Amerihall
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.
| 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 |
| Sales | |||
| 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.
| Milestones | |||||
| 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 | ||||
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