Professional Documents
Culture Documents
Presented by
SAFIYAN MUHAMMAD
SUBMITTED TO
Alifza Real Estates will focus on superior service for its clients. It has a full-time assistant who,
among other things, will manage the company website and listings, advertise listings elsewhere,
and answering basic client questions. The founder, Mr. Safiyan Muhammad, will also focus on
answering his clientele’s needs. In addition to keeping in touch with past clients after they have
been successfully located or sold their home, Mr. Safiyan Muhammad will hold webinars on real
estate concerns for clients and the community. Alifza Real Estates services include listing rentals
for landlords, assisting tenants in finding rentals, selling homes, and assisting buyers to find
homes. By serving both renters and homeowners, Alifza Real Estates hopes to become a long-
term partner with each client rather than part of a one-time transaction.
Alifza Real Estates’s long term goal is to become the number-one name in residential real estate
brokerage in terms of the right balance of price and customer service quality. We seek to do this
by ensuring customer satisfaction and developing a loyal and trusting clientele.
The following are a series of steps that will lead to this long-term success. Alifza Real Estates
expects to achieve the following milestones in the following months:
Date Milestone
December 30, 2021 Design and build out Alifza Real Estate office
Alifza Real Estates will primarily serve the buyers, sellers, landlords, and tenants interested in
properties within the country. The demographics of residents in this area are as follows:
58.9% married
These residents include 20% renters and 80% homeowners. Furthermore, Alifza Real Estates
will seek contacts with landlords of rental properties in order to develop long-term relationships.
Alifza Real Estates is uniquely qualified to succeed due to the following reasons:
Alifza Real Estates will fill a specific market niche in the growing community we are
entering. In addition, we have surveyed local landlords and residents and received
extremely positive feedback saying that they would consider making use of our services
when launched.
Our targetted areas are in an economically vibrant area where new home sales are on the
rise and turnover in homes and rentals occurs often due to the upward mobility of
residents.
The management team has a track record of success in the real estate brokerage business.
The local area is currently under served and has few independent real estate brokers
offering high customer service to renters, sellers and buyers.
Alifza Real Estates Broker located at Allen avenue, Lagos state, is a new residential real estate
brokerage firm specializing in home sales and rentals. The company will operate in a
professional setting, conveniently located next to First Bank in the center of the shopping district.
Alifza Real Estates Broker is headed by Mr. Safiyan Muhammad, a B.Sc undergraduate from
National Open University of Nigeria with 4 years of experience working as a real estate broker.
Alifza Real Estates’s most valuable asset is the expertise and experience of its founder, Mr.
Safiyan Muhammad. Mr. Muhammad has been a licensed real estate broker for the past 4 years.
He has spent much of his career working at Excorp Real Estates. There he specialized in rentals
for 2 years before moving to specialize in real estate sales for the next 4 years. He consistently
was named a top broker for Excorp Real Estates and earned the firm’s platinum seller
designation for two years.
Alifza Real Estate will also employ an experienced assistant to help with various administrative
duties around the office. Mr. Justin has experience working with C-level executives and has
spent significant time as an administrator.
Alifza Real Estate is seeking a total funding of N7,800,000 of debt capital to open its office. The
capital will be used for funding capital expenditures and location build-out, hiring initial
employees, marketing expenses and working capital.
Working capital: N 2,000,000 to pay for marketing, salaries, and lease costs until Alifza
Real Estate reaches break-even
Alifza Real Estate, located at Allen Avenue, Lagos State, is a new residential real estate
brokerage firm specializing in home sales and rentals. The company will operate in a
professional setting, conveniently located next to First Bank in the center of the shopping district.
Alifza Real Estate is headed by Mr. Safiyan Muhammad, a B.Sc undergraduate from National
Alifza Real Estate’s most valuable asset is the expertise and experience of its founder, Mr.
