Presentation on theme: "Feasibility Plan Kristi Phillips April 30, 2003 Newcomers A Welcoming Service for People new to the Boulder Area."— Presentation transcript:
Feasibility Plan Kristi Phillips April 30, 2003 Newcomers A Welcoming Service for People new to the Boulder Area
Opportunity Assessment Colorado has had a 30% increase in population over the last ten years, making it the third fastest growing state in the nation. Since an abundance of new people are moving into the area there is a large market of newcomers available. Problem: For Newcomers: It often takes new people to area a while to get adjusted. They need to establish a network of services in their new town (Doctors, Bankers, Lawyers, Restaurants, Retail businesses, etc.) Accessing this information can often be difficult. With a newcomers binder, they will have access to all of this information at their fingertips. For Businesses/Sponsors: Businesses often want to grow their client base in order to increase revenues. Purchasing paid advertising in the newcomers binder allows them to access new customers who may need their services. The market of newcomers is accessible because their addresses can be accessed. People new to the area can be found in these ways: Real-Estate Agencies Boulder County Court House has a record of everyone who has purchased property. The Rocky Mountain News publishes newcomers to the area. Developers of new subdivisions / contractors The business is profitable: If I am able to get 30 sponsors per month at $150 a piece, this will generate $4,500 per month or $54,000 a year. The only costs associated with the business are postage, packaging, accounting fees around tax time, and an initial licensing fee when I begin the business.
Product / Service Description Service: To provide a binder of useful information to people new to the area. New comers would be welcomed to the area with a personal visit when the binder was delivered. The binder would include the following sections: Professionals (Doctors, Lawyers, Dentists, Insurance, etc.) Financials (Banks, Investment Bankers) Retail Businesses Restaurants Schools and Universities Churches and Organizations Colorado Climate Information Maps and Information about Parks Price: The binder would be free to the newcomer. Businesses represented in the binder would pay a fee of $150 to advertise for the month. The materials for the binder (the binder itself, the dividers, the paper inside the binder) would be provided by sponsors who would get their logo printed on the outside of the binder. Location: Boulder, Colorado. Currently, there is a need for this type of service in the Boulder area. There are similar businesses in Colorado that would be willing to sub-contract some of their sponsors in order to help me get started. Employees: When starting out, this business could be run by just one person. If other employees are needed, a sales person to contact new sponsors and a delivery person to deliver the product could be hired. Key Attributes: Friendliness of welcomer, quality of information in the binder, usefulness of the product, ability to help the newcomer feel informed and welcomed Benefits: Access to resources, saves time and frustration by having this information at your fingertips, a personal contact in the new town, decreases stress, an all inclusive guide
Target Market Newcomers Demographics Families new to the town Demographics will vary depending on the neighborhood that the family lives in. All families new to the area will benefit from this service. Psychographics Resourceful Don’t like to waist time researching Opinionated – want to know the best possible option Risk adverse Trusting Appreciate discounts Sponsors Demographics Businesses interested in becoming sponsors would be: Professionals (Doctors, Lawyers, Dentists, etc.) Financial Institutions Retail Businesses Restaurants Buying Decision Businesses would want to become sponsors in order to: Build client base Use a form of inexpensive paid advertising (magazine advertising is $600/mo, newspaper ads run $200/day) Reach their target market of consumers in the area that need to use their business
Unique Benefits Newcomers Access to information Trusted resource Feeling of welcome into the area Discounts at local stores Decreases stress Saves time by having all needed information at fingertips More prepared for what to expect about living in Colorado climate (road conditions, growing conditions, allergies, etc.) Feeling confident in the new town Feeling of being part of a community Sponsors Unique way to advertise Accessing direct target market Fulfilling the need of the target market (newcomers will be looking for a contact to provide these services) Using advertising money wisely (only a one time cost and the person is likely to see the add more than once) Differentiated advertising (For example: not all people that provide insurance will advertise in this book) Saves time having to seek out new clients that are new to the area
Competitive Matrix COMPANYPRODUCTSTRENGTHSWEAKNESSESPRICEUNIQUE FEATURES Chamber of Commerce Pamphlets of information about the town People know about the Chamber of Commerce Brochures are easy to access and nice There are a lot of brochures that are not organized into a packet, therefore, they are not likely to be viewed Limited information about retail businesses, restaurants, etc. Free Easy to find the service Internet SitesFree information Easily accessible Difficult to navigate Not always quality information Takes a lot of time Free Easy access Quantity of information Books Specific information No listings of local businesses Have to want to purchase an entire book on the subject instead of just getting a basic idea $10 - $40 Depth of information Networking servicesPacket of personalized information Provides info on services and businesses in the area Most companies put together a “telephone directory” not an information packet. Mailed, not hand delivered NOT currently in Boulder area Free to newcomer Catered to the needs of newcomers Yellow PagesA listing of all businesses in the area All inclusive, non- bias listing Easy to access Familiarity abundance of information Only provides name and phone number about the company, not much other information free Easy to use People know about it
Competitive Advantage Information The only barrier to entry in this business is access to information. In order to start the business, it is necessary to get sponsors (local businesses that would like to advertise) and identify sources for finding newcomers in the area. Businesses that have access to this information have a competitive advantage. Some of the welcoming services that I contacted were very protective over their information and would not talk to me about how they ran their business, generated revenue, sought out new people in the area or found sponsors. Relationships Many welcoming services have a competitive advantage because they have built long relationships with the sponsors. Local businesses that are currently being represented by a welcoming service will most likely remain loyal to them. My Competitive Advantage In my binder, I am planning on including at least eight sections of a variety of information. I want this binder to be the first place that people go to when they need to find a business. Most of the sections will be information to be used as a reference, not just a binder full of advertising. A better binder will generate more sponsor and newcomer interest. I would like to personally deliver the binders to the newcomers. I feel that this personal welcome would be more effective for the new family. It would also allow me to give my personal endorsement to the businesses I represent. Sponsors can have their business listed in the front cover of their section as well as a ½ page advertisement or coupon in the section. Offering both of these options will provide more visual representation for the sponsor and also more options for the newcomer.
Profitability Monthly Estimates Revenue (average 30 sponsors at $150 each)4500 according to my interview with a magazine advertisement sales person, it is reasonable to get 30 sponsors per month Cost of Goods Sold Postage ($2.00 per binder, 100 binders) 200 Packaging ($1.00 per envelope, 100 envelopes)100 Costs estimated by owner of another welcoming service Gross Profit4200 Operating Expenses Marketing (advertise in Chamber of Commerce newsletter)150 General and Administrative Costs (phones/internet)100 Expenses estimated by the owner of another welcoming service Monthly Net Income before taxes3950 Yearly Income Before Taxes $47,400
Conclusion Feasibility Yes! This concept is very feasible. There are relatively no barriers to entry, few costs, and excellent profit potential. The challenge will be putting up barriers to entry once the business is established in order to eliminate competition. This can be done by forming relationships with sponsors, protecting information and will be established over time. Once people know about the product/service, word of mouth will be an excellent differentiating benefit. Next Steps Write a business plan Get licensed as a business Find sponsors Corporate sponsors to provide materials Sponsors to advertise Obtain lists of people who bought property (county court house) Advertise about the service in the Chamber of Commerce Newsletter Put binders together and deliver them Assess success by surveying sponsors