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Next Gen Homes

Business Plan
Submitted To: Touseef Tahir
(Lecturer COMSATS University, Lahore)

Submitted By:
Rehan Aqeel Saad Mahmood Syeda Rida Fatima Sidra Munir Madiha Shah MBA-FA08-119 MBA-FA08-124 MBA-FA08-148 MBA-FA08-140 MBA-FA08-171
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COMSATS Institute of Information Technology, Lahore

PREFACE

THIS IS A MATTER OF GREAT PLEASURE FOR US TO PRESENT THIS BUISNESS PLAN TO THE INTEGRAL REQUIREMENT OF THE MBA MARKETING PROGRAM OFFERED BY THE COMSATS.

THE MAIN PURPOSE OF THIS PROJECT IS TO GIVE THE AWARENESS TO THE STUDENTS OF THE PRACTICAL LIFE SITUATIONS IN BUISNESS.

THIS PROJECT HAS BEEN PREPARED KEEPING IN VIEW THE INSTRUCTIONS GIVEN BY THE ADVISOR OF THE PROJECT PROGRAM TOSEEF TAHIR. WE HAVE TRIED OUR BEST TO DESCRIBE THE COMPLETE BUISNESS PLAN AND TO GIVE THE LEADING STANDARD TO THIS PROJECT, BUT IMPROVEMENTS ARE ALWAYS POSSIBLE.

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Table of Contents
Executive Summary ........................................................................................................ 6 Mission Statement ......................................................................................................... 7 Vision.............................................................................................................................. 7 Business Description....................................................................................................... 7
Name of the Business: ............................................................................................................ 7 Type of Business: .................................................................................................................... 7 Nature of Business:................................................................................................................. 7 Address of the Office: ............................................................................................................. 8 Names of Partners: ................................................................................................................. 8 Business Slogan: ..................................................................................................................... 8 Reasons For Going Into The Business: ..................................................................................... 8

Market Place Analysis .................................................................................................... 9
Competitors ........................................................................................................................... 9 Target Market: ....................................................................................................................... 9 Customers Analysis:...............................................................................................................10 Service Differentiation: ..........................................................................................................10 Services: ................................................................................................................................10 Legal Status of Business: ........................................................................................................11 Background of Entrepreneurs: ...............................................................................................11 Scope of Business: .................................................................................................................11

Organization Plans........................................................................................................ 11
Place of Business ...................................................................................................................12 Purpose .................................................................................................................................12 Term......................................................................................................................................12 Capital Accounts ....................................................................................................................12 3

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Partner Contribution: ............................................................................................................13 Profits and Losses ..................................................................................................................13 Books and Records of Account ...............................................................................................14 Future Projects ......................................................................................................................14 Time and Salary .....................................................................................................................14 Transfer of Partnership Interests ...........................................................................................15 Death, Incompetence, Withdrawal, or Bankruptcy .................................................................16 Location and Surroundings ....................................................................................................16 Property of Business ..............................................................................................................16

Web Operations ........................................................................................................... 17 Industry Analysis .......................................................................................................... 17
Future Outlooks and Trends ..................................................................................................18 Real estate Industry in Pakistan .............................................................................................18 Future Trends In Real Estate Industry ....................................................................................19

Hierarchy of Next Gen Homes ...................................................................................... 21 Financial Plan................................................................................................................ 22
BALANCE SHEET .....................................................................................................................22 Long Term Investments .........................................................................................................23 INCOME STATEMENT .............................................................................................................25 Basis of Preparation...............................................................................................................26 Tangible Fixed Assets .............................................................................................................26 Research & Development Costs .............................................................................................27 Costs .....................................................................................................................................27

Marketing Plan ............................................................................................................. 28
Situation Analysis ..................................................................................................................28 The Real Estate Industry Today ..............................................................................................28 Future Trends In Real State Industry ......................................................................................29 Strengths & Weaknesses .......................................................................................................29 4

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Opportunities & Threats ........................................................................................................31 Competitor Analysis:..............................................................................................................32

Marketing & Sales Strategy .......................................................................................... 33
The Target Market .................................................................................................................33 Market Penetration ...............................................................................................................34 Marketing Strategy ................................................................................................................34 Service delivering Strategy.....................................................................................................35

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COMSATS Institute of Information Technology, Lahore

Executive Summary
The business is about house renting service. The business is currently functional in Lahore only. Our targeted customers are of two types. One who want the houses on rent and the other who want to give their houses on rent. The houses are provided on nominal prices. The house renting industry has strong grounds in Lahore, so our competition is high among our competitors. Our differentiation strategy includes some operations on web as well. There are accounts made on the website of the customers who want houses on rent and who want their houses to be given on rent. Our targeted customers are from every social class.

