New Premier Estate Business Plan

Contents4. What is Premier Estate? How will it help? For the buyer and for the vendor5. A natural progression An emerging market6. Norfolk’s luxury homes market in 2016 Current market share7. How long does it take to sell a luxury property?8. Personal investment so far Planned personal investment9. Planned (personal) marketing investment10. Branding that stands out11. Brand recognition12. Branded company car13. The website15. Digital marketing and strategy17. PR (free advertising)18. Additional low cost marketing strategy19. Properties reduced or listed for over six months20. Expected returns from additional marketing21. Marketing outside the box (company shares)22. How the company will operate (months 1 – 12) How the company will operate (month 13 onwards)23. Price brackets vs. selling costs24. Financial projections30. Loan requirement and how it will be used31. Additional incomes32. A Premier state of mind33. A long-term plan34. About Premier Estate’s director

What is Premier Estate?Premier Estate is a high end estate agency that has the potential to transform the way inwhich luxury homes are marketed.Taking inspiration from property programmes such as the BBC’s Escape To TheCountry, Premier Estate incorporates the role of the presenter to lead potential buyerson a tour of the vendor’s home as well as an overview of each property’s local area.How will it help?Many buyers of luxury Norfolk homes are not local to the county. A sizeable portion ofproperties are bought as second homes, holiday homes and/or utilised as rentals.Not only this but many local buyers and sellers of high value property move considerabledistances around the county to find their ideal home.Buyers of high value property generally lead a busy lifestyle and have little spare time.With this in mind, Premier Estate looks to reduce wasted weekends travelling to viewproperties based on listings that may turn out to be completely unsuitable.For the buyer and for the vendorMarketing and selling property via video is beneficial for both the buyer and the vendor.The buyer gets a genuine feel for the size, condition and setting of the property and cancreate an accurate shortlist of properties to view in person.The vendor benefits by entertaining a much more qualified list of viewings than couldhave previously been arranged.This dual benefit helps to cut down on wasted weekends of viewings for both the buyerand the vendor. It also helps to hasten the speed of the sale by finding appropriate buyersfrom the moment the property is listed.

A Natural Progression…Video is the future of estate agency. Not just high value property but, in time, lowervalue property also.Premier Estate looks to create a market position that puts itself at the forefront of videoestate agency, ready to explore the lower value market as and when the time isappropriate.Buying a house, whatever the value, is likely to be the largest investment of a person’slife so it is somewhat surprising that such an important investment is marketed in 2016with a handful of photographs, some text and aAQ map.An emerging marketCurrently there are three companies in the U.K. that are exploring presenter led videotours as a means of selling houses.One company, based in Cornwall, market all of their instructions with an accompanyingpresenter led video tour. This company requires no minimum property value and turns aprofit on a £180,000 property at 1.25%+VAT.The Managing Director of this company recently told Premier Estate that they wouldsoon be increasing their commission rates as they had found their clients to be moreconcerned with service than cost.The second company, based mainly in Devon, market only their highest valueinstructions with a presenter led video tour.The third company, based here in Norfolk, follows the same structure as the second,incorporating presenter led video tours in under 5% of their listings.The major property portals already include a ‘Video Tour’ tab within every listing inpreparation to accommodate this growing market.The time is right for investment into this emerging market to ensure that an early shareof it is gained before video tours become an expectation rather than a luxury.

Norfolk’s luxury homes market in 2016Since January 1st 2016 there have been 380 new instructions in Norfolk for propertiesvalued over £500,000 only (to March 22nd 2016).In January a total of 86 new instructions were listed with a combined value of£67,852,884. The average value of these luxury homes for January was £788,987.In February a total of 140 new instructions were listed with a combined value of£102,029,840. The average value of these luxury homes for February was £728,785.From March 1st – 22nd there were 154 new instructions listed with a combined value of£122,396,445, averaging £794,782. The average of the 380 properties is £769,156.For the purposes of this business plan, the average house price is adjusted to £750,000.Current market share57 agents share the 380 listings mentioned above. Of these 57 agents, only seven havelisted ten or more luxury homes since January 1st 2016.These seven companies will eventually be Premier Estate’s main competition, however,it is more realistic that Premier Estate will be competing with the remaining 50companies in years one and two as brand recognition continues to grow. 57 companies share the 380 properties but only 7 have listed 10 or more high value properties

How long does it take to sell a luxury property?Of the 86 properties newly listed in January, 58.2% of these are either Sold, Sold STCor Under Offer. 41.8% remain Not Sold.Of the 140 properties newly listed in February, 42.9% of these are either listed as Sold,Sold STC or Under Offer. 57.1% remain Not Sold.Of the 154 properties newly listed from March 1st – March 22nd, 32.4% of these areeither listed as Sold, Sold STC or Under Offer. 67.6% remain Not Sold.Of the 380 combined properties newly listed from January 1st – March 22nd, 42.1% ofthese are either listed as Sold, Sold STC or Under Offer. 57.9% remain Not Sold.This analysis was compiled on April 19th 2016.These figures suggest a lot faster movement on properties than expected, showing thatover 40% of luxury Norfolk properties are either completed or near completion withinthree months.These properties have all sold with the traditional combination of photographs and text.Premier Estate believes that its evolved, high end marketing packages will exceed theseaverage figures or, at the very least, match them.Premier Estate has been in contact with mainly London based financial and propertyinvestment companies to inform them of Premier Estate and has arranged to sendindividual properties through as they come to market.Premier Estate expects to sell more rapidly than traditional agents, however, for thepurposes of this business plan, the average length of time to sell a luxury property inNorfolk has been adjusted to six months to fit with Premier Estate’s conservativefinancial projections.

Personal investment so far…Premier Estate has been registered as a limited company at a cost of £95. The domainwww.premierestate.co.uk has been purchased, a year’s worth of hosting and a domain-related email at a combined cost of £112. However, the overwhelming investment so farhas come in the form of time.Not including time spent researching and developing the business plan, a total of threeweeks or 120 hours has been spent in the design and build of the company’s branding andwebsite.At a personal day rate of £190, an equivalent of £2,850 in working hours can beattributed to developing the business image.This combined with registration and domain fees equates to a personal investment so farof £3,057.Premier Estate has no intention of reclaiming this in the eventuality of funding beingavailable.Planned personal investment…The director will not take a wage until Month 13, however, the director will be focusingon Premier Estate full-time for that duration.Without a wage coming from elsewhere, the director will use a combination of personalsavings and borrowing against his own property to cover monthly living costs for the firstyear of operation.Household monthly expenses are as follows:  Rent - £750  Council tax - £111  Combined utilities - £160

 Food inc. baby food and milk - £250  Television, broadband, phone, line rental - £72Personal monthly expenses are as follows:  Mobile phone - £42  Car insurance - £51  Adobe suite (paid monthly) - £47  Experian - £13  Petrol - £150Combined monthly expenses, household and personal - £1,646Based on the director not taking a wage for the first year of trading, a personal cost of£19,752 would have been invested into ensuring the early success of Premier Estate.Planned (personal) marketing investment…The director has set aside £1,000 of personal savings for initial radio marketing. Being alargely digital proposition, print marketing may not effectively translate what PremierEstate does or show how different it is from the competition.The only cost to be incurred in developing the adverts to be ready for radio will be hiringa sound suite for a day at £99. An associate of the director is a voiceover artist and hasagreed to help in return for a bottle of Cognac (£20).The director will develop the concept and create the wording for the advert whileanother associate (who will also be working with Premier Estate to shoot and edit videotours) has agreed to work on the advert’s post production to make it radio-ready forfree.A combined marketing cost of £1,119 will be personally incurred to ensure that peopleknow about Premier Estate and begin making contact with the company.

Branding that stands outPremier Estate oozes luxury. The company colours, contrast of texts on backgrounds andthe typography itself have all been carefully selected to suit the target audience.Having an eye-catching product that peaks the interest is half of the battle and, whencompared to the other visible signs in the above picture, Premier Estate’s certainly standsout above the rest.In fact, you can place Premier Estate’s sign in any of the positions (below) and it remainsthe most eye-catching in a classy, not garish, manner.Companies spend millions of pounds on creating instant brand association, employingteams of market researchers, advertising experts and designers in the process.The director spent a day in Norwich city centre showing 200 people ten different logosof local estate agents and asked them to pick the logo that instantly grabbed them.A whopping 178 of the 200 (89%) said that they were initially drawn to Premier Estate.

Brand recognitionBrand recognition is of huge importance. The director spent a considerable amount oftime finding a colour combination that’s both visually appealing and unique.The importance of colour cannot be underestimated. This is not only for the present butfor the coming years when Premier Estate expands into different areas of industry.Premier Estate looks to tap into the unconscious mind, instantly associating a colourcombination with a certain emotion. In this case, quality and luxury.Below is an example of how a half page advert in a targeted magazine may look. Save theimage of the cottage, only three colours are utilised to ensure association.Across the brand the colours need to be uniform; gold, white, plum grey, in that order.In this advert alone there are four subtle examples of this.Premier Estate has a significant visual advantage over its competition and this isabsolutely key in tempting people to contact a new company. Once contact has beenmade, service must be second to none to match the company image and ultimately winthe new instruction.

