Setting up Costs
Annual Cash Flow Projection
Three Years Annual Profit & Loss Account Projection
I have decided to set up an Estate Agency in the North West London in the London Borough of Brent. This is an upcoming cosmopolitan area where the people who live here are from different parts of the world. Therefore the properties are of mixed construction comprising of converted and purpose built flats together with terraced, semi detached and detached houses.
I intend to provide a higher level of service and to keep exceeding the customer expectations, having worked in the area for some ten years gained great knowledge of the area and the type of properties ranging from the Georgian, Edwardian, Victorian, Period, Sixty’s, Eighty’s and now the New Built.
My intention is to start the agency in the heart of Kendal Rise with the prospects of capturing a foothold in the market and consolidating on that base. My short term objectives in this current market to let and manage at least 25 properties together with the sales of 6 flats and houses in the first year and to establish our name in the surrounding areas.
In year two with the number of lettings and sales increasing by gaining the market share of 40 letting and 10 sale properties. I hope to increase the number of office employees to include another negotiator and possibly an administrator and to invest more funds into the business subject to the market conditions improving, particularly for a better website and marketing software that with correct information should combine people and properties alike.
I am investing £25,000 of my own money and borrowing £10,000 from the bank, repayable over 12 months, to assist with the cash flow.
Business Concept and Marketing:
The idea is to provide an estate agency with a better level of service to the client and a higher level of knowledge regarding the area. I have chosen to base it in the areas close to where, I have worked for some ten years, which encompass Ladbroke Grove, Maida Vale, Kilburn, Sheppard Bush and Willesden Green.
Harris & Company will provide an estate agency service with the emphasis on maintaining the highest levels of integrity, quality, expertise and importantly competitive prices. The business will operate on Lettings, Management and Sales.
I have decided to start the business as a Limited Company, there are tax and other liabilities advantages of becoming a Limited Company, and these will of course be beneficial to the company as it progresses over the years. The clients and Landlords actually prefer that they are dealing with Limited company who is the reputable associated member of the National Association of Estate Agents. Company accountants to ensure there are no issues regularly monitor all the clients’ accounts together with business accounts, which relates to Inland Revenue taxes, business profits and the owners tax and dividend implications.
Firstly, the area that I wish to start the agency in is an up coming part of London that already has some agents. There are within the catchments area. I am looking to set up in a parade of shops in the centre of Kensal Rise close to the Train Station. The rent here is quite reasonable but importantly, the central location of the premises close to various bus routes, which in turn will provide us with passing pedestrian traffic as well as giving us good market presence.
The current Estate Agencies are clearly successful with their presence for a few years. However there is room for improvement. Some agencies tend to have separate negotiators for Lettings and Sales process but some lack knowledge of area. There are also pressure from