Executive Summary
Emerald Jet Home Loans is a mortgage broker based in its namesake, Seattle, Washington. The business was established in 2012 by Beatrice Matthews and Jon Marais.
The business targets a range of individuals needing a mortage loan for personal use and real estate investors. Our focus on non-traditional loans has gained us a strong foothold in the self-employed and freelancer customer segment.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $320,000 | $520,000 | $780,000 |
| Gross margin | 76% | 76% | 76% |
| Net profit / (loss) | $85,200 | $162,400 | $264,900 |
Company Overview
Emerald Jet Home Loans, LLC is a mortgage broker in Seattle. The business is founded and owned by Beatrice Matthews and Jon Marais. It was incorporated as an LLC in 2012. The housing market started recovering, and the founders saw an opportunity.
Our services include a range of mortgage services. We are known for our online presence and commitment to educating the masses about what it takes to buy a home.
The business gained ground during the market stabilization when millennials joined the demographic of homeowners. Houses were still expensive enough that people needed mortgages - which is where Emerald Jet Home Loans, LLC came in.
We pride ourselves on being a steadfast part of the real estate community in Seattle. Our clients trust us to provide tailored services considering all facets of their lives.
The uptake in sustainability is an opportunity we look forward to exploring. Environmentally conscious individuals are increasingly interested in making green renovations to their homes. This emerging customer segment presents an opportunity to partner with environmentally conscious lenders.
Emerald Jet Home Loans’ mission is to be a forward-thinking mortgage broker with a diverse client base.
We’ve embodied our mission by growing with market trends over the years. Self-employed individuals, particularly social media personalities, comprise a large portion of our client base because we had mortgage solutions for them when everyone else turned them away.
Legal structure: LLC
Mission: To deliver exceptional mortgage brokerage services to clients in Seattle, Washington, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $320,000, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $520,000, and hire additional staff
- Year 3: Achieve operational profitability, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The US mortgage broker market is valued at $48 billion. The industry is expected to have a compound annual growth rate of 5.5% until 2028.
A mortgage broker works with banks and individuals to facilitate home loans. They consider the home buyers’ financial situation and other factors to ensure that an appropriate loan is offered.
There is an increased global demand for home loans as people forego renting in favor of owning a home. The world is all about innovation, customization, and convenience. The mortgage broker industry is no different.
Home loan applicants don’t all work traditional 9-5 jobs anymore. The industry is expected to keep up with the emergence of new ways of earning money, such as social media influence. Self-employed people need to be accommodated in the home loan process.
On the convenience front, online mortgage brokerage services are increasing in popularity. The COVID-19 pandemic caused widespread online business operations, and many businesses are making a permanent switch to this way of operating.
However, the online business model comes with its challenges. Expanding online operations across borders requires an understanding of international regulations. Other factors, such as exchange rates and increased competition, can also make it challenging to operate an international online mortgage brokerage.
Customer analysis:
Our customer analysis revealed five major customer segments for the mortgage broker market in Seattle. One is a commercial segment, and the rest are all in an individual capacity.
The real estate investors' customer segment is the only commercial customer segment we focused on. They purchase properties with the purpose of making money from them. These properties are typically large plots of land, commercial buildings, or apartment buildings.
This segment needs a brokerage that is well-versed in large mortgage loans due to the nature of real estate investors’ purchases.
The non-commercial segments are:
- First-time homeowners
- Young professionals
- Upgrading homeowners
- Self-employed individuals
First-time homeowners are typically adults under 35 years old. They need education on the home-buying process and the mortgage options available to them. This segment is known for buying starter homes and needs small home loans. This group’s income ranges between $50,000 and $100,000 annually.
Young professionals and first-time homeowners can overlap, but this segment refers to professionals who have bought homes in the past. They are more familiar with the process and usually know what they are looking for. This group’s income ranges between $80,000 and $150,000 annually.
Upgrading homeowners have usually lived in their homes for years and are looking to scale up in size. This can be due to an expanding family or needing more space to work from home. People in this segment are between 30 and 50 years old with an annual income ranging from $75,000-$150,000. This segment often refinance existing mortgages to upgrade their homes instead of purchasing a larger property.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Quicken Loans (Rocket Mortgage) | Established brand, wide reach | Higher price point, less personalised |
| loanDepot | Strong marketing, national presence | Generic offering, less specialist focus |
| United Wholesale Mortgage | Competitive pricing | Lower service quality, limited expertise |
Emerald Jet Home Loans's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Emerald Jet Home Loans has 4 core sales goals. We aim to generate $5 million in revenue this year, with a loan origination value of $100 million. We aim to increase cross-selling by 15% this year. Finally, we aim to reach and maintain a 90% customer retention rate.