Branded company car…In a luxury industry such as this, a 54 plate Scenic (the director’s family car) will create aterrible first impression which could immediately scupper any deal.The director does not necessarily need a company car but the company does. The agentmeeting vendors will have to impress.Should a vendor own a house worth over £500,000 it is likely that the car they driveconsiderably exceeds the likes of a 54 plate Scenic.Would a top of the range motor really impress somebody who already owns a top of therange motor anyway? It may not even make an impression.The company car needs to be something a little different that will make an immediateimpression and spark a social-based conversation.A reasonably priced classic such as the MG BGT (chrome), colour branded with vinylwrap incorporating the company logo would make the perfect first impression.Ideally this would be one of Premier Estate’s first purchases as, without an office fromthe outset, the company car becomes the only physical method of representing what thecompany is about.An MG BGT in good condition with a full year’s MOT and not an excessive amount ofmiles on the clock will cost in the region of £4,000.Premier Estate has been quoted £1,100 to have the vehicle professionally wrapped.Should this not be a possibility from the outset, Premier Estate has access to a relativelynew Suzuki Swift and a Range Rover, which has personal plates hiding its age.

The websitePremier Estate’s website is its biggest sales tool so a lot of consideration has beenafforded to making it look great and function seamlessly.As a new company the website has to make an impression and, because Premier Estate isa unique proposition, the layout needs to be unique too.A mixture of curves and straight lines have been employed to make it visually appealing.The director is a big believer in the potential of shapes to make subconscious impressionsand the hint of a vesica piscis is certainly deliberate.

Every aspect of the home page is spaced and positioned according to a geometric planthat allows for easy, flowing use while urging users to click through to see more.Once people click on a property of interest, they will have all of the facilities that theyare familiar with from other property websites so as not to seem an unmanageable step.The difference is that a play button greets the user, complete with standard videocontrols. Once the user clicks play, they can watch it inside the box or go full screen.The user can still flick through stills of the property by clicking left and right on thearrows to show stills of images contained within the tabs of the carousel.Below the carousel all of the usual information can be accessed such as writtendescription, floorplans, energy certificates and ways to get in contact to discuss aproperty or make a booking to view in person.The user will have the option to watch an episode of three properties within the radius ofa chosen location or can choose to watch individual property tours.The more time a user spends on the website, the quicker the website will climb thesearch engine rankings so an episode of properties is preferential but may not be possibleuntil Premier Estate has a sufficient number of properties on its books.All of the boxes have been ticked to ensure that the front-end design and usage is suitedto the target audience while the back end has been built to rapidly climb search rankings.

Digital marketing…The director’s experiencePremier Estate is in the fortunate position of having proven digital marketing experts inplace from the beginning.The company director has enjoyed a successful career in content optimisation, linkbuilding, web development, videography, graphic design, marketing and branding.The director has worked both directly for and on behalf of a number of FTSE andNASDAQ companies, particularly with regard to search engine optimisation andmarketing (SEO & SEM).Premier Estate is the culmination of these creative and analytical skills being combinedand focused into a niche industry that the director has a real passion for… high endproperty.A lot of important contacts from high ranking websites have been amassed over the yearsand this will help with placing content and links.Findings and similar projectsPremier Estate is a largely digital proposition meaning that online must play a large role.Digital marketing, if done correctly, carries a duel benefit; getting your product in frontof the right people while building your website’s reputation with Google, Yahoo, Bing orwhichever provider a user chooses. They all work off similar ranking algorithms.Having conducted a search term based audit and competitor analysis, findings show thatlocal competitors have not paid attention to this vital aspect.The director has worked on many optimisation projects in the past, both with bigbudgets and with no budgets.One of the more recent projects was very similar to this particular task but had moreestablished online competition than Premier Estate faces.It took just over three months to find the top spots for that company’s required searchterms and the director sees this task as being fairly similar.

