The name of the supervisor
The name of the course
Riyadh Outskirts Real estate business plan
Executive Summary of the Company
Riyadh Outskirts Real Estate is a start-up company in Sulaymaniyah at the northern side of Riyadh Business District. The neighborhood is experiencing a massive shortage of housing, as most people who work in the city prefer to reside here since the houses are affordable and the place is cool. Therefore, constructing rental houses in this area is one of the most lucrative business opportunities available that should be harnessed. This will not only accord the people the comfort of proper housing but also relieve pressure in an already overstretched housing sector in the city. (Gentili, et al 2018)
The Company Mandate
RORE is seeking to be registered by the Riyadh authorizes so that it’s a law compliant entity and be able pay taxes to the federal government. The company will also be seeking to sell its shares to the public so that it will have a limited liability as an entity. Its founder is a student pursuing a business management course in one of the prestigious universities in Riyadh. The company is set to start its operations in a years’ time after the completion of construction activities.ROREs rental charges will be fair and with compliant with Riyadh’s Act of Tenancy. The mode of payment will be through bank account with one of the banks around. (Barrett 2016)
According to (Dix, 2004) the primary and the largest population this project is targeting are the young people working in the city. This population will be young Saudis and young expatriates coming from all over the world working in Riyadh. The reason is because they want to live well and not drain their savings unlike those rich old people in the leafy suburbs of the town. Apart from making the money in rental housing, the front houses will be used as shops to set up businesses. The chain of businesses will be sponsored by RORE and the remaining slots filled by willing tenants.
Marketing the Real Estate Venture
A very able management team will be constituted that understands the demographics an all-round life in the area. The management will embark on a rigorous exercise of reaching potential ant target audience through various media outlets. The choice of the outlet should be youth friendly they include; twitter,facebook,whattsup and YouTube ads. The management should also carry out public sensitization of the project in the area to enable buy in of potential clients.
Projected Financial Gains
The company is stipulating that the project will be able to recap the expenses used in the set up by the tenth year of operation. Let’s say the cost of start –up was $7000000. The projected earnings will be slightly above $730000 per annum and therefore cumulatively it would repay itself by the tenth month. After the recovery the venture will channel their resources on improving the amenities in the estate.
Anticipated Challenges in the Project
The possible problem is the availability of land for setting up the houses. The cost of land is very high and even if you find the land you rarely find a willing seller. The public is aware of rapid appreciation of land in the area. The other challenge is getting approval from National environment to set up the structures .lastly, is the challenge of unfair competition especially in terms of prices from smaller rental houses business.
Dix, Jacqueline. “Old And Young In Japan”. Working with Older People, vol 8, no. 4, 2004, pp. 33-34. Emerald
Gentili, Martina, and Joris Hoekstra. “Houses Without People And People Without Houses: A Cultural And Institutional Exploration Of An Italian Paradox”. Housing Studies, 2018, pp. 1-23. Informa UK Limited
Kozyris, P. John. “The Conflict-Of-Laws Aspects Of The New American Business Entity: The Limited Liability Company”. The American Journal Of Comparative Law, vol 43, no. 3, 1995, p. 417. Oxford University Press (OUP)