Business Plan - Real Estate Development ( DRAFT)

Author
- Ibrahim Mustafa
5 Yr Business Vision - To be One of the Established Property Developer in the city
12 month Vision - Started atleast 1 Development project - Have acquired land on development
rights and initiated Building construction with Planning permissions
Business Stages:
Level 1 - Establish top core Management ( People locally based in Hyderabad are Key to be part
of this group and should be in Partners ( financially) )
Level 2 - Establish Business development team - Could be people from Core Management,
responsible for finding Land available for development
Level 3 - Establish project execution team - Register as Limited Company, contact legal council
to take care of Legalities, getting Planning permission, and starting actual ground work

Business Benefit Real estate is a ever promising sector and does not need introduction, there is huge demand for
housing close to areas where business offices are setup or residential areas with good demand.
This demand can be tapped to create profitable business
Goals :
1 Establish credibility in the market as reliable developers
2 Establish other wings like TURN KEY project executioners in Infra sector, interior designing
3 +5 yrs goal - Develop satellite townships for Muslims around Hyderabad in self sustained
Model ( having Schools, Parks, Hospitals, Shopping Centres, Masjid and other amenities )
unlike other plot development companies
Capital Needed - Could vary from 5Cr to 10 Cr to start with, this is dependent on the size of 1st
project we decide to take up
Limitations/Pitfalls 1 Not understanding the needs of the consumer - taking in to consideration the needs of local
people like Vastu if Hindu customers are targeted
2 Project cost not estimated properly which could result in loses
3 Property can get stuck in Land ceiling / Road widening
4 Land owner turning hostile and wanting to pull out
Business Cycle Actions - ( One Cycle would be 1 project, based on Maturity can run 1- many
cycles at a time )
1 Identify Development land ( Use real estate agents, contacts, New paper adverts) based on
location potential and work out a rough profit estimate
2 Approach Owners with intent to do a deal on 40-60, 50-50 model
3 Validations and check on the property ( Legal and Corporation clearances possible? )
4 Signup a deal contract with the Owner
5 Engage Architect and Structural Engineer
6 Project planning - estimating, costing, Controlling, Change Management
7 Establish Project team
8 Establish Marketing team
9 Start Project
10 Handle Unit sales
11 Deliver Units and Project closure
12 Financial reporting on the Project to the Stake holders
13 Lessons Learned Workshops
14 Repeat from Step 1
Qualifications - We have got some people with Real estate background who can guide the
Company/Team