A business plan for a cottage village is a complex project in which every detail must be thought through.
Business plan for a cottage settlement: where will the main investments go?
1) In the number of basic expenses, you need to include many items. And the most important costs will concern, of course, the purchase of land
It is impossible to calculate reliably how much such an acquisition will cost you. Since it all depends on the location of the site. If there are forests and water bodies nearby, then prices will be significantly higher (see also cottage village business idea ).
On the other hand, such investments pay off faster.
2) Any business plan for a cottage settlement should include a general development plan
In this matter, the number and type of houses that you wish to build matters. As a rule, in most cottage villages today there are about a hundred buildings.
You can build cottages of various levels, both VIP and economy. And this also needs to be taken into account in the plan.
The cost of erecting buildings includes both the purchase of materials and the remuneration of hired personnel, there are a lot of points here.
3) A significant item of expenditure will be the implementation of communication systems
Do not forget that without a complete infrastructure, even the most excellent business plan for a cottage village is doomed to failure.
Mobile communications, internet, water supply, electricity. For all this you need to spend a lot of money.
But without such costs, you will not be able to offer people your cottages.
4) If you want to build a high-level cottage village, then take care of the landscaping of the territory
The beauty of the streets in the village is no less important than the beauty of the surrounding nature.
5) In order for potential buyers to know about your offer, you need to spend money on advertising
However, this is not all. In the list of costs, include the costs of the subsequent operation of the village itself. After all, you will need to ensure, for example, that the light is always on in its streets. If you do not want to look after this yourself, then you will have to hire special personnel.
6) Your cottage village business plan should include tax deductions
7) Consider the possible risk of unexpected expenses
Perhaps something will not go according to plan and your budget should be ready for this.
Business plan for a cottage village: you need to start with sales!
How do owners of cottage settlements make a profit? Of course, thanks to the sale of their objects.
If the plan was really good, then even before the final completion of the construction, you can start to slowly recoup your expenses. But only if the demand for houses is high (you can read about how to maintain a high demand for cottages here ).
And here everything depends on the cottages themselves, and on their location, and on advertising. It is necessary to determine the price of individual objects taking into account the fact that the situation on the suburban housing market is dynamic.
Today prices are going up, but tomorrow they may stand still. But the value of real estate cannot fall if there is no emergency.
Business plan for a cottage village: project payback
In the case of a successful choice of location, it is possible to make a profit in the first year of the project.
In order to reduce the amount of their own investments, most developers attract third-party investments. Here you will need a high-quality and detailed business plan for a cottage village.