Our customer segments need:
- Simple loan products
- Competitive interest rates
- Fast turnaround times
- Flexible loan products
- Refinancing products
- Loans that consider self-employed individuals and freelancers
Pricing strategy: Pricing is set to be competitive within the Seattle, Washington, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for mortgage brokerage services in Seattle, Washington, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Seattle, Washington, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $32,000 (10% of projected revenue)
Additional marketing notes:
Our annual marketing budget is $230,000. We split the funds between a few marketing activities across four marketing categories.
The first marketing category Emerald Jet Home Loans uses is digital marketing. 40% of our marketing budget goes towards digital marketing and is split in the following way:
- Website $9,200 (4)
- SEO: $13,800 (6)
- Pay Per Click Advertising: $23,000 (10)
- Social Media Advertising: $27,600 (12)
- Email Marketing: $9,200 (4)
- Content Creation: $9,200 (4)
20% of our marketing budget goes toward traditional marketing and is allocated as follows:
- Print advertising: $13,800 (6)
- Business cards and flyers $9,200(4)
- Networking events: $23,000 (10)
10% of our marketing budget goes toward public relations and is allocated as follows:
- Charity and donations: $9,200(4)
- Brand partnerships: $13,800 (6)
The 5% of the marketing budget is allocated for miscellaneous costs. The remaining 25% goes toward the marketing team’s performance bonus.
Operating Plan
Business Goals/Objectives Department Activities Responsible Parties Generate new business Sales
- Implement SEO strategy Marketing team Process loans efficiently and ensure compliance Loan origination
- Process loan applications
- Conduct credit checks on applicants
- Verify applicant documents Operations team, Underwriters, Loan officers Increase public awareness of the home loan process and options Marketing and branding
- Sponsor local educational events on mortgages Marketing manager Ensure compliance with regulations and risk mitigation procedures is implemented Compliance and risk management
- Ensure loan agreements align with regulations
- Conduct internal compliance audits
- Use legal team to resolve legal disputes Underwriters, Compliance officer, Legal team Develop digital services Technology and operations
- Develop mobile app for loan applications and management
- Launch the app and integrate it with business operations Chief Technology Officer, Marketing Team
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Beatrice Matthews (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for mortgage brokerage operations in Seattle, Washington, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
Management Team
Founder and Chief Executive Officer Beatrice Matthews.
The CEO is responsible for the business’s overall performance and strategy direction. They are the first point of contact in all stakeholder relationships and lead all decision-making.
Beatrice is a University of Washington alumni with a bachelor’s degree and an MBA in Finance. She is a Certified Mortgage Banker and a Licensed Mortgage Broker. With 15+ years of experience in mortgage banking, previously holding the Vice President of Operations position at a mortgage broker, she is excellently equipped to be Emerald Jet Home Loans’ CEO.
Chief Operating Officer Maria Baker.
Maria holds a bachelor’s degree in Business Administration and is a Certified Mortgage Loan Originator. A chief operating officer maintains the business’s operations. They are to ensure that the business adheres to regulations and that processes are streamlined.
Maria’s prior experience prepared her well for the chief operating officer role at Emerald Jet Home Loans. She is an operations efficiency expert and has worked as the Director of Operations in another lending business.
Chief Financial Officer Denise Lee.
The chief financial officer is responsible for the financial planning, budgeting, forecasting, and reporting of a business. They also investigate opportunities for the business to grow financially and gain investments.
She is a Certified Public Accountant and Harvard Business School Alum. Her 10 years of experience in finance include being Head of Mergers and Acquisitions and CFO of SanFran Home Loans.
Vice President of Sales and Marketing Morgan Walker.
The vice president of sales and marketing is responsible for overseeing the overall functioning of the sales and marketing departments. We grouped these departments with one executive management team member because of how interrelated they are.
Morgan is a marketing degree holder with 13 years of experience in marketing mortgage brokers.
Chief Technolgy Officer Brandon Bersten.
Brandon is a computer scientist with 15 years of experience in developing mortgage software tools. He is responsible for managing our website and automating client screening. He has created a tool that gives clients an assessment wherever they are if they enter the necessary information. This has greatly improved our international operations.
Vice President of Customer Relations Laura Salima.
The vice president of customer relations is responsible for managing th customer service staff, developing strategies for customer satisfaction and customer management.
Laura has a Communications degree from the University of Washington and over 15 years of experience. She was the Head of Customer Service at the Seattle Bank before joining Emerald Jet Home Loans three years ago.
