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CorbelArch Real Estate Inspectors

Market Analysis Summary

CorbelArch Real Estate Inspectors will focus on two markets within the industry, the residential segment (including apartment buildings) and the commercial segment (including buildings used for professional purposes).

The commercial market participants currently need competent inspection firms to provide services to themselves or their clients. Since our inspection findings can significantly impact a business’ profitability, it is absolutely crucial for our service to be accurate and complete.

Although the above is also true for the residental owner, quality and meeting the individual needs/wants of the client while maintaining the Realtor’s transaction come first in the residential segment. The inspector must be willing to be more flexible and willing to listen and work directly with the client.

Over the past decade a number of new trends have been observed in this industry. This includes the steady growth of the local economy, the increased percentage of property transactions that require inspections and the requirement and escalation of credentials needed to be licensed to perform inspections.

4.1 Market Segmentation

CorbelArch Real Estate Inspectors will focus on two markets within the industry, the residential segment (including apartment buildings) and the commercial segment which includes buildings used for professional purposes. The company can handle any size building that needs inspection or management services. It is the goal of the company to eventually have approximately one-third of all business coming from the commercial segment, since this generates the greatest cash flow. Furthermore, this segment has the lowest percentage of variable costs. The residential segment is considered to be the company’s cash cow. Even during the slow winter months, the company can expect to have a several residential contracts.

Business property inspection business plan, market analysis summary chart image

Market Analysis
2004 2005 2006 2007 2008
Potential Customers Growth CAGR
Single Family Residential Customers 10% 50,000 55,000 60,500 66,550 73,205 10.00%
Real Estate Investors 10% 10,000 11,000 12,100 13,310 14,641 10.00%
Lending Institutions 0% 100 100 100 100 100 0.00%
Insurance Providers 0% 5,000 5,000 5,000 5,000 5,000 0.00%
Property Management Corporations 50% 30 45 68 102 153 50.28%
Total 9.34% 65,130 71,145 77,768 85,062 93,099 9.34%

4.2 Target Market Segment Strategy

Currently there is limited competition in the commercial inspection services industry. We plan to target our marketing to gain share in this growing business.

4.3 Service Business Analysis

Most of the industry analysis is contained in the Competitive Comparison section to give the reader the idea of the competitive nature of the industry, its opportunities and threats, and the company’s flexibility in pricing. CorbelArch Real Estate Inspectors exists in a purely competitive market that faces virtually unlimited competition and high demand. The ability of the company to differentiate its services or enter into a niche market is possible. The company will engage in strong leadership principles, aggressive sales and a high level of quality.

4.3.1 Competition and Buying Patterns

This industry is somewhat seasonal. The busiest times are during the summer months where it is easy for a company to become so engaged that it must turn down opportunities. During the winter months businesses must focus on service diversification and marketing to maintain consistent level of work.