Detailed Business Model Report: My London Home Real Estate

This report provides a detailed analysis of the business model of My London Home, a real estate company operating in London. The report begins with a business background, highlighting the current state of the London real estate market, including challenges like high property prices, Brexit uncertainties, and the rise of scams. My London Home's innovative business idea involves utilizing VR glasses to provide realistic property views, addressing issues of time wasted in property hunting and deceptive practices. The report then delves into key aspects of the business model, including key partners (property managers, brokers, contractors, etc.), key activities (marketing, sales, finance management, valuation), and key resources (knowledge of London, sellers, financial resources, human resources, and a mobile application). The value proposition is discussed in terms of both quantitative (variety of properties, cost savings) and qualitative aspects (customer experience, convenience). The report further explores customer relationships, channels, customer segments, cost structure, and revenue streams. The analysis concludes with an overview of the business model's strengths and potential for success in the competitive London real estate market.

Business Model – My London Home 0
Title: Business Model – My London Home
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Business Model – My London Home 1
Contents
Business Background.................................................................................................................2
Business Idea..............................................................................................................................3
Key Partners...............................................................................................................................3
Key Activities.............................................................................................................................5
Key Resources............................................................................................................................6
Value Proposition.......................................................................................................................7
Customer Relationship...............................................................................................................8
Channels.....................................................................................................................................9
Customer Segments....................................................................................................................9
Cost Structure...........................................................................................................................10
Revenue Streams......................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

Business Model – My London Home 2
Business Background
London is considered as one of the most physically active countries. The international
investment in the London real estate market has also increased over the year and in 2018,
London took the top stop in international investment. But in the current times, the sales
percentage of the houses in London has hit an all-time low. With London’s reputation of
welcoming a large number of immigrants every year. But according to the latest severe dent
that is caused due to the immense sales down, the real estate industry in London is
experiencing humongous turmoil. Some of the various reasons that have contributed to this
downhill in sales are an increase in the property rates, the implications of Brexit, the increase
in the property taxes, and many others. The property rates for buying a house or even renting
it are shooting high. There has been a sudden increase in the property prices and along with
the various administrative and legal expenses the prices are now shooting high. The
implementation Brexit has increased the uncertainties in the London real estate market, due to
this 19% fewer properties were welcomed in the market in comparison to the last year’s
figures. The only glimmer of hope to the real estate organization is the slight increase in the
home hunting rate in London by 5% and that there are around 78% of properties available for
sale. The sluggish environment in the real estate industry is due to the deceptive approaches
of many organization who displays deceptive pictures of homes and lands. This has impacted
the perception of the huge population in London, which has further affected the profits of the
genuine organization. Along with all these different issues, the sales of the London real estate
market has also decreased due to difficulty in getting a mortgage approved. The real estate
organization that has been selected is My London Home (Callanan and Sidders, 2018).
Website: www.mylondonhome.com
Address: 35 Catherine Place, Westminster, London SW1E 6DY

Business Model – My London Home 3
Business Idea
With all the uncertainties associated with the London real estate market, the
organization My London Home has created an innovative idea that will help in reducing the
issues of the time that is wasted during the process of hunting for a flat, room or a home, by
travelling to different locations. Also, this creative approach of the My London Home solves
the problem of scams associated with real estate organizations, by providing realistic views of
the property. So, the idea developed by the My London Home is to utilize the VR glasses for
providing a realistic view of the properties. The organization is offering the potential
customer with this facility by disposing of the VR glasses in supermarkets, so the potential
customers can shop while they explore their future homes. The organization main focus is on
London central (Josdal et al., 2018).
Key Partners
My London Home key partners are –
 Property Manager
The role of a property manager in My London Home is to ensure that all the
properties that come under their care functions smoothly and are maintained
appropriately. They are also responsible for recruiting the maintenance staff. They
also exhibit properties to the potential clients and inform them about the various terms
and conditions associated with the contract, taxes, maintenance fee, and the monthly
rent.
 Broker
The broker acts as a negotiator and is responsible for the real estate
transactions in the My London Home. The broker has the responsibility of creating

