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Mrs. Katina Siple
Business Investor
829 11th Street
Plainwell, MI 49080
Dear Mrs. Siple,
Hello, I hope that this letter finds you well. I am a property developer looking for an investor for
my new house remodeling business. My company, Mandi’s Flipping Awesome Designs, would
love for you to make a small investment into one or more of our remodels for a full
reimbursement plus 10% interest.
Mandi’s Flipping Awesome Designs buys houses that have been on the market for a while and
remodels them. Each house will be redesigned and renovated by myself and my construction
crew. When the remodel is complete, Mandi’s Flipping Awesome Designs will sell it at a higher
price point.
I will be receiving my Business Associates Degree in 2019. I have also taken an Engineering
CADD class through Lake Michigan College to get the work experience needed for this
industrial field.
I appreciate you taking the time to read this and for taking this opportunity into consideration.
You can contact me through my email, mandisiple@gmail.com, or by phone at (678) 918-6464.
I hope to hear from you soon,
Mandi Siple
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Owner: Mandi Siple
Location: 829 11th Street
Plainwell, MI 49080
Phone: (678) 918 – 6464
Date: 5/2/17
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Table of Contents
Cover Letter………………………………………………………………………………………1
Title Page………………………………………………………………………………………….2
Table of Contents………………………………………………………………………………….3
Executive Summary……………………………………………………………………………4 – 6
PART 1: THE COMPANY……………………………………………………………………6 – 9
a) Company Description……………………………………………………………………..6
b) Mission Statement…………………………………………………………………………6
c) Company SWOT Analysis……………………………………………………………6 – 7
d) Product / Service SWOT Analysis……………………………………………………7 – 8
e) Competitive Analysis……………………………………………………………………..8
f) Competitive Advantage……………………………………………………………………9
PART 2: THE MARKETING PLAN………………………………………………………..9 – 13
a) Market Objectives…………………………………………………………………………9
b) Target Markets……………………..………………………………………………..9 – 11
c) Marketing Channels…………………………………………………………………….12
d) Product Strategy and Description………………………………………………………13
e) Pricing Strategy………………………………………………………………………….13
f) Promotion Strategy……………………………………………………………………..13
g) Place / Distribution Strategy……………………………………………………………13
PART 3: THE ORGANIZATION…………………………………………………………..14 – 15
a) Organizational and Legal Structure……………………………………………………..14
b) Insurance Requirements…………………………………………………………………14
c) Permit Requirements……………………………………………………………………15
d) Merchant Fees…………………………………………………………………………..15
e) Other Service Providers…………………………………………………………………15
PART 4: THE FINANCIAL PLAN…………………………………………………………16 – 18
a) General Risks……………………………………………………………………………16
b) Financial Assumptions…………………………………………………………………..17
c) Income Statement………………………………………………………………………..18
PART 5: THE APPENDICES……………………………………………………………...19 – 27
a) Appendix A: Owner’s Resume……………………………………………………..19 – 20
b) Appendix B: Photos of House Designs……………………………………………..21 – 26
c) Appendix C: References…………………………………………………………………27
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EXECUTIVE SUMMARY
Mandi’s Flipping Awesome Designs
Mandi’s Flipping Awesome Designs is a sole proprietorship for redesigning houses that
will begin in the year of 2025. Mandi’s Flipping Awesome Designs will be located in the city of
Plainwell, Michigan. It will be building its reputation in the general area of West Michigan.
Mandi’s Flipping Awesome Designs will provide it clientele with functional living spaces, well
renovated houses, unique designs, and quality customer service and satisfaction.
This housing business will present its customers with beautifully renovated homes that
will fit there every need. Although Mandi’s Flipping Awesome Designs will be selling at a
higher price point, each house will be well worth it in the end. Most of the expanse money from
Mandi’s Flipping Awesome Designs will be going into the renovations of the houses. This
business will be targeting people who wants to purchase or rent a new home with the financials
to do so. Therefore, customers of Mandi’s Flipping Awesome Designs will be getting a newly
renovated property for a descent price.
Management
Due to Mandi’s Flipping Awesome Designs being a sole proprietorship, Mandi Siple is
the one and only owner. She will be responsible for all of the different aspects of Mandi’s
Flipping Awesome Designs on a day-to-day basis. This will be her very first time starting and
running a small business. Ms. Siple has a strong passion for designing houses and a mind for
business. She is fully capable and skilled for her house flipping business. Ms. Siple is very
detailed oriented, hardworking, and well organized in her working environment. She is very
familiar with the architectural industry and has different connections in West Michigan.
Mandi’s Flipping Awesome Designs will have a professional crew the will have different
jobs (according to skill) to help finish the renovations. Ms. Siple has established several other
outside consultants, including an insurance agent, attorney, and contractors in the area. She also
has connections with the PNC bank that she banks through. This will help her in the financial
management and reporting of her business.
