OverView
Below is a brief intro and insight into the business for which we are hoping to develop and gain investors for. Our business aims goals and techniques of business will be laid out for you within the following pages under the heading tasks. this overview should give you some in-depth knowledge of what we are, what we do, how we will do it , where we will do it and why we are considering this business as a future economic profit partnership.
BUSINESS DESCRIPTION
“RENOVATIONS to Rent” is a business which provides a sophisticated and well developed service which offers you the ability to rent and call home to one of our many recently renovated home and even offer us the service of buying your home knowing that its getting to its older years and your finding it hard to sell.
_Our purpose is to create a place to enable a successful work life balance and a life which enable you to escape and develop your standard of living within the means of your lifestyle. We will be open 6 days a week Tuesday to Sunday which offers the opportunity for all markets to reach and come and experience our office space and become aware of the services that we offer. Open from 9am-6pm on weekdays and 10:30am- 5:30pm on weekends.
Our business is unique and has no other close competing businesses, which are identical to our own. We cover all areas of buying, renovating and finally offering renovated homes to rent. We are there from beginning to end, start to finish. Our motto will provide you with the most comfortable change and upbringing in lifestyle for each individual person and family.
We are the forming of a new partnership all holding as equally important the need to provide the services to customers that they require within their means to the best of our capabilities.
“RENOVATIONS to Rent” is a business which provides a sophisticated and well developed service which offers you the ability to rent and call home to one of our many recently renovated home and even offer us the service of buying your home knowing that its getting to its older years and your finding it hard to sell.
_Our purpose is to create a place to enable a successful work life balance and a life which enable you to escape and develop your standard of living within the means of your lifestyle. We will be open 6 days a week Tuesday to Sunday which offers the opportunity for all markets to reach and come and experience our office space and become aware of the services that we offer. Open from 9am-6pm on weekdays and 10:30am- 5:30pm on weekends.
Our business is unique and has no other close competing businesses, which are identical to our own. We cover all areas of buying, renovating and finally offering renovated homes to rent. We are there from beginning to end, start to finish. Our motto will provide you with the most comfortable change and upbringing in lifestyle for each individual person and family.
We are the forming of a new partnership all holding as equally important the need to provide the services to customers that they require within their means to the best of our capabilities.
LOCATION
Our business caters for the market of Perth located on the south western coastal area of Western Australia. Even after the sudden decrease in mining income for many couples, families and singles within Perth many other areas are increasing just as rapidly picking up lost wages elsewhere. The central location and hub of our business renovations to rent is located just of Leederville train station, this area has free parking for an hour and give customers the opportunities to come a park and just inquire for free, also located near the train station it is easily accessible by public transport and much of the working population of Perth is able to reach and easily have access to our office.
The location is near many cafes and restaurants these areas draw many customers and can cause even people passing by to become interested. Customers who have cash and money to be eating out generally have enough cash to spend renting or renovating. The building is a rundown warehouse which we will refurnished and creates emphasis on our jobs that we do and the services that we offer. Even during night time when our business is not open but will offer pamphlets outside the lighting is bright and the atmosphere is there. Our location will be brought outright as this will enable us to undertake the renovations. Our office space is medium in size enough to cater for 5/8 small offices and still create an open experience as wide space alongside a reception area. Because our business is a service we don’t require a warehouse or base however we will have a storage area out the back and will keep stored items that we require for the services that as owners we undertake.
We will also be located online, online enables us to target all those markets who are unable to come and visit us and who can even just stumble across our page over the internet. Our online location will not only just be our website, but also a Facebook page, Instagram page and twitter page. It enable us to cover the largest market possible as the growing population is forever kept behind there mobiles and computers and are ever so in touch with the uses of social media.
Our business caters for the market of Perth located on the south western coastal area of Western Australia. Even after the sudden decrease in mining income for many couples, families and singles within Perth many other areas are increasing just as rapidly picking up lost wages elsewhere. The central location and hub of our business renovations to rent is located just of Leederville train station, this area has free parking for an hour and give customers the opportunities to come a park and just inquire for free, also located near the train station it is easily accessible by public transport and much of the working population of Perth is able to reach and easily have access to our office.
