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Brokerage Project

The project for this class is to submit a detailed business plan for a brokerage office that you someday may own.  You should plan to open your office within the year.  (Thus you should assume you are already a broker.)  The plan should follow the outline below and should be of sufficient quality to attract venture capital.

Project Outline

  1. Description of Business

    1. Name of Business

    2. Legal form of business

    3. Short description of business activity

    4. Management and organization of firm

  2. Economic Analysis of Market Area

    1. Economic Base

    2. Population

    3. Business Volume

      1. Number of Sales

      2. Number of Listings

      3. Average Sales Time

      4. Percentage of Listings Sold

      5. Dollar Volume of Sales

  3. Analysis of the competition

    1. Identification of Firms

      1. Name

      2. Location

      3. Size

      4. Advantages

      5. Disadvantages

      6. Volume Last 12 months

    2. Identification of any unserved or unrepresented areas

    3. Identification of current market share

  4. Identification of Location of Main Office

    1. Reasons for choice

    2. Advantages

    3. Disadvantages

    4. Acquisition Form

  5. Office Layout

    1. Floor plan

    2. Finish

      1. Walls

      2. Floor Covering

    3. Furnishing

    4. Equipment

  6. Start-up and Capital Budget

    1.  Property Acquisition

      1. Purchase Price or Rent

      2. Financing Plan if Purchased

      3. Utility Cut-on

        1. Electric

        2. Water

        3. Sewer

        4. Telephone

        5. Internet

      4. Property Signage

    2. Advertising

    3. Salaries and/or Living Expenses

    4. Legal and Professional

      1. Attorney

      2. Occupational Licenses and Permits

      3. Real Estate Licenses

      4. NAR, PAR, and MLS initiation

      5. Franchise Fees

    5. Insurance

    6. Office Furnishing

  7. Operating Budget

    1.  Sources of income

      1. Commissions from direct brokerage

      2. Commissions from referrals

      3. Property management activity

      4. Appraisals

      5. Fees from related activities

        1. Insurance commissions

        2. Mortgage brokerage

    2. Cost centers

      1. Personnel

        1. Independent contractors

        2. Management

        3. Secretarial

        4. Other staff

      2. Advertising

        1. Firm

        2. Property

      3. Operations

        1. Computer services

        2. Copying

        3. Supplies

        4. Refreshments

        5. Legal and Professional

          1. Attorney

          2. Occupational Licenses and Permits

          3. Real Estate Licenses

        6. Insurance

      4. Physical plant

        1. Utilities

        2. Rent or mortgage

        3. Furniture rental if any

      5. Other