Construction Developer PDF

Business Plan Forbes
Homes, Inc.
Forbes Homes, Inc.

Ms. Jennifer Forbes
6101 Saintsbury Drive
# 313
The Colony, TX 75056
(972) 987-7778
Confidentiality Agreement
This Business Plan and its contents are confidential and remain the sole property of Ms.
Jennifer Forbes and Forbes Homes, Inc. (“the Company”). Its use is strictly limited to
those readers authorized by the Company. Any reproduction or divulgence of the content
of this Business Plan without written consent of the Company is strictly prohibited.
It is acknowledged by the undersigned reader that the information provided by Ms.

Jennifer Forbes or Forbes Homes, Inc. in this Business Plan is in all respects confidential
in nature, other than information which is in the public domain through other means and
that any disclosure or use of same by the reader may cause serious harm or damage to
Ms. Jennifer Forbes and Forbes Homes, Inc.. The undersigned reader agrees not to
disclose any information without the express written permission of Ms. Jennifer Forbes
and Forbes Homes, Inc.
Upon request, this document is to be immediately returned to Ms. Jennifer Forbes and
Forbes Homes, Inc.
This Business Plan is not an offer, which can only be made by an approved Private
Placement Memorandum. Participatory interest will only be to Accredited
Investors. This Document includes “forward-looking statements.” All statements other
than statements of historical fact within this Document, including statements regarding
Forbes Homes, Inc. for its subsidiaries’ strategies, plans, objectives and expectations, are
all forward-looking statements. Although Forbes Homes, Inc. believes that the
expectations reflected in such forward-looking statements are reasonable at this time, it
can give no assurance that such expectations will prove to have been correct. Certain
important factors that could cause actual results to differ materially from expectations are
set forth herein. Any subsequent written and oral forward-looking statements attributable
to Forbes Homes, Inc. or persons acting on its behalf are expressly qualified in this
regard.
___________________ ___________________
Signature Date
___________________
Name (typed or printed)
Table of Contents
I. Executive Summary 1
Introduction 1
The Market Opportunity 1
Business Model 2
Services and Products 2
Growth Opportunity 2
Financial Projections 3
Financial Needs and Use of Funds 3
Investor Return Strategy 3
II. The Enterprise 4
Mission Statement 4
Business Objectives 4
Organization 4
1. Legal Structure 4
2. Location 4
3. Intellectual Property 4
Historical Background 5
Start-up Analysis 5
III. The Business Concept and Need 7
Market Need 7
Products and Services 7
IV. The Market 8
Industry Overview 8
Market Trends 13
Target Market 17
Customer Buying Decisions 17
Growth Opportunities 17
Business Opportunities 17
Market Size 17
Competition 19
Competitive Advantage 20
V. Growth Strategy 21
Strategic Initiatives 21
Marketing Strategy 21
Sales Strategy 21
Sales Forecast First Year 22
VI. Management and Personnel 24
Management 24
Personnel Plan 26
VII. Risk Factors 27
Distinguishing the Company to Home Buyers 27
Attracting and Retaining Qualified Subcontractors 27
Retaining a Loyal Customer Base 27
No Barriers to Entry 27
VIII. Financial Projections 28
Assumptions 28
Revenue Projections 28
Cost of Goods Projections 28
Projected expenses 28
Capital Expenditures 29
Taxes 29
Cash Flow 29
Profit and Loss 29
Balance Sheet 31
Cash Flow 31
Construction Loan Balances 32
IX. Use of Proceeds 33
Capital Improvements 33
Equipment, Computer, Software, and Furniture Purchases 33
Working Capital 33
X. Investor Return Strategy 34
XI. REFERENCES 35
APPENDICES 36
Pro Forma - 12 Month P & L 36
Pro Forma - 12 Month Balance Sheet 37
Pro Forma - 12 Month Cash Flow 38
Pro Forma – 5 Year P & L 39
Pro Forma – 5 Year Balance Sheet 40
Pro Forma – 5 Year Cash Flow 41
Forbes Homes
I. Executive Summary
Introduction
Forbes Homes, Inc. (F Forbes Homes) is a residential construction company focused on
building quality homes in the Manhattan, Kansas area and five surrounding counties
(Riley, Pottawatomie, Wabaunsee, Geary and Clay). Forbes Homes will only utilize
qualified subcontractors and will maintain strict quality control measures in every stage
of the building process. The Company understands the importance of building a good
brand name and will not risk its reputation by cutting corners or utilizing sub-par
contractors. The Company will start slowly, manage costs and build its name recognition
among buyers and realtors.
The Company plans on building homes in the $125,000 to $150,000 range. These homes
will represent great value for the buyers and will feature designs by a successful builder
in Lincoln, NE, that can be constructed for as little as $45.00 per square foot. The designs
are very attractive, yet economical to build. By following simple guidelines and building
techniques such as optimizing the floor to exterior wall ratio; avoiding steep pitched
roofs; using standard sized windows and doors; using stock cabinets, taking advantage of
advanced framing techniques and more; the Company will be able to build its homes very
economically.
In its first twelve months, the Company believes it will build twelve homes and sell ten of
these. The average price for each home will be $135,000. By its fifth year of business,
Forbes Homes plans on building and selling 24 new homes annually, generating $3.2
million in sales revenue and more than $383,000 of net income.
The Market Opportunity

Residential real estate construction remains strong across the nation and in Kansas as
more people become home buyers. In particular, the Manhattan, Kansas, area is
experiencing a housing shortage as more people move into the surrounding area.
Projections indicate that the Manhattan area will experience a 15% population growth in
the next year and half as more than 18,000 people are expected to move back as part of
the Ft. Riley expansion. Even today, local realtors report a dearth of homes in the targeted
price range of the Company.
There are many construction companies building homes priced at $150,000.00 and above.
There is a strong demand for well-built homes in the $125,000 - $150,000 price range.
According to data from US Census bureau, the largest percentage of homes sold in the
Manhattan, Kansas, area in 2000 were priced in the $125,000 - $150,000 range. Yet there
aren’t enough of these homes and many sell before they are even finished being
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Forbes Homes
constructed. Forbes Homes believes this market segment will continue to have high
demand and it plans on becoming a trusted and respected builder of homes priced in the
$125,000 - $150,000 range
Business Model
Forbes Homes will build homes within These will be in desirable locations and
the five county area surrounding will be attractive to home buyers
Manhattan, Kansas. The Company will working in Manhattan, its suburbs, or
utilize qualified subcontractors to near Ft. Riley.
perform the work. Overhead will be kept
to a minimum with only one
construction manager in Year 1.
Forbes Homes will begin operations by

building a few initial “spec” homes.
Once these homes are completed and
sold, the Company will immediately
begin construction of additional homes.
Once its name and reputation become
known, the Company believes it will
have homeowners contracting with it to
build their homes. Forbes Homes will
purchase lots in the five county area that
are suitable for one, or several, homes.
Services and Products

