A business plan that secured PLN 15 million for the construction of an apartment building.

Summary

Thanks to Well Done Business' experience working with construction developers, its knowledge of the requirements of banks in Poland and its ability to work under time pressure, the development company obtained the necessary financing to implement its project. This article details the process of developing a comprehensive business plan that contributed to the success.

Introduction

Background

The development company, a client of Well Done Business, specializes in building modern apartment buildings in attractive urban locations. In order to realize a new project to build a luxury apartment building, the company needed significant financial support from a bank. To this end, it turned to Well Done Business for help in developing a professional business plan that would convince the bank to grant a loan.

Challenge

The main challenge was to develop a business plan that would not only present the project as profitable and attractive for investment, but also meet the strict banking requirements on the formal side. It was necessary to take into account the specifics of the real estate market, financial projections and risks associated with the project. In addition, the entire process had to be carried out under great time pressure.

About Well Done Business

Well Done Business is a leading consulting firm that specializes in business consulting, financing and obtaining financing for clients in various sectors. We have extensive experience working with real estate development companies, as well as excellent knowledge of the requirements of various banks in Poland.

Our approach

Our approach to the development company's project was comprehensive and customized. We focused on three key areas:

1. Development of a complete business plan;
2. Strategic business consulting;
3. Support in the process of obtaining a loan.

Development of a Complete Business Plan

Understanding the customer's project and the market

The first step was an in-depth understanding of the apartment building project, its location and potential investment benefits. We conducted extensive market research, analyzing real estate trends, demand for apartments and competition. The data collected provided the foundation for developing a solid business plan.

Structure of the business plan

The business plan totaled dozens of pages and was designed to meet all banking requirements and present the project in an attractive light. Key elements of the business plan included:

• Project description: detailed information about the project, its location, size and planned amenities.
• Market and competition analysis: real estate market data, demand for apartments in a given location, and competitive analysis.
• Financial model: detailed financial projections including construction costs, projected revenues from apartment sales and profitability analysis. All done in excel by an experienced financial analyst.
• Marketing plan: an apartment promotion and sales strategy aimed at quickly achieving revenue targets.
• Risk management: Identify potential project risks and develop plans to minimize them.

Presentation and visualization

The business plan was enhanced (in cooperation with the client) with professional visualizations that helped illustrate the planned project. Key elements included:

• Renderings of the apartment building: visualizations of the building and interiors, which highlighted the attractiveness of the project.
• Graphical analyses: charts, graphs and infographics presenting financial data and market analysis.

Strategic business consulting

In addition to ordering a business plan, the client asked for additional business support in the form of investment planning advice. Our business consulting focused on optimizing the project to make it as attractive as possible for the bank as well as profitable for the client. Key consulting areas included:

• Cost optimization: analysis and optimization of construction costs to increase project profitability.
• Pricing strategy: Establish pricing strategy for apartments to maximize revenue and speed of sales.
• Implementation plan: A detailed project implementation schedule that ensured timeliness and cost control.

Facilitation of the credit acquisition process

Knowledge of banks' requirements

Thanks to our extensive knowledge of the requirements of banks in Poland, we were able to tailor the business plan and presentation strategy in a way that best met the expectations of lenders. Our activities included:

• Bank selection: the selection of banks that had the greatest potential to grant credit on terms favorable to the client. In addition, we warned the client against banks where procedures statistically take a long time.
• Contacting the bank about the business plan: we were the first point of contact for the bank if there were any questions or concerns from the credit committee / bank analyst regarding the business plan.

Result

Obtaining credit

Thanks to strategic cooperation with Well Done Business, the development company obtained a bank loan of 15 million zlotys for the construction of an apartment building. The financing obtained allowed the development company to:

• Project implementation: The start of construction of the apartment building as planned.
• Scaling up operations: increasing the scale of operations by implementing more projects.
• Strengthening market position: to increase its share of the real estate market and strengthen its position as one of the leaders in the local market.

Summary

Thanks to years of experience in creating business plans for financing, the project was able to complete 100% successfully. The client obtained financing, which was significantly influenced by the professional business plan. In addition, the client benefited from consulting services such as optimization of the business model and selection of the most favorable financing offer.

Sample references:

Learn more about creating business plans for construction developers - watch this video: