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

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or income. Under the limited liability partnership, the risk will be diversified (Hill et al.,
2014). The individual skills as well as expertise will also be diversified as well.
Key partners:
The key partners of MOE & Partners are as listed below;
# Name Position Education Experience
1 Mohammed
Sindi
General Manager
Bachelor’s in Business
Administration
7 years
2 Omar Alqahtani HR Manager Bachelor’s in HRM 5 years
3 Rashed .... Finance & Accounting
Manager
Bachelor’s in Finance 8 years
4 Hani Mahroos Project Manager High school 20 years
5 Mohammed
Mahroos
Engineer Manager
Bachelor’s in architecture
engineering
10 years
6 Mohammed
Alsulaiman
Legal Manager Master’s in Law 15 years
Market Analysis:
MOE & Partners will be completely emphasizing on the two general group of
customers first being the real estate agents while the second will be creating a strategic
relationship with agents which will comprise of financial incentive for them (Hubbard et al.,
2014). The agents will help MOE & Partners in providing a steady flow of consumers as this
will be in the best of interest of agents for the houses which they are looking to sell and
assure that the customers are satisfied.

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Market Segmentation and Target Market Selection
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 (Kerr et al., 2014).
These set of buyers looks for safer, higher quality environments which can foster the type of
atmosphere required for the scholastic and unprofessional success.
Target market segmentations includes the following;
a. Renters and potential renters: Renters under this area are either in a temporary
situation where it makes higher financial sense to rent instead of purchasing or these
set of customers are making an attempt to save towards the purchase in area. A small
part of this group comprises of the life-long renters that hardly purchase home
(Kirzner, 2015). These group of renters are generally the younger who average 25
years of age in home buyers. These renters change residential homes at a quicker rate
than the owners, leading to a greater number of new rental closings each year in the
communities with more number of homeowners.
b. Home purchasers: Home purchasers that are averaging the age of 33 years in this
area, comprises of the part of those renters and some of the homeowners in the
community but they are largely made up of individuals that are shifting in the
community (Kuratko, 2016). Therefore, these set of group generally visit the town
from a long distance and can be found located anywhere from five miles away on the
other side of the country. Home purchasers generally value a real estate service
provider that carry knowledge not simply regarding the homes but also regarding the
real estate market as a whole and shows the purpose of completely negotiating well on
behalf of these customers.

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c. Local professionals: The local professionals are another set of large target market
segment. They will simply be attracted to units due to the new technological
requirements but would also be attracted to comfortable, nicely maintained living
environment (Lasserre, 2017). MOE & Partners will offer these professionals with
working offices which will serve as a quality hub among the home and office
ownership. The MOE & Partners anticipate these segment to attain a growth at a rate
of around 4% with regular turnover.
d. The professional segment requires living environment which separates them both
from the noisy, dirty inconvenience of the average apartment living. A large number
of professionals are found to be on their way towards home ownership or have moved
to large city and hence they require housing which will allow them to feel like they
are getting the needed quality.
Target market:
The partners of MOR & Partners are looking forward to target the customers that are
looking forward to build or renovate their houses particularly the employees of Aramco.
MOR & Partners target market includes the businesses which is looking forward to create
offices or rent a temporary offices (McDonald, 2016). MOR & Partners will be focussing on
the businesses that are looking forward to initiate their investment construction projects and
also includes those customers that are looking to purchase the best, state of art, higher quality
building materials.
The target market of MOR & Partners includes the residential and businesses
customers that are also looking for cleaning and landscaping products and services. Finally,
MOR & Partners will also target residential and businesses that are looking to get a quality as
well as design inspection services (Morden, 2016). MOR & Partners believes that its

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unparalleled amount of quality as well as technological amenities has placed MSN in a niche
of its own. This will be considered as the focal point of all its marketing and advertisement
efforts. These segments can be easily reached throughout the newspaper and publications. It
is important for the customers of MOR & Partners to understand their needs are the priority
of the company.
Buyer Behaviour:
The purchasing patterns of the real estate buyers appears to be dependent on referrals and
advertisements. The home purchasers usually ask for those that are already in the industry if
they can provide recommendation for a home inspector provider. If they do not have an
understanding of someone then they would look for numbers in local magazine for homes
and offices. At last these buyer also check the yellow pages.
The real estate property seekers also asks to their realtors and would look for someone for
some type of advertisement (Parker, 2018). The purchase patterns of these customers is that
they will find an inspector since they are operating in a industry, they classically know people
so they would usually not be looking for advertisement to make their decision as who can be
recommended. The real estate property owners make decision on the basis of three priorities
namely the price, convenience and quality. The individual vitality of these priorities is reliant
on the position of the owner. These are as follows;
a. Pleasure owners might prioritize the quality, price and convenience
b. Casual owners might place their priority on convenience, quality and price
c. Finally, the business owners may place their priority on price, convenience and
quality.
MOR & Partners has the capability to meet all of the above given purchasing patterns.

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Competitor Analysis:
Direct and Indirect Competitors
The real estate industry in Saudi Arabia is largely fragmented with large number of
probable rivals. MOR & Partners competitors are located inside the 20 mile radius. The list of
competitors include Bodwitch Realty, Saken Real Estate Company, Albadia Real Estates and
Shumool Real Estate. They provide either direct or indirect competition for customers.
Bodwitch Realty:
This company is located Riyadh which is a franchise of nationwide real estate chain.
The company has ten part-time workers and provides database of rental all throughout the
country and sale of properties with higher brand recognition.
Saken Real Estate Company:
This is an independently owned and operated company which employs five full time
brokers and emphasizes on luxury sales of residential real estate. These company provide
numerous exclusive listings and provides deep services for purchasers and sellers for their
luxury homes.
Albadia Real Estates:
Albadia Real Estates is a regional company that has 100 active brokers across the
regions. This company has attained growth significantly even since its foundation fifteen
years ago by emphasizing simply the rentals and sales. Albadia Real Estates is very much
well known among the renters as the low-fee source of rental to locate quality apartments.
Shumool Real Estate:
This is a nationwide chain of real estate with an employee strength of fifteen brokers.
The company agents are experienced and produces higher turnover leading to concerns of