Forbes Homes will build homes in the $125,000 to $150,000 price range. As part of this,
the Company will provide:
Architectural drawings and building plans

Selection of several facets of the home including flooring choices
Guaranteed satisfaction and homeowner warranty
Growth Opportunity
The Company’s growth strategy is straight forward. It will build its first homes, learn
from them and then begin building additional homes on a regular schedule. Forbes
Homes will use these initial homes to build a solid client reference base that it can use as
references. It will reach home buyers in its targeted area by utilizing multiple marketing
venues.
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Forbes Homes
Financial Projections
Forbes Homes’ financial projections show that the Company can utilize the requested
funding to catalyze its growth efforts. The Company projects a steady growth with
significant net income over the next five years as its business plan is implemented.
Five Year Projections ($1,000's)

Year 1 Year 2 Year 3 Year 4 Year 5
Revenues $1,350 $2,160 $2,700 $2,970 $3,240
COGS $1,013 $1,620 $2,025 $2,228 $2,430
Gross Profit $338 $540 $675 $743 $810
Total Expenses $134 $166 $170 $175 $182
Operating Income $204 $374 $505 $567 $628
15% 17% 19% 19% 19%
Net Income $114 $214 $297 $340 $383
8% 10% 11% 11% 12%
Cash Flow $220 $359 $477 $538 $599
Revenue Growth 160% 125% 110% 109%

CapEx as % Revenue 0.9% 0.3% 0.3% 0.3% 0.4%
Financial Needs and Use of Funds

The Company is seeking a series of construction loans to execute this business plan.
Funds will be used to pay for land, materials, sub-contracted labor and working capital
needs. The loans will be drawn down in installments as the home building progresses.
The loans will be secured by the homes and property. Each loan will be repaid in full as
the home is sold. The Company anticipates having no more than $248,000 in construction
loans at any one time.
Initially, the Company is seeking loans to purchase five lots and to begin construction on
two new homes.
Investor Return Strategy

The loans will be repaid as each home is sold. The pro forma projections indicate that the
business will have sufficient cash flow to cover its operations and repay each loan.
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Forbes Homes
II. The Enterprise
Mission Statement
Forbes Homes will become a recognized builder of high quality, affordable homes in the
Manhattan, Kansas, area. Its homes will be known for their excellent craftsmanship and
quality. The Company will provide personal attention and care to each of its customers.
Business Objectives
Forbes Homes will become a profitable and growing business and a recognized home
builder. To accomplish this, the Company in its first twelve months will:
Identify and contract with quality subcontractors

Establish relationships with Realtors in the area
Build twelve quality built homes and sell ten of them
Grow twelve month revenue to $1.35 million
In succeeding years, Forbes Homes will:
Build 16-24 new homes each year

Develop a reputation for value and quality
Utilize only experienced and skilled subcontractors
Attain $3.2 million in annual sales in Year 5
Organization
1. Legal Structure
Forbes Homes is a Corporation organized in the state of Kansas. Ms. Jennifer
Forbes owns 100% of the Company.
2. Location
The Company’s principal place of business will be located in or near
Manhattan, Kansas. The Company will initially work out of its construction
manager’s home to save costs. As the business grows commercial office space
may be leased.
3. Intellectual Property
Forbes Homes intends on building a website to showcase its homes. No other
proprietary intellectual property is owned at this time.
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Forbes Homes
Historical Background
The Company is a new business with no previous operations in this industry. However,
Mr. Bliss has more than 10 years of experience in the building trade. He has been a
superintendent for Grand Homes and Ryland Homes (both in the Dallas area) where he
managed the construction of as many as 16 homes simultaneously. He has been involved
an all aspects of home building and knows the industry very well.
In addition, much work has been done in preparation for launching this business. Forbes
Homes has developed a substantial amount of research related to the viability, need,
demand, operational difficulties and opportunities for this type of business.
Business areas assessed include, but are not limited to:
Need
Competition
Economics
Client demographics
Start-up & Operational costs
Availability of qualified personnel
Facilities
Start-up Analysis
The Company anticipates an initial construction loan of $146,250 to begin operations.
The funds are required to launch the company’s business, purchase five lots, begin
construction of the first two homes and fund working capital requirements.
The Company balance sheet prior to this investment and immediately after start-up is
shown in the following table. Upon investment, Forbes Homes will spend $11,500 on
Capital Equipment. Cash on hand after these expenditures will be $134,750.
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Forbes Homes
Balance Sheet Prior To and After Investment

Prior to After
Investment Investment
Assets
Current Assets
Cash $0 $134,750
Accounts Receivable $0 $0
Inventory of Homes & Property $0 $0
Total Current Assets $0 $134,750
Fixed Assets
Equipment $0 $11,500
Accumulated Depreciation $0 $0
Total Fixed Assets $0 $11,500
Intangible Assets
Intangibles $0 $0
Accumulated Depreciation $0 $0
Total Intangible Assets $0 $0
Total Assets $0 $146,250
Liabilities and Equity
Current Liabilities
Accounts Payable $0 $0
Loan Payable $5,000 $5,000
Other Current Liabilities $0 $0
Total Current Liabilities $5,000 $5,000
Long Term Liabilities

Bank Note $0 $146,250
Total Long Term Liabilities $0 $146,250
Total Liabilities $5,000 $151,250
Shareholder Equity
Preferred Stock $0 $0
Common Stock $0 $0
Additional Paid in Capital $0 $0
Retained Earnings ($5,000) ($5,000)
Current Year Income (Loss) $0 $0
Total Shareholder Equity ($5,000) ($5,000)
Total Liabilities and Equity $0 $146,250
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Forbes Homes
III. The Business Concept and Need
Market Need
The Manhattan, Kansas, area and the surrounding counties is experiencing strong demand
for new residential housing in the price range targeted by the Company. Construction of
new homes is needed since few homes in the targeted price range are on the market.
Since the area is expected to grow by more than 18,000 in the next year or two, more
homes will be needed.
Many large, custom home builders provide homes priced at $150,000 and above. Hence,
there is a demand for quality built homes that cost between $125,000 and $150,000.
These homes are being sought after by members of the military community and base
employees that surround the Ft. Riley area. Forbes Homes believes it can become a
trusted and respected builder of such homes.
Products and Services

