I need a 12 pages powerpoint slides for my capstone business plan project by this coming Saturday afternoon. This is what the

Capstone slides have to entail: Title Slide, Description of Venture, Mission & Vision Statements, Industry Analysis, Organization & Operations, Marketing, and Financials. Your presentation should be directed toward the Audience that is relevant to this Business Plan, i.e. investor(s), lender(s), internal stakeholder(s), etc.This is my first time using this type of thing I need to know how much will you charge?

 

 

 

 

Miller Realty LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1139 Glendale Terrace

Tobyhanna, PA 18466

570-620-6286

flsmiller@yahoo.com

www.millerrealty.com

 

 

 

 

 

 

 

 

MBA Capstone Project

Miller Realty LLC

Felisa Miller

Stevens-Henager College

Dr. Katie Doseck

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

 

Executive Summary………………………………………………………………………………………… 5

Mission Statement………………………………………………………………………………………………….. 5

Vision Statement……………………………………………………………………………………………………. 5

Company Summary………………………………………………………………………………………………… 5

Company Ownership………………………………………………………………………………………………. 5

Company Location………………………………………………………………………………………………….. 5

Exit Strategy……………………………………………………………………………………………………. 6

Ownership Length………………………………………………………………………………………………….. 6

Motivation to Sell……………………………………………………………………………………………………. 6

Industry Analysis…………………………………………………………………………………………….. 6

Industry Review……………………………………………………………………………………………………… 6

Laws & Regulations………………………………………………………………………………………………… 6

Competition……………………………………………………………………………………………………………. 6

Consumer Analysis…………………………………………………………………………………………………. 7

Demographics…………………………………………………………………………………………………. 7

Age………………………………………………………………………………………………………………………….. 7

Gender……………………………………………………………………………………………………………………. 7

Location………………………………………………………………………………………………………………….. 7

Household Salary……………………………………………………………………………………………………. 7

SWOT Analysis…………………………………………………………………………………………………. 7

Strengths…………………………………………………………………………………………………………………. 7

Weakness………………………………………………………………………………………………………………... 7

Opportunities………………………………………………………………………………………………………….. 7

Threats……………………………………………………………………………………………………………………. 7

Product/Service Concept…………………………………………………………………………………. 8

Marketing………………………………………………………………………………………………………… 8

Organizational & Operations…………………………………………………………………………… 8

Organizational Chart………………………………………………………………………………………………. 8

Management Team…………………………………………………………………………………………………. 8

Supply & Inventory Management……………………………………………………………………. 8

Production & Distribution………………………………………………………………………………. 9

Financials………………………………………………………………………………………………………... 9

Start up funding……………………………………………………………………………………………………… 9

Example 1…………………………………………………………………………………………………………………………… 9

 2nd Example…………………………………………………………………………………………………………………….. 10

Use of funds…………………………………………………………………………………………………………… 11

Sales forecast………………………………………………………………………………………………………… 12

Example 1. ……………………………………………………………………………………………………………………….. 12

Example 2. ……………………………………………………………………………………………………………………….. 13

Cash flow………………………………………………………………………………………………………………… 13

Example 1. …………………………………………………………………………………………………………………………. 13

Example 2. ………………………………………………………………………………………………………………………….   14

Example 3. …………………………………………………………………………………………………………………………. 15

Balance sheet…………………………………………………………………………………………………………. 15

Example 1. ………………………………………………………………………………………………………………………… 16

Income statement………………………………………………………………………………………………….. 16

Example 1. ………………………………………………………………………………………………………………………… 17

Example 2. ……………………………………………………………………………………………………………………….. 18

Example 3. ………………………………………………………………………………………………………………………… 20

Example 3. ………………………………………………………………………………………………………………………… 22

Break-Even Analysis……………………………………………………………………………………………… 22

Example 1. ………………………………………………………………………………………………………………………… 22

Example 2. ………………………………………………………………………………………………………………………… 23

Example 3. ………………………………………………………………………………………………………………………… 24

Business Ratios………………………………………………………………………………………………………. 25

Example 1. …………………………………………………………………………………………………………………………. 25

Example 3. …………………………………………………………………………………………………………………………. 27

Example 2. …………………………………………………………………………………………………………………………. 29

Five (5) Year Valuation…………………………………………………………………………………………… 29

Example 1. …………………………………………………………………………………………………………………………. 29

Example 2. …………………………………………………………………………………………………………………………. 31

References………………………………………………………………………………………………………. 32

APPENDIXES……………………………………………………………………………………………………. 33

Appendix A: Title……………………………………………………………………………………………………. 34

 

 

 

 

 