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maintaining ongoing relations with the clients. The agents are mixed in quality which ranges
from part time brokers to the little experience or sales records with full time employees
having long-term experience.
Competitor Analysis Grid:
Competitor Name Strength Weakness
Bodwitch Realty  Emphasizes on
luxury sales of
residential real estate
 Well known among
the renters as the
low-fee source of
rental
 Lacks technological
advancement
 Less experienced
staff
Saken Real Estate
Company
 Provides database of
rental all throughout
the country
 High sale of
properties with
higher brand
recognition
 Limited to Riyadh
local market
 Only targets
residential customers
for rental purpose

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Albadia Real Estates  Regional company
with employee
strength of 100
active brokers across
the regions.
 The company is very
much well known
among the renters as
the low-fee source of
rental to locate
quality apartments.
 The company is
technologically not
advanced and lacks
the use of virtual
technology
 The company does
not take into account
the business
customers and only
targets local renters
Shumool Real Estate  Has a nationwide
chain of real estate
with an employee
strength of fifteen
brokers.
 The company agents
are experienced and
produces higher
turnover.
 The company faces
the problems in
maintaining ongoing
relations with the
clients.
 The agents are mixed
in quality which
ranges from part
time brokers to the
little experience.
Estimation of annual sales and market share:
Estimated Annual Sales
X-Axis Label Sales Gross Margin
Year 1 $6,75,000 $3,24,250

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Year 2 $7,42,500 $6,82,784
Year 3 $8,16,750 $7,28,061
Table 1: Table Showing Estimated Annual Sales
(Source: As Created by Author)
Year 1 Year 2 Year 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$675,000 $742,500
$816,750
$324,250
$682,784 $728,061
Gross Margin
Sales Gross Margin
Figure 1: Figure showing gross margin
(Source: As Created by Author)
Market Analysis
Potential Customers Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Real Estate Agents 1022 1135 1265 1385 1458 9%
Individual buyers 17502 18785 19632 21592 22597 10%
individual Sellers 11354 13585 14589 15698 15325 9%
Total 29878 33505 35486 38675 39380 9.33%
Table 2: Table Representing Market Growth CAGR
(Source: As Created by Author)

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Year 1 Year 2 Year 3 Year 4 Year 5
0
5000
10000
15000
20000
25000
1022 1135 1265 1385 1458
17502 18785 19632
21592 22597
11354
13585 14589 15698 15325
Market Analysis
Real Estate Agents Individual buyers individual Sellers
Figure 2: Market Analysis Chart
(Source: As Created by Author)
The economics of Business:
Revenue Drivers and Profit Margins:
In the construction Industry, there are large number of ways a business can increase
their profit margins, even when a company is new to the business. The revenue drivers for
MOR & Partner will be its real estate construction, development and renovation projects
(Proctor, 2014). The business will be setting realistic targets as this will help in keeping the
business on track where MOR & Partner wants it to be in the first year, second year and the
rest of the years down the line. The business will be setting the overhead at a minimum of
20% yearly return on the fixed costs based on the estimation and marketing to accounting and
office supplies. Furthermore, there will also be a job cost for a specific project.
The Job Cost will be considered specific to each job of the organization which will
range from labor and equipment to project management and worker’s compensation (Read et
al., 2016). On the basis of the MOR & Partner the company will be setting the profit margins
and goals relating to gross profit and net profit. The goals for profitability is for growing the

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business and paying the owners, management and personnel. The baseline goals for MOR &
Partner is always set to make a certain amount of profit and it is aimed between 15-20 per
cent of the gross profit.
Apart from this, MOR & Partner will also keep an eye on the profitable niches where
it will be able to devote more amount of resources and make the more amount of money
(Rothaermel, 2016). The entire business model of MOR & Partner will not simply revolve
around one thing, but it can have the dedicated teams or set the percentage of business that
the owners of MOR & Partner wants to devote a specific area. MOR & Partner as an example
of niche market will focus on residential construction, renovation of repossessed buildings,
restoration of the older buildings and temporary rentals.
Besides focusing on the niche market for revenue drivers and profit margins, MOR &
Partner will also emphasize on minimizing waste in an effort to attain higher profit and drive
revenue. There is no hidden secret that construction site produces wastes (Šimberová, 2014).
The Saudi Arabian government has been emphasizing on encouraging the construction firms
to lower the waste not only to simply safeguard the environment but also act as the means of
cutting back the lost profits. MOR & Partner will emphasize on the lumber and manufactured
wood products which can alone make up around 35 per cent of the construction waste. The
company will set up programs to reduce the construction waste and can lower the job site
savings which can turn into a better bottom line.
MOR & Partner will optimize designs to make a maximum use of the purchased
materials at the supplied dimensions. Furthermore, it will store materials to reduce the risks
of damage and theft (West et al., 2015). MOR & Partner will keep back the scraps for back
up purpose or patch pieces.

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Fixed and Variable Costs:
Any kind of construction projects comprises of both the direct as well as indirect costs
which results in total costs and expenditure leading to use of principal components for
implementing in the construction projects. MOR & Partner provides the classification of
different types of cost involved in construction projects and their features are explained
below;
Fixed Costs: This would involve the cost that is spent once for a specific point of time. The
purchase of equipment, machinery etc. falls within the fixed costs assets.
Costs relating to time: For MOR & Partner the time related costs would involve the cost that
is spend for a particular activity for a given time period (Armstrong & Taylor, 2020). This
would comprise of the costs that is spent on wages, equipment and building rents.
Quantity Proportional Costs:
This type of cost MOR & Partner will differ on the basis of the quantities. Material costs
are considered as the example of quantity proportional costs. These costs are further
classified for construction projects of MOR & Partner;
a. Project direct costs
b. Project Indirect costs
Direct costs of construction project:
The costs and expenditure which is responsible directly on the facility, function or
product are known as direct costs. In the construction projects, the direct costs involves the
costs which is occurred on the labor, material and equipment etc. These costs for construction
projects of MOR & Partner are formed as estimation by performing a detailed analysis
relating to contract activities, methods of constructions, the site conditions and resources