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contracts and over-looking at the transactions related to the purchase and sale of
homes, flats, and land.
 General Contractor
The role of the general contractor is to offer My London Home with the latest
information about the new construction that is being conducted in different areas and
offering the organization with new properties to invest in.
 Insurance Agent
The insurance agents provide the organization My London Home with the
necessary insurance policies that help in making the properties financially secured.
 Escrow Agent
The escrow agent is an individual that acts as a third party between My
London Home and the customer, who holds the assets till the purchase or sale
transaction is completed between the two people (Flagg, 2017).
 Mentor
As innovation is a crucial aspect of the organization My London Home, there
are mentors in the organization who offer valuable information that help in enhancing
the customer experience and also elevate the profits of the organization (Cronjé,
2017).
 Suppliers
The suppliers will be responsible for providing the organization with the VR
glasses and all the other useful equipment that will be needed for building a stand in
the supermarket.
 Professional Photographer & Video Developer.
The professional photographer has to be hired for clicking realistic pictures,
which will then be transformed into an impressive video by the video developer. The

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3D video should be helpful in reducing the scam of fake pictures that surrounds the
real estate industry. The video developer will have the responsibility to develop a
database for all the available properties for sale, which later on will be uploaded in the
VR glasses.
Key Activities
The key activities conducted by My London Home are –
 Direct Marketing
The organization has the responsibility of promoting the new ideas and
knowledge associated with the organization. This may include a new service offered
by the organization or informing about the latest discounts. For the VR glasses idea,
the organization will publicize it on their official website along with the different
social media pages and on real estate columns.
 Buying, renting, & selling houses & flats.
The organization is involved in different aspects of the real estate business like
buying, selling, and renting. They offer the same services to the customers and thus to
enhance the customer experience the VR glasses will facilitate the smooth functioning
of this activity (Jarjo, 2015).
 Finance Management
My London Home is continuously investing or conducting other transactions,
thus it becomes necessary for the organization to keenly monitor the financial
transactions and manage the funds appropriately. The idea of VR glasses requires a
huge investment in different aspects, which has to be strictly observed and completed
in the decided budget.
 Valuation

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The organization My London Home also offer the people with the service of
evaluating the cost of their property. This market appraisal is evaluated according to
the area rate and the sales which have been conducted in recent times. A specialist
provides a detailed report to the customer.
Key Resources
The different key resources available to the organization are –
 Core Knowledge of London & people.
The organization has been functioning in the London market for more than 15
years, they know the intricate details about the different properties and the people
living in London. They also understand the key preferences, which help in better
decision-making. My London Home understands the pain which the customers go
through due to travelling to different locations in search of a good property. Thus, this
core knowledge and the various aspects associated with it will help the organization in
solving the customer’s problems and gaining profits (Ladd, 2018).
 Sellers & Contractors
This is the organization’s key resource, as it governs the functioning of the
entire organization. The sellers offer the organization with the information regarding a
new and old property that is available for sale. The contractors also keep the
organization updated about different properties.
 Financial Resources
A real estate business requires a large sum of money and it is crucial as it is
needed at each and every stage of the transaction process. For executing the VR glass
business idea, the organization has taken a loan of 75,000 Euro through European

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Union Funding. The organization also requires prominent investors who can fund the
idea in a better way.
 Human Resources
For the execution of this idea, the organization will require to hire a manager
for each supermarket where the idea will be executed. In addition to it, it will also
require several employees who will be responsible for managing the customers and
the VR glasses in the supermarket. For a big supermarket, the organization will have
to employ six individuals and for a small supermarket, the count will be three. Also, a
supermarket is a place where people come with their children. Thus, a trained baby
sitter should also be hired, especially for infants (Ojasalo and Ojasalo, 2018).
 Mobile Application
A mobile application has to be developed, and thus, the organization require to
hire an application developer, who builds a simple, easy, and convenient application
that offer the potential customers with information associated to the supermarkets
where the service is being offered and also, offer them with the attribute of scheduling
the appointment through the application in advance.
Value Proposition
The value proposition can be broken down into two aspects –
 Quantitative
My London Home offers customers numerous options in homes, flats, and
land. With the VR glasses, the organization will offer the customers with a huge
collection of properties in a single place. This will enhance the customer experience in
a humongous way. This will also provide the customer with the opportunity of saving
money, as they do not have to spend on transportation. Also, this approach of the VR