Executive summary 

Miller realty is an established real estate company for purchasing, building, and profitable residential housing units pursuing to venture into the New York and Pennsylvania area. Miller realty seeks to invest eight million dollars into this real estate sector and breach the gap that exists in rental housing market by offering affordable, elegant, well-maintained and furnished rental units for the low-income earners who cannot afford luxury apartments or purchase their own homes. Miller realty intends to offer affordable residential units that will range from one-bedroom units to four bedrooms. We believe the real estate business in New York and Pennsylvania will be a lucrative venture that will bring maximum profits, shareholder value and satisfaction the various stakeholders especially the customers. 

 The future outlook of the business seems promising. This business plan is based on an extensive industry and market research, and it is evident that there is a growing demand for quality and affordable housing units for the low income groups especially due to the growth of urban population. In addition, market review showed trends of customer demand and the target market was identified. Many people are demanding rental units at an affordable price but such are only available outside town centers probably with no access to transportation means and other utilities.  The company views the property business as a potentially successful venture with future plans to expand to other states. The property venture can be profitable as long as the company cultivate strong customer relationships and design products that will target the specific market. Miller realty will launch the business with operations in Pennsylvania and New York states.

Mission and vision

Miller realty envisions itself as being the property company of choice among the low income earners ranging from single people, small families, and students. The company seeks to be a pace setter in the low-income segment of the market by providing exceptional services that meet and exceed the immediate customer needs. In addition, the company seeks to build strong customer relationships through exceptional customer service and value-creating rental properties.

Company Summary

Miller realty is an established business, which is a limited liability company. The company will establish new operations in New York and Pennsylvania states. The company will be owned by its founders Fred and Lisa miller. Fred is a contractor and Lisa is a finance professional.  

Financial Overview

For the first two years, the objectives of Miller Realty are:

To generate business profits from the property venture and grow the business to expand operations in other states and other markets. We project a rent of between 700000 to one million dollars per year.

To invest in quality, well-maintained, and affordable units of properties that are offered at a price that is within the range of the local market and the immediate needs

To achieve a 10 percent return on investment 

To identify the right tenants desiring to rent apartments on a long term basis through a careful selection process. The company notes that for a long term customer relationship, it is important to take consideration of certain tenant details before giving out any property on lease.

Exit Strategy

Cetorelli, Mandel & Mollineaux (2012) states that an exit strategy is defined as a planned approach targeting to terminate a particular situation in a way that will enhance the maximization of the benefits and as such minimizing the damages. Currently, the organization has already stabilized in this field and as such the only exit strategy they can adopt the application of an established partnership strategy that will enhance the improvement of the potential supplies among other initiatives. 

Industry Review

Miller Realty Company is seeking to enter an industry that already has other companies, and real estate brokers, which means that there will be some level of competition. In the recent years, the real estate industry has grown at a considerable level. However, while home owners have increased with the growth of the economy, property companies seem to have overlooked low-income households, which cannot afford loans to purchase new houses. In addition, there is a trend of numerous students, other young workers, and small families moving from city to city to carry out their activities and they demand affordable houses for rent. However, most of the real estate companies have concentrated on the middle-income market segment, in which there is demand for luxury apartments, town houses, and mansions. 

