The real estate industry is characterized by building and construction processes. Methods and forms of contract are diverse and changing as are the constraints of cost and time, city planning and building regulations. Real estate construction processes are complex and determined by the functional requirements of the occupying organization and the required comfort levels with regard to such conditions as noise, temperature, humidity and lighting. The income generating idea in the real estate industry proposes the construction of restaurants for purchase and rental in Dallas-Fort Worth following the identification of positive real estate investment fundamentals in the city.
The business income generating idea in real estate industry is aimed at the construction of restaurants in Dallas-Fort Worth for purchase and rent by fast food restaurants and fast casual restaurants in the US owing to the investment opportunities that are prevalent for these particular categories of business. The nationwide slow down in the overall growth of the restaurant business is attributable to scarce funding resources following the global recession, as well as the decline in development of shopping centers. For example, Wingstop, a restaurant franchisee based in Richardson had to revise its initial nationwide expansion from 77 to 65 restaurants (Robinson-Jacobs, 2009). Statistics contained in the Dallas Morning News indicate that, despite a 1.1 fall in the number of restaurants in Fort Worth between March 2008 and 2009, the overall outlook of the fast food niche was positive, having registered 0.8 growth during the same period (Robinson-Jacobs, 2009).
Notably, Big D has experienced less pronounced slow down largely due to the fact that about 60 of the restaurants are categorized as fast foods restaurants (Robinson-Jacobs, 2009).Ultimately, this means that Dallas-Fort Worth demonstrated strong growth fundamentals in positive growth in the fast foods restaurant niche as compared to the national outlook for the same niche which registered flat growth. The uncertain economic outlook in the national and Dallas Fort Worths real estate industry has therefore created gaps that can positively be conquered by strategic money making business ideas. Nonetheless, the general performance in the restaurant development niche has been positive with fast foods franchisees, such as Jack in the Box currently constructing five restaurants in Dallas and Mooyah having doubled its chain scale with the opening of seven restaurants since March 2009 (Robinson-Jacobs, 2009). Therefore, this particular business idea is based on proactive strategies that will see the identification and pursuit of economically viable real estate development opportunities in Dallas-Fort Worth.
Financial Estimates of the Fast Foods Restaurants Construction Business Ide
The idea of construction of business premises for fast food restaurants in Dallas-Fort Worth will be premised on acquisition and maintenance of high levels of working capital and liquidity during the start up and growth phases of the business. The business idea is estimated to cost approximately 500 million start up capital in the first year to cover the acquisition of land, fixed costs and variable costs. Strict financial management techniques will form the framework for finance and planning, budgeting, resource allocations, acquisition and disposal of capital resources and budgetary support from lending institutions in the United States. The good money making idea seeks to achieve 30 projected reduction of loan facilities and other funding by 2015 from lending sources such as banks, corporate investors and individual investors in a strategy that will go a long way in beefing up financial resources of this particular business of constructing fast food restaurants. Indeed, the initial years of the business will see the business raise more capital from retained earnings by limiting dividend payouts to both institutional and individual investors owing to the long term nature of the business. The good money making idea further relies on plans to reduce inventory spending by 50 million a year from 2011 to 2015 to achieve substantial reductions in inventory spending by a total of 200 million in the next five years.