Digital marketing strategyPremier Estate will build relationships with high end property and lifestyle magazines,making deals for content to be placed both in the print version and/or on the respectivewebsites, depending upon each property’s associated marketing budget.The websites that content is placed on have to be relevant to the niche or Google’ssearch spiders will begin to wonder why, for example, a blog about mobile phones islinking to a website about property.Over the course of a contract with a popular daily deals website to place content andlinks on lifestyle based websites, the director built relationships with hundreds of websiteowners whose niche would fit well with Premier Estate.The director has already sent a mail out to all of these contacts from the lifestyle sectorto inform them of Premier Estate and the response has been encouraging, with many ofthem agreeing to link to www.premierestate.co.uk for free once up and running.Digital marketing will run alongside print marketing in that, when Premier Estate doesnot have enough of a budget from a property’s price bracket to pay for print, it willmarket the company and properties on the digital version – a much cheaper option.On occasions this will take the form of banner ads which can be quite cheap dependingupon payment structure or in the form of editorials which cost more but are better foruser engagement and search engine optimisation.Formulated content is best placed on and linked back from other websites, however, it isalso beneficial to place it on your own website in the form of news, blog and analysis,which Premier Estate will do on a weekly basis.This news, blog and analysis content will be shared on Premier Estate’s respectiveFacebook, Twitter and Google+ pages where user engagement can be tracked just thesame as Google Analytics tracks user engagement with the website itself.Companies who host their own videos are the ones that get the best results. The uniquecontent combined with term-related meta offers an opportunity to rank for search terms.This is really where Premier Estate will blow away the competition. The director hasalready built the framework for Premier Estate’s website to host video itself and thedirector expects many websites to link to Premier Estate’s video content, boosting SEO.

PR (free advertising)The nature of Premier Estate’s offering is naturally of interest to people. Premier Estateis not the first company to use presenter led video tours as a tool to sell houses but it isthe first outside of Cornwall to openly advertise the fact.Premier Estate already has contacts in local magazines and newspapers while also havingcontacts at Radio Norfolk.This is not simply a local strategy, though. Premier Estate will contact every relevantlifestyle magazine, focusing initially on high end living, to invite journalists to accompanyPremier Estate for a day’s filming to see how it operates.Editorials like this can cost thousands of pounds but if approached wisely can be obtainedfor free.The director has experience of this in the digital world and the same methods apply toprint also.Having a BA Hons in Journalism and having spent time working as a journalist, thedirector knows that a journalist is always scratching for an interesting, relevant story tooffer their readers.Premier Estate is too much of a paradigm shift to ignore and journalists/writers workingin the lifestyle field will most definitely be interested in what Premier Estate is doing.Premier Estate is and will be an ever-evolving company that expands into more locationsand different areas of industry.As each new branch is opened, Premier Estate sees an opportunity to target therespective local press.As Premier Estate moves into the hotels and holiday homes industry, Premier Estate seesan opportunity to target relevant magazines and websites, provided that no othercompany is doing this before Premier Estate gets the chance.Premier Estate has a wonderful opportunity to get in ahead of the market and completelydominate the video tour industry.

Additional low cost marketing strategy…Premier Estate aims to borrow the very minimum possible to successfully start thebusiness. The company’s in-house skills make it possible to negate any costs related towebsite design and build along with optimisation.In-house skills also make it possible to avoid costs relating to the design of marketingmaterials.Branding will usually be a significant portion of start-up costs for most companies but, inthis instance, the majority of the loan will be attributed to keeping the company runninguntil it makes its first sales; at which point it will be possible to immediately begin torepay the loan due to the substantial sum generated from every sale.With little marketing budget to play with, Premier Estate feels that an additional lowcost marketing strategy needs to be employed to coincide with radio advertising.Premier Estate’s additional strategy is to target properties with a value of £500,000+that have been on the market for six months or more or have been reduced in price. Aprice reduction indicates that the property may have been on the market for some timewith little interest.Fortunately, Rightmove shows the date that every property was originally instructed orlater reduced in price. It also shows the map location and an image of the property.If a property has been on the market for a considerable time or has been reduced, it islikely the vendor is feeling a little anxious about their chosen agent’s ability to sell theirhome. This is where Premier Estate can find an additional gap in the market.It is unrealistic to think that a flood of potential vendors will offer their properties fromday one of Premier Estate opening its doors so Premier Estate would benefit from havingthese properties on its books.Time and again you see vendors switch estate agencies and their house sells. This is downto marketing, presentation and pitch and there will be no company better at this inNorfolk than Premier Estate.

Properties reduced or listed for over six months…Below is a graphic to show the location of each of the 199 properties currently listed onRightmove as having been reduced or listed for over six months. A property that hasbeen reduced in price has very likely been on the market for over six months also.The map shows that there are two main concentrations of high value property inNorfolk; one being within a 20 mile radius of Norwich and the other stretching along thenorth west Norfolk coast from Holt to the Hunstanton area north of Kings Lynn.These are the two areas of Norfolk that Premier Estate will focus its additional marketingstrategy and will complete this stage of marketing within the first few weeks of thebusiness opening on July 1st 2016.

