The Entrepreneurial Mind

As a group of student entrepreNURSE, this week and the previous week have been a hectic period for the team. Especially because of the preparation for the final examination and the final project. Despite this, the team still did not forget their responsibilities for the startup. In fact, during the previous weeks, the team has been busy validating their business hypothesis and did the necessary steps in preparation for the launch of the startup. After all the preparation, the STUD CAFE team step up to find an investor that would support the business. Because of this, the team hypothesized that adhering to the 3 Cs strategy of business pitching would be an effective way to introduce the startup to investors and gain the necessary startup capital.

During the day of the final pitching, the team tested the 3 Cs strategy which is clear, concise, and compelling. Due to the limited time given for each team to present, our team did as best as we could to keep our presentation as clear and concise as possible. The team presented all necessary information and excluded all the irrelevant information that would divert the attention of our possible investors. By making the presentation and team compelling, it would captivate the attention of investors and would leave a mark that could guarantee the investment needed to launch the business.

The team decided as a group to eliminate all unnecessary words and make our pitch as brief as possible. Nonetheless, include everything an investor needs to know about our proposal. We also considered the 10/20/30 rule. That our pitch deck will consist of only 10 slides, 20 words, and a font size of 30. Why? This is done to prevent investors from becoming bored with unnecessary elements and wasting their time listening to another round of potential investments. This is also to ensure that they stand out from the words crammed into a small font in the presentation versus what we are saying.

We also had to decide whether to stick with the original plan or create a new one. Of course, developing a new plan would be preferable because it would take into account many new factors that have emerged. However, it would be more expensive and there is no guarantee that it would work. In comparison to the original plan, which works as is and, if realized, would be less expensive. Furthermore, when the business is already established, new innovations may emerge. This explains why we never deviated from our original plan as a group.

We learned as a team that when pitching, it is critical to not only convince the investors with words but also visuals. Investors would be too bored to look at or listen to numbers on a screen. It would simply slip past their ears. However, if visualized and graphed, perhaps, especially when it comes to the asking price. The investors would be aware of where their money is going. Which resources consume the greater portion of the half? In our case, we were able to break down our prices if investors were interested. Except there are no visuals. This makes it difficult for an investor to be convinced of the product.

Finally, we have learned more about our fictitious company as a result of this subject. We believe we will be able to create something profitable and fruitful from this in the future. Being able to share in this journey has led us to believe that, in addition to attending nursing school, having entrepreneurship on campus will shape our other personalities and, of course, help us learn new things we haven't learned before.

In our current new normal setting, most of the classes in universities are held back through physical interaction resulting in a surge of a new set of tired, hungry, in-tight budget college students. These college students like me are in desperate need of Cafes where they can relax and recharge their energy after a tiring day of class. Although there are undeniable numbers of good and popular Cafes within and in proximity to the university, nothing can still compare to the convenience that we can offer. Due to this, the team came up with the following hypothesis to work on and achieve in order to launch our startup: 

The start-up will be recognized in the market if the team will utilize strong marketing   channels such as social media platforms. 

To gain start-up capital and attract potential investors, the team will be considering the location and the cost of building the physical store.

First, our target market commonly uses social media such as Facebook and Instagram. As these platforms continue to grow and weave themselves into the daily patterns of our target market’s lives, these social platforms will influence their purchasing decisions. Therefore, engagement on social media is a crucial part of business marketing, especially for a start-up business. Signing up and creating a page is easy and free, and it is not stressful to manage. With its aid, the team can provide support to potential customers & help the start-up grow affordably.  Thus, by creating a strong social media presence and branding the business will attract and convert customers.  The team has opted to choose from various platforms such as Facebook, Instagram, and Twitter since these three platforms are the most convenient and prominent to use. Thus, the group made the decision to sign up for these platforms as we started to view them as a wonderful opportunity to gain public recognition. 

