Build Home Business Plan

Executive summary

Build home is enables consumers to purchase construction materials online. Build Home aspires to provide construction materials at affordable prices in a transparent manner. Build Home will achieve this by adopting a lean methodology to supply and demand, and providing price details on its website.

Contents

Executive summary        2

Management        4

Business Prospects        5

Details of product or service        5

Market Analysis        7

Macro Analysis        7

Micro Analysis        9

Market Entry Strategy        14

Marketing Communications Strategy        14

Pricing strategy        15

Operation details        15

Financial analysis        16

Expansion strategy        18

Risks        18

References        19

Appendix        20

Management

Abid has sufficient expertise in his respective area.

There is a need to have a co-founder with marketing background and an IT specialist. Management is searching for a person who is appropriate for this role. Management is also searching for an IT specialist.

The co-founder will be given equity in the company while the IT specialist will be given a monthly salary.    

The founder is searching for a mentor for business guidance.

Abid will focus on business strategy.  

Co-founder will focus on marketing strategy.  

IT specialist will focus on the IT strategy of the company.

Business Prospects

Short term objectives

1. To acquire 50 new customers in six months

Long term objectives

1. To break even in two years
2. To have a market share of 15% in three years.

Shareholding

Abid is the founder of Build home and is currently looking for a cofounder. The founder and cofounder will have equal share in the company. A contractual agreement will be made once there is a consensus among the founder regarding the equity.

Build home will require an investment of £8,000. This capital requirement will be met through personal savings and bank loan. The personal savings currently stands at £2,500 and bank loan of £5,500 will be required to get the total capital.

The founders will focus on improving the business model and will aim to perfect it within a period of two years. After two years the founders plan to register the company as a private limited entity.  

Investors will be approached during this period. Based on the research carried out by the founder, they are confident of the success and viability of the business. The founders have planned to offer equity of 8.5% in exchange for £35,000.  

Details of product or service

Build home is a website that enables consumers to purchase construction materials online. Our website offers bricks and cement in Calicut city. The website is optimised for mobile devices this implies that it will change dimensions based on the dimensions of the devices it is accessed from.  

Potential Opportunities

1. There has been significant growth in the development of residential construction in Calicut (Appendix 1).
2. Rise in the number of salaried professionals and business professionals.
3. The average age is 26  

Potential threats

1. Imitation of business model.
2. Large operators can go on a cost cutting spree.  

Rationale for starting this business

Currently there is no medium on Internet where individuals can order construction equipments online. The market is filled with suppliers offering same products at different prices and the industry is filled with commission agents.

To resolve this issue, founders have come up with the concept of Build home

Strengths

1. Offers transparency to customers
2. Offers convenience to customers.

Weakness

1. Suppliers can go on a cost cutting spree.
2. Business model can be imitated by competitors.

Market Analysis

Macro Analysis

PESTLE Analysis

Political

Indian government is determined to improve the ecosystem of start-ups in the country. Indian government has launched Start-up India campaign in order to promote start-ups in the country (StartupIndia, 2017). This scheme is aimed at improving the growth rate of start-ups in the country by subsidising start-ups through tax benefits and easy loan facilitation.  

Indian government has also launched “Housing for All Scheme”. The scheme aspires that every person India should have a home by 2022 (PMINDIA, 2017). The scheme enables individuals to get home loans at subsidised rates from banks.  

Economic

Indian construction industry witnessed a growth of 4.6% in 2015 and was valued at $82,060.5 million. Indian construction market is expected to increase by 43.7% by 2020 and reach a value of $117,960.7 million. Brick constitutes the largest segment of the construction industry; it constitutes 47% of the total value of Indian construction market (Marketline, 2016b). Indian construction market accounts for 14.1% of the total market value of Asia Pacific. Indian construction market is anticipated to grow with a CAGR of 7.5% from 2015 to 2020 (Marketline, 2016b).