Victorian Renovations
Strategy and Implementation Summary
Our strategy is based on the fact that there is a large portion of people in the Portland area who value comfortable, vintage living with all the modern conveniences. The homes that we develop will be targeted towards people who are in the market for a rental property and are willing to spend more on their homes to have authentic, classic surroundings. These people are willing to pay more for this unique property.
5.1 Competitive Edge
The company’s competitive edge is the expertise of the two owners in renovating and restoring older homes. Both currently own vintage homs and have done much of the renovation themselves, only bringing contractors in to do very large jobs. In addition, both have strong business backgrounds, one in marketing and one in finance and accounting.
5.2 Marketing Strategy
The marketing for VR will be limited, since the company simply needs to rent out two apartments for one year leases. A full color leaflet will be developed that will be posted outside the property near the end of the restoring process. In addition, newspaper advertisements will be placed in local newspapers and on rental websites.
5.3 Sales Strategy
Because these apartments will be high quality, VR will be choosy about who they will accept as tenants. References and proof of employment or ability to pay the rent will be needed. Also, one month’s rent will be requested as a deposit on signing of the lease.
5.3.1 Sales Forecast
The following is the sales forecast for VR’s first apartment building on Fifth and Pearl.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Rental Revenue | $21,600 | $23,760 | $26,136 |
| Other | $0 | $0 | $0 |
| Total Sales | $21,600 | $23,760 | $26,136 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Rental Costs | $2,160 | $2,376 | $2,614 |
| Other | $0 | $0 | $0 |
| Subtotal Direct Cost of Sales | $2,160 | $2,376 | $2,614 |
5.4 Milestones
The following Milestones table illustrate the key steps that Victorian Renovations must achieve in order to ensure the success of this venture.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Complete Sale on House | 6/1/2001 | 6/15/2001 | $2,000 | Doug Machen | Owner |
| Wall repairs | 6/15/2001 | 6/30/2001 | $3,000 | Contractor | Admin |
| Plumbing Repairs | 6/15/2001 | 6/30/2001 | $2,000 | Doug Machen | Owner |
| Floor Refinishing | 6/30/2001 | 7/10/2001 | $3,000 | Renner/Machen | Owners |
| Decorating | 7/12/2001 | 8/30/2001 | $5,000 | Renner/Machen | Owners |
| Advertise the House for Rent | 8/25/2001 | 9/15/2001 | $200 | Sarah Renner | Owner |
| Totals | $15,200 | ||||
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