Forbes Homes builds quality homes in the $125,000 - $150,000 price range. These homes
generally have similar floor plans. They average 1,600 square feet and have 3-4
bedrooms and 2 baths. The kitchen counters are laminate and the living areas have
carpeting. The bathrooms have linoleum and the bedrooms have carpeted floors. The
exterior finish is vinyl siding with R-13 wall insulation and R-25 ceiling insulation.
Interior finish colors can be selected by the home buyer as an upgrade.
All homes will be warranted for workmanship, reliability, and durability.
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Forbes Homes
IV. The Market
Industry Overview
Another strong decade of housing industry growth is predicted by the prestigious Harvard
University's Joint Center for Housing Studies. In August, 2003 the center released "The
State of the Nation's Housing: 2003 ". The report stated that "household growth, the
primary driver of housing demand, may well exceed 12 million between 2000 and 2010."
Factors considered in the report included the influence of immigrant households who are
expected to contribute more than one-quarter of the housing growth. Another factor is the
impact of a young "baby-bust" generation who, in large numbers, will form many new
households over the next two decades. Additionally, Generation X and Y households
continue to grow as well.
While cautiously guarded in his approach, the president of the Building Owners and
Managers Association International foresees improvement in the non-residential market.
Addressing BOMA International's annual conference, Larry F. Soehren, chairman and
chief elected officer, based his finding on several factors:
¾ Interest rates are expected to stay low

¾ The stock market is slowly recovering
¾ Oil prices are stabilizing after rising and falling around the war
¾ There is no risk of spiking inflation
¾ Corporate scandals are playing out
Soehren told the conference attendees:
"Do we have our work cut out for ourselves? Absolutely. But we're in a far
better position than we ever were in the early 1990s, with all indicators
showing that we've reached bottom, improvement is on the horizon and
economic fundamentals are solidly in place for continued recovery." 1
Global consultant Al Ehrbar, a partner in Stern Stewart and Company predicts

homebuilding will continue its outstanding performance well into the third decade of this
century.
In his report, "The Housing Boom: Another 20 Years of Growth", which was sponsored
by Masco Corporation and Pulte Homes, Inc., Ehrbar disagrees with many economists
who fear that downward corrections in home values and a major decrease in construction
activity lie ahead. Mr. Ehrbar says that although some decline in construction seems
inevitable, most forecasters neglect overwhelming positive factors that fueled the new-
home market's success in recent years, especially demographics. Ehrbar made these
comments on the subject:
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Forbes Homes
"Demographics are the single most important element in the housing

equation because the number of households creates a floor and a ceiling
on the number of housing units demanded. A careful weighing of the many
variables--immigration, the aging Baby Boomers, affordability of housing,
influencing the housing industry strongly suggests that the new-home
market will be enormously positive."
Ehrbar contends that the flow of new immigrants, along with individuals who were born
after 1976, often referred to as Echo-Boomers will keep first-time homebuyer numbers
essentially constant through 2020. Ehrbar believes there will be an increase in
immigration that will add substantially to starter-home demand. U.S. Census Bureau
projections indicate that the number of households will grow by more than 24 million
between 2000 and 2020. 2
Manhattan, Kansas is experiencing one of the largest housing booms in its history
according to city officials and the Manhattan Mercury, a local newspaper. Subdivisions
consisting of 255 homes, infrastructures for another 115 single family homes and
duplexes are all part of the construction that is taking place in that area. Even with all this
construction there is still another 1,087 single family homes in the planning stages.
City personnel are expecting Fort Riley to become a very active place by 2007 and
because of the anticipated demographic changes getting ready to take place (estimates
range from 18,000 to 22,000 military people relocating to Fort Riley) accommodation
planning and construction has moved to the forefront.
The town has seen a growth spurt like this once before back in 1974 -- 30 years ago. The
last peak in single family/duplex home sales was in 1976; permits for 269 units were
recorded: 231 single family homes and 19 duplexes.
Those who built homes in 1974 said the reason for the boom was varied. In just one year,
from 1974 to 1975, Fort Riley’s population grew by 5,000 people. Low interest rates and
soldiers who had been repositioned were cited as reasons for the surge in home buying,
but many town officials just felt the time was right. 11
Conditions are ideal for construction in the Fort Riley area for many reasons, but one that
remains steady for all housing across the U.S. is low interest rates. Housing analysts at
the National Association of Home Builders' (NAHB) Construction Forecast Conference
said that “even if the Federal Reserve Board begins raising interest rates the housing
industry is moving into a healthier economic environment.” The analysts predict that job
growth and income gains will keep residential construction and sales at healthy levels and
buoy house values.
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Forbes Homes
According to Seiders, Mortgage interest rates will probably rise only slightly through the
end of 2005. The industry doesn't need to worry about a housing price bubble, Seiders
says:
“We're already past a contraction in payroll employment, and jobs and
income are in a growth mode. So prices won't contract because the real
economy is coming on strongly.”
According to NAHB's forecast, single-family housing starts are expected to remain at

high levels, declining slightly from 1.5 million units in 2003, 1.488 million in 2004 and
1.422 in 2005. Bolstered by growing strength in the condominium market, 2004
multifamily construction was forecast to remain at a 348,000-unit level, with a small drop
to 320,000 units in 2005.
Jim Glassman, managing director and senior economist for JP Morgan Chase, expects
that the creation of new jobs, productivity-driven increases in income growth and price
stability will help the industry continue to prosper despite a change in Fed policy. He
added that he would be surprised to see the Fed increase interest rates this summer
“because employment is a long place from where it needs to be.”3
Fueled by the outstanding financing climate and continued solid investment potential of
new homes, sales of new single-family homes rose in May, 2004 to a record-high
seasonally adjusted annual rate of 1.369 million units according to the Commerce
Department. This was 14.8% ahead of April's upwardly revised sales pace. President of
the National Association of Home Builders (NAHB), Bobby Rayburn, also a home and
apartment builder in Jackson, Mississippi, made this comment:
"This is one more report that confirms what builders in the field continue
to report: buyer demand for new homes continues to be strong as the
economic expansion strengthens and job growth accelerates. Indeed,
NAHB's Housing Market Index for June shows continued high levels of
home sales and builder confidence.
In addition, thin inventories of unsold new homes are an indication of the

continuing health and good balance of this market. The Commerce report
showed that inventories of unsold new homes in May were down to a 3.3
months' supply at the current sales rate.”
Sales of new single-family homes last May, 2004 posted double-digit gains in some
regions, including a 53.2% jump in the Northeast. The South and West registered 20.3%
and 6.5% gains, respectively, while sales in the Midwest were flat off the strong April
pace. NAHB Chief Economist David Seiders said:
"The extraordinary sales pace for May probably involved some