The position of Miller Realty Company in the industry is strategic since there is an ideal market that is characterized by high demand for affordable residential housing units. Our market location, that is, New York and Pennsylvania, where initial operations will take place, are two states that have numerous people from other cities either coming to study or work and most of these are low-income individuals including students. From market research, the demographics in the target market show that majority of low income prefer to share apartments because of the high rent offered by the existing realtors. Miller Realty Company wants to provide a solution of affordable housing in the identified market segment.

Legal and Political Environment

The political environment is stable. For the real estate venture, Miller Realty will have to comply with regulations that apply in the real estate sector. The first and the most important is a business operating license after registering a company. Some of the regulatory requirements will include health and safety, tax compliance, construction standards, and various other requirements.  Others will include corporate rules and ethical regulations. 

Competitive Environment 

There are numerous real estate companies operating in New York and Pennsylvania and the United States of America at large. However, only four companies in New York and Pennsylvania offer services that target the low-income segment. To overcome this competition, Miller Realty Company will capitalize on its competitive advantage and use the strategies of cost leadership and differentiation.  For example, all units will use green technology, which is not only unique, but also saves the cost of construction by almost half of the normal costs. In this case, Miller Realty will be able to charge lower rent and still make profits.

Target Market and Penetration

As seen earlier, Miller Realty will target low–income customers and young people who do not have homes but are demanding rental apartments. To penetrate the market, the company will offer units at a price lower than the market price.  

21 years and older  

All cultures/ethnicities    

All genders

Moderate income

Working adults or Residential programs acceptable

Bad credit – Moderate credit all are welcome

Situational Analysis

SWOT analysis is a comprehensive evaluation of strengths, weaknesses, opportunities, and threats are they concern the business objectives of a company (Jain, 2000). The following is a SWOT analysis for Miller Realty Company.

SWOT analysis

 

Strengths

One of the founders is a contractor and therefore contracting costs will be saved

Innovative technology: the company intends to use green technology in terms of cheaper construction materials, natural lighting, things that other companies do not offer.

The founders of Miller Realty Company are highly talented and experienced, which means they will provide exceptional effort to the start-up. In addition, that initial costs will be lower since there are few employees to pay salaries. Decision making will also be significantly efficient.

The company has already identified and reached an agreement to acquire strategic pieces of land that are located in areas close to various utilities. Weaknesses

The company is a start-up with no established customer base

There is no robust financial base as the startup is financed by inheritance and savings

The company is starting with only two founders, therefore, it does not have a marketing team

  

Opportunities 

Opportunities exist for the Miller Realty to invest in student and youth hostels. 

The company can also invest in commercial units to take advantage of the rising demand for space for retail businesses and other activities

There are opportunities for expansion into other states in America as there is easily accessible sources of property financing Threats

There are numerous established companies in the real estate industry, which means there is stiff competition

The market target is not sustainable. The middle income is expanding as the economy continues to grow

 The availability of strategic land near urban centers might diminish in the near future. Future available locations may not have proximity to important social utilities including infrastructure 

 

 

Products and services

Miller realty will specialize in offering rental residential properties in New York and Pennsylvania. The company plans to offer unique services in the market, both comfortable and affordable housing for rent. Rental units will be designed as three-story buildings with the cutting edge green technology to make maximum use of space and materials to minimize construction costs. Every room will be fitted with built-in closets, cozy kitchens, and there will be shared parking yards for those people with vehicles. The company will offer one, two, three, and four-bedroom houses at an affordable rental price of between $950 and $5000.

All estates and rental units of Miller realty will be located in serene suburbs that have close proximity to grocery stores, shopping centers, malls, schools, and transport. In addition, there will be adequate security. The company will also ensure sufficient health and safety measures are undertaken for every unit so that tenants can stay either individually or with a family without fear of risks. Such measures will include fire safety equipment, fire exits, among others.

