SEC-S20W1 | My Business Ideas | Real Estate Business

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Real Estate Business

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Best regards to you all.
This is a post about my participation in the Steemit Engagement Challenge - Season 20, hopefully, what I publish is by the expectations you want.

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Everyone should have an idea in their lives because from that idea all ideas and thoughts can be implemented realistically to get something that is expected. The idea becomes the first step before doing something so as not to be mistaken in carrying out the plan until the final goal is realized.

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In economics, ideas are needed to facilitate plans. The idea is the cornerstone of various business plans, to be arranged neatly in the hope of achieving the objectives of the economic activity. Of course, the last step after the idea is neatly arranged is the courage to start until the business plan is well implemented.

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Question #1- Are you planning to start a business or already in business?

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It's been a long time since I aspired to set up a business, when I was in high school, I majored in Business Management and had a passion to start a small business idea that I had thought of. Armed with the experience of basic sales Science in school, the ideals grew even though they ended up being different from reality. But the old plan that is still stored from the results of education and experience in school in the past, is still there and does not rule out the possibility for me to do in the future. Even the business idea that I used to think about, is still in the plan, not infrequently I still do simple research to continue to see the development of this type of business. Who knows at the right time and economic conditions, I can make it happen with all forms of information and circumstances by the development of the business that I aspire to.

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Ideas without a mature plan, the right time, and finances that are not good, will be faced with obstacles. Starting a business is not as easy as imagined, because before starting a business it needs some things as material or a picture of the possibility of the development of the business.

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The knowledge that I got in school used to be related to business is, that before someone starts a business, it takes initial Tips to get started. Among the initial steps are :

1. Do market research or target market, this is important so that your business lives and continues to grow for a long time.
2. Do a business plan, if the target market you already know. It includes many things, one of which is capital and expenses, you have to do it and plan it comprehensively.
3. Do Location research, because this is one of the important factors to make your business targeted by your target market.
4. Do something new, even if it's just the look of the store, the color of the store or anything that leads to something unique.
5. Do marketing, this can be advertising, distributing brochures (advertisements) or anything that lets people know about your business. Marketing is becoming the main key, it is a big voice funnel to reach many markets of your business.
6. Finally, there is no plan without evaluation, this is needed so that the business runs well and is arranged with a mature plan for a long time.

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With what I explained above, it sounds simple but I got that knowledge 20 years ago, when I was still in high school, and this is a good foundation for me if I want to realize my business plan in the future.

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Tell us, what is your chosen business? Or why do you want to join the business field? If your answer is that business can make you rich and famous quickly, tell us what your plans are and what business field you are planning to enter.

Speaking of my business of choice, the Real estate business is an option that I consider profitable and to be a business that can run for a long period. Why I chose this business is not without reason, this type of business is a type of business that is engaged in asset ownership and leasing, and this I think certainly offers its advantages. There are several important things to consider, which are present in the form of advantages of the real estate business.

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_{Image Source pixabay}

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Are you ready to do some research? Give me your answer to what you think within 200-250 words.

A. Capital.
The research I did for this type of real estate business itself was quite easy I had gone deep into it long before. In terms of capital needed, I have learned from some of my friends who first ran the real estate business (lodging rental), that some initial steps are :

1. Capital purchase of land or land, the selling price of land in the area that I plan to range from IDR. 400,000 to IDR. 700,000 per meter or equivalent to 154.2 Steem to 269.8 . (The price of land adjusts the location of the land itself, different locations and regions certainly make the price of the land different.) My plan Idea may require a land area of 225 square meters or 15 x 15 meters, which means the equivalent of IDR. 90,000,000 or 34.692 Steem when taking the cheapest land price.
2. Based on research and direct interviews with real Estate (lodging rental) my friend, the construction of 1 Building Unit consisting of one type of House unit 6 x 12 meters or 70 square meters, with 4 bedrooms for rent, requires construction costs of IDR. 350,000,000 or equivalent to 134.906 Steem, with a simple type House.
3. Overall in need of capital of approximately IDR. 90.000.000 (land price) + IDR. 350,000,000 (the price of the building), the total required funds of IDR. 440,000,000 or the equivalent of 169.954 Steem for the business capital.