acceleration of transactions in anticipation of higher interest rates down
the line. But it's clear that underlying housing demand is quite strong and
the current supply-demand balance is excellent. We are now forecasting
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that new home sales will hit another record year. This powerful
performance in the second quarter will certainly keep housing as a strong,
positive component of the nation's GDP.”
Housing industry leaders are not worried that rising interest rates will have much of a
long-term impact on demand for homes. A new report by the Homeownership Alliance
predicts that an average of 2 million housing units will be built each year over the next
decade. They also say more than 70% of American households will own their home by
2013.
The study also predicted home values will continue to appreciate an average of 5% over
the next 10 years. David Lereah, chief economist for the National Association of Realtors
and a co-writer of the alliance's report said:
"Even with rates rising a bit, housing will be healthy."
Lereah says several demographic trends will keep demand for housing high. Lereah
stated, retirees are living longer, many baby boomers are buying second homes, the
children of boomers are entering the housing market, and many immigrants who came to
America over the past decade will buy houses here in the next 10 years.4
In a groundbreaking analysis on the nation's housing industry, America's Home Forecast:

The Next Decade for Housing and Mortgage Finance, was released by the
Homeownership Alliance during a press conference in Washington, DC. Freddie Mac's
Chief Economist Frank Nothaft and four other leading housing and mortgage finance
economists authored the report where they predicted strong growth in the nation's
housing sector over the coming decade.
Frank Nothaft of Freddie Mack made these remarks about the subject:
"America's families will likely need 125 million mortgage loans for home
purchase or refinance totaling $27 trillion in mortgage originations. First-
time home buyers will remain a major component of the purchase market,
buying about 24 million homes over the next decade."
The national homeownership rate is predicted to exceed 70% by 2013, and the demand
for housing will require the production of about two million new housing units a year,
according to the report. The report takes an unprecedented long-term look at the industry
and produces forecasts for the next 10 years.
The collaborative economic study addresses several topics, including the outlook for
housing demand and supply, homeownership during the next decade, the outlook for
home prices over the next decade and mortgage demand and supply.
Specifically, housing forecasts indicate:
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• A robust demand will require the production of about two million new
housing units per year
• The national homeownership rate will rise above today's record level and
will most likely exceed 70% by 2013
• Home price appreciation should average around 5% a year from 2004-
2013 but could be above 6% if supply constraints continue to tighten
• Mortgage originations are projected to average nearly $3 trillion per year,
and residential mortgage debt is projected to grow close to an 8.25 percent
annualized rate 6
In May, 2005 the government reported new home sales rose to a record annual pace in
April of this year. Low mortgage interest rates produced the second sign of strength in the
real estate market. According to the U. S. Census Bureau, new homes sold at an annual
pace of 1.32 million in April; this is an increase of 0.2% over March’s 1.31 million. The
report says, “Only April, March and October 2004 have topped the l.3 million sales pace
for new homes. No other month on record produced a sales pace above 1.26 million.”
New homes are an important indicator for employment in the housing construction
industry. Buyers of new homes typically buy more furnishings and appliances than those
moving into previously owned homes.
In April, 2005 median new home sale price rose to $230,800, up from $217,500 in
March, 2005; representing a 4% increase over April, 2004. The report stated: “The
median is the typical home sale at which half the new homes sold cost less and half cost
more.” 10
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Market Trends
Housing is a key element in the nation’s economy; accounting for about 15% of Gross
Domestic Product in a typical year. Home starts, sales and other measures of housing
activity are important economic indicators.
In 1991 the United States had a total of 1,014,000 single-family and multi-family housing
starts. New home sales reached a record 1,072,000 in 2003. In 1990 the median new
home size was 1,905 sq. ft. at a price of $122,900.
New home sales in March, 2005, according to John Burns Real Estate Consulting, rose
by 12% over February, representing a 1.4 million unit annual rate. Currently, strong sales
in the new home markets are being recorded in most regions across the United States, In
March the Midwest showed a 22% increase, South rose by 14% and a 10% increase was
shown in the West, Northeast reported a decrease. A chart on starts and permit history is
shown below:
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The following chart shows the U.S. Housing Marketing Statistics, June 30, 2005:
New Home 1st