Marketing mix

Unique selling proposition

Miller Realty, offers spacious size apartments, one to four bedrooms.  The three and four bedroom apartments have two bathrooms and a huge kitchen.  The buildings are equipped with elevators, beautiful fenced in back yards, and parking is available for each unit.  Family atmosphere and close to all public transportation. Some of the buildings come equipped with a gym for tenants and an indoor swimming pool.  Two hundred washer and dryers are available for tenant usage. Twenty- four hour service, if something is in need of repair. A community center is also available for parties and gatherings, when scheduled.  The buildings are well maintained and clean. All properties will have security guards and landlords on the premise.

The rental prices is more than reasonable compared to competitors.  Miller Realtor rental rate for 1 bedroom – 4 bedroom apartments, $950 - $5000. Occupancy contract agreement is to pay 1 months’ rent and 2 months security. With these rental prices customers will be lining up outside of Miller Realty just to be able to get an application.

Miller Realty offers everything you need in order to be excited about coming home.  With the amenities received from renting from Miller Realty there’s no other real estate company that comes close to providing this type of luxury for a lower cost.

Pricing strategy

Miller Realty will offer affordable rental prices. The company will also offer discounts for the first few tenants. In general, pricing will be fixed in a manner that the revenue per unit will be more than the cost of production so that the business can be profitable. This pricing strategy will be a major source of competitive prices because competing firms charge high prices. The strategy will also be a convenient entrant strategy so that the company can acquire customers in the new market. Nevertheless, the quality of the apartments will still be high, but the company will be able to fix low prices due to the lower cost of production as compared to other competitors. In essence, the rental prices will still reflect the value offered by the apartments. 

Every-day low pricing 

Affordable luxury living

Apartments will stay rented

Better property handling by occupants if they feel comfortable where they live.

Not many places in New York or Pennsylvania that has affordable luxury living.

 

Competitor prices

Manhattan, New York’s Realtor’s apartment rental price range:

Studio – 3bedrooms       $2100 - $7400

Bronx, New York Realtor’s apartment rental price range:

1 - 3 bedroom apartments starting rent $2299

Brooklyn, New York Realtor’s apartment rental price range:

Studio – 2 bedrooms $2800 - $4950

Tannersville, Pennsylvania:

1 – 2 bedrooms $1250 – 2250

Stroudsburg, Pennsylvania:

1 – 2 bedrooms $1350 – 2900

Philadelphia, Pennsylvania:

1 – 2 bedrooms $1805 - $3865

The majority of these above realtor’s ask for 3 month’s rent and 3 months security in rental contract agreement.

Comparative analysis

 

New York Realty Pennsylvania Realty Miller Realty   

Quality Excellent Excellent Excellent   

Price Moderate Fair Excellent   

Location Moderate Good Excellent   

Security Good Not available Excellent   

Laundry Room Fair Not available Excellent   

Swimming Pool Poor Fair Excellent   

Back Yard Not available Moderate Excellent   

Gym Not available Good Excellent   

Community Center Not available Good Excellent   

Parking Not available Excellent Excellent  

 

Promotion strategy

Promotion of products increases the awareness of products to the wider public (Kotler and Armstrong, 2006). For Miller Realty, advertising will be the primary strategy for marketing the rental properties. Advertising channels will include social media, mass media, and the press.  Social media advertising will be convenient for marketing because the company will be able to reach a wide range of prospective customers. Most young people use social media channels such as Facebook, You tube, and Twitter. Social media is a good advertising tool because it provides the means for customers to provide feedback, give opinions, and ask questions. The company will also engage in mass media advertising on radio and television. Social media, print media, and radio adverts are affordable and they are able to reach a diverse audience. While television adverts can be fairly expensive, they can generate leads more easily because of the audiovisual content that creates positive customer impression.

Market Analysis

Market size:

The size of the market is an important factor to consider when launching a business. The real estate sector is growing increasingly (Jain, 2000). While some people can afford loans to purchase new homes, most people especially those that work in cities demand rental housing units. Moreover, those from low-income groups that prefer to rent self-contained houses either choose to share (especially single people and students) or move away from urban centers due to the high cost of rent. There is an extensive market demand for affordable rental housing. Miller Realty targets the low-income earners and young people, who constitute a considerable section of the population. The company can venture in the market and obtain a significant share of the market by offering cheap houses for rent.

