Real Estate Services Business Plan (Sample + Template)

This is a free business plan for a real estate services company based in Nigeria. The sample business name used is Yonda Properties. 

The business operates a real estate website for listing of real estate properties and services.

The business plan outline used is a simple business plan that follows a standard business summary template used by most business schools and is usable for applying for loans, grants, and equity funding.

Introduction

Yonda Properties leverages local partnerships with landlords, property agents, and home service providers in Enugu to provide a hyperlocal and holistic real estate platform that aggregates high-quality local real estate services for users. Through our platform, home buyers & renters can enjoy better and faster access to the choicest real estate properties and home services in Nigeria.

Business Analysis

Yonda Properties is a property listing website for renting & buying of real estate properties, and accessing home services in Nigeria. Through our website, real estate agents, landlords, and home service providers can create visibility for their businesses, while home buyers and renters can enjoy better and faster access to real estate properties and home services. Leveraging our regional presence, we are able to build strong relationships with local real estate players to aggregate high-quality real estate services online to help users make better informed real estate decisions.

We have already developed the first version of the website, which allows real estate agents, landlords, and home service providers to list their offerings to end users. Currently, we are working with a few of these industry professionals, and have over 1000 property and home services listed.

Product Pricing

The average subscription price for listing on our website is N10,000.

Business Model & Profitability

Business Model: Website listing subscription

Expected annual customers: 6,800 customers to purchase at least 1 listing subscription per year worth an average of N10,000  

Estimated Annual Revenue: N68 million 

Customer Acquisition Cost: N4,000

Profit Margin: 60%

The Team

The first version of the website was built and funded by Solomon, the CEO of Yonda Properties. Solomon has a background in Enterprise Development from the Lagos Business School, and possess technical skills in web & mobile development. Working alongside Solomon is Jerry, a software engineer; Emmanuel, a property manager; and Mr Tony, a veteran real estate agent in Lagos. 

Each person on this team brings uniquely relevant skills and some skin in the game that is required to help us build and evolve a product that is capable of meeting the needs of the market and achieving our business goals. 

Business Journey

We launched the first phase of the business in October 2020, and operated a direct sales model where we managed and marketed property listings in collaboration with agents and property owners. In the first 6 months, we managed 228 real estate properties and home services, completed 164 deals and made a revenue of N3,500,000. 

Having tested the market and observed the need to adopt a more efficient business model towards reducing expenses and capturing more market share, we are pivoting to a subscription based model where property agents, landlords, and home service providers can pay to list their offerings on our website. We have finished the development of the first version of our website which is available to the public and ready to scale.

Market Analysis

Market Size/Target Audience

According to Propertywire, the value of the real estate market in Nigeria is worth N59 trillion.

Our target customer comprises 3,000,000 landlords, home owners, real estate agents, and professional home service providers in major cities in Nigeria. 

Marketing Plan

We have a Digital marketing strategy that incorporates social media, Search Engine Optimization, and radio advertising. This would help us create a strong digital presence that is highly targeted to our local market segment. 

Our economic moat focuses on incentivising and leveraging partnerships with local property management companies who already have huge lists of available properties under their management, as well as businesses offering professional home services. 

This would help us to populate our website listings, create visibility for these local businesses, and grow our customer base and revenue.

SWOT Analysis

Strengths: Our Strengths lie in our strategic market segmentation, strong brand identity, and growing local partnerships.

Weaknesses: Our identified weak areas are low financial capital and low brand reputation due to our late market entry.

Opportunity: Our identified opportunities include the growing real estate market in Nigeria, strong local affinity, and rising adoption of online property search.

Threats: We see threats to our business in different areas such as Customer price perception, and competition via real estate classified websites, social media pages, and agent networks.

Business Needs

Moving forward, Yonda Properties would be in need of business legal advisory and funds to scale up our marketing efforts and build out our business development teams. 

If these requirements are met, it would help us meet our business & financial goals.

Future Plans 

Over the next two years, we hope to acquire 5,000 paying customers quarterly, with an average subscription payment of N10,000. In the same period, we plan to develop a mobile app for our service and expand into more cities in Nigeria. 

We don’t just want to be a property website. We are looking to create a niched satellite of hyperlocal real estate marketing platforms that capture regional value in major cities in Nigeria, starting from Lagos, the commercial hub of the country. 

Cash Flow Projection

To create a cash flow Projection for your real estate business plan, click here to use our Simple Financial Template.

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