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COMSATS Institute of Information Technology, Lahore

Mission Statement
To provide the services to all who want to have shelter and who want to give shelter to others.

Vision
To become one among the best housing facility providers.

Business Description
Name of the Business: 
Next-Gen Homes

Type of Business: 
House renting service

Nature of Business: 
A house is provided to the customers on rent and meanwhile we provide services to those who want to rent out their houses.
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Address of the Office: 
106-A, Block C, New Muslim Town. Lahore

Names of Partners: 
Rehan Aqeel  Saad Mahmood  Rida Fatima  Sidra Munir  Madiha Shah

Business Slogan:
Just imagine the happening

Reasons For Going Into The Business:
The major reasons behind starting this venture are as follows:  Renting a house business has a strong base in Lahore and there is great demand for houses on rent in people and there are large numbers of people who want to rent their houses.  Providing a convenient access for both owners and tenants, which will give a strong differential advantage?  By using internet the cost and time of owners and lenders will reduce.

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Market Place Analysis

Competitors
In Lahore there are many such competitors who are doing the real estate businesses, in almost every area of Lahore.

Target Market:
The primary market of this business consists of the people having Middle or Upper levels of income. Since such people are not much price conscious and they prefer good and comfortable houses over price, so it is easy to attract them by providing good services. Targeting this group will also result in lesser-cost constraints. Our other target market is those people who want to rent their houses but it is not possible for them to go out of houses and search for tenants, as it is very time consuming, so by providing services to them we can reduce their time cost.

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Customers Analysis:
The general characteristics of the targeted customers are;  They are mostly middle class  They prefer good, comfortable, airy and peaceful ambience for residence.  They do not need houses for permanent basis  They want to give houses conveniently by easy access to tenants.

Service Differentiation:
The business is planned to be established having following attributes which could really be a difference;  Easy access at their own location.  Reduce cost and time factor  Customer can get information about house size, area and prices on website and can ask frequently questions too.

Services:
The business of Next-Gen Homes consists of a wide range of traditional services as well as modern technological services also.
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Legal Status of Business:
The business is a partnership between five partners having equal share.

Background of Entrepreneurs:
All the partners of the business are highly qualified and talented. All are MBA degree owners and are motivated to achieve higher levels of success and growth. All of them believe that any business should be started and run on principles and standards. The most important factor is the efficiency and believe in itself, which must be kept in mind while launching any business.

Scope of Business:
The business is planned to start its operations in Lahore. Afterwards the business will be expanded to other major cities of the country like Karachi, Islamabad etc.

Organization Plans
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Next-Gen Homes is a business for all the people living in Lahore and those who want to live in Lahore. It is also for those who desire to give their houses on rent. It s a dream of five young energetic people, who are on their way to provide services to the people.

Place of Business
Its principal place of business shall be in Lahore, until changed by agreement of the Partners, but the Partnership may own property and transact business in any and all other places as may from time to time be agreed upon by the Partners.

Purpose
The purpose of the Partnership shall be to provide services to those who need houses on rent and for those who want to give houses on rent.

Term
The Partnership shall commence as of the date of this Agreement and shall continue until terminated as provided herein.

Capital Accounts

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COMSATS Institute of Information Technology, Lahore

The Partners shall make an initial investment of capital, contemporaneously with the execution of this Agreement, as follows:

Partner Contribution:

Partner Name Rehan Aqeel Saad Mahmood Sidra Munir Rida Fatima Madiha Shah

Partner Contribution 300,000 300,000 300,000 300,000 300,000

Profits and Losses
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Until modified by mutual consent of all the Partners, the profits and losses of the Partnership and all items of income, gain, loss, deduction, or credit shall be shared by the Partners equally:

Books and Records of Account
The Partnership books and records shall be maintained at the principal office of the Partnership and each Partner shall have access to the books and records at all reasonable times.