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(Bratton & Gold, 2017). MOR & Partner assumes that the different direct costs in the
construction projects involves the material costs, equipment costs, labour costs and
subcontractor costs.
Indirect Costs of Construction Project:
These costs unlike the direct costs are not accountable directly for the specific facility,
product or function. The indirect costs can be either variable or fixed costs. The main sections
that falls within the indirect costs are personnel costs, security costs and administration costs
(Chelladurai & Kerwin, 2018). These type of costs do not have the direct relation with the
construction of project. The indirect costs of MOR & Partner is further classified into
following;
1: Project Overhead Costs: MOR & Partner assumes that during a construction project,
costs associated to certain items cannot be directly allocated for a specific activity. Majority
of the costs associated to construction site fall under this section and it is categorized as the
project overhead costs. The project overhead costs can be either fixed or costs related to time.
Different costs falling under the overhead costs are the costs of stores, costs relating to safety
facilities, workshops, staffs and offices (DeCenzo et al., 2016). All the plants that is needed to
support the working crews fall under this costs. MOR & Partner estimates the overhead costs
based on the detailed analysis of site-related activities and their costs. Therefore, accurate
costs estimation is obtained. MOR & Partner will make the use of forums and checklists to
make an estimation of these costs. The site overhead costs will account for 5 to 15% of the
overall project costs.
2: General Overhead Costs: The general overhead costs cannot be directly charged for the
specific project. These forms the costs which is used to support the overall activities of
company. MOR & Partner the general overhead costs will comprise of costs of design

24ENTREPRENEURSHIP
engineers, expenses relating to office, cost of managers and directors (Sparrow et al., 2016).
The general overhead costs and expenditure can be found reasonable through constant
monitoring of the company expenditure. For MOR & Partner the general overhead costs is
estimated to stand around 2 to 5% of the contract direct costs.
Operating Leverage and its implications:
MOR & Partner will employ the tool of operating leverage so that it can measure the
fixed costs as the percentage of its total costs. MOR & Partner will be using the operating
leverage to assess the break-even point of the business along with the probable level of profit
on the individual sales.
MOR & Partner large part of its company’s costs is fixed costs. In such a situation it
is assumed that the company will earn a large amount of profit on its incremental sale.
However, MOR & Partner will be attaining sufficient amount of sales volume so that it can
cover its substantial amount of fixed costs (Marchington et al., 2016). If MOR & Partner is
successful in attaining substantial amount of sales it will be able to produce most of the profit
on sales after the company has spent all of its fixed costs. Nevertheless, the income will be
very sensitive towards changes in volume of sales.
Start-Up Costs:
Start-up Requirements
Start-up Expenses
Fixed Costs Particulars Amount ($)
Legal expenses $12,500
Stationary $3,750
Administrative expenses $37,000
Payroll Expenses $6,750
Insurance $7,800
Travel Expenses $11,000
Marketing and Advertisement $6,550
Rent Expenses $15,000
Supplies and Materials $55,000

25ENTREPRENEURSHIP
Cleaning $6,000
Websites $7,650
Lease payments $13,500
Professional fees and licensure $5,250
Working capital $25,000
Total Fixed Costs $2,12,750
Average Monthly Costs
Rent $1,042
Interest on loan 8% $3,083
Postage & Telephone $4,583
Repairs and Maintenance $500
Gasoline and Oil $917
Salaries / Wages $313
Total Average Monthly Costs $10,438
x Number of Months: 12
Total Monthly Costs $1,25,250
Total Start-up Expenses $3,38,000
Start-up Assets
Sources of funds
Owners Fund $3,00,000
Total Owner Funding $3,00,000
Loans
Bank Loan $2,00,000
Other
Total Loans $2,00,000
Total Start up Funds $5,00,000
Assets
Computers & POS $ 15,000
Furniture & Fittings $45,000
Decorations and Lightning $33,000
Equipment & Machinery $57,000
Total Fixed Assets $1,50,000
Total Start-up Assets $6,50,000
Break-Even Chart and Calculation:
Revenue Contribution Fixed Cost Profit
178786.79 89393.395 178786.79 -89393.4
357573.58 178786.79 178786.79 0
446966.975 223483.49 178786.79 44696.7

26ENTREPRENEURSHIP
536360.37 268180.19 178786.79 89393.4
Breakeven Analysis
Breakeven Sales Value = average fixed cost/% contribution
100000 200000 300000 400000 500000 600000
-150000
-100000
-50000
0
50000
100000
150000
200000
250000
300000
-89393.395
0
44696.6975
89393.395
178786.79 178786.79178786.79178786.79
89393.395
178786.79
223483.4875
268180.185
Contribution
Fixed Cost
Profit
Figure 2: Beak-Even Chart
(Source: As Created by Author)
The break even analysis of MOR & Partners is simply reliant on the assumption that
the gross margin of the business is 100%. In other words, the management of MOR &
Partners anticipates that it will have a significant amount of direct costs of sales. MOR &
Partners is conservatively behind that all through the first three year of operations. The
business anticipates that the average profitability per month per unit will be around 10% of
the commission rate (Berman et al., 2019). The management anticipates that around one sale
of plot per month will result in guarantee of break-even point.
The above given table provides the summary of break-even analysis based on the each
months fixed costs and variable per unit costs. The number of total units the business is

27ENTREPRENEURSHIP
required to rent out in order to cover its fixed cost on the monthly basis is graphically
represented. As per the calculations performed above, MOR & Partners will break-even
during the first year of its operation (Bailey et al., 2018). The break-even point that is
computed assumes that all the units will be occupied and all the rent will be paid in time. The
assumption however appears to be very unrealistic as the breakeven point of MOR & Partners
in all probability will be very high.
Marketing Plan:
The strategy behind the marketing, sales and application of MOR & Partners is
pleasingly simple to implement and ready for execution. By using the business knowledge
and experience of a 10 year successful professional career, the partners will create a feasible
marketing strategy (Stewart & Brown, 2019). This would comprise of leveraging the current
business contracts, target market understanding and relationships for penetrating into a
market that is grossly underserved, with the attractive product and service which is set almost
unobtainable heretofore, this ultimately results in the creation of a highly profitable and
expandable business entity that is ideally suited for exponential expansion.
Overall marketing strategy:
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 (Banfield et al., 2018). MOR & Partners
believes that it is better able to serve the market than the current operators operating in the
market by providing the customers with an improved service package at a highly reasonable
cost than the current set of competitors of equivalent size.
Majority of the MOR & Partners marketing program will centre on word to mouth
strategy. This is the only way of actually understanding the quality of MOR & Partners units