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B. Advantages.
Know you from the results of research that I do, I know that this type of business has a pretty good advantage as a type of long-term business, these advantages include :

1. Property businesses such as the real estate business (lodging rental) will not be affected by inflation (a state in which goods and services increase in a certain time so that the economy slows down).
2. Given the risk, the real estate business is very likely to be a long-term business that will have minimal risk and can be classified in the category of safe businesses.
3. The real estate business (lodging rental) generates income that is fairly stable and sustainable without having to think about the entry and exit of goods like any other trading business.
4. The maintained selling value becomes the advantage of the real estate business (lodging rental), even profits can rise in the next few years according to its strategic location.

_{Own photo source}

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C. Income opportunities.
With the value of income that may always be stable, then this business has a long-term category to benefit. When referring to the research that I also did to know the income from this business, it can be explained that the building rental business that currently exists is renting rooms for prospective tenants, especially students and lecturers. Each room will be charged IDR rent. 600,000 to IDR. 700,000 per month per room rented, or the equivalent of 231.4 Steem to 270 Steem. The value will be much different if rented in the form of a house, which can reach IDR. 10,000,000 to IDR. 15,000,000 per annum or equivalent to 3.861 Steem to 5.792.8 Steem per annum.

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For me who lives in an area close to the lecture area or university, 2 major universities are the center of education here. All students gathered from various surrounding areas and even across provinces, domiciled temporarily around the campus. Thousands of entrants spend time at the venue in their college years, this is a big target market in the real estate business.

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_{Own photo source}

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Two of the 2 largest campuses are in Lhokseuamwe, an area where the real estate (lodging rental) business has a large target market.

_{Image Source : pnl.ac.id}

_{Image Source : aceh.tribunnews.com}

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Every year there will be new students who will settle for approximately 4 to 5 years of their education, so the need for housing or buildings for rental will be needed.

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With several government plans to build new universities as well as new departments at existing universities as a form of university expansion, the real estate business in the area will be a truly profitable business idea.

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Question #2- Keeping in mind that you can start your business alone or on a partnership basis, what is your idea of your business model? Describe in 200- 250 words.

The plan that came to my mind was of course the real estate business capital came from an individual business, that means my capital. Indeed, it requires a large capital to start a real estate business, because the price of land and building materials for the establishment of housing or renting rooms follows the price that is increasingly rising.

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In some examples that I have known, there is indeed some real estate that has been established and managed and has more than 2 people, which means some that have existed are real estate businesses that are done based on partnerships.

_{Image Source illustration from lhokseumawekota.blogspot.com : one of the lodging rental business}

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Question #3- Keeping in mind partnership businesses have both advantages and disadvantages, what is your idea of your business model? Describe in up to 200-250 words.

Not all businesses are easy to run, especially if you have to do business in partnership. Being the boss of your own business will be much better if the capital you have is sufficient. This will make us much more free to determine the policy direction of the business, without having to be intervened by any party.

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I think that partnerships will make you think about many things and considerations in doing new ideas with your business, so doing business individually is much more flexible and more profitable when reviewed from several aspects.

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Where do you see your business in the next five years from now and your plans in brief?

As I mentioned above the real estate business is a business that is classified as stable and long-term. The risk faced is quite small, considering that this type of business is not affected by inflation and the like.

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The prospect of winning in the next five years is not very significant, but the direction of this business itself remains in the long-term profits that can be generated. Therefore, in the next 5 years when the real estate business is running, it will grow steadily until the following year with continued profitability.

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Question #4- You are in a business now and doing well; let's know what your plans are and what efforts you are making to expand your business for the long term. Will you do it on your own or hire professionals?

Because it has advantages that can be said to be stable and have little risk, then the next 5-year plan or maybe the long term only lies in the maintenance of the property and also refreshed some parts of the real estate business.

_{Own photo source}

Facilities and renovation of some parts of real estate are part of the planning and evaluation of a business. Need professionals who must be involved in certain parts, for example in the construction section, which includes many things such as the construction process, maintenance process, and building repair process or when needed in the physical infrastructure of the building that may be seen in a certain period.

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Indeed, mentally I was quite ready to start this type of real estate business, but capital constraints became the main thing that prevented me from implementing a business idea that I had long aspired to. While experts are only needed at the beginning of this business, the rest of the experts are needed at a certain time and period.

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That's all my participation posts on this occasion, best regards to @aviral123
and @dove11, over Steemit engagement Challenge contest-Season 20 which is informative for all contest participants.

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About my account

Period	10 July to 10 September, 2024
Transfer to Vesting	389.573 Steem
Cash Out	0 Steem
Result	Club75
CSI	15.1 (0.00 % self, 88 upvotes, 64 accounts, last 7d)