Economic Environment

The economic environment of New York and Pennsylvania is stable and there are prospects of economic growth in the near future. Satellite urban areas are also becoming preferred locations for residence as compared to metropolitan areas and major cities. The population of low-income individuals is not as large. Therefore, the company will seek to diversify its market after the first five years in order to take advantage of the potential growth in demand for premium apartments. In addition, with the growth of the middle class, young people from such families opt to take studies in other cities, and Miller Realty has the opportunity of building youth hostels.

This organization has taken a long time in working on streamlining their different processes of investments, their operating strategies, and their supporting teams. This has been done with an aim of facilitating the existence of a better efficiency and open communication in the entire company.

Chart 1: Miller Realty’s property organizational structure

 

Senior management

Considering the high management level, this organization is similar to other large corporations which include the chief executive officer (CEO), Chief operating officer (COO) and the chief financial officer (CFO). In this regard, the CEO is mandated with the directing of the organizations entire operations and activities with an aim of maximizing their profitability and establishing their different objectives, plans, and policies. Li, Xu & Li (2013) reveal that the chief operating officer (COO) typically provides assistance to the CEO in their roles of directing the organization and as such they establish and implement the different operating procedures. Lastly, the chief financial officer is mandated with the management of the overall organization financial plans, policies, and their diverse practices. Others include the chief investment officer, the chief technology officer, chief legal counsel, the director of the human resources and the controller. They are involved in the coordination of the focus and objectives of the organization, management of information technologies, the establishment of legal aspects and standards to be followed, recruitment and training and development and the management of the accounting and financial reports of an organization respectively (Hsu, Chuan-Chuan Lin & Chiang, 2013).

Operating management

The operating management of the organization is distinct and correctly oriented to facilitate all the operations that are in existence in a real estate business.

Acquisitions and dispositions

Several positions relate to the acquisitions and dispositions functions which include the acquisitions and dispositions head, the acquisitions head, acquisitions manager, analyst, placement head, manager, and analyst. According to Luo, Ba & Zhang (2012), all these individuals lead a team that is strategically involved in the processes of acquisitions and disposition of the properties with teams in different designated geographic regions. They oversee the conduction of market research, determining the exact values of the properties and contacting the brokers and potential buyers.

Asset management

The asset management team in the organization include a head, regional management head, manager, an assistant manager and an analyst. Risselada, Verhoef & Bijmolt (2014) argue that the officials lead a team that is involved in the overseeing the company portfolio of the real estate assets through the processes of acquisitions, dispositions, and daily operations. Additionally, the team actively participates in the management of the revenues and expenses items and minimization of their costs of portfolio performances.

Financial 

The typical positions include the financial directors, managers, senior financial analysts and analysts are mandated to providing the management with the financial operations, analysis, the budgets for development and analyzing the financial feasibilities for the more complex proposed projects in the organization. Mahmud (2014) demonstrates that this is through the maintained and updating the assets valuation strategies for the company investment portfolio.

Property management

Kabir (2013) opine that the asset management team include a management head, regional property management head, manager, leasing agents, property accountant and facility manager. Their primary objective is to enhance the overseeing of the management of all physical facilities which are owned and managed by the company. In addition, they will consistently establish and monitor budgets, monitoring of the different operational efficiencies, maintain and renovating of their facilities other roles include the supervision of the contracted services and ensuring the existence of a good relationship between the tenants and the property owners (Copley-Merriman et al., 2014).

