Home Real Estate Inspection Business Plan

The following sections include the annual estimates for the standard set of financial tables. Detailed monthly pro-forma tables are included in the appendices. The plan is to start with owner investment only, and to pay all expenses and direct costs from the cash flows of the business. The only exception is the fee for the CT license internship, which will be paid with a credit card in March, with a 7% interest rate. This credit card bill will be repaid within two years.

Inspection Connection, will break-even in the seventh month, and generate steady profits thereafter, even as the owner’s salary increases.

8.1 Start-up Funding

The Start-Up Funding table indicates how much Capital will be needed for Inspection Connection to begin providing services. The owner will be funding this venture without outside investments.

8.2 Important Assumptions

Inspection Connection, assumes a continued reasonable rate of home sales in the selected towns.

8.3 Break-even Analysis

Based on the Break Even table and chart, Inspection Connection will reach a break even point after 7 months.  It is worth noting that the average unit price of $450 is a conservative figure. Most inspections will include at minimum a radon test, which will increase the unit price significantly. Therefore, there is a good chance that the Break Even point could be reached much earlier that 7 months.

8.4 Projected Profit and Loss

The following Profit and Loss table is based on an estimated average 19 unit sales per month at a price of $450 per unit.  Most sales will be at a rate greater than the minimum of $450; this will help offset slower months where the year-end goal of 31 unit sales may not be attainable.

We will not show a profit in the first year, due in large part to the deductible training expenses for licensing in a second state to expand the business.

8.5 Projected Cash Flow

The following Cash Flow chart and table indicate that there will be sufficient cash flow to maintain operations while allowing room for growth and periods where sales are slower. It also shows the projected credit card debt and repayment for the internship.

8.6 Projected Balance Sheet

The Balance Sheet shows that Inspection Connection will steadily increase its Net Worth even without a large asset base, as a service-oriented business.

8.7 Business Ratios

The following table shows standard ratios for our business, and a comparison with standard ratios for the Building Inspection Services Industry, SIC Code 7389.0203.