B+PeriodStatistic Direction** MinimumAverageMaximum Source
Market Year
Housing Jun,
B+ 71 Increasing 21 56 78 1985Link
Market Index 2005
Median May,
A $217,000 Decreasing $17,200 $89,568 $237,300 1963Link
Price, NSA 2005
Annual
May,
AppreciationC- 2.5% Decelerating-14.6% 6.4% 24.5% 1964
2005
Rate
Sales May,
A+ 1,298,000Increasing 338,000 679,357 1,306,000 1963Link
Volume, SA 2005
Months
Supply of May,
A- 4.2 Decreasing 3.5 5.9 11.6 1963Link
Unsold 2005
Homes, SA
Today’s new homes have more amenities than they did back only a few decades ago.
NAHB’s consumer survey, “What 21st Century Home Buyers Want,” took a look at what
was ‘hot’ and ‘what’s not’ among prospective home buyers. The report revealed some
interesting results. The 21st Century new home buyer wants larger more spacious homes
with large kitchens adjacent to family rooms and wanted the two rooms to be visually
open or divided with a half wall. Another feature they requested was high ceilings and
island work areas in the kitchen.
They also were very interested in exterior features such as a front porch, deck or patio in
the rear, and exterior lighting.
In many homes today, a laundry, dining and recreational room is considered essential.
Average home buyers in 2005 expect what would have been considered an option only
few years ago; many of today’s “standards” were only found in upscale homes in the
1990s. Now, the difference between average homes and upscale/luxury homes is that
upscale homes are typically larger and built with top-of-the-line equipment and materials.
The median size of respondents’ current homes was 1,770 sq. ft., but they preferred 2,071
sq. ft. in a new home. When it came to ceilings, two out of three respondents preferred
nine-foot or higher ceilings on the first floor and more often than not if they had chosen a
basement it would have 9 ft. ceilings as well. Almost 40% prefer nine-foot or higher
ceilings on the second floor.
Nearly 40% of the respondents said they would like a minimum of four bedrooms; 49%
would accept three bedrooms. More than one third of new, single-family homes built in
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2002 had four or more bedrooms, according to the U. S. Commerce Department. One-
fourth of those surveyed said they wanted a three-car garage even at more cost. The
majority of respondents (54%) said they would settle for a two-car garage.
A walk-in pantry topped the list of the 18 different kitchen features offered. A recent
study from New Home Source revealed 78% of respondents rated a walk-in pantry as
essential. Second came island work area (71%) and light wood cabinets (59%).
Linen closets topped the list of desired bathroom features, with 88% saying they were a
“must have”. Other desirable features included an exhaust fan (86%) separate shower
enclosure (69%), water temperature control (67%), a whirlpool tub (58%) ceramic tile
walls, (55%) and a dressing room/make-up area (52%).
Many home buyers are choosing to build because of their ability to tailor options to suit
their needs and tastes, which is accomplished in most any size home. A new home gives
the buyer the ability to feel right at home from the very start. However, when
constructing a new home, builders are realizing that beauty is much more than skin deep.
A beautifully designed home is only as good as its ability to last. Many builders are
seeking methods and materials to improve the structural integrity of their homes and to be
kinder to the environment.7
As retirement age approaches baby boomers will be "on the move" in large numbers.
According to the Del Webb Corp.'s recently released "Baby Boomer Report ", 59% of the
more than 1,300 "boomers" responding to the annual opinion survey said they expect to
move to a new home for retirement; 31% of those interested in relocating saying they
were likely to move more than three hours away in driving time from their current homes,
another 27% plan to move less than three hours away from their current residence.
The surveyed boomers say their own savings will be the primary source of their post-
retirement income. On average, they believe they will need to accumulate $800,000 and
make it last for a minimum of 19 years. 1
As a point of interest, in October, 2003, John Burns Real Estate Consulting, Inc.
executive summary stated small builders are growing just as fast as the big builders. The
company said much had been written about the growth of the large builders, but small
builders (those not in the top 400, or those who build fewer than 200 homes per year)
have maintained their 59%-60% share of the U.S. housing market over the last three
years.
According to their ‘Month in Review’ report, more housing records were set again in
October, 2003. Fixed mortgage rates dropped below 6% and the existing home market
surged to an all-time high level of 6.47 million sales per year.
The report goes on to say that the only industry faring better than the new home industry
might be the resale home industry. Existing home sales hit an all-time high of 6.47
Page 15
Forbes Homes
million homes closed in August, 2003. Existing home sales refer to closings, while new
home sales refer to contracts signed.
At a level of 1.15 million sales per year, annual new home sales volume remains just a
shade below the all-time high of 1.20 million sales. Unsold inventory is near an all-time
low of 3.7 months, thanks to high demand and conservative building.
Single-family permits hit an all-time high of 1,475,000 in 2004 but has been steadily
increasing in 2005 (see chart above), and multifamily construction rebounded to 411,000
units per year. Expect more builders to experiment with steel construction, as lumber
prices have skyrocketed recently.6
Increasing by 135% since 1950, the median size house built in the U.S., according to the
U.S. Census Bureau, ranged around 900 square feet in 1950, but has increased to 2,123
square feet in 2003. Additionally, home size has increased nationally by about 600 sq. ft.
from 1970 to 2005. Typically a home in the U.S. ran about 1,637 sq. ft. between 1970-80;
1,881 sq. ft. in the 1980s, approximately 2,000 sq. ft. in the 90s and nearly 2,200 sq. ft.
from 2000 and 2005. However, the largest demand in the Company’s target market is for
homes averaging around 1,600 sq.ft. since they are more affordable to those potential
home buyers.
Memphis Area Home Builder’s president and owner of Mack Andrews, Mr. Andrews
says the definition of home size has jumped and that one factor contributing to the
construction of homes is low interest rates. He said:
"That's kind of driving the market, the low interest rate. The people that
choose to finance them can do so with a pretty low monthly payment."
One definite change in the market today is how families require more space, children’s
bedrooms are larger and parents have designed space for them to be alone such as in
studies or dens. Many home owners also want available space in the event children,
relatives or friends want to stay for the weekend, week, or for an extended period of time.
The Company’s homes will satisfy these needs by having larger children’s rooms.
Most homes in the 1950s, as mentioned earlier ran around 900 square feet and were laid
out similarly: a kitchen, living/dining room, a hallway bathroom and three bedrooms;
master suites were unheard of as well as kitchen keeping rooms and islands. Garages
have also evolved replacing car ports and parking pads. 8
One thing that has not changed is the homeowner’s love for their house. Parents still want
their children in neighborhoods and in good school districts. Most first-time home buyers
are between 25 and 34 years old. Their buying patterns are distinct and the size of home
they purchase is typically smaller in size; the median home size for first-time buyers is
about 1,450 sq. ft. These potential buyers may not have a lot of money but what they
have is used wisely. In a recent survey, 74% of first buyers said they liked their new
home better than their previous residence. The market trend clearly indicates a growing
Page 16
Forbes Homes
need for the types of products that Forbes Homes provides. It suggests that the Company
should have excellent growth prospects.
Target Market
Forbes Homes will target the following types of persons as customers:
Families with household incomes of $40,00 to $80,000

Single parents
Military personnel and their families
The Company will initially target these types of persons within the five county area
(Riley, Pottawatomie, Wabaunsee, Geary and Clay) surrounding Manhattan, Kansas.
Customer Buying Decisions
Forbes Homes has identified several factors that can be used to favorably predispose
potential customers to select the Company’s quality built homes. These customers are
generally military personnel or families buying their first home. Decision factors include:
Higher value home for the money

Excellent workmanship
Large potential for appreciation
Excellent lot size
Location of lot
Excellent referrals
The Company believes it is well positioned to take advantage of these key factors to help
assure its success.
Growth Opportunities
The Company has great growth opportunities. First it will build a few homes to be sold.
As the initial homes are sold, the Company will develop a reputation in the community as
a reliable and quality contractor of homes. Once it has established this reputation,
potential home buyers will seek out the Company.
Business Opportunities
Market Size
Forbes Homes is initially focused on attracting customers within the Manhattan,

Kansas area and surrounding counties. This area supports a large target population
of potential customers. (See next page) Note that these figures do not include the
Ft. Riley expansion numbers.
Page 17
Forbes Homes
Clay, Riley, Pottawatomie,

