Property development companies benefit both individuals and businesses.
Property development companies work to provide housing and commercial business space through new construction and renovation of existing properties. You can establish your own property management company to provide construction services or even appraisals to lending companies or home buyers, and you can make a great living for your efforts. Property development companies benefit both individuals and businesses. Follow the steps below to establish your property development company.
Instructions
1. Learn about property development. Attend your local community or real estate college for seminars, conferences, and classes that educate you on real estate, business, and management-related topics to prepare to operate your property development company.
2. Create a business proposal for the first three to five years of your property development company operations. Detail your startup costs for equipment, licenses, fees, permits, and employees. Create a list of how much your property development company will have to make in sales to cover your startup costs and make a profit.
3. If you need capital for your startup, apply for business loans at financial institutions that offer loans with low interest rates, such as credit unions. Apply for business loans and grants through the Small Business Administration and the government, if more startup capital is needed.
4. Decide what property development services you'll be providing to your consumers, such as roofing and repair or heating installation. Begin with two or three services. Ultimately, you'll add more services as your clientele increases.
5. Hire your employees. All employees should be outgoing, hardworking, motivated, determined, easy-to-direct team players. Their duties should include taking phone calls, confirming estimates appointments, managing inventory control, and carrying out planned daily work routines. Hire at least one office manager and two employees to help you get started in building your property development company. One employee should be full time and the others should be part time. The office manager should be responsible for filing appraisals and invoices, weekly schedules, opening and/or closing, reviewing procedures, policies, and requirements for employees. The founder of the property development company should be responsible for payroll, daily deposits, recruiting employees, training, and overseeing each customer's account with the property development company.
6. Hire a certified public accountant (CPA) to oversee all finances, including incoming, outgoing, accounts receivable, and payroll. The CPA should prepare itemized lists every month of tax deductions, including fuel, work supplies, and utilities bills. Your CPA should prepare your annual business tax return. Visit the American Institute of CPAs to find a CPA in your local area.
7. Price your services. To price your services, calculate the cost of supplies, transportation, labor, and employees. Be sure your prices are competitive. Establishing your prices 10 percent lower than your competitors' prices is a good way to build business for your new property development company.
