SWOT Analysis – Golden Valley Real Estate
Analysts Kenneth Bland Foundations of Business Kimberly Jones
The business plan that I show to perform the SWOT analysis on was the Start-Up Real Estate Business Plan for Golden Valley Real Estate. This is a business plan for a company that had not yet been established and seemed to be the most challenging. This plan appeared to be well constructed and provided a lot of information that could be used for the SWOT analysis.
Upon reviewing the business plan for this proposed venture, I was able to identify information that would assist in me in identifying the strengths, weaknesses, opportunities, and threats of the company I chose. Soot Analysis By banana appear that the business owner has sufficient knowledge of the industry, having spent twenty-three years in real estate. It would also appear that there focus on customers who were mainly retirement age couples looking for a community offering significant services for their age group and income level will allow them to focus their resources one market segment.
Also, the business owner is also part of this demographic group which will allow her to better understand the customer’s specific needs. It was also interesting to see that the company would leverage itself through
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The business plan stated that there will only be one full-time employee. This could lead to the company being unable to meet their obligations do to scheduling issues. It would be very hard for one person to serve more than one client at the same time. I also felt that there confidence in being able to turn a profit in the first year was also a weakness. It also seems that they are relying on one retirement community as their primary source of new homes, condos, and retirement apartments.
This will alienate potential buyers the business could also be considered a weakness. There is mention that this seines is being established as a “lifestyle” oriented endeavor in order to supplement her retirement. I perceived this as being a hobby of sorts, even though the business plan says otherwise. Identifying opportunities was a bit more of a challenge. Some As the population is living to a much older age, it would make sense that there would be sufficient customer demand in the targeted market segment.
Also, with the manager’s proven history in real estate there should be no problem with her ability to keep her costs owe and improve the quality of the business. The knowledge and services that will be offered to both buyers and sellers is thorough and specific. Most of these services will be outsourced which will provide more time to focus on sales. The fact that the business operates in an area of the country that is popular with retirees could present a good opportunity for this type of business. As more and more retirees flock to Arizona there will be a demand for housing.
The owners knowledge and familiarity with both the customer and the housing market will surely come in handy. Finally, the threats that I recognized while performing this analysis were quite clear. The real estate market is saturated with competition. As mentioned in the business plan, there are two companies which are clear threats to this business. The fact that the employees twelve agents. Having this number of agents gives them a great advantage. The second company that poses a threat is RE/MAX. This is a well-known real estate firm employing hundreds of agents.
It is also a very wealthy company that can counter any competitive move. The housing market is volatile and can change at any moment. Having too much confidence could lead to disastrous results if they are not financially prepared. Start-up real estate business plan golden valley real estate . (n. D. ).
Retrieved from http://www. Plans. Com/start-up_real_estate_business_plan/ executive_summary_FCC.
PH Jones: Introduction to business. In (2007). The Environment of Business. New York, NY: The McGraw-Hill Companies.