Next Gen Home

8/9/2019 Next Gen Home

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COMSATS Institute of Information Technology, Lahore

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Next Gen Homes

Business Plan

Submitted To:

Touseef Tahir(Lecturer COMSATS University, Lahore)

Submitted By:

Rehan Aqeel MBA-FA08-119

Saad Mahmood MBA-FA08-124

Syeda Rida Fatima MBA-FA08-148

Sidra Munir MBA-FA08-140

Madiha Shah MBA-FA08-171


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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 PRACTICALLIFE 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 IMPROVEMENTSARE 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......................................................................................................................................1 2

Capital Accounts ....................................................................................................................12


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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 ofNext 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


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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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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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Mission Statement

To provide the services to all who want to have shelter and who want to giveshelter to others.

Vision

To become one among the best housing facility providers.

Business Description

Name of the Business:

Next-Gen Homes

Type ofBusiness:

House renting service

Nature ofB

usiness:

A house is provided to the customers on rent and meanwhile we provideservices 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 ahouse business has a strong base in Lahore and there is greatdemand 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, whichwill givea 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 ofLahore.

TargetMarket:

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 ofhouses 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 ofawide range of traditional services

as well as modern technological services also.


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Legal Status ofBusiness:

The business is a partnership between five partners having equal share.

Background ofEntrepreneurs:

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 ofBusiness:

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.

Its a dream of five young energetic people, who are on their way to provide

services to the people.

Place ofBusiness

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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The Partners shall make an initial investment of capital, contemporaneously with

the execution of this Agreement, as follows:

Partner Contribution:

Partner Name Partner Contribution

Rehan Aqeel 300,000

Saad Mahmood 300,000

Sidra Munir 300,000

Rida Fatima 300,000

Madiha Shah 300,000

Profits and Losses


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Until modified by mutual consent ofall 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 ofAccount

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 anyinformation 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 ofany 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 MiddleClass, also the people of Upper Class live in this areaand around its surrounding.

There are many school and colleges situated in Muslim Town premises, so it is

ideal location for the students.

Property ofBusiness


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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, whichare as follows

OwnWebsiteo House Modelso Actual Houses Snaps with detailso Exact Location via Google Mapso Customer Feedback

OtherWebsiteso Online Marketingo Google Ad senseo 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 ma jor cities of Pakistan. Also the other related

services will be expanded with the passage of time

Nowwe 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 newhomes opening every monthand 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 searchingofhomes 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 ofnew Real Estate concepts.

Environmental concerns will receive increased attention.The Real Estate industry is awell-grown industry in Pakistan and a large number

ofhomes 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)

Assistant

Operations

Manager

Finance Manager(Madiha Shah)

Assistant Finance

Manager

Marketing Manager(SidraMunir)

Assistant

Marketing

Manager

CustomerRelationship Manager

(Rida Fatima)


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Financial Plan

BA

LA

NCE

SHEE

T

AS ON DECEMBER 31, 2009 (PROJECTED)

ASSETS

Current Assets:

Cash 1,500,000

Account Receivables ------

Stock in trade -----

Short Term Investments -----

----------


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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 400,000

Machinery 50,000

Furniture & Fixture 50,000

Vehicle ---------

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

Total Assets 1,500,000


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==========

LIABILITIES & PARTNERS EQUITY

Liabilities:

Accounts Payable ---------

Notes Payable ---------

Wages Payable ---------

Current Portion ofLong Term Liabilities ---------

----------

Total Liabilities ---------

Partners Equity:

Total Equity 1,500,000


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

Total Liabilities & Partners Equity 1,500,000

=========

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2009

Commission 100,000

Cost ----------

-----------

Gross Profit 100,000

Operating Expenses 25,000

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

Operating Profit 75,000

Selling, Administrative & General Expenses 10,000

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


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Profit Before Interest & Taxes 65,000

Financial Charges --------

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

Profit Before Taxation 65,000

Income Tax @35% 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 FixedAssets

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

Researchand 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 newand exciting type of getting ahouse 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 RealE

state Ind

ustry Tod

ay


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The real State business is one of the big industries in the country. This number of

people having ahome not of their own has been increasing for the last decade.

The reasons are

1) Lifestyle changes2) Economic climate3) 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 ahandsome amount of money to haveahouse on rent.

Independent dealers and entrepreneurs are offering easier as to providerental 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 housingservices because offering on online

Strength is the room for growth that we have as a company, becausewithout 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, arebetter than favorable when compared with the competitions prices.

Finally, our internal strengths include the variety whichwe provide forour clients.

Weaknesses

One of our internal weakness is that we are inexperience with beingmanagers and operators ofa business as well as inexperience in dealing

with the real world, unforeseen problems that are bound to arise witha

new business.

Secondly, there is the fact that as of yet we don't have an establishedcustomer 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 forservice and excellence that some of our competitors may have with the

consumers in the area.

We are emerging with totally a new idea ofhaving 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 isgetting progress day by day. And people have now more to spend.

One opportunity is the increasing trend of people of becoming more andmore conscious about their standard of living.

Threats


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The final segment covered in our analysis was the threats we perceivedourselves 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 dont considerthe online services trust worthy and reliable.

Finally over the coming year, it will be our goal to build on the strengthsthat we posses and to take full and complete advantage of the

opportunities that exist for our real sate business in the market ofLahore.

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 ofa 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 dont 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 ideaand different concepts of delivering the services online.

M

arketing & Sales Strategy

The TargetMarket

The market of our services covers a large area of people living in the back ward

areas o fLahore and suburbs having the wish to live in newand modern areas.

The customer base will come from 3 major segments;

y Local population -- the city of Lahore with a huge population is centrallylocated in the Punjab areaand is within 15-30 minutes drive of many suburbs


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o Population from all Pakistano 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

ideaand have a large no. of target market who is in need ofhaving the houses on

rent. A handsome amount has been fixed for advertising and public relations

campaign.

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

mediaand 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 ofabout Rs.xxx in the first year, and to double that by

the third year of the plan.

Documents

Next Gen Home