Supply Chain and Inventory Management

The supply chain and inventory are one of the most vital aspects of this organization and its specific performances of the success or a failure of the company which depends on the effectiveness of the supply chain and inventory management. In this regard, Chowdhury (2012) argues that coming up with an effective and efficient management of the supply chain and inventory is a vital engagement for any enterprise. Currently, Miller Realty’s property is currently faced with an increasing complexity of the supply chain system that prompts the need to have an application that has a potential of keeping the track and inventory and as such facilitate the management of all the issues that are related to the supply chain. There are specific areas in which the Miller Realty’s property is focused towards its implementation and successfully designed and deployed in their inventories and the supply chain management solutions worldwide. In order to achieve this, the organization priority areas include the shipping management, the warehouse inventories and their distribution and contracts management (Davidoff & Hall, 2013). All these processes are oriented in a way that the organization achieves all their responsibilities and thus ensuring that their customers are contented with the services delivered.

 The organization management has developed a software solution that normally enhances the integration of the businesses and their customers. In addition, According to Luo, Ba & Zhang (2012), demonstrate that this software facilitates the existence of people which enhance the provision of a real-time inventories management and the shipment of the tracking processes that ensures a consistent and efficient handling of the dynamic product information and their client’s details. Acne Aid Bar and Scott (2015) explains that this has been a super-efficient application that has a major potential of bringing all the supply chain and inventory related issues in a common platform for a better platform. It is worth noting that the processes instituted by the organization ensure that there are a consistent tracking and updating of the warehouse stocks and the barcode reading and generation of the inventories.  

In future, the organization aims at enhancing the existing of stringent logistic frameworks that are suitable for the collection, the management, and analysis of the exiting high-volume data that is related to the commercial shipments, inventory, and distribution. This will be unique in this organization as compared to other organizations in this real estate market whom are yet to come up with measures to develop a successful supply chain and an inventory management process.

Production and Distribution Management

A close analysis of the Miller Realty’s property organization management reveals that the production and distribution management is characterized by partial complexity factors. Risselada, Verhoef & Bijmolt (2014) explain that these factors are orchestrated by the existence of specific uncertainties and interdependencies in their set roles and obligations and the inefficiently of their competitors. In this regard, since there exist a limited number of organizations which they can rely on the production and distribution, the process is characterized with a myriad of challenge that must be solved to ensure a progressive and a result oriented production and distribution management processes.

In regard to the production, Kabir (2013) opine that the organization does not produce their individual goods and services but relies on the other contractor’s houses and lands that they connect their clients. In addition, the home and land owners usually contract the company to facilitate the delivery of their housing services their consumers who include the individuals who target being home owners. This implies that the operations and behaviours of the organization must be ready to deal with any complexity that may occur in the process of the production. Chowdhury (2012) argues that the services are advertised and communicated using different mediums to their different customers where the demands for their products are apparently known in the initial stages of the planning horizon. However in the past decade, Miller Realty’s property has consistently considered the implementation of organizational changes which are necessary for enhancing the support of the coordination of their production processes and distribution. 

Considering the organization production and distribution process, the process is optimized in a way that the production and the distribution systems are separately oriented to achieve the goals of their targeted customers. As such, there is a necessity to ensure that the production and dissemination processes are independently analysed, and deductions made based on the facts linked to the individual processes (Hsu, Chuan-Chuan Lin & Chiang, 2013). However, the primary objective of this organization is to maximize their total net profit and thus adopts a multi-plant, multi-retailer, multi-item and a multi-logistic environment to achieve their production and distribution management processes.

Figure 2: Miller Realty’s property production and distribution management process

 

Source: Author

As explained earlier, the organization can only achieve its objectives if they make enough profit from their operations. As such, the production and distribution management process must include all the practices such as corporate strategies, finance strategies, operations strategies and the marketing strategies. Scott (2015) explains that all these methods must be combined and integrated together to ensure that this organization targets their exact clients and the right output delivered to the targeted group. In regard to the distribution processes, Miller Realty’s property is characterized with couplings among the different activities, resources and actors in the industry which are analyzed in various dimensions. Adoption of these strategies ensures that the right client is targeted and the services rendered are in line with their expectations and the objectives of the organization which is enhancing the existence of a flow of customers and as such making profits.

