| Summary: | Taking into consideration the existing financial crisis in Spain and the opportunity it carries for real estate agents and rooms/apartments owners to rent out their properties, roomsDB.net propose to launch a new room rental website to take advantage of the current niche existing in Madrid, Spain. The management team have direct knowledge of developing and running a successful room rental website in Singapore with six years of experience.
In the big market of real estate we determined that the best option for us in Madrid is non-luxury apartments/rooms. We are confident that we are not going to find fierce competition in the medium-term and we will take advantage of this to become the leaders in this segment of the market. Moreover, some of the current competitors do not have the option for agents to post their offers in their websites and we do will offer this service.
The website will be different from competitors in customer oriented service, user friendly platform, immediate response to enquiries as well as achieving a lower cost base.
The promoters plan to raise an initial €60,000 to launch the website with a forecast of obtaining the 25% of the market share in the industry in Madrid. Based on case scenarios forecast, the website is forecast to generate cash from the first year of operation and the business will be also cash generative from the same year.
The attached case scenario forecasts show a rapid growth and producing attractive returns. By year five, the return on investment is 55 per cent.
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