In its mission and vision statements. These two ideas

In order to
begin a prosperous startup real estate business, or any other, it is vital that
the company takes into account the importance of having a well thought and
detail oriented strategic plan. Thus, this paper will elaborate further on the
six strategic elements involved with any business oriented actionable plan.

            A critical foundation to a startup
of a business would of course be its mission and vision statements. These two
ideas are essential to creating what the business represents and the objectives
of the company, as well as how they intend to carry out these actions. To
detail further, the mission will be an important task for the employees to
generate together. This aids to create a sense of mental likeness between the
management and the staff, to work together and to generate new and innovative
ideas to further accomplish that goal. The vision statement, though similar to
the mission statement, would vary a bit on its own, meaning that the vision
would consist of what the company sees itself in the future. For example, in
ten years, what they have hoped to have done or accomplish. In essence, a
vision statement is what the company intends to be, and their future
aspirations, while the mission statement would be a helpful outline, further
detailing how the business intends to meet those goals.

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            The next element I will address is
the plan to produce an environmental scan analysis. This is also a critical
strategy for the company, to assess the area that it is in, and to better
familiarize themselves with the laws, regulations, or demographic factors of
the location they may be in, as this is  particularly vital for a real estate related
business, since this aids with acquiring the necessary knowledge related to
housing laws and building regulations. It is also vital for the company to
gauge the competition, in order to have a better idea what potential
opportunities may be available, as well as potential dangers or disadvantages
that may be present in the said environment. In principle, the environmental
scan will have a strong influence on the company and the products or services
that they produce to better market them to a specific client base. To further
explain, the environmental scan would include the following, social aspects,
economic backgrounds, technology, the competition, and regulatory principles
the business must comply with. For the social principles, a business will be
interested in the diversity as well as the population of their clientele, as
this offers good insight to better generate products to a client base of
different ages and gender. By making decisions based on these factors, a said
real estate would have a better chance of ensuring a return of investment. Another
aspect to consider is the economic differences or fluctuations in the
environment in which the company is based, they must take into account how the
population surrounding them manages income, especially with the growth of
retirees, and where the younger populace intends to work, as the economic tides
shift, and white-collard employees are relocating to offshore locations. The
third principle taken into account is the rise of technology, and its increased
usage, as well as the rise of open software and free access to these resources.
The innovative progression of technology is also intertwined with global
advancement regarding treatments and medications for diseases, and the rise in
biotechnology. These are vital features that must be considered when marketing
new products and properly merging them with the upcoming technological
developments. While it is important to be aware and properly informed about the
soar of new features, a business or company must not forget potential
competition, and the opportunities that are made available or the disadvantages
that may be present due to that. The competition involved in business, selling
products, offering services or generating new innovative ideas, does not lie
within a set geographic boarder, as the opposition is global, for example,
China with its rise in economics and its broach reach in manufacturing. These
are all features to consider, however, the great strength of a particular
business, is of course its employees, as it is vital for the management to
increase focus on empowering workers to improve performance, as the staff would
be a core reason the business would succeed or fail, especially in a business
involving the sales of estates, considering the vitality and skill a sales
agent must have to generate profit. The last piece to address regarding the
formation of an environmental scan, would be regulatory. This would ensue
matters regarding legislation, again intertwining with technology, and the laws
that support or restrict the internet, as well as its rules regarding
copyrighting and intellectual property. This has naturally resulted in the
general populace being more concerned with digital privacy and personal
information that may be collected with the said business. To sum up, as
addressed above, an environmental scan is critical for a company to evaluate
with a higher level of understanding, the general needs or concerns of its
client base, the laws it must abide to, as well as how it must maintain capital
in such a competitive world.

            As previously mentioned, as a
startup business, competition is inevitable, nonetheless a concerning matter.
Therefore, one must be aware of the need to conduct a competitive advantage
analysis, which to clarify, would entail the business finding solutions to better
dominate the market. This includes having the ability to generate better
products or services at a lower cost, or in a more desirable fashion, this
would be better described as a comparative advantage or a cost advantage, where
a customer would find the products or services more appealing due to its lower
cost, yet maintaining a high standard. Such as promoting free appraisals are
giving information packets regarding housing opportunities.