Expected returns from additional marketing…Premier Estate will continue to employ this type of marketing on a monthly basis;whereby a new list of properties that have been reduced or reached six months on themarket is drawn up and brochures are personally posted through the doors of eachproperty.From the initial brochure marketing, Premier Estate expects to receive interest from inthe region of 10-15% of vendors; 20-30 vendors.Premier Estate conservatively expects to convert 10% of these interested vendors or 2-3properties.Based on an average luxury property price of £750,000 (£10,500+VAT commission perproperty @ 1.4%+VAT) that’s an anticipated return of between £21,000 and £31,500from initial additional marketing activity.In 2016 there have been an average of 26 new high value properties per month that fallinto the category of having been reduced or having been on the market for over sixmonths.Over the course of the first year’s trading, on this average, there will be 312 propertiesthat will receive a marketing brochure through the door; that in addition to the initial199 delivered upon start-up.A total of 511 vendors will receive brochures in year one. Based on an expected 10-15%of recipients making contact with Premier Estate and an anticipated conversion rate of10%, Premier Estate expects to market between five to eight properties directly fromthis type of marketing in year one.Some of the commissions from these properties may carry over into year two’s sales butthis work will generate, based on an average commission of £10,500, between £52,500and £84,000.

Marketing outside the box (company shares)Due to the tiny marketing budget that Premier Estate has to work with, the company hasto think outside of the box.Roughly £1,000 has been allocated to a radio advertising run so the product really has tohit the mark.To generate quick interest from the right audience Premier Estate has opted to offer 5%of the company’s annual profits to the first 25 vendors.This is a great angle for a radio advert and serves the ultimate purpose of getting the rightpeople to the company website where the sale really happens.Without vendors Premier Estate cannot operate. The pay out to the vendor happens inthe future and no money is passed on until the company is making profit.Premier Estate expects to sign up a number of vendors from initial radio advertising but,due to the conservative nature of the company’s financial projections, even gaining oneor two vendors from this approach would see the financial projections on target.

How the company will operate (months 1 – 12)Premier Estate intends to begin trading on July 1st 2016 and will operate without anoffice for its year of trading, at which point Premier Estate would have completed on itsfirst properties and amassed enough profit to invest in renting and furnishing an office.During this time Premier Estate will operate as an online company. It will be made clearon the website that an office will be opening in the near future.With this model, the only monthly outgoings for the first year are outlined on the nextpage (Price brackets vs. selling costs).Premier Estate will employ an experienced agent on a self-employed basis (alreadyarranged and agreed) for the first year of trading. This position will become full-timewhen Premier Estate opens its first office on July 1st 2017.How the company will operate (month 13 onwards)Based on the company operating from July 1st 2016, the date for Premier Estate to openits first office will be July 1st 2017 (month 13).Premier Estate has found that the size of property needed in a fairly central location inNorwich city centre can be acquired for £11,500 per annum, inclusive of relatedbusiness rates. Utilities and running costs have been included in the projections also.From this date Premier Estate looks to be paying rent on an office with associatedrunning costs and employ the agent on a full-time basis. All costs have been factored intothe projections and are available in the Financial projections section.From July 1st 2017 (month 13), Premier Estate will need to employ a receptionist tolook after the office on a full-time basis.The office staff member will receive a salary of £13,200 per annum while the directorwill receive a salary of £27,000 and these costs have been factored into the projectionsalso.

Price brackets vs. selling costs…Below is a breakdown of individual property selling costs incurred by Premier Estate andshows the resulting profit gained from each price bracket, working on averages.This breakdown doesn’t take into consideration any monthly outgoings relating to officerunning costs, staffing costs or property portal costs; these costs are not per property soare factored into the Financial projections section instead. House 1.4% Av. Bonus Agent Video* Marketing Signs Gifts Cost Per Av. Profit Value Commission £7,700 £500 Comm.* £500 Budget £25 £250 Prop. £4,270.00 £9,100 £500 £500 £25 £250 £5,210.00£500,000 £7,000 - £10,500 £500 £1,155.00 £500 £1,000 £25 £250 £3,430.00 £6,150.00 - £8,400 £11,900 £500 £500 £25 £250 £7,090.00 £13,300 £500 £1,365.00 £500 £1,250 £25 £250 £3,890.00 £8,030.00£599,999 £8,400 - £17,500 £500 £500 £25 £250 £11,100.00 £9,800 £1,575.00 £1,500 £4,350.00£600,000 - £9,800 - £1,785.00 £1,750 £4,810.00 £11,200£699,999 £1,995.00 £2,000 £5,270.00 £11,200 - £2,625.00 £2,500 £6,400.00£700,000 £12,600 - £12,600 -£799,999 £14,000 £14,000 -£800,000 £21,000 -£899,999£900,000 -£999,999 £1m - £1.5m * denotes a cost that is not paid until completion on a propertyDependent upon the value of the property, a relative marketing budget can be attributedto each price bracket.In this section, the term ‘marketing’ refers to print, radio and digital. The marketingbudget for each price bracket is a guide and is variable at the discretion of PremierEstate.The commission to pay the agent also changes dependent upon the price bracket,however, all other costs remain the same, making budgeting a simpler task.

