Dear Buyer Letter

Dear Prospective Purchaser, When we started this business we wanted it to be an investment not just a job. We wanted it to grow in value as you would expect any investment would, we wanted the growth to reflect a fair appreciation of the dollar amount that we have invested plus an amount that would reflect the risk involved. Not to mention normal wages if we were also employed in the business. In order for that to happen we realised that it had to be an entity in its own right, it had to function separately from ourselves. We didn't want it to rely on personalities, as they may come and go. Instead we wanted it to succeed based on a structured format. In essence we have viewed ourselves as shareholders of (xyz real estate). Our first step in creating ( xyz real estate ) was to look at what we would have to achieve in order to be successful. In other words "What do we need to be competent at (good at) to be successful in this type of business" Much of this information was gained from looking at successful businesses both locally and elsewhere to form a picture of what makes these businesses stand out. Our conclusions led us to believe that the following broad areas are the ones that should demand our utmost attention. Some are unique to our industry others like Accounting, Financial Management and Staff Management are common to many industries. Whilst these are not unique to our industry, management of these we consider crucial to our success. SALES PROPERTY MANAGEMENT MARKETING ACCOUNTING STAFF MANAGEMENT FINANCIAL MANAGEMENT We then broke each of these down in to more specific areas such as: Gaining New Business Selling Property Marketing Auctions Negotiations PROPERTY MANAGEMENT Gaining new business Leasing Arrears Control Maintenance Correct Paperwork Etc, etc To ensure that we didn't just pay lip service to these needs we created roles within the business that would be accountable for each of the key areas.

As in the above example, when the business gets larger it may mean that becomes a full time Sales Manager and we employ a new person to take on the role of a Salesperson.

Our business has become role based not personality based.

At this stage we know what are the key areas of our business and we also know who will be responsible for them.

This only leaves the question of how we do it!

We then created the business format i.e..

"This is how we do business"

We asked ourselves these questions:

Ultimately they can say "This is how we do business"