Business Plan: Analysis of MOR & Partners Real Estate Venture

The assignment presents a comprehensive business plan for MOR & Partners, a startup real estate company based in Riyadh, Saudi Arabia. The plan outlines the company's innovative approach, which leverages virtual reality (VR) technology across its diverse range of high-quality products and services. These include real estate construction, development, renovation projects, architectural design, quality inspections, building materials, and landscaping services. The plan includes detailed sections on industry and market analysis, company description, target market identification, competitor analysis, and the economics of the business, encompassing revenue drivers, costs, and profit margins. It further elaborates on the marketing plan, design and development strategy, operational aspects, and management structure. Financial projections, including profit and loss statements and cash flow analyses, are also provided. The business aims to cater to both residential and commercial clients, offering state-of-the-art amenities and superior service within the competitive Saudi Arabian real estate market. The company's funding strategy, key success factors, and long-term prospects are also discussed, highlighting the potential for substantial growth.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student
Name of the University
Authors Note
Course ID

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Table of Contents
Executive Summary:..................................................................................................................4
Industry Analysis.......................................................................................................................6
Industry Size, Growth Rates and Sales projections:..............................................................6
Sales Projections:...................................................................................................................7
Industry Structure:..................................................................................................................7
Nature of Participants:............................................................................................................8
Key Success Factors:..............................................................................................................8
Industry Trends:.....................................................................................................................8
Long-term prospects:.............................................................................................................9
Company Description:...............................................................................................................9
Company History:................................................................................................................10
Mission statement:...............................................................................................................10
Products and Services:.........................................................................................................11
Current status:......................................................................................................................11
Legal status and ownership:.................................................................................................11
Key partners:........................................................................................................................12
Market Analysis:......................................................................................................................12
Market Segmentation and Target Market Selection.............................................................12
Buyer Behaviour:.................................................................................................................15
Competitor Analysis:...............................................................................................................15

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Competitor Analysis Grid:...................................................................................................16
Estimation of annual sales and market share:......................................................................18
The economics of Business:.....................................................................................................20
Revenue Drivers and Profit Margins:..................................................................................20
Fixed and Variable Costs:....................................................................................................22
Operating Leverage and its implications:............................................................................24
Start-Up Costs:.....................................................................................................................24
Break-Even Chart and Calculation:.....................................................................................25
Marketing Plan:........................................................................................................................27
Overall marketing strategy:..................................................................................................27
Product, Price, Promotion and Distribution:........................................................................28
Positioning and points of differentiation:.............................................................................30
Sales Process:.......................................................................................................................30
Sales Tactics:........................................................................................................................31
Design and development plan:.................................................................................................31
Development Status and Tasks:...........................................................................................31
Challenges and Risks:..........................................................................................................32
Projected Development Costs (INSERT TABLES)................................................................33
Proprietary Issues.................................................................................................................34
Operation Plan:.........................................................................................................................34
General Approaches to Operations:.....................................................................................34

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Organization and Management:...........................................................................................35
Health and safety plan:.........................................................................................................35
Environmental impact:.........................................................................................................36
Milestones............................................................................................................................36
Business locations;...............................................................................................................37
Facilities and equipment:.....................................................................................................37
Management team and company structure:..............................................................................38
Management Team:..................................................................................................................38
Management team gaps:...........................................................................................................39
Board of Directors:...............................................................................................................40
Board of Advisors:...............................................................................................................40
Company Structure:.............................................................................................................40
Specific Roles and Responsibilities:....................................................................................41
Overall Schedule:.....................................................................................................................42
Financial Projections............................................................................................................43
Important Assumptions:.......................................................................................................44
Projected Profit and Loss:....................................................................................................45
Projected Cash Flow Statement:..........................................................................................46
References:...............................................................................................................................50

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Executive Summary:
MOR & Partners is a start-up organization in Saudi Arabia. The business will be located in
Riyadh. The main business products includes the Real estate constructions, development, and
renovation projects (businesses construction, temporary working offices and ready houses
with variety of units) using the Virtual Reality (VR) technology; (2) Architect & designing
services; (3) Real estate quality and design inspections services; (4) Building materials; (5)
Landscaping and cleaning services. MOE & Partners will be making use of virtual reality
technology on wide variety of its high-quality products and services. The company will be
the one-stop shop for the customers relating to real estate products.
The company will be offering a benchmarked real estate units all across the Saudi Arabia.
The company will be safely balancing the cutting edge feature and positive atmosphere for all
its customers. The service will be provided to customers at unmatched level of customer
attention. The business anticipates a substantial amount of sales growth in the span of three
year. MOE & Partners will specifically target individual purchasers and sellers. MOE &
Partners main set of customers will be the residential customers who will obtain benefit from
unparalleled degree of quality, location and technological amenities. MOE & Partners will
also be marketing the professionals of local area and fresh graduates. These set of buyers
looks for safer, higher quality environments which can foster the type of atmosphere required
for the scholastic and unprofessional success.
The overall marketing strategy of MOR & Partners is to enter in the Riyadh real estate market
where the business can leverage its staff’s current reputation in a long-term contracts based
on excellent service and cost effectiveness. MOR & Partners believes that it is better able to
serve the market than the current operators operating in the market by providing the