Financial projections for year one New Video Portals Office Costs Vendors Property Costs Agent Comm. £0 Budget 0 £0 £750 0Month 1 £2,275 £0 £0 £750 0 1 £0 £750 0 1 £2,275 £0 £0 £750 0Month £0 £750 0 2 1 £2,275 £0 £500 £750 0 £500 £750 0Month 1 £2,275 £0 £500 £750 0 3 £500 £750 0 1 £2,275 £0 £500 £750 0Month £750 0 4 1 £2,275 £0 £1,000 £750Month 1 £2,275 £1,575 5 1 £2,275 £1,575Month 6 1 £2,275 £1,575Month 2 £4,550 £1,575 7 2 £4,550 £1,575Month 8 2 £4,550 £3,150Month 9Month 10Month 11Month 12

Financial projections for year one continued Staff Director Monthly Running Costs Wage Sales Outgoings Income Profit/Loss Profit/LossMonth 0 0 0 £3,025 0 -£3,025 -£3,025 1 0 -£3,025 -£6,050 0 0 0 £3,025 0 -£3,025 -£9,075Month 0 -£3,025 -£12,100 2 0 0 0 £3,025 0 -£3,025 -£15,125 0 -£3,025 -£18,150Month 0 0 0 £3,025 0 £5,400 -£12,750 3 0 £5,400 -£7,350 0 0 0 £3,025 0 £5,400 -£1,950Month 0 £3,125 £1,175 4 0 0 0 £3,025 0 £3,125 £4,300 0 £11,550 £15,850Month 0 1 £5,100 £10,500 5 0 1 £5,100 £10,500Month 6 0 1 £5,100 £10,500Month 0 1 £7,375 £10,500 7 0 1 £7,375 £10,500Month 8 0 2 £9,450 £21,000Month 9Month 10Month 11Month 12

Financial projections for year twoMonth New Agent Video Portals Office Costs 13 Vendors Property Costs Comm. £1,000 Budget £1,213.33 £3,150 £1,000 £750 £1,213.33Month 2 £4,550 £3,150 £1,000 £750 £1,213.33 14 2 £4,550 £3,150 £1,000 £750 £1,213.33 2 £4,550 £3,150 £1,000 £750 £1,213.33Month 2 £4,550 £3,150 £1,000 £750 £1,213.33 15 2 £4,550 £3,150 £1,000 £750 £1,213.33 2 £4,550 £3,150 £1,000 £750 £1,213.33Month 3 £6,825 £3,150 £1,000 £750 £1,213.33 16 3 £6,825 £3,150 £1,000 £750 £1,213.33 3 £6,825 £3,150 £1,000 £750 £1,213.33Month 3 £6,825 £3,150 £1,000 £750 £1,213.33 17 3 £6,825 £3,150 £750 3 £6,825Month 18Month 19Month 20Month 21Month 22Month 23Month 24

Financial projections for year two continuedMonth Staff Director Monthly Running 13 Costs Wage Sales Outgoings Income Profit/Loss Profit/Loss £1,100 £2,250 2 £14,013.33 £21,000 £6,986.67 £22,836.67Month £1,100 £2,250 2 £14,013.33 £21,000 £6,986.67 £29,823.34 14 £1,100 £2,250 2 £14,013.33 £21,000 £6,986.67 £36,810.01 £1,100 £2,250 2 £14,013.33 £21,000 £6,986.67 £43,796.68Month £1,100 £2,250 2 £14,013.33 £21,000 £6,986.67 £50,783.35 15 £1,100 £2,250 2 £14,013.33 £21,000 £6,986.67 £57,770.02 £1,100 £2,250 2 £16,288.33 £21,000 £4,711.67 £62,481.69Month £1,100 £2,250 2 £16,288.33 £21,000 £4,711.67 £67,193.36 16 £1,100 £2,250 2 £16,288.33 £21,000 £4,711.67 £71,905.03 £1,100 £2,250 2 £16,288.33 £21,000 £4,711.67 £76,616.70Month £1,100 £2,250 2 £16,288.33 £21,000 £4,711.67 £81,328.37 17 £1,100 £2,250 2 £16,288.33 £21,000 £4,711.67 £86,040.04Month 18Month 19Month 20Month 21Month 22Month 23Month 24

