I. Executive Summary
This Section's Contents
You can download our Transitional Housing Business Plan Template (including a full, customizable financial model) to your computer here.
Business Overview
[Company Name], located at [insert location here] is a new transitional housing organization specializing in providing housing for low-income individuals and families. The company will operate a mix of single-family and multi-family housing units for rent, conveniently located near the city center, in safe and respectable neighborhoods. [Company Name] is headed by [Founder’s Name], a graduate of XYZ University with 20 years of experience working in the human services sector.
Services
[Company Name] will focus on providing transitional housing and supportive services for its clients. It has a full-time assistant who, among other things, will manage the company website and listings, advertise listings elsewhere, and answer inquiries.
The founder, [Founder’s Name], will also focus on meeting his clientele’s needs. In addition to maintaining a network of human services and healthcare providers, [Founder’s Name] will hold informational meetings for families in need, and seminars on transitional housing concerns for the community.
[Company’s Name] services include listing rentals, assisting tenants in securing rental assistance, and assisting tenants in finding rentals that meet their budgets. It will serve both renters and prospective renters, in the hopes of becoming a partner with each client in accessing available programs and services in a dignified manner.
Customer Focus
[Company Name] will primarily serve the tenants interested in properties within a 5 mile radius of our location. The demographics of residents in this area are as follows:
- 27,827 residents
- Average income of $36,500
- 38.9% married
- 49.6% in low-wage occupations
- Median age: 38 years
These residents include 20% renters and 80% homeowners. Furthermore, [Company Name] will seek contacts with landlords of rental properties in order to develop long-term relationships.
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a community organizer for the past 20 years. He has spent much of his career advocating for the underserved population of [city name]. He began his career specializing in connecting people with resources before moving to specialize in homeownership counseling for the next 10 years.
[Company Name] will also employ an experienced assistant to help with various administrative duties around the office. [Assistant’s name] has experience working with C-level executives and has spent significant time as an administrator.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will fill a specific market niche in the growing community we are entering. In addition, we have surveyed local residents and received extremely positive feedback saying that they would consider making use of our services when launched.
- Our location is in an economically diverse area where affordable housing is difficult to find.
- The management team has a track record of success in connecting people with transitional housing.
- The local area is currently under served and has few transitional housing options.
Financial Highlights
[Company Name] is seeking a total funding of $78,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, and working capital.
Specifically, these funds will be used as follows:
- Office design/build: $58,000
- Working capital: $20,000 to pay for salaries and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $965,742 | $1,878,611 | $2,718,300 | $3,477,900 | $4,285,228 |
| Total Expenses | $390,241 | $630,018 | $931,935 | $1,171,906 | $1,429,992 |
| EBITDA | $575,501 | $1,248,593 | $1,786,365 | $2,305,994 | $2,855,237 |
| Depreciation | $8,720 | $8,720 | $8,720 | $8,720 | $8,720 |
| EBIT | $566,781 | $1,239,873 | $1,777,645 | $2,297,274 | $2,846,517 |
| Interest | $5,077 | $4,442 | $3,807 | $3,173 | $2,538 |
| PreTax Income | $561,705 | $1,235,431 | $1,773,838 | $2,294,101 | $2,843,978 |
| Income Tax Expense | $196,597 | $432,401 | $620,843 | $802,935 | $995,392 |
| Net Income | $365,108 | $803,030 | $1,152,995 | $1,491,166 | $1,848,586 |
| Net Profit Margin | 38% | 43% | 42% | 43% | 43% |