28ENTREPRENEURSHIP
is by experience. Hence, MOR & Partners aims to maintain a higher level of customer
satisfaction. MOR & Partners will reward its clients and customers that will provide reference
of new client to the business (Johnson, 2016). MOR & Partners confidently believes that
higher level of quality which the company will offer to attract its customers by creating a
strong demand for its units.
Product, Price, Promotion and Distribution:
Product:
The main products of MOR & Partners is based on using Virtual Reality technology
in majority of its wide range of higher-quality products as well as services which include,
construction of real estate, development as well as renovation. The partners of MOR &
Partners believes that the industry is largely filled with lower quality products and services
which is largely designed to simply increase the revenue over quality (Sharma, 2017). The
products and services of MOR & Partners will help in benefitting the customers and would
also solve the problems of customers in following manner.
a. Offering customers with higher quality virtual reality technology built products. The
products of MOR & Partners will be integrated with architect and design service.
b. MOR & Partners will make use of Virtual Technology in all of its real estate
development projects.
c. Offering its customers with the easy and convenient one-stop shop.
Price:
The foundation of MOR & Partners is to promote sales to 100% capacity. MOR &
Partners pricing will be largely dependent on the standard rates that is applicable on the
industry as this will be helpful among customers to neither perceive it as a luxury goods nor
should be perceived as discount broker (Adekola & Sergi, 2016). The company will offer its

29ENTREPRENEURSHIP
customers with 3% on the commission and 3% discount on purchase. Apartment and other
rentals will carry a fees that would be paid by tenant based on the standard rate of one
month’s rent. The MOR & Partners foundation of sale of products is laid on the sale of
products and services to members directly (Botha et al., 2016). The company will be pricing
its products slightly higher than the average public pricing. Margin for majority of the
products and services will be beyond 100% for majority of the products.
Promotion:
 Referrals: MOR & Partners will encourage its customers to refer other businesses by
offering financial services for each new customers produced. This will help increasing
the effectives after the business is established.
 Publications: MOR & Partners will be listing its properties for sale and rent in main
local publications such as newspaper, area magazines and in its newsletter.
 Seminars: By providing seminars on the topics of office interest and other locations
will help in encouraging its residents in community to be comfortable with expertise
and character of MOR & Partners.
Distribution:
MOR & Partners will be emphasizing on offering higher quality living in the
convenient locations with the wide range of customer base. It is also noteworthy that MOR &
Partners remains at upper echelon in terms of quality range when it is compared to
competitors (Uhl & Gollenia, 2016). MOR & Partners can do this by organizing and
implementing a sound plan which assume the accountability for functionality and appearance
of MSN properties. MOR & Partners will also have an updated website for any person that is
properties.

30ENTREPRENEURSHIP
Positioning and points of differentiation:
For individuals that aspires higher quality living with the technological amenities
availability only the real estate properties of MOR & Partners will be successful in fulfilling
their requirements as well as desires at the affordable price (Maunder, 2019). Unlike majority
of the property management companies, MOR & Partners is committed to guaranteeing its
customers with complete satisfaction with 24 x 7 hour of staff service, live answering service
along with a website which will handle all the complains.
Sales Process:
MOR & Partners will be adopting a five step sales process which are as follows;
1. Initial contact and rapport building: MOR & Partners will create an initial contact
with customers and will introduce themselves. The sales representative will provide
the information about product and services.
2. Needs discovery: To discover the needs of the perspective customers it has prepared
a standard questions to encourage the prospects of talks with the customers.
3. Offering a solution: Following the needs discovery, MOR & Partners will clearly
provide communication to solutions based on the perspective needs of customers
(Parris et al., 2016). This can be attained by connecting with the probable clients’
needs with the corresponding features as well as benefits of their product offering.
4. Handling of objections and closing the sale: There may be circumstances where the
customers may raise objections. MOR & Partners is committed to handling the
customer’s objections and will answer their concerns to close the sale.
5. Follow up, repeat of business and referrals: MOR & Partners will be in touch with
customers to assure any sales goes smoothly. This will help in maintaining
relationship and help in solving any problems.

31ENTREPRENEURSHIP
Sales Tactics:
The sales tactics of MOR & Partners will be directed towards setting up the strategic
relations with local customers. This will be performed with the help of networking. The sales
strategy will be directed towards providing products and services that have sufficient value
proposition in order to assure that the purchase of these products and services is made by
membership through MOR & Partners.
Design and development plan:
Development Status and Tasks:
The table that is given below will simply lists the development status and tasks of the
company. This will also include the dates, responsibility of the management and budgets. The
developmental status indicates the anticipation of the company and will also outline its plan
for the start-up (Burns & Dewhurst, 2016). The below given table will ultimate show the
anticipated divisions which will take place within the company along with the increase in the
ownership unit as well. This is regarded as the initial assessment and MOR & Partners will
constantly adjust so that it can sustain its business in all different departments.
The development status and tasks for MOR & Partners are as follows;
Developmental Tasks and Status
Milestone Start
Date
End
Date
Budge
t
Manager Department
Complete Incorporation 15-04-
2020
15-05-
2020
$12,00
0
Mohammed
Sindi
Admin/
Management
Financially Organized
Institution
28-02-
2020
28-02-
2020
$2,500
Rashed
Finance
Brokerage Unified 04-01-
2020
04-10-
2020
$10,00
0
J Nash Brokerage
Expansion (Units) 24-08-
2020
30-08-
2020
$150,0
00
S Menashe Development
Earnings ($200,000) 01-08-
2020
12-08-
2020
$1,000 Hani
Mahroos
Finance
Acquisition (Bought
C&R Realty)
30-08-
2020
07-09-
2020
$500,0
00
S Menashe Brokerage

