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Strategy and Implementation Summary

During the first phase of our plan, we will focus on the region of Illinois covered by the MLSNI. This service is the tool used by all realtors in the northwest region of the state to market their clients’ properties. This company is owned by 13 of the surrounding realtor boards, each holding a position on the board. This collaborative effort has established the largest real estate multiple listing service (MLS) in the country. This fact is the reason why Amerihall decided to use this region as its test market. This move allows us to prove the validity of our corporate plans well as test all the features associated with the different phases of the operation.

4.1 Sales Strategy

Our sales strategy is to automate the process so agents may apply for membership on the website and, after answering several questions, will be instructed to print out the required forms for making application to our company as well as the state and appropriate MLS.

Our services are automated and profits are based on volume. The agent, to be competitive in our real estate market, will have to join our company or succumb to the industry change. We are leaving no choice but to conform to our way or vanish into the past. The patent pending on our business plan will hopefully stop copycat companies and give us time to gain a strong foothold in the industry.

4.1.1 Sales Forecast

The following chart and table give a run-down on forecasted sales. We expect to have strong sales growth for each product in the first few months.

August through September we expect slow sales due to process of transferring agents from one office to another. Our services will promote more realtors signing on steadily over the first several years. We will truly be tested by the volume of agents entering the office, particularly through the first year.

Real estate website business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Established Realtors 18,000 54,000 180,000
New Realtors 1,790 5,370 17,900
Old Timers 176 528 1,760
Total Unit Sales 19,966 59,898 199,660
Unit Prices Year 1 Year 2 Year 3
Established Realtors $400.00 $400.00 $400.00
New Realtors $300.00 $300.00 $300.00
Old Timers $250.00 $250.00 $250.00
Established Realtors $7,200,000 $21,600,000 $72,000,000
New Realtors $537,000 $1,611,000 $5,370,000
Old Timers $44,000 $132,000 $440,000
Total Sales $7,781,000 $23,343,000 $77,810,000
Direct Unit Costs Year 1 Year 2 Year 3
Established Realtors $65.00 $65.00 $65.00
New Realtors $60.00 $60.00 $60.00
Old Timers $60.00 $60.00 $60.00
Direct Cost of Sales
Established Realtors $1,170,000 $3,510,000 $11,700,000
New Realtors $107,400 $322,200 $1,074,000
Old Timers $10,560 $31,680 $105,600
Subtotal Direct Cost of Sales $1,287,960 $3,863,880 $12,879,600

4.2 Milestones

The following table is self explanatory, but as with all good plans, the dates are not written in stone. Our plan will vary drastically depending on capital. Everything listed in the following plan could be easily accomplished within a 12-month period of time, which would keep right in pace with the Internet growth technology.

What the table doesn’t show is the commitment behind it. Our business plan includes complete provisions for a plan-vs-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.

Real estate website business plan, strategy and implementation summary chart image

Milestone Start Date End Date Budget Manager Department
Web Implementation 9/1/1999 8/1/2000 $20,000 Catherine CG-2
Brochure Mailing 8/10/2000 8/10/2000 $6,000 Ellisa Corporate
File Patent 5/10/2000 5/10/2000 $2,000 Mertes Legal
Realest® Trademark 5/1/2000 5/1/2000 $2,000 Mertes Legal
Open 2nd Market 1/1/2001 3/1/2001 $5,000 David Hall Corporate
Open 3rd thru 10th Markets 12/1/2002 12/1/2004 $65,000 David Hall Corporate
Open 11th thru 50th States 12/1/2005 12/1/2010 $1,256,000 David Hall Corporate
FSBO Market 5/1/2001 12/1/2001 $25,000 Catherine CG-2
Vendor Web Market 1/1/2002 1/1/2003 $40,000 Catherine CG-2
Instant Transaction Access 12/1/2000 1/1/2001 $100,000 Catherine CG-2
Totals $1,521,000