Future Projects
The Partners recognize that future projects for the Partnership depend upon many factors beyond present control, but the Partners wish to set forth in writing and to mutually acknowledge their joint understanding, intentions, and expectations that the relationship among the Partners will continue to flourish in future projects on similar terms and conditions as set forth in this Agreement, but there shall be no legal obligations among the Partners to so continue such relationship in connection with future projects.

Time and Salary
Until and unless otherwise decided by unanimous agreement of the Partners, Time Commitment. Each Partner shall nonetheless be expected to devote such time and attention to Partnership affairs as shall from time to time be
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determined by agreement of the Partners. No Partner shall be entitled to any salary or to any compensation for services rendered to the Partnership or to another Partner.

Transfer of Partnership Interests
A. Restrictions on Transfer. None of the Partners shall sell, assign, transfer, mortgage, encumber, or otherwise dispose of the whole or part of that Partner's interest in the Partnership, and no purchaser or other transferee shall have any rights in the Partnership as an assignee or otherwise with respect to all or any part of that Partnership interest attempted to be sold, assigned, transferred, mortgaged, encumbered, or otherwise disposed of, unless and to the extent that the remaining Partner(s) have given consent to such sale, assignment, transfer, mortgage, or encumbrance, but only if the transferee forthwith assumes and agrees to be bound by the provisions of this Agreement and to become a Partner for all purposes hereof, in which event, such transferee shall become a substituted partner under this Agreement. B. Transfer Does Not Dissolve Partnership. No transfer of any interest in the Partnership, whether or not permitted under this Agreement, shall dissolve the Partnership. No transfer, except as permitted under Subsection 9.A. above, shall entitle the transferee, during the continuance of the Partnership, to participate in the management of the business or affairs of the Partnership, to require any information or account of Partnership transactions, or to inspect the books of account of the Partnership; but it shall merely entitle the transferee to receive
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the profits to which the assigning Partner would otherwise be entitled and, in case of dissolution of the Partnership, to receive the interest of the assigning Partner and to require an account from the date only of the last account agreed to by the Partners.

Death, Incompetence, Withdrawal, or Bankruptcy
Neither death, incompetence, withdrawal, nor bankruptcy of any of the Partners or of any successor in interest to any Partner shall operate to dissolve this Partnership, but this Partnership shall continue.

Location and Surroundings
This office is planned to be established at Muslim Town Lahore because this area is very peaceful and calm and the people living in this area belong to Middle Class, also the people of Upper Class live in this area and around its surrounding. There are many school and colleges situated in Muslim Town premises, so it is ideal location for the students.

Property of Business
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Following items come under the property of the business:  Office  Furniture  Office equipment

Web Operations
We also offer our services through internet, which are as follows  Own Website o House Models o Actual Houses Snaps with details o Exact Location via Google Maps o Customer Feedback  Other Websites o Online Marketing o Google Ad sense o Facebook Fan Page (Marketing + Feedback + Suggestions) o Other Community Websites

Industry Analysis
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Future Outlooks and Trends
Although the Real estate industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to go to the property dealers for themselves. so although property dealers are dealing all these affairs but the shortage of time in this busy pace of life can not attract the customers on the big scale. Trends are very important and our company is well positioned for the current interest in variety of dealers and real estates at moderate prices. We, the owners of this company are very enthusiastic about our chances of success with this new and exciting online house renting scheme concept. Our enthusiasm was bolstered even more by what was revealed to us after performing a situation analysis for the company. The Next-Gen Homes Company will start its operations in Lahore, and then it is planned to expand to other major cities of Pakistan. Also the other related services will be expanded with the passage of time Now we are giving and taking the old house to give on rent but with the passage of time we will take newly build housing scheme and provide our same services Inshallah.

