Venture Concept No. 2

Opportunity

My opportunity is to take advantage of the large influx of people moving into Florida as well as the rapidly growing metropolitan and downtown areas of Florida. The potential customers that I imagine are young families that are looking to relocate to more popular areas of cities where events are going on. However, these typical customers also work in the area as well, allowing them to work and live without having to travel as much to enjoy thing around their residence while also having a short commute to work. The nature of this need is fairly basic. While the basis of my idea is predicated around building and selling a quality residence that supplies the basic need of shelter. The location is also desirable by building in areas that people want to live in. The main driving forces behind the large amount of people coming to Florida is due to climate, beaches and other touristy spots, no state income tax and an abundance of jobs. With these factors not likely to change anytime soon, it ensures that there will likely be a continued growth in the population of Florida with a constant supply of people moving into the state. Based on this, my window of opportunity will stay open for the foreseeable future as long as Florida legislation and tax law doesn’t change. Lastly, this opportunity has a huge potential to make money, which it involves a large upstart and a lot of work it can be turned into a very successful company as well as be able to expand to other real estate markets.

Innovation

The innovation, in part, in what I am bringing into the market would be a company that not only builds real estate, such as apartments and multi-family residential, but also sells them without having to go through another party or company. This will allow us to be able to supply desirable real estate at a lower cost without sacrificing quality. In addition to this, by practicing the most modern and efficient construction practices it will allow us to lower our building costs and allow for more revenue. We can do this by implementing new construction technology and with advances in construction coming out faster than ever before; if we can stay on top of new practices and continually innovating our build process, it will allow us to compete at the highest level. Secondly, our real estate sales would be in direct conjunction with our projects. By also implementing the latest in renderings and modeling, we will be able to pre-sell buildings while they are under construction. In addition to this, by hosting events with brokers and potential customers, this can help word spread fast about new projects. We will make money through sales of apartments within our real estate division as well as having the option to sell to investors to fund the project and save ourselves capital. As far as how much money specifically, it would vary widely. It could be anywhere from several hundred thousand for a building sellout, up to millions of dollars. The amount of money being made is directly proportional to the type of construction, the location, the quality of the apartments and the overall size of the building.

Venture Concept

My innovation will provide the quickly growing population of Florida with housing. By providing a superior product for less money to the demographic of people moving into the state it will make for a successful venture as well as one that has a continuous source of new customers. The reason customers would use my company is because we would be on the leading edge of real estate sales while also creating unique, quality housing in desirable locations. Competitors would be other construction companies as well as other real estate firms that focus on selling similar types of properties. Their potential weakness is that they either do one or the other, build or sell. My company would do both. Providing both of our teams, sales and construction, with knowledge about our products. Price point plays a huge role as we aim to price high quality housing for a lesser price than currently available. The customer experience and business location also play a huge role. The customer experience in building or buying a house can be very stressful so by making this process as easy as possible as well as providing options will help massively with customer relations. Lastly the business location must be ideal since it is hard to build and sell in a location far away from where the company is based.

I think my overall most important resource would be my networks that I already have established in my target area of Florida. This can be extremely helpful in finding subcontractors, information, financing, potential employees and even just general advice.

Second, my next idea for the venture would be to develop entire areas, not just one building at a time. By creating retail and office space in the areas that I am also building apartment building can help me create desirable areas for my company to build in. Instead of having to find areas that are popular, I would be creating the entire popular area itself.

Third, what’s next for me in five years I would like to have at least two building projects under construction as well as one or two already complete and close to sell out. As an entrepreneur I want to take what I’m good at and turn it into an entity that has the ability to successfully redevelop and develop areas of cities that will provide places for people to live work and enjoy. Most of the feedback for my venture concept has been positive, I think the biggest feedback I have received was that this would be a difficult company to start given that there are a lot of start-up costs involved and other requirements to be a licensed contractor as well as to sell real estate. In addition to this I received advice on what I would need to obtain before starting this venture. One of the biggest things was to ensure I have plenty of strong networks in the areas of investors, subcontractors, contractors, real estate brokers as well as teams for operating construction projects. This caused me to change from my originally idea by targeting a more specific market segment and focus on two main areas of my business, building and selling. What I also changed is that instead of trying to develop commercially and build real estate, start with real estate and then move on to other areas of development.