SM Business property inspection: A Proposed Business Plan

ADAMSON University College of Engineering Civil Engineering Department CE 431- Elective 3: Entrepreneurship for Civil Engineers

SM

BUSINESS PROPERTY INSPECTION Presented by: Alvin Shayne O. Manayao.

Proposed Business Plan

Presented to: Dr. Tomas U. Ganiron Jr. Professor, Entrep. for C.E.

Planning the Process

Dream

Design

Build

Table of Contents 

Executive Summary

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Company Description

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Services

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Market Analysis

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Marketing Strategy and Implementation

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Organization and Management

What does the real estate inspectors do? 

One of the common contingencies to real estate purchase agreements is a home inspection. Hired by the buyer, an inspector examines the house thoroughly for non-functioning systems, damages, and repairs that may be needed. This detailed report forms the basis for continuing with the purchase, renegotiating the sale price, allowing the seller to make repairs, or for pulling out of the sale. A home inspection is recommended on purchases of new construction as well as re-sales.

What do we inspect? 

Structural Components A home inspector climbs onto the roof, pokes at the foundation, and crawls into attic space looking for water condensation or penetration. On homes in hurricane zones, we’ll examine roof trusses to be sure they're connected to the frame as per code. Walls are examined for leakage or mold. Floor cracks are noted, as is separation from the baseboards. The ceilings, especially around electrical fixtures, must be clear of any signs of water leakage.

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Exterior Faults Close inspection of the exterior may reveal where additional caulking is needed to prevent water seepage.

Broken seals on glass, deteriorating tread steps, decking and settlement cracks are a few of the items that require professional repair. Even the garage door is tested whether it's electronic or manual.

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Roofing The roof is examined closely for loose shingles or tiles, and the flashing is tested for tightness. Tree limbs touching the house provide a passageway for rodents and also can threaten the house during violent storms.

Gutter debris is noted, and all drains are tested for a tight connection to the house. Skylights and chimneys also are examined for proper sealants.

What do we inspect? 

Plumbing All piping is tested, including drains, vents and waste systems. Water ingress and egress is examined, as are the interior fuel and water distributors and the sump pump, if present. All drains are examined for signs of leakage, mineral deposits and the fitting of proper filtering apparatus. Inspectors may test the water for bacteria.

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Electrical All the electrical components are examined to ensure they fit and are operating safely. Conductors, grounding equipment and distribution panels are tested for efficient operation. The location of smoke and carbon monoxide detectors also is noted in the inspection report.

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Heating/Air Conditioning The entire heating and air conditioning system is tested to verify it's in working condition, and the appropriate filters are examined for accumulation. Supply pipes are examined for corrosion. Chimneys must be clear of bird nests, and the chimney frame, whether it's brick or made of other components, is to be sound.

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Insulation/Ventilation Attic crawl space insulation and vapour retarders are noted on the inspection report. All venting fans that aren’t working also are included. Under-floor insulation, if accessible through the basement, also is examined for deterioration.

What do we inspect? 

Interiors/Appliances Doors, floors, stairways, counters, cabinetry, and the number of windows are all cited on the inspection report along with notes on any items that don't function as they should. This also includes testing of all interior appliances that are built-in or included in the purchase contract.

Executive Summary

SM Real Estate Inspectors will provide thorough, unbiased, detailed, real estate and building inspections. We offer a full menu of services to realtors and their clients. Our inspection services include, but are not limited to, existing residential and commercial properties, all new construction, condos, manufactured homes, 11th month inspections (when new home warranties are nearing expiration), and pre-listing inspections (to identify areas of concern prior to market listing).

Executive Summary 

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Trained and Educated Our inspectors are professionally trained through accredited institutions and keep up-to-date on the latest building components and inspection techniques.

Flexible Scheduling Because convenience is important to our clients, we can accommodate scheduling 7 days a week from 8am-5pm for office hours.

Executive Summary 

Computerized Reports SMÂ reports offer a checklist and narrative format, with summary pages and color photos to further assist in their ease of understanding.

Reports are e-mailed and securely posted for retrieval on our web hosting service (printed or faxed hard copies provided upon request).

Objectives SM Real Estate Inspector's objective is to build a high quality, ethical, full-service property services company that will win the approval of the Real Estate community which it serves.

Our goals include: 

A 10% market share in our first year.

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An increase of 15% in our gross margins within the second year of operation.

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An increase in our market share by a minimum of 10% for each of our first five years.

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Currently, there are no high quality, full service property service companies in the Las Pinas area, or the surrounding areas .The company believes that by entering the marketplace first and by establishing quality standards, it will become, and remain, a leader in the property services industry in the Las Pinas area.

Our fundamental objective is to realize how we impact the community that we do business in, knowing that we will stand the test of time if the key professionals approve and support our quality and integrity.

Make at least 5-10 clients a day

Mission Statement SM’s sole purpose is to establish a financially solid, profitable and well managed company while at the same time creating a market leading service organization based on professionalism, integrity and personalized customer service.

Guiding Principles 1. Set expectations  It is important to have a general discussion with your sellers about the customary practice for home inspections in your market.

2. Be present  Buyers who attend inspections with contractors or home inspectors can ask questions and be involved in the process.

