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New Construction Development Plan For XYZ
New Construction Development Plan For XYZ
New Construction Development Plan For XYZ
for XYZ
By, Mr.X
Mission
XYZ is committed to the respectful, thoughtful development of living
areas. Our development provides privacy, space, amenities, and preserves
the natural beauty of land. XYZ is experienced, stable, dependable and
reliable with outstanding customer service in the forefront of our building
process.
Consumers have choices regarding apartment size or location. Lake View
apartments, with sizes ranging from 1900sft to 2300sqft are offered for
Rs.1.5Cr Rs. 1.9Cr an apartment, and other view apartments, with size
ranging from 1400sqft to 1800sqft can be offered for Rs.1.1Cr 1.5Cr.
Commercial space will be leased out to MNCs and other corporate.
Market Segmentation
XYZ has segmented their target market for this development as working
couples, retired couples and families. The lake view apartments target
market will attract an economic of level of Rs.50, 00,000 Rs.75, 00,000.
The apartments that do not have lake view will attract an economic level
of Rs.33, 00,000 Rs. 50, 00,000.
Market Needs
The level of development in the xxx area indicates a need for experienced
development companies. The respectful and thoughtful designs that XYZ
follows coupled with their expertise in construction and absolute attention
to details, reflects an experienced and appreciated developer who values
people, life and the land.
Market Trends
There is an ongoing trend for multimillion homes that showcase both
spectacular design and the wondrous natural beauty of the area.
BUSINESS STRATEGY
XYZ will seek funding from local resources; our reputation and reliability is
established with these firms. XYZ provides an outstanding value for their
clients and has successful marketing programs in place. The new
development will offer an elite living experience for average families,
upper income couples and people desiring showcase homes.
Value Proposition
The XYZ proposed development offers purchasers extended value. The
thoughtful layout of the site allows for privacy and maximum enjoyment
of the land. The construction of a park and the extensive walking/riding
trail and the extensive club house demonstrates a respect for the people
who will make this development home. XYZ is offering premier living
conditions, with scenic views, with easy access to the city and privacy.
Pricing Strategy
XYZ purchases the property for Rs.3, 500 a square foot with land
development infrastructure costing Rs. 300 per square foot. Housing
construction costs average Rs.2000 a square foot and these properties are
then sold for Rs.8300 to Rs.9800 per square foot.
SALES FORECAST
Annual sales revenue forecast
Sales
FY 1
255000000
Other units
325000000
Total sales
580000000
Land Cost
244888889
Sales Programs
Mr. X will be responsible for all sales activities. He will also work with
banking institutions for customer loan requirements. Sales will commence
on acquisition of land and will sell on a pre-launch phase initially.
Milestones
1. Achieve final financing for development in August 2017
2. Receive approval from local and state officials by October 2017
3. Hire new employees in July 2017
4. Complete infrastructure by late Feb 2018
5. Commence construction by Mar 2018
FINANCIAL ANALYSIS
Projected Profit and Loss
The profit and loss table shows positive net profit for the first financial
year.
Annual pro forma profit and loss
Total income
Cost of
goods sold
Gross profit
Gross profit
%
Expenses:
Payroll
Materials
Accountants
Legal
Insurance
Payroll taxes
Total
operating
expenses
Taxes incurred
Net profit
Net
profit/sales
FY1
580000000
244888889
335111111
57.78%
4000000
10000000
2000000
500000
500000
800000
17800000
35320711
281990400
48.62%
Estimated by Feb
2018
Estimated by May
2018
29000000
58000000
Ground Floor
10%
Estimated
2018
Estimated
2018
Estimated
2018
Estimated
2019
Estimated
2019
Estimated
2019
Estimated
2019
Estimated
2020
Possession 5%
Estimated by Mar
2020
by Aug
by Oct
by Dec
by Mar
by May
by July
by Sep
by Jan
58000000
58000000
58000000
58000000
58000000
58000000
58000000
58000000
29000000
58000000
0
Projected cash flow is based on first year sales only. This will be
compounded with y-o-y and month on month sales.