Financial projections for year threeMonth New Property Costs Agent Video Portals Office Costs 25 Vendors £11,375 Comm. £1,500 Budget £1,213.33 £11,375 £4,725 £1,500 £750 £1,213.33Month 5 £11,375 £4,725 £1,500 £750 £1,213.33 26 5 £11,375 £4,725 £1,500 £750 £1,213.33 5 £11,375 £4,725 £2,000 £750 £1,213.33Month 5 £11,375 £6,300 £2,000 £750 £1,213.33 27 5 £11,375 £6,300 £2,000 £750 £1,213.33 5 £11,375 £6,300 £2,000 £750 £1,213.33Month 5 £11,375 £6,300 £2,000 £750 £1,213.33 28 5 £11,375 £6,300 £2,000 £750 £1,213.33 5 £11,375 £6,300 £2,000 £750 £1,213.33Month 5 £11,375 £6,300 £2,000 £750 £1,213.33 29 5 £6,300 £750 5Month 30Month 31Month 32Month 33Month 34Month 35Month 36

Financial projections for year three continued Staff Director Monthly Running Profit/Loss Costs Wage Sales Outgoings Income Profit/Loss £94,626.71 £103,213.38Month £1,100 £2,250 3 £22,913.33 £31,500 £8,586.67 £111,800.05 25 £120,386.72 £1,100 £2,250 3 £22,913.33 £31,500 £8,586.67 £137,398.39Month £154,410.06 26 £1,100 £2,250 3 £22,913.33 £31,500 £8,586.67 £171,421.73 £188,433.40Month £1,100 £2,250 3 £22,913.33 £31,500 £8,586.67 £205,445.07 27 £222,456.74 £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67 £239,468.41Month £256,480.08 28 £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67Month £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67 29 £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67Month 30 £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67Month £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67 31 £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67Month 32 £1,100 £2,250 4 £24,988.33 £42,000 £17,011.67Month 33Month 34Month 35Month 36

Loan requirement and how it will be usedThe requirement for the loan will be used exclusively to market Premier Estate’s first sixproperties (or first six months of trading).Based on the financial projections for the first six months, Premier Estate expects tospend £18,150 on marketing its first six properties.After this point (month 7 onwards) Premier Estate expects to start completing onproperties and therefore begin to make money. From month 7, Premier Estate can useprofits from sales to fund all future marketing activity.Premier Estate expects to have made enough profit by the end of year one that the initialcosts of opening an office and staffing it from month 13 can be adequately covered duethe high profit nature of the business model.Premier Estate would factor any potential loan repayment costs into the financialprojections but it is difficult, let alone presumptuous, to do so without knowing anypotential repayment terms.The director has already invested £3,057 into developing the Premier Estate brand andwill be investing a further £19,752 into developing the company throughout year one, aswell as investing £1,119 into initial marketing.By the end of year one, the director will have invested £23,928 into Premier Estate.Premier Estate is looking to borrow £18,150 to market its first six properties and £5,100to buy and brand a company car (an asset that maintains value and is sellable in a worstcase scenario).The director is investing a total of £23,928 and kindly asking for a total loan amount of£23,250.

Additional incomesThe luxury market expects a luxury service and that includes the provision ofIndependent Financial Advisors, Surveyors, Mortgage Advisors and Interior Designers.Premier Estate will select one company from each of these sectors as its preferredprovider for any potential client that needs any of these services.Premier Estate will expect a 10% commission on the invoice given to the client from theselected provider in these circumstances.Premier Estate will also provide a service by which viewers can watch property tours andenquire about particular furniture, fittings, ornaments etc that they’ve spotted andwould like to buy.Premier Estate will contact the relevant vendor and source the product for the enquirer,adding a fee on top for such a service.