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customers with an improved service package at a highly reasonable cost than the current set
of competitors of equivalent size.
MOR & Partners real estate business will be totally departmentalized. The main departments
is the finance, marketing, management, research and development. The co-owners of the
company will be presuming the responsibility of CFO while the other counterparts will be
considered responsible executing the duties of CFO. The company will be undertaking all the
decision in agreement with the mission of the company. The employees will be delegated the
tasks on the basis of their skills possessed by them.
The main sources of funds for the company is bank as the business will be taking a loan of
200,000 to fund for its initial purchase of capital assets. Apart from this there will also be an
owner’s contribution of $50,000 by each of the partners to make a total owners contribution
of $300.000. The owners fund will be simply put into use to purchase the materials and
manage the day-to-day business administrative cost and operational expenditure.
The business recognizes that the key to success of the business is to provide its customers
with the state of art amenities at the competitive price. In order to constantly expand the
ownership of number of units it will maintain a level of profitability for both the company
and its investors.

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Industry Analysis
Industry Size, Growth Rates and Sales projections:
In the last few years the real estate sales in Saudi Arabia and brokerage industry has
seen a growth in revenues by $137 billion and has provided employment to more than
1,085,000 people. There are 859,000 business operating in the market with an average
revenue made by per business stands $160,000. There are several agents that work on the part
time basis. This results in the average wage per employee within the industry of around
$13,000. The wage per employee is further downsized based on the market situation
(Aghazadeh, 2015).
The real estate industry of Saudi Arabia along with its health is viewed as the major
driver for the economy. Several key statistics have portrayed that the sale of new home,
houses in the market and average price of home in the market is tracked on a constant basis
by the reporting agencies. The Saudis have in the recent years have spend their petrodollars
carefully. They have made reinvestment in a larger portion of their funds in real estate and
have encouraged foreign investment.
Earlier the real estate market in Saudi Arabia particularly in Riyadh was in crisis
because of shortage in housing spaces, decline in the price of oil and other necessary factors.
This has led to the application of first mortgage law during 2012 together with seveal
government initiatives in the last few years (Ansoff et al., 2018). The government has also
bought forward the numerous schemes namely the Vision 2030 in order to increase the
foreign direct investment in Saudi Real Estate Market. The ultimate objective of the
government was to increase the foreign direct investment in Saudi Real Estate Market. The
government aims at improving the presence of affordable housing for the Saudi People.

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The market for higher quality under reasonable price apartment units has been
increasing at a faster rate of 6.7% since the introduction of numerous government schemes.
The real estate rates in Riyadh has averaged around $6.97 and $10.78 per square foot during
the fourth quarter of 2019 (Barringer, 2015). The real estate market is witnessing a significant
increase in growth with demands are fuelling in for renovation projects, construction of
apartments, temporary office for working and ready houses. Not only industry participants
are niche of affordable quality living, but they are also capitalizing on the strength of the
present economic development in Riyadh.
Sales Projections:
Sales Projections
X-Axis Label Sales Gross Margin
Year 1 $6,75,000 $3,24,250
Year 2 $7,42,500 $6,82,784
Year 3 $8,16,750 $7,28,061
Industry Structure:
The real estate industry in Riyadh can be broken down in three main segments. These
are as follows;
1. Real-Estate agents: This is regarded as the group of professional customers that are
actual realtors in the area. They operate in the market because they recommend or
require, a home inspection prior to purchase. Conducting an inspection makes a great
sense of business (Baum et al., 2014). These industry participants forces hidden
problems which ultimately becomes ostensible, significantly lowering the chances of
customers getting dissatisfied.
2. Individual purchasers: This group of market participants purchases the inspection in
order to avoid the occurrence of “caveat emptor” which implies that buyer should be

