Are you about starting a serviced apartment in India? If YES, here is a complete sample serviced apartments business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a serviced apartment in India. We also took it further by analyzing and drafting a sample serviced apartment marketing plan template backed up by actionable guerrilla marketing ideas for serviced apartment companies. So let’s proceed to the business planning section.
Table of Content
- Why Start a Serviced Apartments Business?
- Serviced Apartments Business Plan – Executive Summary
- Serviced Apartments Business Plan – SWOT Analysis
- Serviced Apartments Business Plan – MARKET ANALYSIS
- Serviced Apartments Business Plan – SALES AND MARKETING STRATEGY
- Serviced Apartments Business Plan – Publicity and Advertising Strategy
- Serviced Apartments Business Plan – Financial Projections and Costing
- SERVICED APARTMENTS BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start a Serviced Apartments Business?
india can boast of having the second largest population in the world today and this means that there are loads of clients ready to patronize your products or services. One of the many businesses you can start in India and make returns on your investment especially if you have enough startup capital is to go into the serviced apartment business.
One thing about India is that loads of people come into the country daily for medical treatment or other projects and they may not want to stay in hotels for a long period of time hence the need to rent a serviced apartment.
If you want to start a serviced apartment business, then you need to write your business plan. The essence of writing a business plan before starting any business is for you to have a roadmap or blueprint of how you would want to setup, manage and expand your business. You have to consider all the available factors involved in the business you are about setting up when preparing your business plan.
Below is a sample serviced apartment company business plan template that will help you successfully write yours with little or no stress.
A Sample Serviced Apartments Business Plan Template India
- Industry Overview
The post-recession housing industry in the early 21st century saw a shift away from home ownership to home renting, allowing a straight increase in apartment-rental. Many people don’t know that buying apartments and renting them is a solid opportunity for real estate businesses, since apartments attract tenants in both good times and bad.
It is very important to be conversant with how to start a business of buying apartments and renting them. The first step in venturing into this business is to understand the business and how it works.
It is known fact that serviced apartment businesses are responding to the increasing demand for short-term rented accommodation in some parts of the world. It is also known that the demand from businesses wanting short-term accommodation – particularly serviced apartments – for overseas assignees has soared in recent years.
It was analyzed that within the past seven years, the number of serviced apartments has grown by 80 per cent and now totals more than 750,000 properties worldwide, some 61 per cent of them in the US and 17 per cent in Europe.
The trend of the serviced apartment industry looks set to continue, with the number of apartments rising by as much as 18.2 per cent between 2014 and 2015. Also the fact that demand exceeds supply puts upward pressure on occupancy levels, showing the reason why three-quarters of global operators report a year-on-year increase.
Given these high occupancy rates, it is no surprise that more hotels are moving into the market. It is also important to note that the industry is showing a growing trend for ventures do locate serviced apartments and hotels on the same site.
While short-term assignments are forecast to grow to more than a fifth of all international relocations in the three years to 2019, long-term assignments are expected to fall from 52 per cent to 45 per cent over the same period. Also, the availability of short-term rental accommodation is not meeting demand in many markets; Asia and India readily comes to mind.
In order to make it big in the serviced apartment industry in India, you just have to ensure that your apartments meet international best practices when it comes to security. This will give you an edge over your competitors.
Serviced Apartments Business Plan – Executive Summary
Swami Gandhi & Co® Real Estate Company, LLP is a real estate company with bias in serviced apartments that will be based in the capital city of India – New Delhi with other serviced apartments in Bombay. We will be involved in providing world – class serviced apartments for expatriates, corporate executives and corporate organizations with high tech security, parking and good access to shops and other amenities.
Part of our goal as a serviced apartment company is to grow to become one of the top 5 largest real estate companies in the whole of India and to become the preferred choice for expatriates and tourists from all across the world who want to live in India for a short period of time.
Swami Gandhi & Co® Real Estate Company, LLP will be committed when it comes to maintaining a diverse portfolio of high quality serviced apartment. We will also focus on providing a dynamic, proactive and vibrant work environment for all our employees such as discounted rentals for all our long term tenants, and mouthwatering bonuses (commission) for every deal that comes through any of the staff.
R Swami Gandhi & Co® Real Estate Company, LLP is going to be a self-administered and a self-managed real estate investment trust (REIT). We will engage in a wide range of serviced apartment services. We will work towards becoming one of the largest real estate cum serviced apartment companies in the whole of India with active presence in major cities in India.
As part of our plans to make our customers our number one priority and to become one of the leading serviced apartment companies in India, we have perfected plans to adopt international best practices that can favorable compete with the best in the industry. Swami Gandhi & Co® Real Estate Company, LLP have overtime perfected plans that will help us to become a specialist in our area of business.