Real estate Industry in Pakistan

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The Real Estate service business has a very high position in the country. It accounts for a big share in sales. The independent property dealers accounts for 25% of the total. This number has been increasing for the since many years. In the past five years the real estate industry has out-performed its services.. The reasons are 1) lifestyle changes, The style of living of different classes prevailing in Pakistan has been changing time to time. There is new trend and style which people adopt. 2) Economic climate Some times people want to change their homes due to change in their financial status. Some people want to live in better homes than present home and some people are forced to leave that homes in which they live. 3) Increase of product variety Now many of the housing scheme owners offering the homes with modern facilities and luxuries on a less prices. Such type of incentives and comforts and innovations attract people to change their homes.

Future Trends In Real Estate Industry
There are a large number of new homes opening every month and more needed to keep pace with increasing demand. The National Home Association released

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the real estate Industry report that forecasted how the industry might look in the year 2009. Some highlights from the panel's findings:  Consumers will spend a greater proportion of their money in searching of homes mean they are supposed to go to many property dealers and ask them about available houses and then go in market to see homes. it is very time consuming process.  Independent operators and entrepreneurs will be the main source of new Real Estate concepts.  Environmental concerns will receive increased attention. The Real Estate industry is a well-grown industry in Pakistan and a large number of homes are providing a great variety of facilities and services throughout the country. Many real estate industries providing their services but its difficult for the outsiders to access them easily.

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Hierarchy of Next Gen Homes

CEO
(Rehan Aqeel Khawaja)

Operations Manager (Saad Mahmood)

Finance Manager (Madiha Shah)

Marketing Manager (Sidra Munir)

Customer Relationship Manager (Rida Fatima)

Assistant Operations Manager

Assistant Finance Manager

Assistant Marketing Manager

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Financial Plan
BALANCE SHEET AS ON DECEMBER 31, 2009 (PROJECTED)

ASSETS
Current Assets: Cash Account Receivables Stock in trade Short Term Investments ---------22

1,500,000 --------------

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Total Current Assets

1,000,000

Long Term Deposits Long Term Advances

------------

Long Term Investments Prepaid Insurance Advances Fixed Assets: ------------

Land Office Machinery Furniture & Fixture Vehicle

--------400,000 50,000 50,000 -----------------------

Total Assets

1,500,000

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==========

LIABILITIES & PARTNER S EQUITY
Liabilities:

Accounts Payable Notes Payable Wages Payable Current Portion of Long Term Liabilities

------------------------------------------

Total Liabilities

---------

Partner s Equity:

Total Equity

1,500,000
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--------------Total Liabilities & Partner s Equity 1,500,000 =========

INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2009

Commission Cost

100,000 --------------------

Gross Profit Operating Expenses

100,000 25,000 ------------

Operating Profit Selling, Administrative & General Expenses

75,000 10,000

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Profit Before Interest & Taxes Financial Charges

65,000 -------------------

Profit Before Taxation Income Tax @35%

65,000 23,050 ------------

Net Income

42,000

Basis of Preparation
These accounts have been prepared in accordance with the requirements of International Accounting Standards as applicable in Pakistan.

Tangible Fixed Assets All the tangible fixed assets owned by the company are stated at cost less depreciation except building of office, which are stated at cost. Depreciation on operating fixed assets is based on straight line basis.
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Maintenance and normal repairs are charged to income as and when required. Major renewals and improvements are capitalized. Gain or loss, if any, on disposal of fixed assets is included in current income.

Research & Development Costs
Research and development costs are incurred as and when required.

Costs
These accounts have been prepared on the historical cost convention without taking the effect of specific price changes or changes in the general level of prices.

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Marketing Plan

Situation Analysis
Although the Real State industry is very competitive, the scarcity of the land has given it a steady growth. People are so busy in this age that they cannot spend a plenty of time in searching for a suitable house. We, the partners of this business of Better Homes are very enthusiastic about our chances of success with this new and exciting type of getting a house on rent or delivering a house. Our enthusiasm was bolstered even more by what was revealed to us after performing a situation analysis for the company.

The Real Estate Industry Today

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The real State business is one of the big industries in the country. This number of people having a home not of their own has been increasing for the last decade. The reasons are 1) Lifestyle changes 2) Economic climate 3) Social influence

Future Trends In Real State Industry
There are a large number of new property dealers are starting their business of real state to make a balance between the increasing demand and housing facilities. Some highlights from the panel's findings:  Now people we are ready to spend a handsome amount of money to have a house on rent.  Independent dealers and entrepreneurs are offering easier as to provide rental services  Environmental concerns will receive increased attention."

