45,0
94.2
8
£
49,6
03.7
1
£
54,5
64.0
8
£
60,0
20.4
9
£
66,0
22.5
4
£
72,6
24.7
9
£
79,8
87.2
7
It
expenses
£
4,50
0.00
£
4,95
0.00
£
5,44
5.00
£
5,98
9.50
£
6,58
8.45
£
7,24
7.30
£
7,97
2.02
£
8,76
9.23
£
9,64
6.15
£
10,6
10.7
6
£
11,6
71.8
4
£
12,8
39.0
3
Maintena
nce
expenses
£
3,50
£
3,85
£
4,23
£
4,65
£
5,12
£
5,63
£
6,20
£
6,82
£
7,50
£
8,25
£
9,07
£
9,98
Page 11 of 14

0.00 0.00 5.00 8.50 4.35 6.79 0.46 0.51 2.56 2.82 8.10 5.91
Total
budgeted
Expenses
£
93,5
00.0
0
£
1,02,
850.
00
£
1,13,
135.
00
£
1,24,
448.
50
£
1,36,
893.
35
£
1,50,
582.
69
£
1,65,
640.
95
£
1,82,
205.
05
£
2,00,
425.
55
£
2,20,
468.
11
£
2,42,
514.
92
£
2,66,
766.
41
The above is the budget for the new markets it can be said that all of the expense above will
increase with the increase in the company's operation in the new market. The company will
manage the budget by optimizing expenses and the company will try to decrease the ratio of
expenses in regards of the company's revenue to make sure that the company earns a profit in an
evident manner.
Management of new sources of finance
The new source of finance which the company will establish is getting loans from banking and
financial institution the company will manage these sources of finance by maintaining a good
credit rating. The company will try and maintain an effective flow of interest which the company
is liable to pay in return of debt and loan. Timely payments of debt is another step which the
company will ensure to make sure that there are effective relations between the two parties
involved this will also help the company effectively increase their credit rating. The funds which
will be received by the source of finance will be used in such a manner that the funds are
properly used to ensure optimal use of finance (Zietlow et al. 2018).
Page 12 of 14