Swami Gandhi & Co® Real Estate Company, LLP will at all times demonstrates her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Swami Gandhi & Co® Real Estate Company, LLP is a partnership business that is established by Swami Gandhi, Vijay Gandhi and Ravi Gandhi. They are the major financiers of the company. Swami Gandhi is the company’s president and CEO.
He has over 15 years real estate experience including significant senior management positions in the areas of sales, marketing, new technologies, and franchise management for top real estate companies in India, United Arab Emirates (Dubai) and united kingdom.
- Our Product and Services Offerings
Swami Gandhi & Co® Real Estate Company, LLP is going to offer various services within the scope of the serviced apartment cum real estate industry in India. Our intention of starting our serviced apartment company is to favorably compete with leading players in the serviced apartment industry in India.
We are prepared to make profits from the industry and we will do all that is permitted by the law in India to achieve our business goals, aim and ambition. Our business offerings are listed below;
- Rental of different sizes of serviced apartments
- Real estate consultancy and advisory services
Our Vision Statement
Our vision is to become one of the leading serviced apartment rental companies in the whole of India within the first 10 years of starting Swami Gandhi & Co® Real Estate Company, LLP.
- Our Mission Statement
Our mission of starting a serviced apartment rental business is to build a business that will have world – class properties not just in New Delhi, but all across states in India. We want to own serviced apartments that will be suitable for expatriates from all parts of the world.
- Our Business Structure
Our company’s structure is not entirely different from what is obtainable in the real estate industry. As a matter of fact, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the serviced apartments rental industry.
We are quite aware that the success of any business lies on the foundation the business is built on, which is why we have decided to build our serviced apartment rental company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.
Swami Gandhi & Co® Real Estate Company, LLP is fully aware of the modus operandi in the real estate industry, hence adequate provision and competitive packages has been prepared for independent real estate agents. Our marketing department will be responsible for managing this aspect of our business.
Below is the business structure we will build Swami Gandhi & Co® Real Estate Company, LLP on;
- Chief Executive Officer
- Company’s Lawyer/Secretary
- Head, Asset Management
- Head of Construction
- Admin and HR Manager
- Real Estate Agents
- Business Developer/Sales and Marketing
- Customer Service Executive/Front Desk Officer
Roles and Responsibilities
Chief Executive Officer – CEO (President):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Head of Asset Management
- Oversees the company’s portfolio of real estate assets (which are owned and managed) through acquisitions, dispositions, and day‐to‐day operations, including management of revenue and expense items.
- Provides strategic oversight of existing and potential real estate assets within a designated geographic area.
- Manages business plans and budgets for properties.
- Reviews the condition and maintenance of assigned properties; manages their bookkeeping and cash flow accounting; handles rent reconciliation; prepares property financial reports and annual budget forecasts.
Head of Construction
- Establishes and enforces company’s engineering and construction standards
- Verifies that construction work meets or exceeds standards within a designated geographic area.
- Enforces the construction standards; verify that construction work meets standards within cost estimates; monitors quality of work in progress; supervises regional construction heads.
- Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.
- Assistant project manager with construction project management, on‐site monitoring, and contract negotiations
- Supervises construction to ensure that it meets the owner’s expectations
- Reviews plans, estimates costs, obtains bids, inspects and approves completed project.
Company’s Lawyer/ Legal Counsel
- Responsible for drawing up contracts and other legal documents for the company
- Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
- Develops company policy and position on legal issues
- Researches, anticipates and guards company against legal risks
- Represents company in legal proceedings (administrative boards, court trials et al)
- Plays a part in business deals negotiation and take minutes of meetings
- Responsible for analyzing legal documents on behalf of the company
- Prepares annual reports for the company
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Real Estate Agents
- In charge of leasing and renting out serviced apartment and other properties under our ‘to let’ list
- Responsible for handling reporting on and evaluating the component systems of a building (electrical, fire, roofing and plumbing)
- Keeps daily logs, including photographs taken during inspection
- Handles real estate consultancy and advisory services
Marketing and Sales Executive/Business Developer
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
- Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Accountable for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Front Desk/Customer’s Service Officer
- Receives Visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distributes mails in the organization
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the line manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Serviced Apartments Business Plan – SWOT Analysis
The fact that serviced apartment rental business is rapidly gaining ground in India does not mean that there are no challenges in the industry. Starting a serviced apartment rental business in India comes with its own fair share of challenges as you would have to abide by the law and also compete with loads of other investors in the real estate business value chain who also are interested in building a business in New Delhi.
In order to compete favorably in the serviced apartment rental line of business we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us.
