IV. Customer Analysis
You can download our Real Estate Business Plan Template (including a full, customizable financial model) to your computer here.
Demographic Profile of Target Market
[Company Name] will serve the residents and businesses operating in [company location] holding special events and meetings.
The area we serve is affluent and has the disposable income/profits required to demand off-premises catering services.
The precise demographics of the town in which our business is based are as follows:
|Target Population by Age Group|
|Target Population by Income|
|Income $50,000 to $74,999||11.16%||6.00%|
|Income $75,000 to $99,999||10.91%||4.41%|
|Income $100,000 to $124,999||9.07%||6.40%|
|Income $125,000 to $149,999||9.95%||8.02%|
|Income $150,000 to $199,999||12.20%||11.11%|
|Income $200,000 and Over||32.48%||54.99%|
The Company will primarily target the following four customer segments:
- Renters and Potential Renters: Renters in this community are either in a temporary situation where it makes more financial sense to rent than to purchase, or are attempting to save towards a purchase in the area. A small portion of this group is made up of life-long renters who never purchase a home. The renter group tends to be younger than the average home buyer, with an average age of 25. Renters change apartments at a faster rate than owners, causing a higher number of new rental closings per year even in communities with more homeowners.
- Home Buyers: Home buyers, with an average age of 33 in this community, include a portion of those who used to be renters, and some who are previous homeowners in the community, but are mostly made up out of individuals who are moving into the community. Therefore, this group tends to be visiting the town from a distance, and located anywhere from 5 miles away to on the other side of the country. Home buyers value a real estate broker who is knowledgeable not just about the homes he is listing, but about the area’s real estate market in general, and shows the intention of truly negotiating well on their behalf.
- Home Sellers: Home sellers, with an average age of 45 in this community, tend to be moving out of the region, with a smaller percentage intending to move to a smaller or larger home or apartment in the community. Those who are selling and buying within the community are highly sought out as they can provide more business per relationship for a broker. Sellers value a real estate broker who is able to price appropriately, is knowledgeable about the best steps to prepare and stage a home for sale, and who will negotiate well on their behalf.
- Landlords: Owners of apartment buildings, multi-unit homes, condominium complexes, and small homes are included in this group when they seek to rent out a portion or all of their space. This group includes both professional landlords who earn their primary income from real estate rentals and landlords who are capitalizing on excess space to earn extra money. Landlords value a real estate broker who can comment on the proper pricing of a rental, who finds tenants quickly and efficiently, and who can take over much of the work of showing apartments and answering tenant questions before rentals are finalized.