More aspects to
cover regarding a competitive advantage, would be a firm’s brand equity, its
quality, distribution network, as well as its customer service. For example, if
a business’s customer service is superior to another’s, this would be seen as
more appealing by clientele, regardless of the same costs-this- to be more
detailed would be a differential advantage. In essence, a company will focus
heavily on sustaining either a cost advantage, or a differential advantage, in
order to make this advantage difficult for competitors to neutralize, and this
can be done with strategies, such as on-site observations, where a business can
see what their competitor may offer, for example the level of customer service
extend to clients, or amounts of merchandise they may be delivering. Another
method that can offer an abundant amount of insight, would be surveys or
interviews to probe deeper into customer satisfaction, as well as the products
the other firm may be offering. However, for a more specific viewpoint, a firm
can use focus groups to have a more detailed perspective from a smaller sample
of people.

            As previously mentioned, the
business would focus on the information received from surveys, focus groups, or
by on-site observations, and as a result, would cater a detailed oriented
marketing strategy. This would be called market segmentation, and this is when
the firm separates its prospective buyers into segmentations or groups with
similar needs, in order to have a better measure of their reactions to
different marketing strategies, as marketing segmentation is an extension of
marketing research, essential to properly tailor merchandise or to better brand
equity to consumers’ liking. This can be done with gauging where their client
base is geographically, what their age or gender is, and their economic
backgrounds. The objective from this would be to produce new campaigns to
better endorse their goods, or to build on its current approach to fit the
majority. Examples of market segmentation would be marketing products in
different ways, such as endorsing products to older clientele based on customer
loyalty, or catering to health conscious people by labeling their goods as
“healthy”, or most commonly to appeal to a younger audience, linking new
merchandise to entertainment or media. Thus, in a real estate business, this
could mean, grouping individuals by housing needs, and tailoring especially to the
diverse client base it may have.

            After developing and detailing the
actionable strategic plans needed in a real estate business, one must consider
the how to implant and carry out those steps. This would be called an
implementation strategy. To begin with, the company’s summary, shortly
detailing its plans and its objectives. Los Angeles Real Estate (LARE) is a
startup company located along the northern boarders of the Los Angeles area. It
is the mission of LARE to provide real estate services, especially for families
looking for houses located near to local schools and community centers, to the
greater Los Angeles, particularly the northern area.  LARE is a full service real estate, mortgage
and title company, equipped to help its large clientele base with a variety of
services.

            The company plans to be launched
with the aid of private investments, and with limited loans. The company
focuses on marketing to single families looking for housing areas that include
beneficial communities for both parents and children. This would include close
vicinity to schools, childcare centers, and park facilities, the firm’s main
target are families with reasonable economic background and income.

            The firm provides a variety of
services, promoting its free assistance with initial appraisals and helpful
information packets and brochures to better aid its clients find what best
suits them and their particular needs. The more services this company would
provide would be, appraising, moving consultations, quotes, planning, mortgage
consultation, loan preapprovals, title transfers, and the necessary property
preparations.

            The rapid growth of single families
in the greater Los Angeles area has surged in the past year, seeing a twenty
five percent increase from just one year ago. Therefore, the increase of
searches and sales of single family homes have also steadily grown. The US
itself is the third most heavily populated country, falling behind only China
and India, thus, one can predict that the growth of families will continue to
rise or stay at a solidly stable rate.

            The next aspect to address are the
financial considerations involved with the startup of a new company, catering
to real estate. The start-up expenses and funding required are predicted to be
modest, as the firm has already taken into account the necessary revenues
required to support its operation until it is able to maintain cash flow and to
generate the necessary income to reach an acceptable level. Most of the
company’s liabilities will be provided from private investors and management
firms, and the rest will be from banks. However, it is estimated that LARE will
be able to generate enough funds to repay the principal within the next two
years.

            LARE’s vision predicts that it will
be able to maintain financially solvent until the first year, when cash flow
should no longer be a problem. Assuming, with sufficient marketing and agent
skills, with an average of one sale per month, LARE predicts on making profits
within the first year and will guarantee a break-even point shortly.

 

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