Second, raising start-up capital is an important part of developing the startup business as it is the fuel that feeds the fire and every business needs capital. Entrepreneurs must take into consideration a variety of various aspects as they work to launch their startups and that includes funding. Startups frequently use venture capitalists or their personal networks (e.g. family & friends) to raise money. As discussed in the lecture series, Angel investors are also key players in launching a startup business; they are wealthy individuals that lend money to entrepreneurs or small businesses in exchange for equity in the business. The location of the business is often one of the most important considerations for entrepreneurs starting up in the business world. As for THE STUD CAFE, it requires a physical store and the team considered a location that is accessible, visible and has a lot of foot traffic to entice investors. Another important factor is the cost needed for launching the startup. The team explored options for material that is cost-effective and sustainable to decrease the startup costs and speed up the return on investment, which can in turn build the trust of potential investors. The team considered different locations, including Dologon, inside the University, and at the University's Main Gate. Yet, the team decided to locate the cafe at the University's Main Gate, due to its proximity to the different colleges and it has a lot of foot traffic mainly because it is where vehicles unload passengers. Then, for the cost of materials, we are considering using sustainable materials such as refurbished chairs and tables, and for our building structure, we decided to use shipping containers due to their affordability and also to reduce waste. 

Besides this, another important event that happened during these past couple of weeks, The Business Management Department hosted a lecture series in conjunction with the course GEE 16: The Entrepreneurial Mind.  For Lecture Series 1, the topic of the Startup Ecosystem was talked about by Engr. Bronson Mabulay, Director of Innovation and Technology Solutions Division of USTP-CDO. For Lecture Series 2, the topic of the Startup Journey was talked about by Mr. Arnel Arreglado, CEO and Manager of GeoPindot.  The Lecture Series provided avenues for instructors and students to learn about various important topics.  This event was extremely beneficial to my entrepreneurial endeavors. The speakers made several points. Starting with the start-up ecosystem, which is a network of people, businesses, research organizations, service providers, and even universities. All of these are for the formation of new start-up businesses.

Furthermore, the start-up journey presented during the lecture was eye-opening to realize that the entrepreneurial world is just as systemic as any other system out there. He also talked about how failure will be an important aspect of the journey because it will not only show you your weaknesses, but it will also give you a chance to improve in various aspects. When failure strikes, it is important to remember why you started - your purpose and vision. Along the way, it's also critical to invest in and develop your passions and skills. Your surroundings will also play a role because they matter, which is why you should surround yourself with people who support and believe in you. People that you can trust that won’t leave you at your lowest point and won’t envy nor betray you when you reach success. 

The funding system was also briefly but thoroughly explained, and I realized how important the money cycle is as a result. I learned why start-ups need to raise funds, how start-up funding works, and the sources of funds, among other things, as well as the concept of business pitching, including its various types. The question, "Why raise money?" was posed, and the speakers effortlessly answered it. I was astounded by how knowledgeable the speakers were during the lecture, and I also noticed their humility.

During the past few weeks, the team conducted an initial Market Survey to analyze and investigate potential target markets. This initial Market Survey conducted through a google form is a tool for gathering direct feedback from the identified Target Market to understand better their characteristics, expectations, needs, and requirements. Market Surveys are vital to creating efficient and successful strategies that will be beneficial to develop momentum and launch our start-up, namely' "THE STUD CAFE."

A Target Market or Niche Market is a group of prospective customers to whom our team intends to sell our products and services. As the team identified, they are mainly Central Mindanao University students and staff. However, they are sub-categorized to those that are renting and commuting, especially those that are book lovers and coffee lovers. The team gathered essential data for our target markets by asking them close-ended and open-ended questions. Through the process of synthesizing these answers, the team was able to discover start-up options and formulate important venture decisions. The following are the objective data, selected questions, and narrative responses from a small segment of our target market that the team has interviewed. 

During the initial Market Survey, 95% of the respondents are CMU students, and 5% are school employees. 40% of students are pursuing a doctorate in Veterinary Medicine. 30% of the students are pursuing a bachelor's degree in Nursing. 10% of students are majoring in Biology. 5% of students are pursuing bachelor's degrees in Nutrition and Dietetics. 5% of students are pursuing a BS in Civil Engineering. 5% are BS Finance and Management students. Finally, 5% of the respondents are school staff working as SPMU clerks.

Moreover, the team interviewed respondents ranging from 17 to 40 years old. Respondents aged 17, 18, and 46 years old are only at 1%. While 19-year-old respondents were 15%, 21 years old 20%, and 20 years old at 50%.