Strengths & Weaknesses
The analysis showed that as a company, our strengths that exist, far out weigh our weaknesses. This indicates to us that with hard work and a total team

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commitment, our project will be a definite success. As for the particulars that were revealed through the analysis they are as follows.

Strengths 
The businesses internal strengths include the idea providing the housing services because offering on online  Strength is the room for growth that we have as a company, because without it the company would reach its maximum potential in a relatively short time and then have nowhere to go but down.  Also we have strength in our charges which, for the services provide, are better than favorable when compared with the competitions prices.  Finally, our internal strengths include the variety which we provide for our clients.

Weaknesses 
One of our internal weakness is that we are inexperience with being managers and operators of a business as well as inexperience in dealing with the real world, unforeseen problems that are bound to arise with a new business.  Secondly, there is the fact that as of yet we don't have an established customer base to rely on. Also, we also don't have a loyal market of

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consumers whom we can depend on even during the most difficult economic periods.  Finally, there is the fact that we don't have the established reputation for service and excellence that some of our competitors may have with the consumers in the area. We are emerging with totally a new idea of having the services on online. But here in our country the no. of people using net are relatively less.

Opportunities & Threats
The situation analysis turned to the external factors that would be affecting our establishment. These factors include both our opportunities and the threats that we will have to face

Opportunities 
The opportunities include, the economic situation in the Pakistan, which is getting progress day by day. And people have now more to spend.  One opportunity is the increasing trend of people of becoming more and more conscious about their standard of living.

Threats

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The final segment covered in our analysis was the threats we perceived ourselves having to deal with. They include, first we arte going to face a very tough indirect competition in the real state business.  Secondly, there is the threat posed by the people that they don t consider the online services trust worthy and reliable.  Finally over the coming year, it will be our goal to build on the strengths that we posses and to take full and complete advantage of the opportunities that exist for our real sate business in the market of Lahore. We also plan, to the best of our ability, to overcome the threats, which await us, and to eliminate as many, if not all, of our internal weaknesses. This will be achieved through strong management leadership and coordination among us.

Competitor Analysis: The Competition
There is a large no. of dealers in the Lahore that offering the housing facilities while doing offline business.. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. But our entry in the market is based on an innovative concept or novelty. Our business will provide an innovative way of delivering the services regarding real estate. Our aggressive plans of take-out and delivery will also give us an advantage to create a good market share before the competition can adjust or similar concepts appear.
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Competitor's Profile
Currently we don t have direct competitors but still we will have to face very strong and strict competition in the market from the dealers providing offline services.

Competitive Strategy
There are three major ways in which we will create an advantage over our competitors;  Service Variety, quality, and novelty  High employee motivation and good sales attitude  Innovative and aggressive service options. Ours will be the only company among all the competition, which focuses on providing a unique idea and different concepts of delivering the services online.

Marketing & Sales Strategy
The Target Market
The market of our services covers a large area of people living in the back ward areas o f Lahore and suburbs having the wish to live in new and modern areas. The customer base will come from 3 major segments; y Local population -- the city of Lahore with a huge population is centrally located in the Punjab area and is within 15-30 minutes drive of many suburbs

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o Population from all Pakistan o Students having a wish to live in the houses not in hostels.  Curious and open-minded -- "if you try it, you will like it." Through marketing, publicity, and word-of-mouth, people will seek out a new experience a new method of having housing facilities.

Market Penetration
Entry into the market should not be a problem as we are entering either anew idea and have a large no. of target market who is in need of having the houses on rent. A handsome amount has been campaign. fixed for advertising and public relations

Marketing Strategy
Focusing on the unique aspect of the service theme a mix of marketing vehicles will be created to convey our presence, our image, and our message.  Print media -- local newspapers, magazines and student publications  Broadcast media -- local programming and special interest shows The marketing effort will be split into 2 phases; 1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places. Rs 20000.
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2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness. Budget Rs20000

Service delivering Strategy
We intend to deliver sales of about Rs.xxx in the first year, and to double that by the third year of the plan.

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