Company Overview

Crown is a real estate company based in Oregon. The company will provide standardized rental units for the Eugene community in Oregon. Crown’s units will balance a positive atmosphere, safety, and cutting edge features for all tenants. The rental units will also be equipped with outstanding levels of attention and customer service. Sales are forecasted to be substantial in the first year and to grow steadily by the third year.

Management Team

Crown Real Estate is entirely departmentalized. The primary departments include research and development, marketing, management, and finance. Eric Andrews is the company’s CEO, and his counterpart, Nate David Hip takes the role of CFO. The company will base all its decisions and activities on the company’s mission. Duties will be delegated to employees basing on their area of specialty.

The concept statement: The Need and Benefits

There is a great need for quality, safety, convenience, technological amenities, and comfort in the Eugene area. The student population in the city needs a safe and quiet environment that will foster an environment for quality learning. The students also need the convenience of location and learning amenities. The employed population needs an environment that keeps them away from the noisy and dirty inconvenience of an ordinary apartment. Many professional are looking towards home ownership, and so they desire housing conditions that will make them feel like they are being offered the quality they need. Lastly, the faculty members need to feel separated from the dirty and noisy conditions of near campus housing. They also need an environment that will make them feel safe and one that is convenient for them. This is where Crown Real Estate comes in. Our high quality, specially designed, modern rental units will cater to all the needs of students, professional, and faculty members.

The Target Market

Crown will target three different customer segments. The most significant customer segment will be the students of Oregon University. This is a segment that is growing at 8% every year, with 16,000 potential customers. This is an attractive segment especially because most of the rental properties around the region targeting students are poor quality and run down units. The second target customers are the local professionals whose rates are growing at 5% per year, with 12,000 prospective customers. These professionals earn decent incomes and would need a living environment that mirrors their statuses. The last segment is the faculty and staff of Oregon University. This segment has a 5% rate of growth, with 7,000 prospective customers. Just like the professionals, these customers need a quiet, serene, and quality space to live in.

Marketing strategy

The marketing program that we consider to be the most important to us is word of mouth. Together with word of mouth, our most potent form of marketing and promotion will come from ads in local dailies and publications such as The Daily Emerald, The Register-Guard, and The Oregonian. Our promotional message will also be published in smaller circulations and magazines. We will also have brochures available at our offices. This will be used to give clients a general outlook of our rental units and the benefits of our services. We will also have a monthly newsletter sent out to our customers. This will inform them about the outreach and growth of Crown. The designs of our advertisements and publications will have a contemporary and sophisticated look without over formatting. To further promote our business, we will offer rewards to clients who refer new customers to our company. We believe that this gesture will motivate our customers and attract a high demand for our services. Lastly, we will also use the early move-in bonus program. This means that anybody who signs their lease before the 15^th of June would receive two parking spaces and a free month. This is to encourage customers to try to beat the rush of customers who move in later. It will also give the notion of increased demand.

Development Strategy

Crown will initially focus its efforts on purchasing and developing existing housing properties. Once the units are bought, each will be installed with internet access and state of the art amenities. Safety and security will also be enhanced to ensure all residents feel safe and at home. This strategy will be implemented as a method of efficiently utilizing capital and establishing a healthy relationship and loyalty among potential customers in the community. Future development projects are forecasted to include custom build-outs. The rental units will be located in the Oregon University environs and neighborhood occupied majorly by students, professionals, and faculty members and university staff. Our company believes that together with meeting customer needs, it needs to provide healthy and good relationships with them with a sole focus on satisfaction. To further develop our strategy and entry in to the market, Crown will ensure to maintain open and effective communications with its customers. This will be to provide a high level of customer satisfaction, feedback, and lasting relationships with community members.  To further gain an advantage, the company will engage in CSR efforts such as environmental-friendly activities to garner support from the surrounding community and attract more customers.

Financial plan

The total expenses for the startup include construction, rent, insurance, architect, legal, stationery, consultants, brochures, and equipment. The assets required include short term assets such as mobile phones, trucks, etc. as well as initial capital to cater to the architect and contractor fees before starting operations. Additional funds are needed to pay for government regulations and zoning fees. Purchase of long term assets and potential long-term liabilities are also anticipated. Clear details are provided in the chart and table below.

Start-up Expenses

Legal considerations

As a real estate company, the management of Crown Company is aware of some of the legal considerations that are mandated. The first legal consideration is giving exaggerated or false information to customers. This is one legal issue that gets many real estate agencies sued, and Crown plans on not involved in such matters. The second legal consideration is about client privacy and confidentiality. The company is aware of the laws governing storage and protection of client information. The company plans to do this by installing security software in computers and placing high security locks on paperwork storages. Lastly, the company is aware of the environmental laws regarding real estate and housing.  These include refraining from using asbestos, leaded paints, and contaminated water resources. The company will have ensured that all its employees are well-versed with the prevailing environmental laws and will have regular inspections performed by ecological inspectors. Certificates of ownership are also a requirement that Crown is aware of.

 
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