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Totals $675,5
00
1. Completion of business plans. This task will be done by the partners as the roadmap
for the company. The plan is not only aimed at raising capital but it will act as the
indispensable tool for the performance and improvement of the organization.
2. Setting up the office
3. Setting up the partnerships with realtors
4. Hiring second employee.
Challenges and Risks:
There are numerous risk associated with the MOR & Partners and the same has been
grouped under three categories namely, business risks, property risks and market risks.
Business Risks: Business risks can be considered as the issues related with the assumption
which is made for MOR & Partners. These risks are as follows;
a. Projected start-up costs may be greater than the current projections
b. The required time limit to obtain the properties is higher than the estimated and
cannot be considered as the part-time work (Gummesson, 2017).
c. The needed time to administer the rental property is more than the projected time and
cannot be carried as the part time work.
d. MOR & Partners do not correctly manages the portfolio of properties and such that it
fails to meet its anticipated returns and obligations.
Property Investment Risks: This risk can be considered as the issue which is associated to
the purchase assumption and anticipated returns. These risks might comprise of the
following;
a. Acquisition of property cannot be made as anticipated

33ENTREPRENEURSHIP
b. Rental rates are lower than the projected rates
c. Operating expenditure is more than the projected
d. Vacancy period is greater than projected
e. Renovation or construction costs is higher an anticipated.
f. Unanticipated capital improvements
Market risks: The market risks can be considered as the issues which is associated to the
real estate market in general or specific to Riyadh region. These risks might comprise of the
following;
a. Increase in the rate of interest, this ultimately makes the cost of financing higher than
the anticipated costs and might either result in the reduction of cash flow or may make
the deals unobtainable (Cokins, 2017).
b. Increase in the supply of rental houses which may result in lower amount of rents
c. Government taking policies which improves the opportunity for ownership of home
and lure away the potential temporary renters.
The above given risks can create a negative effect on the real estate business of MOR &
Partners. These risks may directly hamper the performance or ability of meeting its financial
obligations or targeted return.
Projected Development Costs (INSERT TABLES)
Development Cost
Particulars Amount ($)
Legal expenses $12,500
Administrative expenses $37,000
Payroll Expenses $6,750
Insurance $7,800
Marketing and Advertisement $6,550
Rent Expenses $15,000
Supplies and Materials $55,000
Websites $7,650

34ENTREPRENEURSHIP
Lease payments $13,500
Professional fees and licensure $5,250
Total Development Costs $1,67,000
Proprietary Issues
The proprietary issues that MOR & Partners can face is the copyright of its virtual
reality technology that is owned by the business. The trade secrets of MOR & Partners
includes its design and architecture along with its virtual reality technology as it aims to be
first in Saudi Arabia real estate market.
Operation Plan:
MOR & Partners will execute its daily business operations mainly on the basis of
appointment only. Purchasing and renting clients will make the appointment in order to view
the available properties and discuss their needs (Linton & Solomon, 2017). Selling the clients
as well as landlord will help MOR & Partners in making appointments so that needs of clients
relating to sales is discussed and properties whenever needed. This will mainly take place at
the on-site of properties, though certain discussions might take place in the meeting room of
office and whenever needed discussion can be carried on over the phone.
The partners of the company will work on every day basis which also includes the
weekends that are mainly prime time to show and will be taking days off during the
weekdays (Gibson & Parkman, 2018). The business will also employ the administrative
assistant that will support marketing and customer relationship development efforts. The
same will be presented during the weekdays at a regular 9 AM to 5 PM schedule.
General Approaches to Operations:
The current team of MOR & Partners needs business development and administrative
support. Majority of the partners are working in the business environment where this type of

35ENTREPRENEURSHIP
support was given to them as the prat of larger organization. MOR & Partners will simply
turn towards the dynamic public relations for its day to day business management in order to
help the business in creating a development programs particularly, speaking prospects and
inserting magazine article along with the forums and seminars which is vital for the ongoing
development.
In terms of administration, the business also requires a strong finance manager so that
it can safeguard the cash flow (Heizer, 2016). The partners of MOR & Partners are not much
worried regarding the cash flow but also has the sense of responsibility to listen and
understand the reason so that they can deal with constraints if finance manager gives correct
information.
Organization and Management:
The operation and the management section of MOR & Partners simply lists down the
participants that will be involved in the daily projects along with their respective roles. This
includes the project manager, field operations leader, advisers and technical support crew.
The organization and management section will also list down the duties as well as jobs
description for every members of the project team (Slack, 2018). For example, the project
manager of MOR & Partners will be accountable for directing the overall projects and
provides a progress report to the customers. On the other hand, the field project manager
coordinates the efforts of site workers at job site.
Health and safety plan:
The operation plans of MOR & Partners will also include the Health and Safety Plan
which will simply lists down the necessary precautions that the contractors are required to
take to make sure that the workers safety, supervisors and general public in and around the
areas is maintained (Bromiley & Rau, 2016). For larger projects that has multiple contractors

36ENTREPRENEURSHIP
and sub-contractors, clients will regularly list the minimum number of worker health and
safety requirements, but might also request a separate health and safety plan for every
participant. The application of health and safety plans simply lowers the lawful exposure
from both the contractor and clients.
Environmental impact:
The construction projects of MOR & Partners may carry a strong impact on the
environment as well as on the local communities. There are certain projects of MOR &
Partners which includes inspection of air, soil and groundwater both inside and around the
area of project (Schroeder et al., 2019). The operation plans of MOR & Partners comprises of
measuring the quality of environmental factors and how the project will create an impact on
the quality of surrounding environment. For example, the operation plan for a certain project
of MOR & Partners involves digging which will involve the methods of inspecting soil,
testing the surface water and groundwater.
Milestones
MOR & Partners long-term goal is to be the leading name in the residential and real
estate industry in respect of right price and quality customer service. MOR & Partners seeks
to do this by assuring customer satisfaction and developing the loyal as well as trusting
clientele (Weetman, 2019). The below stated are series of steps which will result in long-term
success of the business. MOR & Partners anticipates to attain the following milestones on the
given dates.
Date Milestones
15-04-2020 Finalizing the lease agreement
20-04-2020 Designing and building out office
21-04-2020 Hiring and providing training to the initial staff
22-04-2020 Kick-off of promotional campaign
23-04-2020 Reaching to break-even
24-04-2020 Reaching out the potential clients\