Safiyan Muhammad. Mr. Safiyan Muhammad has been a licensed real estate broker for the past
2 years. He has spent much of his career working at Excorp Real Estate. There he specialized in
rentals for 2 years before moving to specialize in real estate sales for the next 4 years, He
consistently was named a top broker for Excorp Real Estate and earned the firm’s platinum seller
designation for two years.
Mr. Safiyan Muhammad maintains his real estate broker license in the state of Lagos as well as
Abuja. He is a member of the National Association of Realtors. Mr. Safiyan Muhammad has
spoken at regional conferences and taken part in residential real estate panel discussions at the
Chamber of Commerce and local schools and universities.
Alifza Real Estate will also employ an experienced assistant to help with various administrative
duties around the office. Mr. Justin has experience working with C-level executives and has
spent significant time as an administrator.
Hiring Plan
Mr. Safiyan Muhammad will serve as the company CEO and president. In order to launch the
business we do not need additional personnel beyond the assistant who has already been
recruited, but will hire the following in the future:
Real Estate Brokers: Hire one additional broker every other year starting with year 2,
assuming demand exists in the market
Mr. Safiyan Muhammad will be able to provide clients with the following services:
Website: By listing rental and for sale condominiums, apartments, and homes on its own
website – including both its own clients and those of other, Alifza Real Estate will
develop a resource which is known in the local area as a go-to site for the most
comprehensive real estate listings.
Listing Services: Alifza Real Estate will promote its client’s properties in local
newspapers, magazines, and even television when appropriate, offering great visibility
for the properties it lists.
Finding Rentals: For a standard one-month broker’s fee, Alifza Real Estate will match
clients seeking rental apartments with apartments meeting their specifications as closely
as possible, choosing from listings by Alifza Real Estate, by other brokers, and by
landlords.
Selling Homes: For the standard 3% commission, Alifza Real Estate will find buyers,
negotiate on behalf of the seller, and process the seller’s paperwork related to the sale.
Buying Homes: For the standard 3% commission, Alifza Real Estate will find
appropriate homes to buy, submit offers for the buyer, negotiate on behalf of the buyer,
and process the buyer’s paperwork related to the purchase.
As Mr. Safiyan Muhammad understands, the key to a successful real estate brokerage business is
building referrals and a long-term reputation as a trustworthy agent in the community. Mr.
Safiyan Muhammad will continue to reach out to past clients in future years to answer questions
and to continue to develop a relationship.
3.1 DESCRIPTION OF THE PRODUCE/SERVICE
Alifza Real Estate will carry out its day-to-day operations primarily on an appointment basis.
Buying and renting clients will make appointments to view available properties and to discuss
their needs. Selling clients and landlords will make appointments to discuss the needs of their
sales and properties when needed. These will primarily occur on-site at the properties, although
some discussions may be held in the office’s meeting room. When necessary, discussions can be
conducted over the telephone.
Mr. Safiyan Muhammad will work on an as-needed basis, including weekends which are a prime
showing time, and will generally take days off on weekdays. The company will also employ an
administrative assistant who will also support marketing and client relationship development
efforts and will be present on weekdays on a regular 9 AM – 5 PM schedule.
Alifza Real Estate enjoys several advantages over its competitors. These advantages include:
Location: Alifza Real Estate’s location is near the center of town, in the shopping district
of the city. It is visible from the street where many residents shop for both day-to-day and
luxury items.
Management: Mr. Safiyan Muhammad has been extremely successful working in the real
estate brokerage sector and will be able to use his previous experience to grant his clients
detailed insight into the real estate world. His unique qualifications will serve customers
in much more sophisticated a manner than many of Alifza Real Estate competitors.
The following residential real estate brokerage firms are located within a 20 mile radius of Alifza
Real Estate, thus providing either direct or indirect competition for customers:
RE/MAX
RE/MAX, located in Lekki is a franchise of a nationwide real estate chain. The branch currently
employs fifteen brokers, although at least ten of them work only part-time. RE/MAX offers a
nationwide database of rentals and sale properties and high brand recognition.