We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Swami Gandhi & Co® Real Estate Company, LLP.
Some of our strengths that we will be bringing to the table in the serviced apartment rental industry is our robust relations with the expatriate community in New Delhi and Bombay and properties investment moguls in the whole of India, our access to a pool of cash and our team of experts who have cut their teeth in the real estate industry.
Our commission structure and relationship with freelance real estate agents in New Delhi and other States in India will also count towards our advantage.
As a new entrant in the serviced apartment rental line of business, we might have some challenges competing with big time real estate moguls and other serviced apartment rental companies that have been in the industry for many years; that perhaps is part of our weakness.
The opportunities in the real estate industry especially as a serviced apartment rental company is massive considering the rapid growth of expatriates and medical tourists visiting India every year, this trend has been bolstered by highly favorable demographics and growing technology in all spheres especially in the health sector. We are well – positioned and ready to take advantage of any opportunity that comes our way.
Some of the threats that we are likely going to face as a serviced apartment rental company are unfavorable government policies and global economic downturn; global economic downturn usually affects spending power and the real estate industry is known to encounter decline in sales and profits during this period. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.
Serviced Apartments Business Plan – MARKET ANALYSIS
- Market Trends
The market trends as it involves the serviced apartment rental business are indeed dynamic and at the same time pretty much promising for a newbie. All that is needed for any serviced apartment rental company to do well in the industry is to have excellent and well – equipped apartments, good managerial skills and healthy relationship with the expatriate community since they are the major clients when it comes to rental of serviced apartments.
Some of other factors that count positively in this line of business are trust, honesty and relationship management and any serviced apartment rental company that has this will indeed do pretty well in the industry.
Another obvious trend that is common with serviced apartment rental companies in India is that most of them are improvising on more means of making money in the real estate industry and as matter of fact, they are also acting as property developers, property managers and home staging agents amongst many other functions.
One thing is certain for every serviced apartment rental company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.
- Our Target Market
Our target market as a serviced apartment rental company cuts across people of different class and people from all walks of life. We are coming into the industry with a business concept that will enable us work with the highly placed people and at the same time with lowly placed people who are only interested in staying in a decent serviced apartment at an affordable fee.
Although finding tenants is relatively easy, but the truth is that finding qualified and law abiding tenants can be somewhat challenging. It is important to note that the target market for those who are into serviced apartment rental goes beyond those who make use of the internet (Craigslist) to search for properties; some of them only rely on the print media (local daily or weekly newspaper both in English and in Hindu), some on word of mouth adverts and others on street to street search.
The bottom line is that the market trend for serviced apartment rental business is indeed a dynamic one. In other words, our target market is the whole of New Delhi, India and below is a list of the people and organizations that we have plans to do business with;
- Families who are interested in renting/leasing serviced apartment
- Corporate organizations that are interested in renting/leasing serviced apartment for their employees
- The expatriate community
- Medical tourists who will be staying in India for a period of time
- Corporate executives
We have studied the serviced apartment rental industry in India and we will ensure that we have serviced apartments of different sizes that are of international standards. The availability of competent and reliable real estate agents under our payroll, our business process, the financial structure of the company, management of high-quality assets portfolio, superior financial management and debt management and of course our pricing model et al are part of our competitive advantage.
Another possible competitive strategy for winning our competitors in this particular industry is to build a robust clientele base and ensure that our serviced apartments are top notch and trendy (highly secured with internet facility and other useful facilities). Our organization is well positioned; key members of our team are highly reliable and competent and can favorably compete with the some of the best in the serviced apartment industry.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.
Serviced Apartments Business Plan – SALES AND MARKETING STRATEGY
We quite mindful of the fact that there are stiff competitions in the serviced apartment rental market in India; hence we have been able to hire some of the best business developers to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over key cities in India.
Our goal is to become one of the leading serviced apartment rental companies in India which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry.
Swami Gandhi & Co® Real Estate Company, LLP is set to make use of the following marketing and sales strategies;
- Introduce our serviced apartment rental company by sending introductory letters alongside your brochure to expatriates, corporate organizations and other key stake holders throughout the city where our serviced apartments will be located.
- Print out fliers (list of accommodations for rent/lease) and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
- Place classified advertisement in the newspaper or local publication about our company and the serviced apartments we have for lease/rent
- Leverage on referral networks such as agencies that will attract clients (tenants) who would need our serviced apartment
- Advertise our serviced apartment rental services company in relevant real estate magazines, TV and radio stations
- Attend relevant real estate expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry to market our serviced apartments and services
Sources of Income
Swami Gandhi & Co® Real Estate Company, LLP is established with the aim of maximizing profits in the serviced apartment rental industry. We have successfully built a vibrant real estate network that covers the whole of India so as to help us build a profitable business.