Section 2: Financial Plan

The organization financial plan is carried out by an accounting team that is dedicated to ensuring that the financial plan processes are effectively conducted to be in line with the organization goals and objectives. Summers (2014) explain that to ensure the existence of a standardized financial plan; the accounting department provides that they set accurate accounting systems which operate in a real time and networked from the onsite locations in their different corporate offices. Additionally, the organization ensures the existence of an expedited reporting to the management, their clients and their various business partners where the financial reviews frequently focus on the accuracy and their opportunities. Miller Realtys property management organization start-up capital is approximately 12-14% average returns with an ultra-low fee with a minimum of 1000 dollars of minimum investment.

Start-up Funding

Several approaches can be used in the funding of the Miller Realtys property which includes sourcing for a bank loan or a credit card line of credit using the collateral of the business managers and its initial establishment. Trade equities can equally be used with an aim of bartering the skills already available to enhance an adequate management of the tenants and house owner's assets. Additionally, Wahlen, Baginski & Bradshaw (2014) explain that capital can be raised from the clients and other partners who must be in line with the organization set goals and objectives. There are customers and business partners who take cognisance of the idea of the organization and as such will be willing to be part of the facilitators of its implementation. Additionally, the soliciting of venture capitals is important to be sourced from specific organizations who normally invests their institutional resources in different qualified start-ups more specifically those which are ready for scaling. 

De Blasio, Fantino & Pellegrini (2015) demonstrate that the Funding of the start-up should also be part of the manager’s initiatives where the management is supposed to put their resources since it will be a sign of commitment and ability to proceed with the running of this organization. The funding decisions should be complex tradeoffs which occur between near-term and the longer-term costs and their payback and the ownership and control of all their owners. Fitó, Moya & Orgaz (2013) argue that the crowd-funding of the idea is based on enhancing the existent of an excellent platform for the businesses to locating their funding for this new start-up. However, the crowd fund is characterised by an intense competition and unless the organization strategically place them in a unique position, there is a high likelihood that they may not succeed. As the organization progresses, the company will engage in activities  that minimizes the risks such as litigation and damaging of the rental units and maximizing the clients profits through the slashing of the vacancy rates and maintenance and repairing costs which will equally create a source of capital for the organization. As such, Keys et al. (2014) explain that all these capital will be used with an aim of enhancing the existence of a people-oriented services, the presence of physical offices space, merchandises and the equipments.

Use of Funds

The sourced funds by the organization are used with an aim of ensuring a smooth of the Miller Realtys property in its management and administration processes. As explained in the organization chart of this organization, there are the executive members who are mandated in ensuring that the organization runs smoothly and as such resources must be channeled to their use. Kim, Kraft & Ryan (2013) explain that there are management officials who must be part of the organization and ensuring that the teams run efficiently to achieve their obligations. As such, part of the funds is used in paying the staffs, offering stipends to the active operations of this organization. In addition, funds must be available to ensure that the running of the office space is efficient and in line with the expectations of their clients. Some of the operations that are required in these organization offices include the linking of the tenants with the house owners and other types of properties owners which their clients would be interested in purchasing. Other office space practices demand the use of resources such as planning, coordinating of all the stakeholders, communication and ensuring that all the organization management is in line with the active management of the organization. De Blasio, Fantino & Pellegrini (2015) demonstrate that others include promoting the organization through advertisements and other approaches and sourcing for the raw materials that are necessary to enhance continuous operations of this organization.

Sales forecast

Adopting the definition of Hitt, Xu & Carnes (2015) the sales forecast is the current projection of the achievable revenues on the basis of the historical data, analysis of the market surveys, trends and salespersons estimates. As explained earlier, the real estate industry is currently under a constant growth and improvement and as such there is a need for all the stakeholders to come together and pick the opportunity of the growth and development. As such, it is expected that Miller Realtys property management organization will experience a surge in their sales in the coming years. Cetorelli, Mandel & Mollineaux (2012) states that having been established over a decade ago, the company has been consistently registering an increase in their sales for the last 5 years with more than 36% yearly. This is an implication of rapid growth in the value of sales made and the overall participation by the organization management.