A Premier state of mind…The most effective form of marketing for any company is word of mouth and PremierEstate is no different in this respect.Premier Estate will stand out above the competition because it is unique. When vendorsexperience something so different to what they’ve been used to, word will spread tofriends, family, colleagues and acquaintances.High value vendors tend to associate with high value company and this is where PremierEstate will capitalise.Premier Estate looks to tap into a mind-set of luxury and entitlement, focusing on boththe man and woman of the house. Premier Estate’s clients deserve the very best and theywill receive just that.From luxury flowers and chocolates to vintage spirits upon signing with Premier Estateand from professional video tours and fantastic customer service to luxury weekendbreaks upon completion with Premier Estate; everything about the company is designedto embrace and impress the luxury market.The high value market may be Premier Estate’s primary demographic, however, thecompany looks to generate a buzz that will filter to all demographics, particularly thedemographic aspiring to achieve properties such as those sold by Premier Estate.This is important for the immediate and long term success of the business. The aspiringdemographic may not be able to afford the properties sold by Premier Estate but theymay know somebody who is able to and at some point they may be able to themselves.Online, Premier Estate will almost run as a property channel. People will be able towatch episodes with tours of multiple properties in the same locale or choose specifictours of chosen properties.Just because an individual may not be able to afford a high value property, they may stillwatch Escape To The Country and countless programmes exist because of this aspiringdemographic.It is important to engage this demographic because as the company grows and costs canbecome more streamlined and guaranteed, Premier Estate will be in a position to offer avideo tour service to lower value vendors also.

A long-term plan…Premier Estate fully expects to hit all of its conservative targets in all three years’financial projections and potentially to even exceed projections.Premier Estate has plans for expansion as soon as is fiscally possible.Expansion plans include: 1. To separate the media side of Premier Estate into a subsidiary called Premier Media, which will employ digital designers and videographers to expand the Premier brand and allow the company to diversify its income streams. 2. To develop Premier Stay, a hotels and getaways portal that offers users the chance to tour the hotel before staying. Premier Estate will not charge the hotel/resort to film but will make money from commissions on bookings through its portal and also offer the hotel the opportunity to buy the rights to the respective video. 3. To develop Premier Holiday, a holiday homes portal beginning here in Norfolk. Users will have the opportunity to view videos of local areas and the holiday homes within the respective locale. Premier Holiday will generate income in the same manner as Premier Stay. 4. A larger central office for more staff and clients as the brand expands. 5. To open offices in Suffolk and Essex to make Premier Estate an East Anglian proposition. 6. To offer carefully selected franchise opportunities around the U.K. to make Premier Estate a national proposition controlled centrally from Norwich. Each new office must pay the subsidiary Premier Media for upkeep of its listings and creation of its videos.The company will not be content with a certain percentage of Norfolk’s luxury homesmarket.Premier Estate intends to invest as much profit as possible into these expansion plans toensure that the Premier brand becomes recognised locally and then nationally for itssuperior service and ability to deliver something a little bit special.In the long-term there is no reason why this model cannot be exported internationally. Itappears ideally suited to the North American market and this is an area that PremierEstate will explore when it has the time, money and enough success to warrant it.

About Premier Estate’s director…Thanks for your time reading this, I’m Ryan and hopefully you are as confident as I amthat the Premier brand will be successful in its short and long-term ambitions.I’m a father to two very young children and have taken the last six months out to helpmy partner while she has been recovering from illness.The six months have allowed me the opportunity to dedicate some time to developingPremier Estate; an idea that I’ve wanted to bring to fruition for some years.I’m looking for somebody to see the true potential of Premier Estate to dominate thisemerging market and trust me to make it happen.To a computer I’m a 30-year-old man who has been out of work for six months with anaverage credit rating – which I’m still rebuilding from my world travelling days as ayounger lad.In the real world I’m a friendly but driven individual with a wide range of technical andinterpersonal skills to make Premier Estate a nationally recognised brand.These technical skills have saved and will save tens of thousands of pounds over thecourse of the three years by not having to employ additional staff in these departments oroutsource these elements of the business in the short term.I have a degree in broadcast journalism which has given me the chance to present andvoiceover in the past. Being comfortable in front of the camera, in years one to three Iintend to present the video tours myself to save on costs.I have wide experience in graphic design and build for both web and print, have beenparticularly successful with search engine optimisation throughout my career and haveproduced the website and marketing materials myself to again save on costs.As I become busier and the business becomes more successful I will delegate many ofthese duties, however, to begin with it is vital that I can keep costs down.I’m under no illusion as to how much work will be involved from now onwards but I amdetermined to give my children the life they deserve and will not fail them.I really do hope you can see the potential in both the business and myself and would liketo thank you again for taking the time to consider investing in Premier Estate.