Efforts will also be initiated to achieve annual reduction of spending on non-capital expenditures budget by 10 million every year so as to achieve the total of 50 million in capital conservation and liquidity preservation by 2015. The company will strive to deliver review programs of value for money in the distribution of pharmaceutical products and services. Cost control measures will be pursued to maximize returns from all the long term capital and financial investments of the company. The design and pursuit of multiple strategic objectives by the good money making idea stands out as an effective strategy for streamlining or spreading financial risks. (See appendices for breakdown of the financials)
Financial Justifications of the Income Generating Idea in the real Estate Industry
The good business idea is financially justified, because there are strong fundamental real estate fundamental indicators in the real estate construction industry in the Dallas-Fort Worth (Robinson-Jacobs, 2009). The fact that the business idea is targeting a particular expanding real estate niche experiencing demand for fat food restaurant premises, the idea is bound to generate big financial returns, a factor that will attract both corporate and individual real estate investors. The restaurant construction business plan will be supported by a 2.5 billion budget over the period of 5 years and appropriate short-term and long term measures will be put in place to guarantee the efficient and effective use of the scarce financial resources. The maximization of external funding from external sources such as the banks investor funds is a strategy that will go a long way in beefing up the financial resources of the restaurant construction business while lifting the tax burden from the investors. Similarly, the plan to raise future capital from retained earnings indicates that the business idea has a strong and reliable potential for making huge and constant margins while reducing financial risks at the same time. According to the theory of portfolio analysis, the reduction of specific financial risks can be achieved effectively through the creation of broad financial asset portfolios (Whittngton et al., 2006). Utility of financial resources will be enhanced through disposal of non-performing assets and optimization of existing capital assets.
Cost control measures will be pursued to achieve impact from all the investments of the financial resources of the business. In the next ten years, the restaurant construction business will strive to deliver review programs of value for money for all buildings constructed. This will facilitate the construction of restaurants in A-plus locations at cheaper rates by square feet and at more favorable terms and better rents so as to achieve speedy recovery of capital investments, gain a significant market share and develop long term relationships with restaurant franchisees. The real estate construction business will also adopt risk reduction approaches in the design of business plans and further implement a vision for access for all stakeholders. According to Whittngton, the efficiency perspective is what informs the philosophy behind the theory of strategic management because it defines the formulation of corporate objectives, development of plans for achieving the set corporate objectives and the allocation of resources for plan implementation (Whittngton et al., 2006).
Technical Justifications of the Income Generating Idea in the real Estate Industry
Structure and building services may be expressed or hidden. Height and size are no longer a problem, if it is acceptable to the planners and is economically viable. Ultimately, constraints of the proposed business idea are no longer technical given that resources and design options are almost limitless. The following question is more significant how will the technical freedoms be applied The business idea is a new innovative and attractive approach to investment and restaurant franchisees, because it will take into account the diverse functional requirements of commercial buildings by incorporating specialist inputs and understanding to establish customer specifications briefs before commencing the building of the customized fast food restaurants.
As such, the fast food restaurant will either purpose-built for particular customers or will be speculative and in either case, the first step will be the compilation of agreed briefs setting out the basic requirements of the fast food construction projects covering (1) purpose, function and scope including limitations of cost and time, proposed activities and organization including numbers and types of people concerned, internal and external service requirement and special functional requirements (2) design factors and required standards of covering internal and external environment spatial requirements, organizational relationships, and required groupings affecting layout (3) internal and external traffic limits required for pedestrians, vehicles and materials (4) factors affecting the type of construction expansion, alteration and change of use (5) phasing required and (6) special sensitivities or critical functions (Teicholz, 2001). To this end, the real estate business will be based on unique customizable technical concepts of building and construction because the changing expectations of tenants and business relationships have become major determinants of the volume and nature of buildings. Preferred designs for commercial buildings are generally complex, requiring great skills of coordination and resource management.
Safety Justifications of the Income Generating Idea in the real Estate Industry
Taking into account the increase in size and complexity of buildings, this particular fast food restaurant construction business will adopt appropriate systems designed to monitor and control the mechanical and electrical installations, fire protection and escape, burglary, assault and emergency communication. Given that fast food restaurants are generally high traffic buildings carefully and innovatively crafted security contingency and safety systems must be adopted. In addition to the structural precautions of fire protection and compartmentalization, special systems will be put in place to monitor and control the occurrence of unexpected incidents (Teicholz, 2001). Such control measures will include fire detection and suppression movement and protection of people smoke control including pressurization and barriers safe places of refuge and emergency communication arrangements. The safety arrangements for the proposed business will be integrated with those required to monitor and control the heating, ventilation and air conditioning systems in all the restaurant buildings constructed by the company, effectively making the idea very attractive to prospective restaurant franchisees and potential investors.