3. Compromise  It’s all about a give and take so that each party feels like the deal they have worked out is fair.

Keys to Success Keys to success for the company will include:  Maintain an untarnished reputation in the community.  Provide high quality client sensitive service.  Competitive pricing.  Flexible hours.  Excellence in fulfilling the promise--completely confidential, reliable, trustworthy expertise and information.  Develop visibility to generate new business leads.

Company Description 

SM Real Estate Inspectors is an S corporation company consisting of two principal officers and two employees with combined industry experience of at least 20 years.

The company was formed to take advantage of the perceived weakness and inadequacies of other regional companies in terms of quality and customer satisfaction. SM Real Estate Inspectors has marketed its name significantly to date.

Company Description

The company plans to use its existing contacts obtained through past marketing via the Web, direct mailers, personal contact and printed publications to generate short-term residential contracts. Its long-term profitability will rely on current commercial contracts with national property services companies and future commercial contracts that will be obtained through strategic alliances and a comprehensive marketing program.

Ownership 

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SM Real Estate Inspectors will be owned by Aivin Shayne O. Manayao.

The company will be soon rise in year 2025.

Aivin Shayne O. Manayao is a Civil Engineering student in Adamson University. She will graduate in 2021 and will work for EEI Corporation for 5 years as experience on the field.

Start- Up Summary 

The company was actively providing services for only part of the year.

The principals invested 10 Million each in the start up of the company and acquired short-term loans.

Location and Facilities 

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SM Real Estate Inspector is located in Zapote-Alabang Road, Las Pinas City.

The city of Las Pinas has a population of 588,894 as of 2018.

Services SM Real Estate Inspectors provides comprehensive property inspection and preservation services to the residential and commercial markets. 

Buyer Home Inspection

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Seller (Pre-Listing) Home Inspection

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Maintenance Inspection

In the future, Inspection Connection may decide to offer the following services: 

Mold Survey / Sampling

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Home Energy Audit

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New Construction (In-Progress) Inspection

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Radon Testing (air and water)

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Termite Inspection

S. W. O. T. Analysis

Market Analysis 

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SM 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.

Market Segmentation 

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.

Target Market Segment Strategy 

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

We will be connected to government services as a newbie in this industry.

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. SM 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. The company will engage in strong leadership principles, aggressive sales and a high level of quality.

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.

Marketing Strategy and Implementation 

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As stated before, the company will focus on greater service through better scheduling, project management, and greater alignment of personnel by providing profit sharing. The company is utilizing the most up-to-date communications and scheduling and reporting technology available.

The company is also currently carrying out an aggressive marketing plan throughout the region. This includes Web listings, direct mailings, literature and strategic alliances with key industry professionals.

Competitive Edge 

SM Real Estate Inspectors seeks to establish a competitive edge in its new target market segment by increasing the level of customer contact and service. Something that other competitors oftentimes lack.

Additionally, SM Real Estate Inspectors possesses the necessary skills to produce the high quality services that are needed in this field. The establishment of the previously mentioned work processes that will ensure greater service will strengthen the contacts that promote wordof-mouth marketing and networking.

Marketing Strategy 

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SM Real Estate Inspectors is currently utilizing several avenues to promote the company and its services including but not limited to: website, multiple trade Web listings, brochure placements, phone directory advertisement, direct mail advertisement, target service mailings and word of mouth among key industry professionals.

Our website will be promoted on all of our marketing publications, and promo pieces. We will link to various trade and government sites.

Management Summary 

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Our company philosophy is based on mutual respect for all contributions made by our founders, investors, consultants, and employees without regard to the position held in the company. Those who work with SM Real Estate Inspectors will learn to enjoy and trust our partnership environment, because we all strive to create an environment that enables us to work as a team where suggestions are valued, appreciated and rewarded.

SM Real Estate Inspectors will also work toward establishing community involvement programs that will demonstrate how our business can contribute to a better quality of community life. Projects such as offering our services in working with schools, churches, and other groups on programs for mutual benefit.

Personnel Plan

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As the business becomes more profitable, SM intends to provide the following benefits for owners and employees: Health care insurance Dental care insurance Life insurance Vacation time Up sell incentive programs 400k retirement plans

Management Proposed Salary Position

Salary

President & CEO

Php 85,000/month

Vice President

Php 55,000/month

Manager of Finance/Payroll

Php 35,000/month

Manager of Labor and Services

Php 35,000/month

Laborers

Php 16,000-20,000/month (based on the experience and at least high school graduate)

The President is incharge on monitoring the whole company.

She also entertains the clients.

Manager of Finance/Payroll is in charge of bookkeeping and payroll processing.

The Vice President helps to provide the real estate community and homeowners with the best service from their home inspectors. He can also entertains the clients.

Manager of Labor and Services is in charge of monitoring and recruiting laborers.

Inspectors are in charge of inspecting the buildings of their clients.

Management SHAYNE MANAYAO (President & CEO)

ROLYN MANANSALA (Vice President)

SHANNEN MANAYAO Manager of Finance/Payroll Department

CHLOE MANAYAO Manager of Labor and Services

LABORERS (10)

THANK YOU!