However, RE/MAX agents experience high turnover, resulting in little concern for maintaining
ongoing relationships with clients. Also, the agents themselves are mixed in quality, ranging
from part-time brokers with little experience or sales records to full-time brokers with long-term
experience. There is no systematic company method for passing on knowledge from experienced
to inexperienced brokers as all are competing with each other, to a certain extent, for
commissions.
John Tee Real Estate is an independently-owned and operated firm which, founded by John
Temitope ten years ago. John Tee Real Estate employs five full-time brokers and focuses on
luxury sales of residential real estate. They feature many exclusive listings and offer deep
services for buyers and sellers for luxury homes. Unlike Alifza Real Estate, John Tee’s Real
Estate operates with a smaller number of transactions each year due to the higher commissions
they earn on each. They refuse to negotiate on their broker’s fees, and sometimes lose potential
clients because of this. However, for the premium end of the local market, they are the local
leader.
Cosgrove Apartment Living is a regional firm with 100 active brokers in Abuja region. Cosgrove
Apartment Living has grown quickly since its founding fifteen years ago by focusing only on
apartment rentals and sales. It is increasingly well-known among renters as a low-fee rental
resource to find quality apartments. Some reviews of Cosgrove Apartment Living point out the
low quality service offered by brokers, who operate much as independent agents with little
training in customer service. Furthermore, Cosgrove Apartment Living does not offer sales of
houses and therefore does not attempt to maintain long-term relationships with renters who are
moving up to purchasing homes.
3.4 HOW WOULD THE PRODUCT FIT INTO THE CHANGING TECHNOLOGY
Alifza Real Estate will initially invest significant time and energy into contacting potential
clients via telephone. In order to improve the effectiveness of this phase of the marketing
strategy, a highly-focused call list will be used, targeting landlords and sellers who have listed by
themselves and are having difficulty finding a buyer. As this is a very time-consuming process, it
will primarily be used during the startup phase to build an initial client base.
Referrals
Alifza Real Estate understands that the best promotion comes from satisfied customers. The
Company will encourage its clients to refer other businesses by providing economic or financial
incentives for every new client produced. This strategy will increase in effectiveness after the
business has already been established.
Additionally, Alifza Real Estate will aggressively network with useful sources such as home
contractors, real estate development companies, and businesses which import employees from
other areas of the country and nations. This network will generate qualified referral leads.
Internet
Alifza Real Estate will invest resources in two forms of geographically-focused internet
promotion—organic search engine optimization and pay-per-click advertising. The Company
will develop its website in such a manner as to direct as much traffic from search engines as
possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its
website, where potential clients will find a content-rich site that presents Alifza Real Estate as
the trustworthy, well-qualified real estate brokerage firm that it is.
Publications
Alifza Real Estate will list its properties for rent and sale in key local publications, including
newspapers, area magazines, and its own newsletter. Additionally, the Company will print
brochures and place them in specific locations frequented by target individuals, such as small
business development centers and accountants.
Seminars
By offering seminars on topics of interest in the office or other locations, [Founder’s Name] will
encourage residents in the community to become comfortable with the expertise and character of
Alifza Real Estate. These seminars will generally be offered free of charge as general promotion
and for direct networking.
Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential
retail office, Mr. Safiyan Muhammad incorporated Alifza Real Estate as an S-Corporation on
February 19th 2021. The business is currently being run out of Mr. Safiyan Muhammad home
office, but once the lease on Alifza Real Estate’s office location is finalized, all operations will
be run from there.
