Running Head: BUSINESS SELECTION
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Business Selection
Chernae Dalton
10/18/2018
BUSINESS SELECTION
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Introduction
Business refers to the act of making a living by engaging in the production, buying and
selling of products that are often either goods or services. There are many forms of businesses,
and the owners often have the responsibility and liability for all debts incurred. Some of the
known business forms include sole proprietorship, corporation, partnership, franchises,
cooperative, a company limited, and an unlimited company. In many cases, activities in business
tend to include finance, manufacturing, accounting, marketing, safety, research and development,
and even sales. This report discusses a particular business of intention in the context of its
purposes, viability and required resources. The business in mind, in this case, is that of real estate
property management.
Purpose of the Business
A real estate property management business serves the purpose of making property run
smooth and manages both rental and seasonal properties. As an aspiring property management
business person, one must understand that they will often spend their management time by
making sure supervisions are taking place and property is made ready for seasonal visits and
well-maintained from time to time. Georgiev et al. (2003) states that the property management
business ensures that owned property is regularly checked o makes sure it is safe and clean
especially when the owner is away in seasons like the winter. The business also enables an
individual to act as the contact number in case security systems need to communicate about any
security breaches.
Property management needs exist for several purposes including acquisition of higher
quality tenants, retention of tenants, repairing and maintaining the property, payment of taxes,
BUSINESS SELECTION
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and collection of rent. Every country needs property management so that tenants who are given
the infrastructure are screened and proved to be free from scams. Even if the tenants had
difficulties, the property manager would work on such and save the landlords from such
unreliability and further make some advertising of property marketing. Property management
brings tenant retention by testing their quality, keeping them comfortable and managing their
problems and queries. Maintenance and repair of property keep tenants and property owners
comfortable and safe, and authorities also promote the property management business because it
has tax benefits of the deductible fees.
Through this business, I intend to provide the services of risk management, financial
management, tenant services, facility management, and occupancy concerns. Tenant services
come up through the liaison with the landlords so that tenants can reach the property manager
when they have questions or problems. The occupancy concern services deal with how tenants
move in and out and how to eliminate the ones that are non-paying to give space for the paying
ones. Facility management schedules and oversees maintenance and repairs whereas financial
management collects rent records finances and balances the books (Smith & Tardif, 2009). Risk
management, on the other hand, involves keeping clients and the property owner in compliance
with the legal aspects of the property.
The viability of Property Management
The property management business is viable because it enables individuals to have a
relief from mortgage by relieving owners from obligations and enabling the managers to save
their credit ratings. The business allows the seller to move forward into homes with good rates
that benefit consumer budgets, is an equity build up that enables homes to be sold at market
BUSINESS SELECTION
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values and enables property owners to have their mortgage payments covered and receive
positive cash flows (Thrall, 2002). Other viability concerns of the real estate property
management business include tax advantages especially the tax write-offs and keeping of credit
lines open so that the business doer can run and expand their businesses continually.
For this business, I am more likely to make profits because I would manage many
properties and a wide variety of services. The business expects to begin with a manageable
number of properties then acquire more with time so that revenues keep on increasing instead of
stagnating. The business would make more profits with a greater number of properties because it
should maintain its operation margins whilst acquiring more properties. Each additional property
will be generating an additional percentage that would be falling to profits. The services offered
on the other hand are expected to assist in making the business profitable because additional
services alongside maintenance, marketing, selling, and renting out would be accompanied.
Provision of additional services may even be personal such that a property owner contracts the
business aside of the major functions and such could even include cleaning services that are
payable. The additional services are best in making profits when the expenses for the service
provision are lower than the generated revenues.
The real estate property management business is full of both benefits and challenges just
like any other business. The two major obstacles that would possibly get in the way of this
business’ success include the inability to hire and maintain quality staff and property damage and
unexpected maintenance. The quality of staff often makes or breaks any business, and this one
too would require team members that are full of a wide range of skills and the desire to succeed.
In many cases, the business might be good, but the service givers turn out to be poor
communicators and even fail to interact positively with clients. The service providers may even
BUSINESS SELECTION
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attract the best talent during hiring then they change to demean the business, and such are
possible everywhere and every time. In incidences of poor-quality staff, the business would be
automatically affected and would lose clients, forcing it to undergo unsuccessfulness (Allard &
Barber, 2003). Property damage and unexpected maintenance, on the other hand, are aggravating
and can occur anytime since they are expected misfortunes. Property damage can take place by
clients, tenants and even the staff and such would cost the business costs of repair or
replacement. Unexpected maintenance is possible when the staff work on what is not needed and
thus wasting time on less important issues and at times even wasting resources on what is not
needed.
In this similar business of real estate property management, other companies that have
been successful and could encourage the idea more are numerous. The companies include Bently
Holdings that operates under green business practices, Brandywine Realty Trust that sells and
leases property, Brook field Office Properties, Centro Shopping America Trust, Hang Lung
Group, and Kier Group among others.
Needed Resources
According to Kaplan and Norton (2001), the resources that would best be used to start
and maintain the business include a license for operations, an office, workers, and a real estate
investment club that would be the starting point of ideas and markets. To move forward,
information would be passed through people and their connections, related agencies through
referrals and giving clients and information seekers business contacts.