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glasses will enhance the customer count of the organization and also will create a
unique selling point for My London Home (Rymarzak and Siemińska, 2012).
 Qualitative
The main principles of the organization My London Home is to provide the
customers with a great experience. The VR glasses idea has been built around this
core principle of the organization and will enhance the customer experience by
offering them high-quality pictures and videos, which is freely available to the
customers. Along with this, the potential customers are being offered this high
standard service in a very convenient surrounding.
Customer Relationship
The business idea will help in building better customer relationships than ever before.
The main objective of any organization is to build long term and loyal customers. Through
the idea of VR glasses, the organization is approaching the customers for a stronger bond.
Also, this differentiated approach will provide the customer with the opportunity to analyze
the services of My London Home and its competitors. Also, the VR glasses idea has to offer
special discounts to the customers, as this will draw the attention of the customer to get
engaged with the organization (Saxena, Deodhar and Ruohonen, 2016). Also, the staff at the
supermarket has to be trained and should have a friendly approach towards the customers.
The customers should be informed about the different properties in detail. Also, the employee
should answer all the queries of the customers with patience and should offer a clear solution.
The idea of VR glasses will help to offer the customers with a personalized service which
will increase the connection between the organization My London Home and the customers.
Along with this, the company will offer a special discount for the initial months to attain
loyal customers for the organization. This strategy will also help the organization in
formulating better relationship. Thus, the good relationship with the customers will

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strengthen the market image of the organization and as the supermarket has been chosen for
the implementation of this idea, the mouth marketing of the organization will increase due to
the good relationship which the customer share with the organization (Tajani, Morano and
Ntalianis, 2018).
Channels
The various distribution channels that will be utilized by the organization for the VR
glasses idea include the different supermarkets that are available in central London. The few
shortlisted supermarkets include the New Loon Moon supermarket, Centre Point Food Store,
Sainsbury's, Tesco Metro, Little Waitrose & Partners, and M&S St Thomas' Hospital Simply
Food. All these various locations have been finalized as they serve diverse people and thus, it
will help in targeting diverse audiences. Also, the idea of VR glasses has to be conveyed to
the customers through different channels (Scali-Warner, 2018). Thus, informing the
customers about the different location where the service is being provided and also other
information about the VR glasses service should be conveyed through TV and newspaper
advertisements, the social media platform, and the blogs of the organization. The official
website of the organization should also be used for conveying the message and the customers
should be provided with the opportunity to schedule their appointment with the manager in
their preferred supermarket in advance (Syahputra, M Baga and Kirbrandoko, 2017).
Customer Segments
The organization is implementing the idea in a supermarket. Thus, the customers that
are being targeted are homemakers, workers, students, and new immigrants. The central
London is considered as one of the busiest areas, also there are a number of prominent offices
in this area. Thus, the workers who are hunting for a home near work, are the people who can
be easily enticed with attractive properties. But, the bigger business will come from the

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homemakers (Slávik and Bednár, 2014). This is due to the fact that the homemakers are
imposed with all the responsibility of searching a new place to live by their working partners.
Also, London has experienced an increase in the students, this is due to the various
individuals coming from different countries to study in London. There are also college going
students, who want to start their independent life and are planning to move out of their
parent’s home, are searching for economical flats. The tourism industry has changed and this
has increased the investment by the baby boomer generation, who have the financial
resources to make huge purchases. The implementation of Brexit has also increased the
number of immigrants in the country (London Data Store, 2018).
45
25
17
10
14
3
Customer Segmentation
Home maker
students
workers
Immigrants
Elderly
Other
Cost Structure & Break-even Point
The cost structure explains the various different areas in which the organization has to
incur expenses for successfully executing the plan. Thus, the following table offers a detailed
view of the different expenses and the appropriate utilization of £75,000 for the
commencement of the business.