Strategic Justifications of the Income Generating Idea in the real Estate Industry
The economic, technical and safety solutions to the predetermined existence of demand in the fast foods restaurant construction niche of the real estate industry are on their own no longer sufficient. Whereas routine business management plays significant roles in achieving short-term and medium-term objectives, strategic planning will introduce the element of vision and futuristic approach to long-term organizational objectives (Whittngton et al., 2006).
The crucial link between strategy, performance management and development should be emphasized in the overall strategic planning measures of the business organization (Whittngton et al., 2006). Thus, adequate acknowledgement should be granted to the reality that strategic planning cannot be achieved in isolation given forecasts are susceptible to inherent uncertainties. Creative and innovative approaches will therefore be adopted in the design of strategic plans. Indeed, strategic management theory is viewed to be more or less procedural and spatial pursuit of business objectives, a definition that is in tandem with the pursuit of the good business idea of constructing restaurants as a capital and process oriented business.
As a matter of fact, process management involves sequential progress towards the achievement of targeted results, with the objective making processes more efficient through elimination of wasteful phases and components (Whittngton et al., 2006). Evidently, unlike the sequential progression expected of a process, restaurants construction business idea will assume the position of a learning organization and subsequently formulate and implement strategies in integrative and complimentary fashion out of recognition of the reality that knowledge cannot always be assumed to be perfect, subject to the prevailing conditions in the external and internal organizational environment.
The existence of numerous restaurant business managers and investors participating in the commercial real estate industry in Dallas-Fort Worth, despite the harsh economic conditions brought about by the global economic crisis, is sure a signal that major industry players are operating from deep understanding of the fundamentals of real estate industry. Simply put, the real estate construction industry plays a facilitative role for businesses by providing venues for operations and service provision. The prevalence of favorable restaurant growth opportunities in Dallas Fort Worth has particularly been boosted by constant rate population growth in the city which sparks of demand for real estate properties and services.
The business income generating idea in real estate industry is aimed at the construction of restaurants in Dallas-Fort Worth for purchase and rent by fast food restaurants and fast casual restaurants in the US owing to the investment opportunities that are prevalent for these particular categories of business. The nationwide slow down in the overall growth of the restaurant business is attributable to scarce funding resources following the global recession, as well as the decline in development of shopping centers. For example, Wingstop, a restaurant franchisee based in Richardson had to revise its initial nationwide expansion from 77 to 65 restaurants (Robinson-Jacobs, 2009). Statistics contained in the Dallas Morning News indicate that, despite a 1.1 fall in the number of restaurants in Fort Worth between March 2008 and 2009, the overall outlook of the fast food niche was positive, having registered 0.8 growth during the same period (Robinson-Jacobs, 2009).
Notably, Big D has experienced less pronounced slow down largely due to the fact that about 60 of the restaurants are categorized as fast foods restaurants (Robinson-Jacobs, 2009).Ultimately, this means that Dallas-Fort Worth demonstrated strong growth fundamentals in positive growth in the fast foods restaurant niche as compared to the national outlook for the same niche which registered flat growth. The uncertain economic outlook in the national and Dallas Fort Worths real estate industry has therefore created gaps that can positively be conquered by strategic money making business ideas. Nonetheless, the general performance in the restaurant development niche has been positive with fast foods franchisees, such as Jack in the Box currently constructing five restaurants in Dallas and Mooyah having doubled its chain scale with the opening of seven restaurants since March 2009 (Robinson-Jacobs, 2009). Therefore, this particular business idea is based on proactive strategies that will see the identification and pursuit of economically viable real estate development opportunities in Dallas-Fort Worth.
