Real Estate Saas: Business Plan, Financial Model, and Pitch Deck – Case Study

Introduction

The oak business consultant served services to our middle east clients who are involved in the Real Estate SaaS Business and wanted to target the whole Middle East and North Africa region (MENA). Our client wanted us to be prepared with a dynamic and efficient financial model, a business plan and a pitch deck. This case study shows how our company provided the best solutions and prepared our client’s ideal real estate SaaS business and financial model.

Challenges

• They wanted us to forecast a 5-year financial model in which they could cover its early development cost and expenditures through investments. 
• Due to the many obtainable markets, it was complicated to estimate the market size of each country separately and its feasibility. 
• To enter the MENA region, our client wanted us to prepare detailed research on each country’s competition and their analysis. 
• Our client was entering a new market every year and required a hiring plan and payroll estimations; thus, they required us to prepare the perfect 5 years hiring and payroll plan.  
• Creating a dynamic and customized financial model that assesses each business component to determine the sale projection was crucial. The computation of investment returns was also necessary to give the customer an idea of what they might offer their investors.

Solution

• Our experts developed an optimal and customized real estate saas financial model. It helped clients identify how our financial model covers all costs and expenditures via investments in their initial years of operations. 
• Our extensive market/industry research has estimated the market validation and the actual size of the targeted region. While highlighting that the real estate saas industry has excellent growth potential and can get better returns from the market.  
• Competitive analysis plays a vital role in revealing the status of the competition in the market. Due to the large market size, our team did detailed research and provided a competitive analysis section. In which we identified the market share, products and services, pricing, and other relevant information and developed a competitive edge for our client. 
• The Oak expert team developed the dynamic financial model that helped our customers change their 5 years hiring plan salary, the month of hiring, benefits and joining-wise assumptions to estimate different payroll scenarios and their impact on statements. 
• Our client has different sales channels for various customers (Agents, Realtors, Buyers, sellers, rentals, etc.); thus, our team forecasted a 5-year sale projection of their sales channels and revenue streams. The automatic financial model helped them change their assumptions and analyze various revenue scenarios and their impacts on statements.  

Business Model

Our client’s business model relates to the real estate industry in which they provide their service through online platforms. They facilitate selling, purchasing, renting, and online booking platforms to users in the MENA region. 

Our client provided new features to create a competitive edge because our detailed research revealed that the competition is tough in the MENA region. Therefore, we need to develop an ideal real estate saas model to attract investors and customers. 

Our in-depth market and industry research calculated the actual size of each region and validated the market. Additionally, it showed that the sector has excellent growth potential and can generate higher returns from the market. 

Financial Highlights

Income Statement

Our client wanted to know the profitability and margins to identify their monthly and yearly business progress. Our financial experts forecasted profit and loss statements and dynamically presented their performance. All the relevant information of p&l, including our client business’s cost of goods sold, operating expenditures, depreciation of fixed assets, and taxes, are forecasted by our experts. And the linking of advanced formulas helped our client to play with their model in a better way. Moreover, it helps our clients to analyze their expected profitability and the timeline for when the company can generate profits. Furthermore, the automatic model facilitates our client to estimate profitability by using different assumptions.    

Balance sheet

We forecasted a balance sheet that represents the assets and capital owned by the company. Moreover, it shows the obligations which need to pay by the company in the next five years. Furthermore, our client wanted to utilize all the funds when entering and initiating their operations in new markets. 

Cash Flow

Our experts prepared a cash flow statement for our client that shows the overall five years inflows and outflows of cash in a business on a monthly basis. In the initial year, the company appeared to have the most cash inflows in financing and outflows in investing activities. They wanted to utilize their funds in their initial expenses to manage the operations.

Furthermore, the company wanted to buy fixed assets that included machinery, building, furniture etc. It was a significant capital expenditure incurred in the initial year. This statement shows the ability of the company to generate cash in the next five years. 

Breakeven Analysis

The breakeven analysis is an important estimation to identify where the company has no profit and loss. Our team evaluated based on the Fixed and variable costs incurred each year. The 5-year future forecasting revealed that the company would achieve its breakeven point in the 5th year and be able to bear the cost in future operations. 

Dashboard

At the end of the real estate saas financial model, our team developed a dashboard for our client. It helps to analyze the company’s overall performance. All our 5 year forecasted findings were presented in the graphical representation form to help our client make financial decisions and strategies accordingly. 

Pitch Deck

Our team prepared an exceptional pitch deck to pitch our client’s idea into different markets and to attract investors. The detailed pitch deck report summarized the relevant information from Business Plan and financial model. And we presented it in the presentation. Our client wanted to present the significant data briefly. So, our team developed an incredible design in which all important information is mentioned perfectly. 

Conclusion

The Oak Business Consultant prepared an incredible real estate saas financial model, business plan and pitch deck per our client’s requirements. We not only provide exceptional business services and help clients grow with full control over every aspect of the business. Also, we prepared the project timeline and meetings session to complete the project on time and to discuss, understand and fulfill the requirements of our clients.