37ENTREPRENEURSHIP
Business locations;
MOR & Partners business will be located in Riyadh being the city as well as capita of
Saudi Arabia. The operations of MOR & Partners will be centrally found in Mintaqat Al-
Riyadh which is one of the nation’s 13 provinces and it is located in the central part of both
the country and larger Arabian peninsula. There are only few cities across the world that have
transformed themselves as Riyadh has growth from a small fortieified dessert village in the
17the century to a modern metropolis of several million inhabitants in 20th century.
Riyadh is regarded as the amorphous expanse of neighbourhood and subdivision that
is bounded by wide roads in accordance with the commercial strip development. There are
two of the city’s highly recognizable tower building are Al-Faisaliah centre which comprises
of office space and wide number of restaurant. While Markaz-AL-Mamlakah that provides
expensive complex of office retail, restaurants and space for accommodation which is located
inside and around its landmark tower.
The city structure and form is largely been reinforced by a wide number of large-scale
construction projects which was undertaken in the latter half of 20th century and during the
early 21st century. The business will be centrally located in Riyadh as the site is surrounded
by international organizations, central shops and diplomatic quarter. For MOR & Partners
this is best suited site for setting up its office because the land is available at reduced rate and
development of numerous construction projects is promoted.
Facilities and equipment:
Facilities:
MOR & Partners construction site will be equipment with site trailers and vast supply
of materials so that the business does not waste much of the time in searching its resources

38ENTREPRENEURSHIP
while they are on job. All the equipment of MOR & Partners will be housed in the warehouse
at its construction site where the warehouse manager will be specifically accountable for
maintaining the equipment.
Equipment:
Below stated are the equipment which will be used by MOR & Partners to carry out
its day to day business operations are as follows;
a. Computer aided drafting design
b. Computed aided design application
c. Electrical/Electronics & Instrumentation Controls Laboratory
d. Power system projects laboratory
e. Mechanical engineering technology equipment
f. Electrical engineering technology and related equipment
g. Construction materials
h. Construction practices and project management laboratory
i. Civil engineering technology and related equipment
Management team and company structure:
The initial management of team is reliant on the founders of MOR & Partners with
back up assistance from the property management department. As the business will continue
to grow it will establish a satellite offices in all of its developments. It would be necessary to
take into the account the added help in the areas of marketing and R&D sectors as the
business continues to grow.
Management Team:
MOR & Partners real estate business will be totally departmentalized. The main
departments is the finance, marketing, management, research and development. The co-

39ENTREPRENEURSHIP
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 (Pratt, 2016).
The employees will be delegated the tasks on the basis of their skills possessed by them. In
every three months, all the six partners will be evaluating the results of tasks and the
personality of all the employees involved, to ascertain the promotion and issues relating to
salary.
MOR & Partners most valued asset will be its expertise and the experience of the
founders. Both Hani Mahroos and Mohammed Mahroos having the experience of 20 years
and 10 years respectively will lead the management team. These owners have spend a large
number of their time in working at real estate industry. By working in this segment they have
specialized themselves in architecture and design. MOR & Partners will further employ
assistant that are experienced to help in numerous administrative duties all through the office.
Mohammed Sindi will be the general manager as he holds a relative experience of seven
years in bachelors in business administration and also has experience in working at C-level
executives has spent significant amount of time by working as the administrator.
Management team gaps:
There are certain gaps that are identified in the management along with their
resolution includes the following;
1: Higher dependence on single individual, the owner: There will be a complete
participation of all the partners in order to understand and help with all the business
operations. Eventual hiring and training of the on-site manager will be done by the owners.
Furthermore, there will be a significant disability and death insurance to safeguard the family
and lenders.

40ENTREPRENEURSHIP
2: Lack of business development and administrative: The current business lacks business
development and administrative support (Weygandt et al., 2019). Majority of the partners
have worked in the business environment where such type of support was given to offer them
as the part of larger organization. MOR & Partners will turn towards Dynamic Public
Relations to assist in creating business development programs, such as the speaking
opportunity, forums as well as seminars which is presently important for the business
development.
Board of Directors:
The board of directors for MOR & Partner will comprise of a team of people which
will be elected by the shareholders of the company in order to represent the interest of the
shareholders and make sure that the management of the company act on their behalf. The
board of director of MOR & Partner will be headed by chairperson of the board
(Narayanaswamy, 2017). The structure as well as the power of the board will be determined
by the MOR & Partner bylaws. The board of director will be representing both the
management and shareholders interest to take into account both the internal and external
members. No independent or outside directors will be involved in the daily business activities
or working of the MOR & Partner.
Board of Advisors:
MOR & Partner will create a board of advisors that will comprise of business
professionals that will be giving advice on how the business owners can better manage their
business. MOR & Partner will have the service of MSN real estate to provide guidance to
business. This will also include the performance of executive duties in the organization while
simultaneously avoiding any kind of crisis situation and solving the problems promptly when
it will occur in the company.