The company forecasts to make approximately 500,000 dollars in next year based on their sales for the last two years which have consistently been increasing constantly in the last five years. This will be equally being accompanied by an increase in the revenues of the companies in the real estate industry. Currently, there are more than a 100 clients who have shown interest to source the services of the company in the delivery of different services to their clients in America and other parts of the world. In this regard, Fitó, Moya & Orgaz (2013) argue that with the increase in the level of funding and enhanced management, the organization will effectively increase its sales. 

Cash Flow

Cetorelli, Mandel & Mollineaux (2012) states that the cash-flow in an organization is defined as a net amount of money and the cash-equivalents which move in and out of the business. Miller Realtys property management organization has a positive cash flow which is an indication of the existence of a cash flow in the company's liquid assets which are increasing and hence enabling the company to settle debts and reinvesting in their businesses where all these operations buffers are leading to an overall growth in the organization net flow. 

Table 1: Miller Realtys property management organization cash flow

 

 

 

Source: Author

The table above represents the cash flow statement of the quarter of the year that ended in August 2015 where all the amounts are represented in dollar currencies.

Balance Sheet

Adopting the definition of Hitt, Xu & Carnes (2015), the balance sheet is the statement of the financial position of the organization that acts as a revelation of the company assets, liabilities, and the organization equity or net worth. As explained earlier, the balance sheet, income statement, and the cash flow statement is used as an approach to developing a cornerstone of the company financial statement. In the table below, the assets represent the organization resources that they apply to the operations of its activities while the liabilities and equity form the two primary sources that support the assets. In addition, Fitó, Moya & Orgaz (2013) argue that the owner's equity is also termed as the shareholders equity which is a publicly traded company this is usually the amount of resources that are initially invested actively into the company which is also an inclusion of other sources of funding for this organization. 

Table 2: Miller Realtys property management organization Balance Sheet

 

 

From the balance sheet, it is important to note that the organization financial position is healthy since the values of their assets are higher than the liabilities and shareholders'. As such, it is the responsibility of this organization to facilitate an accurate valuing of the properties through correct pricing and continuing in their marketing and responding quickly to their inquiries.

Income Statement

The income statement of this organization is the financial statement that is used for the purpose of measuring the company financial performances in a particular accounting period where they have been actively in operation. Fitó, Moya & Orgaz (2013) argue that the financial performances of this organization are assessed through providing a precise summary of the operations of the business and the revenues incurred through their operations and non-operating activities.

Table 3: Income Statement for this Organization

 

 

 

Break-Even Analysis

This organization has been employing the concept of the break-even analysis with an aim of measuring the different risks that exist in this business environment. This is perceived as the dollar amounts of the sales at which the business has earned neither profit nor losses. It is worth noting that the annual sales that usually falls below this break-even point result to a loss of the company and as such used in the sensitivity analysis that is in a relative to the breakeven sales.

Financial Ratios

The key financial ratios in this organization are used for the purpose of ensuring the existence of a standardized measure and evaluation of the company performances. Cetorelli, Mandel & Mollineaux (2012) explain that this is carried out by carrying out a comparison of the different items that are used in the financial statements described above. In this regard, the financial ratios of this company provides an analysis of the solvency ratios, the efficiency ratios, profitability ratios and the distinct existing industrial norms. 

Five-year valuation

As explained earlier, since 1989, the company has been recognized as a leader in the commercial property management field. However, in the last five years, the organization is regarded as a leader in the commercial properties market more specifically in the management field. This has tremendously increased the value of this organization with revenue of more than 500,000 dollars monthly which translates to a rapid growth surpassing their competitors. Louis, Lys & Sun (2014) explain that the organization has equally majored in the providing of a broad scope of realty services which includes the brokerage, leasing of their properties and management of their overall assets for easier operations of the organizations.