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aware. The sellers are motived to ascertain if there are any problems with house prior
to purchasing it.
3. Individual sellers: These market participants include smaller segment which is
relative to other two given participants above (Burns, 2016). These individual sellers
offers buyers with several units and assures them relating to the quality of unit bought
by them.
Nature of Participants:
Clients generally deal with the real estate companies on the basis of their reputations
of professionalism and quality of services provided to customers in past. This type of
reputation is hard for new companies to obtain unless their personnel brings it with them
from the earlier businesses (Chernev, 2018). Price as well as scope are considered noteworthy
reasons for accepting the products and services particularly if the company is small.
Key Success Factors:
The key success factors in the real estate industry are as follows;
a. Safe, quality housing which offers state of art amenities at the competitive prices.
b. Maintaining an open communication among the MSN and its customers to make sure
that the highest degree of customer satisfaction is obtained along with the good
reputation inside the industry.
c. To constantly expand the number of units owned and maintained whereas also
increasing the degree of profits for both the industry participants and their investors.
Industry Trends:
The real estate industry trend in Riyadh is regularly changing and leaving several
inflexible firms stagnant. The most important trend is the need for adopting to technological
development along with maintaining the overall appearance as well as condition of the

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complexities (David & David, 2016). Another notable trend that is noticed is the adapting of
higher density housing in small areas because of the growth in urban. The MOE & Partners
has dedicated themselves in following the current industry trends while simultaneously
maintaining the degree of comfort level which will significantly set the company apart from
its competitors.
The most notable revenue stream from the industry include the brokerage fees and
commissions that is received from the sale of residential property, revenue made from sale of
non-commercial property, renovation projects, temporary working offices, building materials
and design inspection services.
Long-term prospects:
Considering the long-term prospect of the business, a recent market survey conducted
by the partners of MOE & Partners have found that except for the big companies, modest
economies of scale is persistent all through the complete range of output (Drucker, 2014).
While the average size of the companies operating in the market is increasing, there are still
several real estate firms which is very small to take complete advantage of the cost present
demand. Hence, the market has complete potential to cater to the long-term prospect of
business since the large companies do not command a competitive advantage over the smaller
companies. The industry holds adequate opportunity for the new firms that are starting out
with the experienced leadership.
Company Description:
MOE & Partners will be located at Riyadh which will be a new residential real estate
brokerage company that will be specializing in virtual reality technology to include wide
range of high-quality real estate products and services (Frese & Gielnik, 2014). The company
will be operating under the professional setting, located conveniently next to the Bank Al-

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Farah in the centre of a shopping district. MOE & Partners will be headed by six partners
with a relevant experience of 10 years in the real estate industry.
The founder of the MOE & Partners has been in the real estate brokerage company for
some time until the founder decided to launch MOE & Partners. Exactly, throughout this
time, the founder decided to meet with the friends and fellow independent real estate broker
in Fort Lauderdale that had enjoyed tremendous amount of success. Following the discussion
of business at length, the partners understood that an identical business would yield
significant success in Riyadh (Ginter et al., 2018). The partners after conducting a survey on
the local populations have went ahead and founded MOE & Partners.
Company History:
Upon conducting the local market survey and customer base and funding for the
potential rental office, the partners of MOE & Partners incorporated the company under the
partnership forms of business. The owners experience will be leveraged in order to develop
the competitive strategy, together with the unapproachable degree of professionalism. The
company at the initial stage do not have any intention of hiring any additional employees and
will recruit accounting and sales staff.
Mission statement:
The mission of MOE & Partners for the first three years of operations are as follows;
a. Creating a service based whose main goal will be to exceed the anticipations of
customers
b. Developing highly sustainable real estate projects
c. To increase the total number of clients sold by 20% every year all through the
superior performance.
d. Offering its customers with the residential home inspection of highest quality

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e. Promoting substantial amount of sales in the first year of business operations and
expanding the business in a steady manner for the next three years.
Products and Services:
The products and service of MOE & Partners will be Real estate constructions,
development, and renovation projects (businesses construction, temporary working offices
and ready houses with variety of units) using the Virtual Reality (VR) technology; (2)
Architect & designing services; (3) Real estate quality and design inspections services; (4)
Building materials; (5) Landscaping and cleaning services. MOE & Partners will be making
use of virtual reality technology on wide variety of its high-quality products and services. The
company will be the one-stop shop for the customers relating to real estate products.
Current status:
Ever since the company has been incorporated, MOE & Partners has attained below listed
milestones
a. Found the space for office and have signed letter of intent to lease it
b. Developed the name of company, logo and website.
c. Hired an interior designer for the decoration and furniture layout
d. The business has also determined the sort of equipment and fixtures needed
e. Have started recruiting important employees
Legal status and ownership:
MOE & Partners will be formed under the limited liability partnership forms of
business. Under this form of ownership all the partners of MOE & Partners will be having
limited amount of liabilities. Under this form of ownership each partner will not be
considered accountable or liable for misconduct or negligence of another partner. In other
words, if any of the partners fails the credits cannot chase the partner for his personal assets