41ENTREPRENEURSHIP
Company Structure:
The organization chart of the MOR & Partner will be representing the graphical
depiction of roles and accountabilities as well the structure of the company. MOR & Partners
organization structure is reliant on the organized division of responsibilities so that it can run
as efficient and diversified enterprise. Main decisions as well as responsibilities will be
divided among the partners. They will emphasize on maintaining the higher quality and
unified business entity. Higher division managers will be provided a specific accountabilities
particular finance, marketing, strategic management or research and development. The legal
form of the organization will be ascertained in combination with and consideration for, the
wish of funding source. The ultimate concept of MOR & Partners is to have a single business
entity under the Limited Liability Partnership. This structure has been selected due to the
ability of the business to satisfy the current business opportunities as they are recognized.
Below stated is the organizational structure chart will further specify the roles and
accountabilities of every department.
Figure 3: Figure representing Organizational Chart

42ENTREPRENEURSHIP
Source: (Narayanaswamy, 2017)
Specific Roles and Responsibilities:
Finance Department:
Rashed will be heading the finance and accounts department for managing the cash
flow of the company and making sure that adequate funds is available for meeting the day to
day payments.
Human Resource Department:
Omar Alqahtani will be heading the human resource department of MOR & Partner.
He will be accountable for recruitment of staff and training, compensation, record keeping
and benefits, insurance and employee relations.
Project Department:
Hani Mahroos will be leading the project department for MOR & Partner. The project
department will be considered accountable for scheduling and managing every project. The
project manager will be accountable for deciding the budget, assigning the employees and
their duties to finish the job. Overseeing the safety of workers. They are required to assure
that the construction work is completed well in agreement with the contract.
Engineering Department:
Mohammed Mahroos being the project engineer will be responsible for leading the
engineering department. He will be accounting for planning and construction of project. This
comprises of performing surveys, indulging in research, analysing result, planning the
construction and supporting all the technical issues throughout the project.

43ENTREPRENEURSHIP
Overall Schedule:
The overall schedule of MOR & Partners is aimed at showing when the management and the
leadership plans to achieve their goals and the necessary business milestones planned by
them. These milestones are also addressed in the other parts of the business plan and it is
considered critical to the success factors of the MOR & Partners. The below stated overall
schedule provides a realistic demonstration that the management has selected a realistic
business goals for the purpose of growth and all the critical success factors is considered
necessary for the overall goals of the organization.
The overall schedule of MOR & Partners comprises of the flow chart analysis together with
the timing of the business development, its operations and vital deadline with the marketing
of the product or services. Other relevant topics that is incorporated in the business schedule
is the time involved in covering plan and incorporation of the business. All the business
considerations have been added into the overall business schedules.
TASKS START END DAYS 9-2 9-3 9-4 9-5 9-6 9-7 9-8 9-9 9-10 9-11 9-12 9-13 9-14 9-15 9-16 9-17 9-18 9-19 9-20 9-21 9-22 9-23 9-24 9-25 9-26 9-27 9-28 9-29 9-30 10-1
Phase 1: Self-Assessment
Define Business Vision 4-2 4-2 1
Identify Skills 4-3 4-3 1
Decide Whether to Proceed 4-4 4-4 1
Phase 1: Define Opportunity
Resea rch Market 4-5 4-5 1
C o nduct Interviews 4-6 4-10 5
Identify Needed Reso urces 4-11 4-13 3
Identify Operating C o sts 4-13 4-14 2
Phase 1: Evaluate Potential Risks
Assess Market Size 4-15 4-17 3
Estimate C ompetition 4-17 4-18 2
Assess Needed Resources 4-18 9-19 -211
Determine Financia l Requirements4-19 4-21 3
Evaluate Profita bility 4-21 4-22 2
Review Strategy 4-22 4-23 2
Phase 2: Define the Market
Access Ava ila ble Research 4-23 4-25 3
C rea te Ma rket Ana lysis 4-26 4-29 4
Implement Market Analysis 4-29 5-1 3
Financial Projections
Sources and Uses of Funds:
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

44ENTREPRENEURSHIP
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.
MOR & Partners revenues will large come from its wide variety of its real estate
project sales, purchases and important cost drivers. The cost involved in every transactions is
approximately projected to be around 40% of the regular commission revenue and cover the
advertisement of listings, travel and supply costs for the clients and other direct costs that are
associated for each of the direct deals. In addition to this, the ongoing marketing expenditure
are also considered as the notable cost driver for the MOR & Partners.
As the company has contracted with its advisory board of directors, it is the opinion of
the management that the initial profitability would be fairly higher for the start-up firm. The
financial plan prepared by the partners of MOR & Partners anticipates that the business will
attain the positive net income by the end of this year. The management of MOR & Partners
has budgeted sufficient amount of investment so that it can cover any sort of potential losses
and have the added personal financial resources for the purpose of equity investment given
that the sales fail to match up with the anticipation.
MOR & Partners mainly wants to finance its growth of business through cash flow
only. The management of MOR & Partners have recognized that this is the best means of
growing more slowly than it may like. The most vital factor for the MOR & Partners is its
collection days. MOR & Partners cannot simply push hard to its credit clients to pay on the
collection days. Therefore, MOR & Partners will develop a permanent system of receivable
financing by making use of one of the established financial companies in that business.
Important Assumptions:
The plan of MOR & Partners is mainly dependent on the assumption which will be
made in the below stated following table. These can be referred as the monthly and yearly

45ENTREPRENEURSHIP
assumption which help in showing the consistent amount of growth of the organization. As
the business is operating on the monthly basis, MOR & Partners assumes that majority of its
accounts receivable will be received in time and in full. Some of the underlying assumptions
of the MOR & Partners are as follows;
a. MOR & Partners assumes that there will be a healthy growth in the business in the
local real estate market together with the continuous strong local economy.
b. MOR & Partners assumes that it stays in line with the continuous advances in
technology and housing.
c. The business anticipates that around 50% of its sales will be on credit sales and the
average interest rate would range between 10%. The rate of interest is considered
conservative in the case of MOR & Partners.
d. The capital will be used in the funding of capital expenditure and location build-out,
hiring of initial employees, marketing expenditure and working capital.
e. The business expenditure is anticipated to increase by 2% on the yearly basis.
f. The cost of sales is anticipated to increase at 5% on yearly basis.
g. The sales revenue is forecasted to increase by 10% in the first two years of the
operation and in the third year of operation it is anticipated to increase by 15%.
Projected Profit and Loss:
(4) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0 6,75,000 7,42,500 8,16,750
Cost of sales 0 3,50,750 3,61,273 3,79,336
Gross profit 0 3,24,250 3,81,228 4,37,414
Gross Margin 6,49,135 6,82,784 7,28,061