Riley & Wabaunsee Counties9
Description Value
Square Miles 655.94
Population by Year
4/1/1990 129,487
4/1/2000 124,706
1/1/2004 119,446
1/1/2009 114,591
Growth 2004-2009 -18.09
Forecast 2004-2009 -12.84
Households by Year
4/1/1990 44,143
4/1/2000 45,616
1/1/2004 49,226
1/1/2009 50,909
Growth 2004-2009 12.60
Forecast 2004-2009 0.91%
Home Value
Less than 20,000 2,287
20,000-39,999 2,426
40,000-59,999 3,880
60,000-79,999 4,837
80,000-99,999 4,627
100,000-124,999 2,878
125,000-149,999 1,926
150,000-174,999 1,061
175,000-199,999 782
More than 200,000 1,302
Household Size
1 Person 5,516
2 Person 16,000
3 Person 4,278
4 Person 6,375
5 Person 2,864
6 Person 1,033
7 or More People 283
Page 18
Forbes Homes
Competition
The following is a partial list of competitors.
Schultz Construction
Founded by Roger & Tim Schultz in 1988, Schultz Construction is

located in Manhattan, Kansas. With 3 new developments available
summer & fall of 2005 and prices ranges from $95,000 to $225,000 and
up, Schultz Construction has floor plans starting 950 sq feet.
http://www.schultzconst.com/
New Castle Homes
Located in Harrisonville, MO., Darrell & JoAnne Myers founded New

Castle Homes in 1976 to provide manufactured homes as a choice for
living.
http://www.nch.net/
Appletech Design & Construction

George Lauppe
2837 Nevada St.
Manhattan, Kansas 66502
Blecha Construction
Lynn A.Blecha
6130 Tuttle Terrace
Manhattan Kansas 66503
Thierer Construction
Larry Thierer
1208 Wyndham Heights
Tim Wege Construction

2151 Fort Riley Blvd
Hageman Construction
Ron Hageman
3401 Churchill St.
Page 19
Forbes Homes
Competitive Advantage
Forbes Homes will differentiate itself by providing the highest quality workmanship
along with exemplary personalized service to each customer. The Company believes the
following factors will make it a compelling choice for customers seeking quality built
homes:
More home for the money

Excellent lot locations and sizes
High quality workmanship
Unique floor plans
Excellent referrals
Page 20
Forbes Homes
V. Growth Strategy
Strategic Initiatives
Forbes Homes has developed the following initiatives to achieve its growth goals:
Establish a solid marketing process that reaches its target audience

Establish an aggressive sales program to identify and secure
customers
Identify and secure contracts with qualified subcontractors
Buy lots in key areas where there is high demand
Provide the highest quality construction at the most competitive
pricing
Provide a satisfying experience for every customer
The Company believes it can reasonably achieve these goals with the proper financing.
Marketing Strategy
Forbes Homes’ marketing strategy will be focused on the value that is provided in each
of its homes. Marketing efforts will emphasize the economy, quality, and satisfaction that
the home buyer would realize by purchasing a home from the Company.
The Company will closely integrate all of its marketing and sales efforts to project a
consistent brand image and a consistent positioning of products and services. It will
employ a variety of marketing activities to fuel its’ customer acquisition process. These
include:
Building a web site to describe and promote the business.

Listing with selected real estate agents
Advertising on local radio
Advertising in local magazines and newspapers
Personal solicitation
Referrals
Sales Strategy
The Company will solicit customers directly and through the help of local Realtors.
Page 21
Forbes Homes
Sales Forecast First Year

The Company believes it can achieve significant sales in its’ first twelve months by
reaching its’ customer targets. By the end of twelve months, Forbes Homes expects to
have built twelve new homes and to have sold ten. This will result in twelve month
revenues of $1.35 million. This is shown in the following graphs.
Houses Built and Sold
Built
1 Sold
0
Month 1 Month 3 Month 5 Month 7 Month 9 Month
11
Monthly Revenues
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month
11
Based on these sales, Forbes Homes believes it will obtain the following net income
targets in the next twelve months.
Page 22
Forbes Homes
Monthly Net Income
$100,000
$50,000
$0
Month 1 Month 4 Month 7 Month 10
($50,000)
($100,000)
Page 23
Forbes Homes
VI. Management and Personnel
Management
The Company’s management team is well capable of building and growing this business.
Key personnel are as follows
President: Ms. Jennifer Forbes
Ms. Forbes is an effective Information Technology professional with a

background of providing leadership and management. She has a solid history of
success in delivering high quality projects; analyzing situations and presenting
cost-saving strategies. She possesses effective communication skills and grasps
new concepts quickly.
Ms. Forbes’ professional experience includes her current position as an

Application Development Project Manager in Credit Information Systems for J.
C. Penney Company, Inc. in Dallas, TX. Her current responsibilities include
managing several applications that support an annual $6B net sales and charge
backs of $7.8 Million. Ms. Forbes directs a team of 7 technical analysts and is
responsible for the complete life cycle of 50-100 application development projects
per year.
As part of a Process Analysis Team, Ms. Forbes managed a project that returned
the JCP National Bank processing back in house, including all Data Center
Operations and Business Continuity Plans. Ms. Forbes has coordinated planning
with all areas of the Information Systems Department of J. C. Penney Company,
Inc.
Ms. Forbes other experience includes Total Quality Management (TQM)

Facilitator for J. C. Penney Company, Inc. in Lenexa, KS. At this location Ms.
Forbes worked as a Special Projects Manager, preparing reports and documents
that analyzed data center performance.
Technical software skills Ms. Forbes uses is Excel, Word, ARS/Remedy, DB2,
CICS, Netscape Navigator, Internet Explorer, Outlook Express, ISPF/TSO, SQL,
JCL, Cobol, ESP Scheduling. Operating Systems include MVS/SP/XA, VM,
Windows NT. Ms. Forbes has experience with TCP/IP, VSAM, and Netview
Internet Protocols/Networking Skills,
Ms. Forbes earned a Bachelor of Science in Business Management from Kansas

State University where she received the Kansas State Oliver Scholarship and was
also recognized as a State of Kansas scholar. Ms. Forbes has also completed
Page 24
Forbes Homes
IBM’s Principles of Project Management. At J. C. Penney Company, Inc. Ms.