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Expenditures Expenses
VR GLASSES £45,000
SALARIES OF DIFFERENT HIRED
INDIVIDUALS (from a professional
photographer to babysitter)
£5,000
CONTRACT WITH THE
SUPERMARKETS
£15,000
MARKETING EXPENSES £5,000
MISCELLANEOUS EXPENSES £5,000
Total £75,000
The organization has to incur these various expenses for a year. The real estate market
has been experiencing several uncertainties in the last one year, thus the organization might
experience some inevitable issues which may increase the expense of the organization.
Investments to be made in the later years.
Expenditures 2020 2021 2022
VR GLASSES £25,000 £18,000 £15,000
SALARIES OF
DIFFERENT
HIRED
INDIVIDUALS
(from a professional
photographer to
babysitter)
£7,000 £8,000 £9,000
CONTRACT WITH £20,000 £20,000 £23,000

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THE
SUPERMARKETS
MARKETING
EXPENSES
£5,000 £3,000 £3,000
MAINTENANCE
CHARGES
£4,000 £6,000 £8,000
MISCELLANEOUS
EXPENSES
£2,000 £2,000 £2,000
Total £63,000 £57,000 £60,000
Break-even point is a measurement tool that calculates the safety amount which an
organization has to earn to cover the fixed and variable expenses related to the sales of the
product.
Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units
The estimated selling price of the VR glasses is £750.
The average fixed cost is £75,000.
The Variable price is £318.27.
Break-even Point = £75,000 / (£750 - £318.27) = £173.72.
Revenue Streams
With this business idea, the organization will be able to increase their revenues and
will beat its competitors. The organization will be able to conquer the market with this unique
and personalized approach that will increase the customers of the organization. The estimated
increase in the customer is –

Business Model – My London Home 13
Customer Increase Rate
Homemakers 7%
Workers 3%
Students 5%
Immigrants 3%
Others 2%
This increase in the customers of the organization will increase the revenues of the
organization too. Also, as the organization is introducing a new approach which has never
been conducted by any other real estate organization, thus this can increase the customers of
My London Home instantly in the initial months after the idea has been implemented by the
organization (Too, Harvey and Too, 2010).
Conclusion
Thus, in the end, this can be concluded that the idea of VR glasses will be very
effective in elevating the slow rate of sale in the real estate industry in London. The approach
of targeting the customers in the supermarket is furthermore effective, as it is a place which
serves a huge amount of people on a daily basis. The other factor that will increase the
interest of the customers in the organization is the availability of a number of properties in a
single place while doing a daily activity. The business idea will be highly appreciated by the
homemakers and especially people with babies, as they are being provided with the facility of
exploring their future homes, along with the facility of babysitting by a trained professional.
Thus, this is a highly effective business idea, which will increase the revenues of any real
estate organization, in this case, My London Home. But the organization should alter the
business idea, according to the changes in customer preferences. Also, the new properties
should be added on a regular basis.

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References
Barker, G. (2019). Three London Property Market Trends You Should Know About. [online]
Forbes.com. Available at: https://www.forbes.com/sites/garybarker/2019/01/30/three-london-
property-market-trends-you-should-know-about/#2cdbda265227 [Accessed 13 Mar. 2019].
Callanan, N. and Sidders, J. (2018). Bloomberg - Are you a robot?. [online] Bloomberg.com.
Available at: https://www.bloomberg.com/news/articles/2018-11-30/the-london-housing-
market-is-worse-than-it-looks-here-s-why [Accessed 13 Mar. 2019].
Cronjé, D. (2017). Business model innovation for residential property developers in Gauteng.
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jarjo, H. (2015). Strategic Real Estate Development (RED): Risk Assessment, Capability,
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Spring, H. (2018). London Real Estate Market Setting Records | Point2 Homes News.
[online] Point2 Homes News. Available at: https://www.point2homes.com/news/canada-real-
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Ladd, T. (2018). Does the business model canvas drive venture success?. Journal of
Research in Marketing and Entrepreneurship, 20(1), pp.57-69.
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