Financial Estimates of the Fast Foods Restaurants Construction Business Ide
The idea of construction of business premises for fast food restaurants in Dallas-Fort Worth will be premised on acquisition and maintenance of high levels of working capital and liquidity during the start up and growth phases of the business. The business idea is estimated to cost approximately 500 million start up capital in the first year to cover the acquisition of land, fixed costs and variable costs. Strict financial management techniques will form the framework for finance and planning, budgeting, resource allocations, acquisition and disposal of capital resources and budgetary support from lending institutions in the United States. The good money making idea seeks to achieve 30 projected reduction of loan facilities and other funding by 2015 from lending sources such as banks, corporate investors and individual investors in a strategy that will go a long way in beefing up financial resources of this particular business of constructing fast food restaurants. Indeed, the initial years of the business will see the business raise more capital from retained earnings by limiting dividend payouts to both institutional and individual investors owing to the long term nature of the business. The good money making idea further relies on plans to reduce inventory spending by 50 million a year from 2011 to 2015 to achieve substantial reductions in inventory spending by a total of 200 million in the next five years.
Efforts will also be initiated to achieve annual reduction of spending on non-capital expenditures budget by 10 million every year so as to achieve the total of 50 million in capital conservation and liquidity preservation by 2015. The company will strive to deliver review programs of value for money in the distribution of pharmaceutical products and services. Cost control measures will be pursued to maximize returns from all the long term capital and financial investments of the company. The design and pursuit of multiple strategic objectives by the good money making idea stands out as an effective strategy for streamlining or spreading financial risks. (See appendices for breakdown of the financials)
Financial Justifications of the Income Generating Idea in the real Estate Industry
The good business idea is financially justified, because there are strong fundamental real estate fundamental indicators in the real estate construction industry in the Dallas-Fort Worth (Robinson-Jacobs, 2009). The fact that the business idea is targeting a particular expanding real estate niche experiencing demand for fat food restaurant premises, the idea is bound to generate big financial returns, a factor that will attract both corporate and individual real estate investors. The restaurant construction business plan will be supported by a 2.5 billion budget over the period of 5 years and appropriate short-term and long term measures will be put in place to guarantee the efficient and effective use of the scarce financial resources. The maximization of external funding from external sources such as the banks investor funds is a strategy that will go a long way in beefing up the financial resources of the restaurant construction business while lifting the tax burden from the investors. Similarly, the plan to raise future capital from retained earnings indicates that the business idea has a strong and reliable potential for making huge and constant margins while reducing financial risks at the same time. According to the theory of portfolio analysis, the reduction of specific financial risks can be achieved effectively through the creation of broad financial asset portfolios (Whittngton et al., 2006). Utility of financial resources will be enhanced through disposal of non-performing assets and optimization of existing capital assets.
Cost control measures will be pursued to achieve impact from all the investments of the financial resources of the business. In the next ten years, the restaurant construction business will strive to deliver review programs of value for money for all buildings constructed. This will facilitate the construction of restaurants in A-plus locations at cheaper rates by square feet and at more favorable terms and better rents so as to achieve speedy recovery of capital investments, gain a significant market share and develop long term relationships with restaurant franchisees. The real estate construction business will also adopt risk reduction approaches in the design of business plans and further implement a vision for access for all stakeholders. According to Whittngton, the efficiency perspective is what informs the philosophy behind the theory of strategic management because it defines the formulation of corporate objectives, development of plans for achieving the set corporate objectives and the allocation of resources for plan implementation (Whittngton et al., 2006).
Technical Justifications of the Income Generating Idea in the real Estate Industry
Structure and building services may be expressed or hidden. Height and size are no longer a problem, if it is acceptable to the planners and is economically viable. Ultimately, constraints of the proposed business idea are no longer technical given that resources and design options are almost limitless. The following question is more significant how will the technical freedoms be applied The business idea is a new innovative and attractive approach to investment and restaurant franchisees, because it will take into account the diverse functional requirements of commercial buildings by incorporating specialist inputs and understanding to establish customer specifications briefs before commencing the building of the customized fast food restaurants.