Below are the sources we intend exploring to generate income for Swami Gandhi & Co® Real Estate Company, LLP;
- Rental of different sizes of apartments
- Real estate consultancy and advisory services
- Late charges
- Damage and Cleaning Charges
- Application fees
- Pet Charges
- Lease Termination charges
It is a known fact that as long as there are expatriates and medical tourists in India, there will always be need to for them to rent or lease serviced apartments from time to time hence the demand for the services of serviced apartment rental companies.
We are well positioned to take on the challenges that are synonymous to serviced apartment rental businesses in New Delhi – India, and we are quite optimistic that we will meet out set target of generating enough profits from our first month of operation and grow the business beyond New Delhi in record time.
We have been able to critically examine the serviced apartment rental line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions peculiar to similar startups in New Delhi – India;
- First Fiscal Year: INRs 3 million
- Second Fiscal Year: INRs 5 million
- Third Fiscal Year: INRs 10 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional services as we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.
- Our Pricing Strategy
Part of our business strategy is to ensure that we work within the budget of our potential clients to help them meet their expectations. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.
Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable when it comes to fixing a price for our serviced apartments. But one thing is certain; we will ensure that we make available decent, well – furnished and secured accommodation for all our clients.
Lastly, we will ensure that we keep our rental charges and fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to our clients from time to time especially when they recommend clients to us.
- Payment Options
At Swami Gandhi & Co® Real Estate Company, LLP our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Real estate deals usually involve huge amount of money.
Here are the payment options that Swami Gandhi & Co® Real Estate Company, LLP will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will help us achieve our plans without any hitches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Our bank account numbers will be made available on our website and promotional materials to clients.
Any agent who intend paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.
Serviced Apartments Business Plan – Publicity and Advertising Strategy
We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the serviced apartment rental industry by storm which is why we have made provisions for effective publicity and advertisement of our company.
Below are the platforms we intend to leverage on to promote and advertise our serviced apartment rental business;
- Place adverts on both print and electronic media platforms
- Sponsor relevant TV shows so as to be able to communicate our brand and what we do
- Maximize our company’s website to promote our apartments
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
- Install our billboards in strategic locations in and around New Delhi – Delhi
- Distribute our fliers and handbills in targeted areas from time to time
- Attend real estate association meetings with the aim of networking and introducing our business.
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo
Serviced Apartments Business Plan – Financial Projections and Costing
From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard serviced apartment rental company in New Delhi – India and here are the key areas where we will spend our start – up capital;
- The total fee for registering the business in India – INRs. 9,200
- The budget for permits and license – INRs 12,000
- The cost for hiring business consultant – INRs 20,500
- The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, Project Management Software) – INRs 7,000
- The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – INRs 15,400.
- Cost for payment of rent for a suitable Office facility with enough space in New Delhi for 12 months – INRs 120,000.
- The cost for office remodeling (construction of racks and shelves) – INRs 20,000.
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – INRs 45,000
- Other start-up expenses including stationery (INRs 15,000) and phone and utility deposits (INRs 12,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – INRs 200,000
- Working capital (investment fund): 6.5 Million India Rupees)
- The cost of launching our official website – INRs 7,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – INRs 15,000
Going by the report from our research and feasibility studies, we will need about 7.5 million India Rupees (7.5 Million India Rupees) to set up a serviced apartment rental company.
In the serviced apartment rental business, the larger your capital base, the greater the opportunities you can access when it comes to acquiring and developing properties and of course, the more profits you will make. Despite the fact that we have a working capital of 6.5 Million India Rupees, we have been able to create a business relationship with our banks so as to easily access loans when the need arises.
Generating Startup Capital for Swami Gandhi & Co® Real Estate Company, LLP
Swami Gandhi & Co® Real Estate Company, LLP is a partnership business that will be owned and managed by Swami Gandhi, Vijay Gandhi and Ravi Gandhi. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about INRs 1.5 million (five hundred thousand India Rupees from each partner) and we are at the final stages of obtaining a loan facility of 6 million India Rupees from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
SERVICED APARTMENTS BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting our business is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to rent out standard, well – furnished and secured serviced apartments a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Swami Gandhi, Vijay Gandhi and Ravi Gandhi will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in India: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Construction of serviced apartments in New Delhi and Bombay – In Progress
- Renting of Office facility and remodeling the facility in New Delhi – Completed
- Conducting Feasibility Studies: Completed
- Generating capital from the CEO/President and Business Partners: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies, expatriate communities and corporate organizations): In Progress