Rapid growth in Nigeria’s economy has resulted in equally rapid growth in demand for real
estate. In the wake of the recent pandemic, the Nigerian real estate sector was one of the worst-
hit sectors. Currently, one of the biggest challenges the sector has faced in recent times is access
to funding. With a growing middle-class population, rapid urbanization, and young
demographics compared to stronger economies, Nigeria possesses all the key factors for real
estate investment. Despite all of this, financing has remained a problem for property developers
and prospective homeowners. The cost of building materials has spiked in the past few
months, owing to the devaluation of the naira, the Nigerian currency. This is because the
Nigerian construction industry depends heavily on foreign importation for the raw materials and
equipment they use for construction. With a devalued naira, the cost of purchasing these raw
materials and equipment will rise. The devaluation of the naira caused a domino effect that led to
inflation, hence making properties difficult to purchase for the average Nigerian. Currently, the
real estate sector is facing a cost overrun. The effect of this is that commercial centers have less
traffic, as everyone is trying to shield themselves from the virus. Irrespective of these setbacks in
the sector, the industrial property sub-sector has been a key focus among local developers during
this period. A handful of global drug manufacturers and makers of fast-moving consumer goods
would need a location to store products, benefitting local property developers thus increasing
space demand for warehouses. Despite a range of pressing challenges, Nigeria’s real estate
sector is set to continue expanding in the future, albeit at a slower pace than over the past
decade.
Alifza Real Estate will serve the residents and businesses operating in Alifza Real Estate. The
area we serve is affluent and has the disposable income/profits required to demand off-premises
catering services.
The precise demographics of the town in which our business is based are as follows:
Lagos Abuja
The Company will primarily target the following four customer segments:
The Alifza Real Estate brand will focus on the Company’s unique value proposition:
Client-focused residential real estate brokerage services, where the Company’s interests
are aligned with the customer
Alifza Real Estate will use several strategies to promote its name and develop its brand. By using
an integrated marketing strategy, Alifza Real Estate will win clients and develop consistent
revenue streams.
The acronym SWOT stands for Strengths, Weaknesses, Opportunities and Threats. This analysis
would help speed my company's transition from reactive to proactive mode to enhance Alifza
Real Estates strategy and function.
Some of the external opportunities that the real estate business could use to its advantage are as
follows;
Global demand
Rapidly growing
Modern buildings have a great scope of attracting new investors and businesses
Economic Recession
Competition with other Assets
Price Falls due to Less Demand
5 FINANCIAL ANALYSIS
Alifza Real Estate’s pricing will rely on the standard industry rates in order to neither be
perceived as a luxury nor a discount broker. 3% is the commission on sales and 3% on
purchases. Apartments and other rentals will have fees paid only by the tenants at the standard
rate of one month’s rent. By seeking quality clients and maintaining long-term relationships with
them, Alifza Real Estate will fend off pressure to discount their rates, even in down markets.
As with most services, labor expenses will be key cost drivers. Mr. Safiyan Muhammad and
future brokers will earn a competitive base salary. Furthermore, the costs of transactions are
projected to be roughly 40% of regular commission revenue and cover the advertising of listings,
travel and supply costs for clients, and other direct costs for each deal.
Moreover, ongoing marketing expenditures are also notable cost drivers for Alifza Real Estate.
Capital Requirements and Use of Funds
Alifza Real Estate is seeking a total funding of N7, 800,000 of debt capital to open its office. The
capital will be used for funding capital expenditures and location build-out, hiring initial
employees, marketing expenses and working capital.
Working capital: N2,000,000 to pay for marketing, salaries, and lease costs until Alifza
Real Estate reaches break-even
FY 1 15
FY 2 21
FY 3 30
FY 4 36
FY 5 45
5 Year Annual Income Statement
Revenues
Year 1 Year 2 Year 3 Year 4 Year 5
Expenses
& Costs
5 Year Annual Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Accounts N0 N0 N0 N0 N0
receivable
Year 1 Year 2 Year 3 Year 4 Year 5
LIABILITIE
S &
EQUITY
Share Capital N0 N0 N0 N0 N0
5 Year Annual Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Investment (N24,645,000) N0 N0 N0 N0
SUMMARY