Real Estate Broker Business Plan

Reed Properties

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Company Summary

Reed properties is a single-agent real estate brokerage that will serve the Richmond Metro area.

2.1 Company Ownership

Reed Properties is owned by Claudia Reed.

2.2 Start-up Summary

The start-up costs are outlined in the following chart. Start-up costs derive from office equipment, computer station complete with software, stationery, legal costs, furnishings, office advertising and services, and expenses associated with opening our office. The start-up costs are to be financed by direct owner investment. The assumptions are shown in the following table and chart. Lease office space averages $1.10-1.60 per square foot to equal an approximate of $1,500 per month, plus utilities, for efficient leased office space. Commercial lease will be for a three to five year agreement with the first month and a security deposit equal to the monthly lease rate payable at the time of lease start date.

Start-up Funding
Start-up Expenses to Fund $15,050
Start-up Assets to Fund $9,950
Total Funding Required $25,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $9,950
Additional Cash Raised $0
Cash Balance on Starting Date $9,950
Total Assets $9,950
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Claudia Reed $25,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $25,000
Loss at Start-up (Start-up Expenses) ($15,050)
Total Capital $9,950
Total Capital and Liabilities $9,950
Total Funding $25,000
Start-up
Requirements
Start-up Expenses
Legal $900
Stationery etc. $500
Brochures $1,000
Advertising $2,500
Insurance $200
Rent $3,000
Answering Service $200
Utilities Start Up $250
Office Furnishings $1,000
Expensed Equipment $3,000
Business Software $2,000
Office Supplies $500
Other $0
Total Start-up Expenses $15,050
Start-up Assets
Cash Required $9,950
Other Current Assets $0
Long-term Assets $0
Total Assets $9,950
Total Requirements $25,000

2.3 Company Locations and Facilities

Reed Properties will be located downtown in the new Richmond Bank Building.

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Start-up Funding
Start-up Expenses to Fund $15,050
Start-up Assets to Fund $9,950
Total Funding Required $25,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $9,950
Additional Cash Raised $0
Cash Balance on Starting Date $9,950
Total Assets $9,950
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Claudia Reed $25,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $25,000
Loss at Start-up (Start-up Expenses) ($15,050)
Total Capital $9,950
Total Capital and Liabilities $9,950
Total Funding $25,000
Start-up
Requirements
Start-up Expenses
Legal $900
Stationery etc. $500
Brochures $1,000
Advertising $2,500
Insurance $200
Rent $3,000
Answering Service $200
Utilities Start Up $250
Office Furnishings $1,000
Expensed Equipment $3,000
Business Software $2,000
Office Supplies $500
Other $0
Total Start-up Expenses $15,050
Start-up Assets
Cash Required $9,950
Other Current Assets $0
Long-term Assets $0
Total Assets $9,950
Total Requirements $25,000