Property Business Plan: Strategic Relocation and Financial Analysis

This project presents a comprehensive business plan for a property business aiming to relocate for strategic advantages. The plan begins with an executive summary outlining the rationale for relocation, which is to enhance revenue through cost reduction and market expansion. The plan details the proposed corporate structure, emphasizing the benefits of a company form, including legal status and access to capital. It provides financial projections, including cash flow statements, illustrating the anticipated increase in sales revenue and cost savings. The plan also includes a comprehensive overview of the relocation plan, managing operations, and securing necessary funding through a loan of £200,000. The document highlights the strategic advantages of the new location, such as untapped real estate potential, and proposes budgets and management strategies to control operations and achieve business goals. The business anticipates growth and improved profitability, with an emphasis on attracting new customers and brokers.

Running head: PROPERTY BUSINESS
Property Business
Name of the Student:
Name of the University:
Author’s Note

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PROPERTY BUSINESS
Executive Summary
The main purpose of the assessment is to analyse the business proposal of a company which is
planning to relocate the operations of the business so that revenue of the business can be
enhanced. The assessment shows that the business would be requiring additional capital for
ensuring the activities of the business can relocated. The business would be requiring an initial
loan of £ 200,000 for meeting the initial relocation activities such as transportation, site
inspection, rent and other activities. The management anticipates that the business would benefit
from relocation as the costs would lower and the profits of the business would therefore enhance.
The management wants to establish the business as a company so that the business can enjoy its
legal status and limited liability concept.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Corporate Structure......................................................................................................................3
Financial Projections...................................................................................................................4
Comprehensive Plan....................................................................................................................6
Managing the Operations and Activities of the Business............................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................9

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Introduction
The main purpose of this assessment is to analyze the strategic decision of a business to
relocate in a new market. The assessment considers a business which is engaged in a property
industry and the same is planning to relocate the operations of the business to a new location.
The assessment would be covering the corporate structure of the business and how the same has
an impact on the overall operations of the business (Burns and Dewhurst 2016). The presentation
would also be including a financial presentation of the situation. The assessment would be
mainly focusing how the revenue of the business would be enhancing if the proposal of shifting
in marker is implemented.
Discussion
Corporate Structure
The management of the company needs to establish the company as a company and
register the same so that the business would be able to enjoy a legal status. The corporate
structure of the business has an important role on the operations which is conducted by the
business (Scarborough 2016). The management should go for a corporate structure as the same
would give the business a legal status and it would also assist the business to accumulate funds
which would be useful for the business. The corporate structure of the business also makes the
actions of the business separate from that of the persons who are operating the business.
In a company form of business, the business would be able to issue shares for the purpose
of accumulating necessary capital from the market itself, however, the same would not be the
case in case of sole proprietorship business or a partnership form of business (Bandyopadhyay
and Barua 2016). In addition to this, it is clear that the business would be able to enjoy a legal

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status if a company form of business is established in the new location. The new business would
also benefit from a company form of business as the process of decision making would be
appropriately taken and also the risks of the business would be minimized (Strýčková 2015).
The other options which are available to the management of the company do not bear the same
benefits which is provided by a company form of business.
Financial Projections
The management of the company would be requiring appropriate finances for the purpose
of undertaking the location change as per the plan of the management. The management is
planning to set up the business as a company and thereby they can raise the required capital by
issuing shares. However, the initial capital requirements would be fulfilled by a loan which the
management is planning to take. The cash flow projections of the business is useful for
estimating the expenses and cash inflows which can be generated by the business in future from
operations of the business (Burns 2016). The cash flow projections of the business as per the
estimation of the management of the company is shown below:

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The cash flow projections which is presented above shows the before and after allocation
scenario of the business. The estimated sales revenue of the business is estimated to enhance
when the business relocates to a new location. In addition to this, some of the expenses of the
business is also anticipated to enhance with the new location as the salary of staff, electricity and
miscellaneous expenses of the business is shown to be risen. The main source of funds which the
business would be requiring is from loan which the management of the company (Blackburn,
Hart and Wainwright 2013). The loan which is to be taken by the management would be used to

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relocate the business into the new area. The business would be requiring new equipment and
furniture. In addition to this, the business would also be required to conduct a survey of the area
so that potential real estate sites can be detected by the management of the company.
Comprehensive Plan
The plan of the management is to move the operations of the business to a new site where
the management is of the opinion that it would be able to conduct its operations in an efficient
manner and also enhance the profitability of the business. The management of the company is
planning to reallocate the business into a new area for taking advantage of the low costs which is
present in the new area. The cash flow statement shows that some of the major costs of the
business is reducing such as rent, wages, miscellaneous expenses. This would help the business
to enhance the profits which is generated by the business on regular basis.
In addition to this, the new area is an untapped region where there is a lot of potential for
real estate development as new buildings are coming up and more people are looking for a
proper residential place or an office. This would help the business in attracting more customers
and business and thereby enhance the revenue which is generated by the business. The
management would also be able to attract more brokers for showing potential sites for real estate
development. The business would also be able to employ more support staffs in order to support
the operations of the business.
The management of the company anticipates that the business would be able to enhance
the sales of the business and the figure which is estimated by the management of the company is
£ 18,00,000. This also means that the business would also be able to enhance the profits which is
generated by the business. The management of the company also predicts that the new location

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would not only help the business to enhance the sales of the business but also help the business
to reduce the costs of the business.
Managing the Operations and Activities of the Business
The management of the company needs to formulate different budgets in order to forecast
the revenue and expenses of the business so that the operations of the business can be controlled
properly by the business. The budgets are also used for allocating the funds to different activities
such as Advertisement, site inspection and other similar activities (McFarland and McConnell
2013). The management would also be requiring new brokers who are accustomed to the new
region so that new real estate sites can be identified and developed. The business can employ
supervisors so that appropriate control can be maintained for the operations of the business.
As per the plan of the management, the initial costs for start-up which includes rent,
security deposits, transport cost would be covered by a loan which would be taken by the
management (Gandy 2015). The cash flow statement which is shown above depicts that the
management estimates that it would be requiring a loan of £ 200,000 in order to effectively meet
the start up costs of the business. After meeting the initial expenses, the business would be
issuing shares for raising capital for further development of the business. The business would
have access to appropriate funds and meet the expenses of the business.
Conclusion
As per the discussion above, the management of the company is planning to move into a
new area so that the business can enhance the scale of operations of the business. The business
expects that it would be able to enhance the revenue while keeping the costs of the business at
minimum. The management of the company would be acquiring the initial capital from loan and

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the business would then issue shares for raising further capital for the business. Therefore, it can
be said that the business proposal is appropriate as the profits of the business is shown to
enhance while keeping the costs of the business low.

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Reference
Bandyopadhyay, A. and Barua, N.M., 2016. Factors determining capital structure and corporate
performance in India: Studying the business cycle effects. The Quarterly Review of Economics
and Finance, 61, pp.160-172.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Gandy, D.L., 2015. Small business strategies for company profitability and sustainability.
McFarland, C. and McConnell, J.K., 2013. Small business growth during a recession: Local
policy implications. Economic Development Quarterly, 27(2), pp.102-113.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Strýčková, L., 2015. Factors determining the corporate capital structure in the Czech Republic
from the perspective of business entities.