Forbes completed several management classes including:
◊ Associate Diversity
◊ Coaching
◊ Estimating Projects
◊ Economic Value Added (EVA) and Compensation
◊ TQM Leadership for Quality
◊ TQM (Total Quality Advantage
◊ Management Workshop
◊ Basic Management
◊ Participative Problem Solving
◊ Performance Appraisal
◊ Producing Results with Others
◊ Programming Concepts
◊ Team Building
◊ Valuing Cultural Differences
◊ Working in Harmony
Additionally, Ms. Forbes was awarded the Dane Hansen and the Bethany
Presidential Scholarships from Bethany College in Lindsborg, KS.
Vice President of Construction: Mr. Scott Bliss
Mr. Bliss has an extensive background in home building; his experience covers
eight years of supervision and 120 completed homes.
At Grand Homes, in Dallas, TX, Mr. Bliss worked as a Superintendent for 6

years. In this position Mr. Bliss supervised the construction of 12-16 homes
simultaneously; prices ranging from $125,000 to $280,000. Mr. Bliss was
responsible for hiring subcontractors, scheduling jobs from start to finish (to be
completed in 90-120 days), quality control, walk-throughs at closing and
processing weekly payroll.
In Dallas, TX, Mr. Bliss worked at Ryland Homes for two years as a
Superintendent. Mr. Bliss was promoted to Project Manager in a nine month
period. Responsibilities in this position included hiring subcontractors, scheduling
jobs, walk-throughs, and weekly payroll. In addition to the above, Mr. Bliss
supervised three subdivisions and nine Superintendents . Mr. Bliss coordinated
Field Superintendents, sales staff and office personnel.
Mr. Bliss has managed quality control, sales and building relations with
customers, presentation of subdivisions and model homes.
Page 25
Forbes Homes
Personnel Plan
The Company will be solely operated by Ms. Forbes and Mr. Bliss. Ms. Forbes will
focus on the non-construction activities of the business while Mr. Bliss will manage all
construction projects. In future years, additional staff may be added as growth warrants.
Page 26
Forbes Homes
VII. Risk Factors
Distinguishing the Company to Home Buyers

The Company generates its revenues from selling quality built homes. The Company
must be able to reach home buyers in an economical fashion and prove itself as a
reliable vendor.
Mitigation Strategy:
Execute marketing programs. Participate in local events. Maximize

sales activities.
Attracting and Retaining Qualified Subcontractors

Forbes Homes must be able to attract qualified subcontractors to perform its work.
This is critical to the growth and reputation of the business. It will be imperative that
the Company develops loyalty among these subcontractors.
Provide excellent working conditions. Provide competitive pay.

Pay on time. Keep them busy.
Retaining a Loyal Customer Base

Forbes Homes must be certain that it continues to garner rave customer reviews.
Exceed customer expectations to assure referrals. Gain endorsements

from customers. Finish houses on time.
No Barriers to Entry
Competitors could try and enter the market.
Execute to business plan. Provide highest quality and best service.

Secure the best building sites.
Page 27
Forbes Homes
VIII. Financial Projections
Assumptions
Revenue Projections
Revenue Assumptions
# houses built 12 16 20 22 24
# houses sold 10 16 20 22 24
a) Average selling price of each home is $135,000 per house
Cost of Goods Projections

a) Average cost of building each home is 75%
Projected expenses
a) Payroll
Payroll Expenses
President $25,000 $51,000 $52,530 $54,631 $57,363
Vice President $50,000 $51,000 $52,530 $54,631 $57,363
b) Expenses will average the following:
Expenses
Travel & Entertainment $9,000 $6,000 $6,000 $6,000 $6,000
Rent & Utilities $3,000 $3,000 $3,000 $3,000 $3,000
Phone $3,600 $3,600 $3,600 $3,600 $3,600
Professional Fees $6,000 $6,000 $6,000 $6,000 $6,000
Supplies $1,800 $1,800 $1,800 $1,800 $1,800
Marketing Expenses $6,000 $6,000 $6,000 $6,000 $6,000
Insurance - Liability $3,600 $3,600 $3,600 $3,600 $3,600
Equipment lease $2,400 $2,400 $2,400 $2,400 $2,400
Other $600 $600 $600 $600 $600
Page 28
Forbes Homes
Capital Expenditures
a) Capital expenditures for the next five years are shown below
CapEx Expenses $11,500 $7,000 $8,500 $10,000 $11,500
Taxes
Taxes are calculated at a combined state and federal rate of 40%.
Cash Flow
a) Payables average 30 days.
Profit and Loss

Forbes Homes projects significant revenue growth over the next twelve months. The
Company anticipates it can grow revenues to $1.35 million in that time period. This will
generate a net income of $114,000 in this twelve month time period. The graph below
shows the twelve-month growth in revenues and net income.
12 Month Revenues and Net Income

$300,000 $100,000
$250,000
$50,000
$200,000
Revenues
$150,000 $0
Net Income
$100,000
($50,000)
$50,000
$0 ($100,000)
Month 1 Month 5 Month 9
Page 29
Forbes Homes
On an annualized basis, Forbes Homes’s planned operations will result in a revenue

stream of $2.16 million in Year 2 and $3.23 million within five years. (See graph)
Annual Projected Revenues
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
The Company believes it will be profitable on an annual basis. Profitability (net income)
grows to $383,000 in Year 5.
Annual Projected Net Income
$500,000
$400,000
$300,000
$200,000
$100,000
$0
A full set of P&L projections (monthly for twelve months and annually for five years) is
shown in the Appendix.
Page 30
Forbes Homes
Balance Sheet
With the projected top line revenues, management of expenses and the expected financial
investment the Company’s balance sheet remains strong. (See graph below)
12 Month Current Assets
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Full balance sheet details (monthly for twelve months and annually for five years) are
shown in the Appendix.
Cash Flow
Forbes Homes’s operations show adequate cash flow to support the business. The twelve-
month and five-year cash flow projections are positive, as profitability remains strong.
This is shown in the following graphs.
12 Month Cash Flow
$100,000
$50,000
$0
($50,000)
($100,000)
Page 31
Forbes Homes
Annual Projected Cash Flow
$800,000
$600,000
$400,000
$200,000
$0
Complete monthly cash flow statements for the next twelve months and annually for the
next five years are shown in the Appendix.
Construction Loan Balances
The Company will require construction loans in the amount of $101,000 to build each
home. This is projected to be drawn down in two equal installments of $50,500 each.
Each loan is repaid in full upon the sale of the home. An additional amount of $45,000
will be required to maintain an inventory of three lots at all times.
The projected total loan balance for each month is shown below. An annual interest rate
of 8.0% is assumed on the outstanding balance.
Total Loan Balance
$300,000
$200,000
$100,000
$0
Page 32
Forbes Homes
IX. Use of Proceeds
Capital Improvements
The Company will open operations by working from home offices.
Equipment, Computer, Software, and Furniture Purchases

Forbes Homes will spend $11,500 in Year 1 and $7,000 in Year 2 capital expenditures.
These purchases will include, but not be limited to, the following:
Equipment $7,000 $5,000 $5,000 $5,000 $5,000
Computers/printers $3,000 $0 $0 $0 $0
Furniture/equipment $500 $0 $0 $0 $0
Leasehold Improvements $0 $0 $0 $0 $0
Other $1,000 $2,000 $3,500 $5,000 $6,500
Total Expenditures $11,500 $7,000 $8,500 $10,000 $11,500
Working Capital
The remaining capital investment will be used for working capital to purchase land, buy
materials and paying subcontractors.
Page 33
Forbes Homes
X. Investor Return Strategy