Target Market
Mandi’s Flipping Awesome Designs’ primary market includes people who will be first
time homebuyers between the ages of 25 to 45 years. These home buyers that are a part of
Mandi’s Flipping Awesome Designs target market would have a household income of $50,000
or higher.
Mandi’s Flipping Awesome Designs main office location will be at 829 11th Street
Plainwell, MI. Therefore, its primary trading area will be in Allegan County. Mandi’s Flipping
Awesome Designs’ secondary trading area will be Grand Rapids. Mandi’s Flipping Awesome
Designs’ business in these areas may attract people, not only in Allegan County, but throughout
West Michigan.
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According to City-Data.com the total number of housing units in Allegan County, MI is
50,007. The estimated median value of owner-occupied housing units from the years 2011 –
2015 is $140,400. The total number of housing units in the secondary trading area of Grand
Rapids is 134,789,944. The estimated median value of owner-occupied housing units in Grand
Rapids from the years of 2011 – 2015 is $109,400.
Competitive Positioning
There are similar businesses on the Eastern side of Michigan, but there are few
businesses like Mandi’s Flipping Awesome Designs on the Western side of Michigan. Mandi’s
Flipping Awesome Designs’ clientele will enjoy the most beautiful renovated homes that will
last them a long time. These houses will be designed and renovated by Ms. Mandi Siple and her
crew.
Some existing competitors include realtor companies and home improvement stores in
Allegan county. Although these places offer things related to houses they don’t compare to the
business that Mandi’s Flipping Awesome Designs provides.
Mandi’s Flipping Awesome Designs will focus on promoting its properties through
online advertising, social media, word of mouth, and personal relationships. It will also inform
its customers through a client database such as Zillow.com about new postings for new homes.
Ms. Siple will maintain many personal networks to help build awareness and interest in her
business.
Projected Sales and Income
Mandi’s Flipping Awesome Designs expects to receive sales revenues of approximately
$15,000 in the first year and up to $55,000 in the third year. The first year of business Mandi’s
Flipping Awesome Designs is going to finish one renovation, two in the second, and three in the
third. It may be possible to achieve higher sales than these estimates. Ms. Siple could also
increase her revenues for the business if she decides to flip more houses than she has already
planned. According to the comps that Ms. Siple has researched the target market chosen can
support her business.
The break-even sales for the first year are at $98,115 for one renovation. Please
remember that during the first three years of the business are most expensive for small
businesses due to high expenses, purchasing equipment, and being recognized by local
customers.
Financing
To raise this amount of money for start-up costs Ms. Mandi has saved about $80,000
from working and she has received the other $20,000 from friends and family. Ms. Siple’s total
investment of $100,000 will fund for the start-up costs of Mandi’s Flipping Awesome Designs.
This includes purchasing her first house for approximately $60,000; the main expanses for
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renovation at about $35,000. After fully renovating each house she will set a price for the
properties at a high enough amount that she will receive profits around her expectations.
PART 1: THE COMPANY
Company Description
Mandi’s Flipping Awesome Designs is a small start-up business in Plainwell, MI that will
be opening in the year of 2025. The small business, which is a sole proprietorship, is referred to
as Mandi’s Flipping Awesome Designs throughout the business plan. Mandi’s Flipping
Awesome Designs is a business that will be buying, remodeling, and selling houses.
Mission Statement
Mandi’s Flipping Awesome Designs’ mission is to provide its clientele with beautiful
remodeled houses at descent prices, so its customers can move in and have a new home that
everyone will love. We make homes, so you can make memories.
SWOT Analysis
Strengths of Mandi’s Flipping Awesome Designs:
• EXPERIENCE IN DESIGN
o Ms. Siple is an expert in designing. She has received a two-year
education in Engineering CAD from the Allegan County Technical
Education Center. Ms. Siple has also received her Business Associates
in 2019. Her experience in different designing software’s will help
create a design that will be more functional and better than before.
• RESOURCES
o Material resources for Mandi’s Flipping Awesome Designs can be
found at a local home improvement store. Having stores such as
Home Depot, Lowes, and Menards nearby makes this convenient for
the business.
• GROWING ECONOMIES
o Allegan county and the Grand Rapids area is growing fast. This
means more business for Mandi’s Flipping Awesome Designs.
• HOME – BASED BUSINESS
o Having the main office at home makes this easier to maintain, less
expansive, and more convenient for me.
Weaknesses of Mandi’s Flipping Awesome Designs:
• START – UP COSTS
o The start-up costs are pretty high and are going to take a while to get.
That is why I am estimating that I will have this amount around the
year 2022.
Opportunities from Mandi’s Flipping Awesome Designs:
• RENOVATIONS
o Beautiful, modern renovation that will make the houses up to date
• FUNCTIONALITY
o Functional / family friendly houses
o Opportunities for new families to move into brand new homes
Threats towards Mandi’s Flipping Awesome Designs:
• COMPETITION
o Realtor companies near by
• THE HOUSING MARKET
o House market values will fluctuate over time (aging of homes)