The location is near many cafes and restaurants these areas draw many customers and can cause even people passing by to become interested. Customers who have cash and money to be eating out generally have enough cash to spend renting or renovating. The building is a rundown warehouse which we will refurnished and creates emphasis on our jobs that we do and the services that we offer. Even during night time when our business is not open but will offer pamphlets outside the lighting is bright and the atmosphere is there. Our location will be brought outright as this will enable us to undertake the renovations. Our office space is medium in size enough to cater for 5/8 small offices and still create an open experience as wide space alongside a reception area. Because our business is a service we don’t require a warehouse or base however we will have a storage area out the back and will keep stored items that we require for the services that as owners we undertake.
We will also be located online, online enables us to target all those markets who are unable to come and visit us and who can even just stumble across our page over the internet. Our online location will not only just be our website, but also a Facebook page, Instagram page and twitter page. It enable us to cover the largest market possible as the growing population is forever kept behind there mobiles and computers and are ever so in touch with the uses of social media.
TARGET MARKET
Through this research, the target market of “Renovations to rent” was examined. The researched exposed three/four types of relevant target market who would be affect and would impact the successfulness of our company, in its running. Potential target markets are detailed below:
Married couples with children
The largest customer base is married couple who are willing to purchase a furnished family house, well designed and able to hold their growing family for future generations, in a community which is designed and adapting to there ever need. This group usually has the younger the family the lower the income. Therefore areas closer to primary schools and outer areas of the city of Perth hold younger families and these demographics need to be considered when developing pricing and what they required when we renovate and rent houses within these areas. Generally, married couples are highly educated couples in their 30s to 40s with total income of over AUD$140,000 per year, with a well-established bank account or personal assets. They are very busy in their life, interested in a stylish modern and well-designed home, which is not too modern that it feels unhomely in all they do not have enough time to build the dream house.
Couples with no Children
This group is usually located near the centre of the Central business district, as this area caters for their social life and work life. These couples general earn a double wage higher than $160,000 AUD. They have more money to spend on renting and renovations as they have more spendable income and only required a two bedroom house. Their business work life balance means that they lack the ability to undertake renovations themselves. This small group of couples try to move to another standard of living by purchasing furnished house. They also are young and therefore their approach to a suitable house is more sophisticated and modern than married and they have sufficient financial plan and savings.
Overseas residents
Overseas residents are another market as they general come to Australia seeking immediate housing and general closer to the central business district. This allows them to work near where they live. With the overseas market certain colours and objects can have a different meaning in certain cultures and therefore colours and many designs will have to be generalised in these areas to common modern and sophisticated homes that suit all cultures. Singles Singles are a smaller market for our customer base however in certain areas such as closer to the central business district and university the number of single living increases. Singles require areas that service the purpose as many have outside social lives and time spent at home is reduced, they have lower income and lower finical savings as the majority of the single population is between 18-27 and many have only just completed or are still completing university and are at the lower end of the income scale.
Potential competition in the existing market
New government has changed the policy, is encourage Australian first home buyers to purchase a new home or build their own home by offering $10,000 financial support. It only offers $3000 for established home buyers. Furthermore, the interest rate is falling and induces more potential buyers to buy a new house at the outset.
Nevertheless, REIWA revealed that Perth’s vacancy rate is about 1.8% and the average weekly rents increased 14 % over the last year (O’Rourke, R, 2013). There are a number of reasonable priced houses at the north of river. Most of the properties are underestimated, even these are closed to public transport and more spacious. For example, the suburbs of Beldon and Heathridge are developing and still have many old style houses. Many of them are more than 25 years of age and well-priced. Due to many popular suburbs such as Northbridge, CBD, Leederville and Subiaco are well-developed and priced extremely high, group 1 will select northern suburbs and focus on Beldon and Heathridge as potential areas for the business.
Through this research, the target market of “Renovations to rent” was examined. The researched exposed three/four types of relevant target market who would be affect and would impact the successfulness of our company, in its running. Potential target markets are detailed below:
Married couples with children
The largest customer base is married couple who are willing to purchase a furnished family house, well designed and able to hold their growing family for future generations, in a community which is designed and adapting to there ever need. This group usually has the younger the family the lower the income. Therefore areas closer to primary schools and outer areas of the city of Perth hold younger families and these demographics need to be considered when developing pricing and what they required when we renovate and rent houses within these areas. Generally, married couples are highly educated couples in their 30s to 40s with total income of over AUD$140,000 per year, with a well-established bank account or personal assets. They are very busy in their life, interested in a stylish modern and well-designed home, which is not too modern that it feels unhomely in all they do not have enough time to build the dream house.
Couples with no Children
This group is usually located near the centre of the Central business district, as this area caters for their social life and work life. These couples general earn a double wage higher than $160,000 AUD. They have more money to spend on renting and renovations as they have more spendable income and only required a two bedroom house. Their business work life balance means that they lack the ability to undertake renovations themselves. This small group of couples try to move to another standard of living by purchasing furnished house. They also are young and therefore their approach to a suitable house is more sophisticated and modern than married and they have sufficient financial plan and savings.
Overseas residents
Overseas residents are another market as they general come to Australia seeking immediate housing and general closer to the central business district. This allows them to work near where they live. With the overseas market certain colours and objects can have a different meaning in certain cultures and therefore colours and many designs will have to be generalised in these areas to common modern and sophisticated homes that suit all cultures. Singles Singles are a smaller market for our customer base however in certain areas such as closer to the central business district and university the number of single living increases. Singles require areas that service the purpose as many have outside social lives and time spent at home is reduced, they have lower income and lower finical savings as the majority of the single population is between 18-27 and many have only just completed or are still completing university and are at the lower end of the income scale.
Potential competition in the existing market
New government has changed the policy, is encourage Australian first home buyers to purchase a new home or build their own home by offering $10,000 financial support. It only offers $3000 for established home buyers. Furthermore, the interest rate is falling and induces more potential buyers to buy a new house at the outset.
Nevertheless, REIWA revealed that Perth’s vacancy rate is about 1.8% and the average weekly rents increased 14 % over the last year (O’Rourke, R, 2013). There are a number of reasonable priced houses at the north of river. Most of the properties are underestimated, even these are closed to public transport and more spacious. For example, the suburbs of Beldon and Heathridge are developing and still have many old style houses. Many of them are more than 25 years of age and well-priced. Due to many popular suburbs such as Northbridge, CBD, Leederville and Subiaco are well-developed and priced extremely high, group 1 will select northern suburbs and focus on Beldon and Heathridge as potential areas for the business.
COMPETITION
The market for renovations to rent is an oligopoly market this is a market with few sellers and buyer but with differentiated products the market they sometimes have large barriers to entry and create a large overhaul to set up business legally and financially. The market for rental however is monopolistic as many sellers and buyer only selling slightly differentiated products similar to the renovations side of the business. The new government has changed the policy, to encourage Young Australian first home buyers to purchase a new home or build their own home by offering $10,000 financial support. It only offers $3000 for established home buyers. Furthermore, the interest rate is falling and induces more potential buyers to buy a new house at the outset. Nevertheless, REIWA revealed that Perth’s vacancy rate is about 1.8% and the average weekly rents increased 14 % over the last year (O’Rourke, R, 2013). There are a number of reasonable priced houses north of river. Most of the properties are underestimated; these are closed to public transport and more spacious. For example, the suburbs of Beldon and Heathridge are developing and still have many old style houses. Many of them are more than 25 years of age and well-priced. Due to many popular suburbs such as Northbridge, CBD, Leederville and Subiaco are well-developed and priced extremely high, group 1 will select northern suburbs and focus on Beldon and Heathridge as potential areas for the business. Many of the business are experiencing increasing customer base and increase in sales. This is due to the increase in the number of people who are undertaking renovations many of these business has begun to offer renovations in starting years and increasing in business size. Perth being the Location for many of these close competing business and with our ever so expanding population we can only expand outwards so far without moving over an hour away from the CBD which is said to be the maximum wanted to travel to and from work. Many areas which were built during the boom phases of the Perth demographics are becoming out of date and un useful in some of their characteristics therefore during this current era to date many people are seeking even just renovations. Many of the company’s strengths are in their ability to promote their business, increase peoples assets values which is something many customers don’t mind spending the money on, they all are able to be reached online and in this day and age that is very important. Some of their weaknesses are the location of their home base if any is on one side of the river directly and not located within the centre of the central business district or inner mixed zone just outside of the central business district. Another weakness for many of the business are there lack of ability to cover all areas of renovations to rent they either renovation or rent none do the complete package and therefore existing customers who could be seen to get more from the business stop and move on to other business. |
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