As such, the fast food restaurant will either purpose-built for particular customers or will be speculative and in either case, the first step will be the compilation of agreed briefs setting out the basic requirements of the fast food construction projects covering (1) purpose, function and scope including limitations of cost and time, proposed activities and organization including numbers and types of people concerned, internal and external service requirement and special functional requirements (2) design factors and required standards of covering internal and external environment spatial requirements, organizational relationships, and required groupings affecting layout (3) internal and external traffic limits required for pedestrians, vehicles and materials (4) factors affecting the type of construction expansion, alteration and change of use (5) phasing required and (6) special sensitivities or critical functions (Teicholz, 2001). To this end, the real estate business will be based on unique customizable technical concepts of building and construction because the changing expectations of tenants and business relationships have become major determinants of the volume and nature of buildings. Preferred designs for commercial buildings are generally complex, requiring great skills of coordination and resource management.
Safety Justifications of the Income Generating Idea in the real Estate Industry
Taking into account the increase in size and complexity of buildings, this particular fast food restaurant construction business will adopt appropriate systems designed to monitor and control the mechanical and electrical installations, fire protection and escape, burglary, assault and emergency communication. Given that fast food restaurants are generally high traffic buildings carefully and innovatively crafted security contingency and safety systems must be adopted. In addition to the structural precautions of fire protection and compartmentalization, special systems will be put in place to monitor and control the occurrence of unexpected incidents (Teicholz, 2001). Such control measures will include fire detection and suppression movement and protection of people smoke control including pressurization and barriers safe places of refuge and emergency communication arrangements. The safety arrangements for the proposed business will be integrated with those required to monitor and control the heating, ventilation and air conditioning systems in all the restaurant buildings constructed by the company, effectively making the idea very attractive to prospective restaurant franchisees and potential investors.
Strategic Justifications of the Income Generating Idea in the real Estate Industry
The economic, technical and safety solutions to the predetermined existence of demand in the fast foods restaurant construction niche of the real estate industry are on their own no longer sufficient. Whereas routine business management plays significant roles in achieving short-term and medium-term objectives, strategic planning will introduce the element of vision and futuristic approach to long-term organizational objectives (Whittngton et al., 2006).
The crucial link between strategy, performance management and development should be emphasized in the overall strategic planning measures of the business organization (Whittngton et al., 2006). Thus, adequate acknowledgement should be granted to the reality that strategic planning cannot be achieved in isolation given forecasts are susceptible to inherent uncertainties. Creative and innovative approaches will therefore be adopted in the design of strategic plans. Indeed, strategic management theory is viewed to be more or less procedural and spatial pursuit of business objectives, a definition that is in tandem with the pursuit of the good business idea of constructing restaurants as a capital and process oriented business.
As a matter of fact, process management involves sequential progress towards the achievement of targeted results, with the objective making processes more efficient through elimination of wasteful phases and components (Whittngton et al., 2006). Evidently, unlike the sequential progression expected of a process, restaurants construction business idea will assume the position of a learning organization and subsequently formulate and implement strategies in integrative and complimentary fashion out of recognition of the reality that knowledge cannot always be assumed to be perfect, subject to the prevailing conditions in the external and internal organizational environment.
The existence of numerous restaurant business managers and investors participating in the commercial real estate industry in Dallas-Fort Worth, despite the harsh economic conditions brought about by the global economic crisis, is sure a signal that major industry players are operating from deep understanding of the fundamentals of real estate industry. Simply put, the real estate construction industry plays a facilitative role for businesses by providing venues for operations and service provision. The prevalence of favorable restaurant growth opportunities in Dallas Fort Worth has particularly been boosted by constant rate population growth in the city which sparks of demand for real estate properties and services.
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