90% of the respondents are women, and 10% are men, with an estimated family income ranging from Php 10,000 to Php 50,000 a month. 85% are commuters, and the remaining 15% stay in boarding houses or pad rentals with weekly allowances ranging from Php 700 to Php 3,000.

The demographic data, such as age and gender groups of the target market, are essential to be considered logically because different age and gender groups have different spending habits, product interests, and values. Age and gender segmentation is also integral for the start-up to manufacture products specific to each group. At the same time, the data on estimated family income and a weekly allowance of the target market aids the team in deciding the pricing trends and brainstorming potential products to be added to the initial menu listing. Forecasting the pricing trends will enable the company to calculate estimated prices that are feasible for the consumers and could still generate income revenue for the start-up. Additionally, creating a simple product to outsource and produce based on the preferences of the possible clients is the top priority to maintain customer relationships and sustain the business in the long run.  

In addition, the team asked whether the respondents have any problems finding a safe and comfortable place to study during their vacant time. Out of 20 respondents, 13, or 65%, answered "Yes," while 7, or 35%, responded "No." Most of the respondents answered that they have a problem finding an inclusive place where they can concentrate on studying. This result proves that there is a problem that exists within these areas. A problem that the team's venture wanted to solve. 

When asked whether they had any problems studying in their boarding houses or pad rentals, 11 or 55% of respondents answered "Yes," then the remaining 9 or 45% of respondents answered "No." This result signifies that the student still has problems learning and studying even in their accommodation. Thus, it is crucial to have a separate study area that helps sharpen the mind and improves the concentration of these students. Having a particular study area is preferable to using a bedroom, where they cannot be distracted by external factors, including their roommates and bed.

The team also asked the respondents if they are experiencing problems with the internet connectivity inside the campus, the majority of the respondents which is 18 or 90% percent of the total respondents answered "Yes," and only 2 or 10% answered "No." A massive gap indicates a real problem inside the university regarding internet connectivity. Therefore, not all students have access to a good internet connection. 

However, when the respondents were asked if they wished to have a budget-friendly and convenient space to relax, study and do work, all respondents answered "Yes," giving 100%. This result validated that this business idea is needed in the market. This validation means that when the business launches, potential customers will purchase the products and services that the start-up will offer. 

Lastly, when the respondents are asked what they think of an affordable, student-friendly study hub or cafe near the university's main gate and whether it is a good idea, their answers motivated the team to pursue the business idea. The succeeding statements are the narrative responses of the segment of our target market:

"Yes it would be a good idea, only that internet connectivity and electric power interruptions would prevail. Furthermore, a cubicle type of set up for study hub would be nice to have that conducive place to study and focus."

"I think a study hub is a good idea for students but i think i would change the location to a more appropriate area inside the campus."

"It's a good idea because it might help the students to have a good place to unwind or a place to study where it's quiet."

"I think it was a nice idea so that students will have a comfortable place to study."

"I think it is. As long as it helps the students focus on their studies with a condusive environment."

"Yes, because we need places that allows students to study without any noise disturbances and away from our beds.😴😴😴"

"Yes, it offers comfortable and convenient place for me to study."

In summary, after interviewing our possible clients, the team decided to continue with the original business idea presented during the venture proposal. The team still thinks this would be an excellent business opportunity as a start-up. However, the team reconsidered a few things regarding where the business would be located. The team chose between situating it in Dologon, Maramag Bukidnon, or sticking to the original plan to locate it on the Main Gate. A suggestion also came from our target market, suggesting to find it in an appropriate area inside the campus. Yet, the team still decided to establish it at the Main Gate of the university, considering the foot traffic in the area and its proximity to the national highway. The team also started discussing the infrastructure, the ways to gather investments, strategies to build partnerships, and, more importantly, recognizing requirements and qualifications needed for legal matters (e.g., business permits, accreditations, and building permits) for the upcoming Business Model Canvas Presentation and Pitching. Overall, the team learned how necessary it is to validate business ideas to build strategies and ensure that the business would sell and be successful. This way, the risks would be mitigated and give the start-up business a stronger foundation.