Opportunity

Problem

With the advances of modern medicine, people are living longer. Once they raise children and retire from work they have a new stage of their life where they find themselves enjoying their spouse and free from other responsibilities. They have another chance to be a carefree teenager. They have to find a location within their budget that will allow them to do that.

Solution

GVRE is a real estate company that will provide services in the Golden Valley Retirement Communities, which are located to the northwest of Tucson, Arizona. GVRE is a full-service real estate, mortgage, and title company.

Market

The retirement industry has been steadily growing over the past twenty years. The U.S. population is now at 21%, an unprecedented high. It is also growing at an average rate 3% per year. There are areas in the United States with high concentrations of retirement communities like the American Southwest where the growth rate is around 8%. This is due to the fact that the baby boomer generation will be reaching retirement age within the next decade. The U.S. Census Bureau estimates that the annual retirement industry (which includes homes, special equipment, and retirement entertainment services) is worth 4.8 billion dollars.

Competition

The real estate industry has a lot of potential competitors and is very fragmented. Bowditch Realty (RE/MAX) are our two biggest competitors. Bowditch Realty is a well-established company with a strong track record of providing quality service. It has been in business for ten years. It currently employs twelve agents. This company is slightly smaller than GVRE and has a higher market capitalization.

RE/MAX, one of the most well-known real estate companies in the country, is the largest. It has hundreds and thousands of agents. They have deep pockets and can be used as a counter to any type of competitive move.

Why Us

GVRE believes that new entrants to this market are the greatest threat right now. They will be looking to capitalize on the high growth industry. New, small-sized real estate companies that have fewer than 10 employees will be the most likely to enter the market. The main advantage GVRE holds is the exclusive rights to be the agent for Golden Valley Retirement Community. However, due to the high number of competitors and the overall low profitability of each firm, competition is quite intense.

This industry is highly dependent on clients who are based in our local area. Potential clients can be very powerful. Clients tend to « shop around, » in order to get the best service and price.

Expectations

Forecast

The company expects profitability within the first one year. There are no cash flow issues. We believe that each segment will achieve an average profitability of about one per month over the next three years. We anticipate that around one sale per monthly will result in a break even point.

Financial Highlights for the Year

You will need financing

We will get $20,000

Susan Egan $10,000

Mr. Daniel Egan $10,000