46ENTREPRENEURSHIP
Expenses/overheads
Legal expenses 12,500 12,875 13,519
Stationary 3,750 3,863 4,056
Administrative expenses 7,650 7,880 8,273
Payroll Expenses 37,000 38,110 40,016
Insurance 6,750 6,953 7,300
Travel Expenses 7,800 8,034 8,436
Marketing and Advertisement 11,000 11,330 11,897
Rent Expenses 6,550 6,747 7,084
Supplies and Materials 15,000 15,450 16,223
Cleaning 55,000 56,650 59,483
Websites 6,000 6,180 6,489
Lease payments 13,500 13,905 14,600
Professional fees and licensure 5,250 5,408 5,678
Payroll Taxes 9,050 9,322 9,788
Wages 90,500 93,215 97,876
Total expenses/overheads 2,87,300 2,95,919 3,10,715
Profit before tax 36,950 85,309 1,26,699
Tax @ 30% 11,085 25,593 38,010
Profit after tax 25,865 59,716 88,689
Transfer to reserves 36,950 85,309 1,26,699
The projected profit and loss for the MOR & Partners is represented above in the
tabular format. The figure of sales revenue is showing a positive increase constantly each
year. In the first year of operation the business shows the net profit margin. The business is
anticipating a healthy gross margin during the first year of its operation. The projection done
above can be considered as the aggressive projection as this will help in keeping MOR &
Partners efforts to keep the overall costs of sales below and in the same time increasing the
gross margin. MOR & Partners is content to have a very lower marketing costs because of the
public exposure to units and a very good word to mouth throughout the local community.
Projected Cash Flow Statement:
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3

47ENTREPRENEURSHIP
CASH INFLOWS
Cash from Sales 6,75,000 7,42,500 8,16,750
Directors loans 2,00,000 2,00,000 2,00,000 2,00,000
Capital Employed 1,00,000 3,00,000 3,30,000 3,63,000
Other cash inflows
TOTAL CASH INFLOW 3,00,000
11,75,00
0
12,72,50
0
13,79,75
0
CASH OUTFLOWS
Payments for materials 3,50,750 3,61,273 3,79,336
operating expenses ( ) 0
Premises (rent, rates) 0 12,500 12,875 13,519
Wages and salaries 0 3,750 3,863 4,056
General expenses 0 7,650 7,880 8,273
Interest and bank charges payable 0 13,500 13,905 14,600
Lease payments 0 13,500 13,905 14,600
Corporation Tax 11,085 25,593 38,010
Market survey costs 0 6,000 6,180 6,489
Other preliminary expenses 0 7,650 7,880 8,273
capital expenditure
Plant and other capital expenditure 0 1,50,000 1,50,000 1,50,000
financing repayments
Loan repayments 16,000 16,000
TOTAL CASH OUTFLOWS 0 5,76,385 6,19,352 6,53,157
Cash flow summary
NET CASHFLOW FOR PERIOD 3,00,000 5,98,615 6,53,148 7,26,593
OPENING CASH BALANCE 0 3,00,000 8,98,615
15,51,76
3
CLOSING CASH BALANCE 3,00,000 8,98,615
15,51,76
3
22,78,35
7
The above stated cash flow statement is regarded as the vital part of the MOR &
Partners projected business success. The yearly cash flow has been illustrated in a tabular
format. The long term loan taken by the business will be paid in a span of ten years. The cash
flow projection shows that the business does not anticipates a short-term cash flow problems.

48ENTREPRENEURSHIP
Projected Balance Sheet:
Balance Sheet
Assets FY-1 FY-2 FY-3
Current Assets
Cash $ 3,10,185 $ 4,37,641 $ 4,84,910
Accounts Receivables $5,98,615 $6,53,148 $7,26,593
Total current assets $9,08,800 $10,90,789 $12,11,503
Fixed (Long-Term) Assets
Furniture & Fittings 45,000 45,000 45,000
Decorations and Lightning 33,000 33,000 33,000
Equipment & Machinery 57,000 57,000 57,000
Computers & POS 15,000 15,000 15,000
(Less accumulated depreciation) $22,500 $18,900 $16,020
Total fixed assets $1,27,500 $86,100 $88,980
Total Assets $10,36,300 $11,76,889 $13,00,483
Liabilities and Owner's Equity
Current Liabilities
Accounts Payable 3,50,750 3,61,273 3,79,336
Bank Charges Payable $13,500 $13,905 $14,600
Income taxes payable $11,085 $25,593 $38,010
Accrued salaries and wages $90,500 $93,215 $97,876
General Expenses $7,650 $7,880 $8,273
Total current liabilities $4,73,485 $5,01,865 $5,38,095
Long-Term Liabilities
Long-term debt $2,00,000 $1,84,000 $1,68,000
Less: Loan Repayment $16,000 $16,000
Total long-term liabilities $2,00,000 $2,00,000 $1,84,000
Owner's Equity
Owner's investment $3,00,000 $3,30,000 $3,63,000
Net Profits $25,865 $59,716 $88,689
Reserve and Surplus $36,950 $85,309 $1,26,699
Total owner's equity $3,62,815 $4,75,024 $5,78,388
Total Liabilities and Owner's Equity $10,36,300 $11,76,889 $13,00,483
The balance sheet that is computed above in the table shows variations but managed
amount of net worth. The balance sheet represents a sufficiently healthy financial position of
MOR & Partners. The balance sheet shows that MOR & Partner liquidity, debt, performance

49ENTREPRENEURSHIP
and certain other noteworthy aspects well as this will help in boosting a positive confidence
of the investors and creditors towards the company.
Common Financial Ratios:
Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets) 0.44 0.42 0.37
Current Ratio (Current Assets / Current Liabilities) 4.88 4.98 5.05
Working Capital (Current Assets - Current
Liabilities) 4,75,880 5,58,924 6,43,408
Assets-to-Equity Ratio (Total Assets / Owner's
Equity) 2.00 1.72 1.59
Debt-to-Equity Ratio (Total Liabilities / Owner's
Equity) 0.89 0.72 0.59

50ENTREPRENEURSHIP
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