Beatrice Matthews — Founder & Director
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $5,000,000 $5,000,000 $6,000,000 Direct Cost of Sales $2,250,000 $2,250,000 $2,700,000 Total Cost of Sales $2,250,000 $2,250,000 $2,700,000 Gross Margin $2,750,000 $2,750,000 $3,300,000 Gross Margin % 55% 55% 55% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $800,500 $800,500 $920,000 Advertising/Promotion $230,000 $230,000 $230,000 Travel $15,000 $15,000 $17,000 Miscellaneous $10,000 $10,000 $10,000 Total Sales and Marketing Expenses $1,065,500 $1,065,500 $1,187,000 General and Administrative Expenses
General and Administrative Payroll $450,000 $450,000 $450,000 Depreciation $25,000 $25,000 $25,000 Dues and Subscriptions $4,000 $4,000 $4,000 Professional Fees $15,000 $15,000 $15,000 Rent $36,000 $36,000 $36,000 Software Purchases $30,000 $30,000 $30,000 Insurance $12,000 $12,000 $12,000 Telephone and Internet Access $10,000 $10,000 $10,000 Utilities $10,500 $10,500 $10,500 Miscellaneous $10,000 $10,000 $10,000 Payroll Taxes $80,000 $80,000 $80,000 Total General and Administrative Expenses $682,500 $682,500 $682,500 Total Operating Expenses $1,748,000 $1,748,000 $1,869,500 Profit Before Interest and Taxes $1,002,000 $1,002,000 $1,430,500 EBITDA $1,107,000 $1,107,000 $1,949,500 Interest Expense $0 $0 $0 Taxes Incurred $50,000 $50,000 $50,000 Net Profit $952,000 $952,000 $1,380,500 Net Profit/Sales 19% 19% 23%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $3,750,000 $3,750,000 $4,750,000 Cash from Receivables $1,250,000 $1,250,000 $1,500,000 Subtotal Cash from Operations $5,000,000 $5,000,000 $6,000,000 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 Subtotal Cash Received $5,000,000 $5,000,000 $6,000,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $1,748,000 $1,748,000 $1,869,500 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $50,000 $50,000 $50,000 Subtotal Cash Spent $1,798,000 $1,798,000 $1,919,500 Net Cash Flow $3,252,000 $3,252,000 $4,080,500 Cash Balance $3,252,000 $6,504,000 $10,584,500 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $3,252,000 $6,504,000 $10,584,500 Total Current Assets $3,252,000 $6,504,000 $10,584,500 Long-term Assets $250,000 $250,000 $250,000 Accumulated Depreciation $25,000 $50,000 $75,000 Total Long-term Assets $225,000 $200,000 $175,000 Total Assets $3,277,000 $6,704,000 $10,759,500 Liabilities and Capital
Earnings $952,000 $952,000 $1,380,500 Total Capital $952,000 $952,000 $1,380,500 Total Liabilities and Capital $952,000 $952,000 $1,380,500 Net Worth $4,229,000 $7,656,000 $12,140,000
Wrapping up the Mortgage Broker Business Plan
You’re almost ready to write your mortgage broker business plan. Let’s just recap what you’ve learned so far.
A business plan has nine sections, each covering a different part of the business. These sections are all interrelated and integral to your business’s success.
Following this guide, you’ll execute a perfectly written business plan with minimal fuss. We’re available to chat if you’re interested in leveling up your business plan writing skills beyond what we’ve done today.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $520,000 | $780,000 |
| Lender fees and direct origination costs | $76,800 | $124,800 | $187,200 |
| Gross profit | $243,200 | $395,200 | $592,800 |
| Gross margin | 76% | 76% | 76% |
| Salaries and wages | $76,800 | $124,800 | $187,200 |
| Marketing and advertising | $32,000 | $52,000 | $78,000 |
| Rent and utilities | $30,000 | $30,000 | $31,500 |
| Other operating costs | $19,200 | $26,000 | $31,200 |
| Total operating expenses | $158,000 | $232,800 | $327,900 |
| Net profit / (loss) | $85,200 | $162,400 | $264,900 |
Break-even analysis:
- Estimated fixed monthly costs: $10,500
- To cover fixed costs, Emerald Jet Home Loans needs to generate approximately $13,800 in monthly revenue
- Break-even is projected to be reached in Month 5 of trading
Key financial assumptions:
- Revenue growth of 62% in Year 2 and 50% in Year 3 based on planned capacity expansion and marketing investment
- Lender fees and direct origination costs estimated at 24% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at 24% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at 10% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one