Forbes Homes is seeking a series construction loans to execute its business plan. The
Company believes that the investor can achieve a fair return on this investment.
This plan is predicated on the assumption that the investor will grant construction loans
against the construction of each new home. Each loan will be drawn down in equal
installments and will be secured by the land and property being constructed. As each
home is sold, its construction loan will be paid in full. Interest payments on the
outstanding loans are assumed to be at an 8% annual rate and will be paid monthly. Cash
flow projections indicate that the Company will have sufficient operating flexibility and
capability to repay all loans in a timely manner.
Management believes the business plan and pro forma’s presented here illustrate that this
investment carries a reasonable level of risk to the investor.
Page 34
Forbes Homes
XI. REFERENCES
1
2003. “Let the Good Times Roll, Housing Growth Projected to Stay Strong”. Tom
Dooley, Editor, TWD Associates. Realtor Magazine Online, August, 2003,
Article Found at:
<http://www.realtor.org/rmomag.nsf>
2
2003. “Immigrants and Echo Boomers should keep demand for homes strong”. Tom
Dooley, Realtor Magazine Online, Feb. 2003, Article Found at:
<http://www.realtor.org/rmomag.NSF/pages/indwatch200301201?Open-
Document>
3
2004. “A Healthier Economy Bodes Well for Housing Industry”. Bookmark, Inc.,
April, 2004, Article Found at:
<http://bookmarki.com>
4
2004. “May Home Sales surge to Record Levels”. Bookmark, Inc., June, 2004, Article
Found at:
<http://bookmarki.com/may_home_sales.htm>
5
2004. “Study Predicts Healthy Growth in Housing”. Kent Hoover, Washington Bureau
Chief Bookmark, Inc., June 7, 2004, Article Found at:
<http://eastbay.bizjournals.com/extraedge/washingtonbureau/archive/2004>
6
2003. “Small Builders are Growing Just as Fast as Big Builders”. Executive Summary,
John Burns Real Estate Consulting, Inc., October, 2003, Article Found at:
<www.realestateconsulting.com/usanalysis/usanalysis200310>
7
2004. “Trends in Building Materials: Today’s Car Could Be Tomorrow’s Floor Joist”.
Builder Homesite, Inc., New Home Source, 2004, Article Found at:
<www.newhomesource.com/newhomeguide/articles.aspx?article>
8
2005. “Homes Get Larger with Demand for Amenities, Low Interest Rates”, (By
Jane Aldinger, Biz Journal News: In Depth, Residential Real Estate,
March 18, 2005) Article Found at:
<http://www.bizjournals.com/memphis/stories/2005/03/21/focus1.html?page=3>
9
2000 “Census 2000 Complete Reports & Analysis”, Article Found at:
<http://www.easidemographics.com/cgi-bin/select_area.exe>
10
2005 “Record for New Home Sales: April Reading Edges Up From Revised March
Mark to Annual Rate of 1.32 Million”, (By Chris Isidore, CNN/Money Senior
Writer, May 25, 2005) Article Found at:
<http://money.cnn.com/2005/05/25/news/economy/newhomes/>
11
2005 “What Drives a Housing Boom?” (By Kathryn Mayes, Staff Writer, Manhattan
Mercury, July 5, 2005) Article Found at:
<http://themercury.com/news/>
Page 35
Forbes Homes APPENDICES
APPENDICES
Pro Forma - 12 Month P & L
Page 36
Pro Forma - 12 Month Balance Sheet
Page 37
Pro Forma - 12 Month Cash Flow
Page 38
Pro Forma – 5 Year P & L
Page 39
Pro Forma – 5 Year Balance Sheet
Page 40
Pro Forma – 5 Year Cash Flow
Page 41
Forbes Homes
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Business Plan Forbes

Forbes Homes, Inc.

It is acknowledged by the undersigned reader that the information provided by Ms.

The Market Opportunity

Forbes Homes will begin operations by

Services and Products

Architectural drawings and building plans

Five Year Projections ($1,000's)

Cash Flow $220 $359 $477 $538 $599

Revenue Growth 160% 125% 110% 109%

Financial Needs and Use of Funds

Investor Return Strategy

II. The Enterprise

 Identify and contract with quality subcontractors

In succeeding years, Forbes Homes will:

 Build 16-24 new homes each year

Business areas assessed include, but are not limited to:

Balance Sheet Prior To and After Investment

Total Assets $0 $146,250

Liabilities and Equity

Total Current Liabilities $5,000 $5,000

Long Term Liabilities

Total Long Term Liabilities $0 $146,250

Total Liabilities $5,000 $151,250

Total Shareholder Equity ($5,000) ($5,000)

Total Liabilities and Equity $0 $146,250

III. The Business Concept and Need

Products and Services

All homes will be warranted for workmanship, reliability, and durability.

IV. The Market

¾ Interest rates are expected to stay low

Soehren told the conference attendees:

Global consultant Al Ehrbar, a partner in Stern Stewart and Company predicts

"Demographics are the single most important element in the housing

According to NAHB's forecast, single-family housing starts are expected to remain at

In addition, thin inventories of unsold new homes are an indication of the

"The extraordinary sales pace for May probably involved some

"Even with rates rising a bit, housing will be healthy."

In a groundbreaking analysis on the nation's housing industry, America's Home Forecast:

Specifically, housing forecasts indicate:

New Home 1st

 Families with household incomes of $40,00 to $80,000

Customer Buying Decisions

 Higher value home for the money

Forbes Homes is initially focused on attracting customers within the Manhattan,

Clay, Riley, Pottawatomie,

The following is a partial list of competitors.

Founded by Roger & Tim Schultz in 1988, Schultz Construction is

New Castle Homes

Located in Harrisonville, MO., Darrell & JoAnne Myers founded New

Appletech Design & Construction

Tim Wege Construction

 More home for the money

 Establish a solid marketing process that reaches its target audience

 Building a web site to describe and promote the business.

Sales Forecast First Year

Houses Built and Sold

Monthly Net Income

VI. Management and Personnel

President: Ms. Jennifer Forbes

Ms. Forbes is an effective Information Technology professional with a

Ms. Forbes’ professional experience includes her current position as an

Ms. Forbes other experience includes Total Quality Management (TQM)

Identify and contract with quality subcontractors

Build 16-24 new homes each year

Families with household incomes of $40,00 to $80,000

Higher value home for the money

More home for the money

Establish a solid marketing process that reaches its target audience

Building a web site to describe and promote the business.