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Conclusion
The business of real estate property management as discussed in the paper would be ideal
for operations since it harbors benefits and has gaps that should be filled too. The paper has also
examined obstacles of the business, related successful companies and needed resources. The real
estate business would, therefore, be a proper idea since it is manageable and offers profits based
on flexibility and creativity of the mind.
BUSINESS SELECTION
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References
Allard, L. E., & Barber, C. (2003). Challenges and opportunities in aligning real estate and the
workplace with business strategy: A survey of leading CEOs. Journal of Corporate Real
Estate, 5(3), 213-220.
Georgiev, G., Gupta, B., & Kunkel, T. (2003). Benefits of real estate investment. Journal of
Portfolio Management, 29, 28-34.
Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization. Strategy and
Leadership, 29(3), 41-42.
Smith, D. K., & Tardif, M. (2009). Building information modeling: a strategic implementation
guide for architects, engineers, constructors, and real estate asset managers. John Wiley
& Sons.
Thrall, G. I. (2002). Business geography and new real estate market analysis. Oxford University
Press on Demand.
BUSINESS SELECTION
Institutional affiliation
date
Introduction
• Business refers to the act of making a living by engaging in the
production, buying and selling of products that are often either
goods or services (Kapla,2017).
• In many cases, activities in business tend to include finance,
manufacturing, accounting, marketing, safety, research and
development, and even sales(kaplan,2017).
• The business in mind, in this case, is that of real estate property
management.
Purpose of the Business
• A real estate property management business
serves the purpose of making property run
smooth and manages both rental and
seasonal properties(Gupta,2017).
FORM OF BUSINESS OWNERSHIP
• There are many forms of
businesses, and the owners
often have the responsibility
and liability for all debts
incurred.
• Some of the known business
forms include sole
proprietorship, corporation,
partnership, franchises,
cooperative, a company
limited, and an unlimited
company (kaplan,2017).
• The form of ownership for the
proposed business will be sole
proprietorship.
Advantages of sole proprietorship
• The following are the
advantages that are
associated with a sole
proprietorship business.
❑ Easy to begin.
❑ Cheap to start the business.
❑ The owner enjoys full profit
advantage.
❑ Tax benefits.
❑ Direct control of the
business.
❑ Faster decision making.
DISADVANATAGES OF SOLE PROPRIETORSHIP
❑Personal liability in case
of any loss .
❑Debt concerns
❑Long term viability.
❑Starting capital might
be difficult to raise.
❑Businesses run through
sole proprietorship lack
the security of
performance.
OBJECTIVES OF THE BUSINESS
The objective of the business include the
following.
✓Making property run smoothly.
✓Managing rental and seasonal property.
✓Keeping the rental property safe and clean.
✓Screening of tenants.
✓Maintenance and repair of property.
INTENDED CUSTOMERS
• Customers are the key concern for every
business.
• The following are the intended customers for the
real estate business.
• The intended customers include the following.
1. Public and government.
2. Real estate owners.
3. REITS, developers and house builders.
4. Retirement funds.
MARKETING PLAN FOR THE BUSINESS.
Products and services
The services that will be offered by the business
will include the following.
❖Risk management.
❖Financial management.
❖Tenant service.
❖Facility management.
❖Occupation concerns.
WAYS OF PROMOTING THE PRODUCT AND SERVICES.
The following are the ways
of promoting my product.
❖Offering exclusive
review to customers of
the service.
❖Using social media
contest.
❖Email marketing.
❖Offering an upgrade to
the business.
JUSTIFYING PRICING FOR THE PRODUCTS.
➢ Pointing out the added
value for the product
and service.
➢ Finding and exploiting
weakness links.
➢ Dealing with customers
who research online.
➢ Upgrading the service
frequently to meet new
customer preferences.
CHANNELS OF DISTRIBUTION
❑ A distribution channel is the
chain through which goods
or services passes until it
reaches the end consumer.
❑ Direct sales – identifying
potential customers directly.
❑ Agents – developing
differentiating products that
resellers of the real estates
that they can modify or
include in large, customised
orders.
ECONOMIC FACTORS THAT WILL IMPACT THE BUSINESS
•
•
•
•
•
•
Customer behaviour.
Property creation.
Availability of mortgages.
Appraisal value
Interest rate.
Investors.
COMPETITION FACTORS THAT IMPACT THE BUSINESS
❖Product differentiation.
❖Cost leadership.
❖Marketing strategy.
❖Infrastructure strategy.
Conclusion
• The business of real estate property
management would be ideal for operations
since it harbors benefits and has gaps that
should be filled too.
• The real estate business would, therefore, be
a proper idea since it is manageable and offers
profits based on flexibility and creativity of the
mind.
References
• G, T. (2016). business geography and real estate market
analysis. U.S.A: Oxford university press on demand.
• Gupta, G. (2017). benefits of real estate investment.
Journal of portfolio Management., 29-37.
• Kaplan R, S. (2016). The strategy focused organization
and leadership. 41-42.
• L, A. (2013). challenges and opportunities in aligning real
estate and work place with business strategy, A survey of
leading C.E.O, journal of cooperate. university press, 3040.
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