Assignment 29A- Venture Concept No. 2

Assignment 29A- Venture Concept No. 2

Opportunity 

For this business design, my opportunity is easily identified. Being a low-income college student myself and also someone who identifies with a minority group in our student population (Hispanic/Latinx), I wanted to target a market segment that I can relate to and understand their needs. Therefore, the potential customers for my business idea are also low-income college students who primarily identify with a minority group within the respective college's student population, which in this case would be UF. The opportunity of this business idea occurs every year, and even appears to be in high demand at the start of each semester, but mainly towards the start of the academic school year in the fall/late summer. For this reason, my idea would be successful since there is always going to be a consistent new group of individuals every year who are seeking my product. The market is a clear demographic of students who can provide information of their financial and ethnic backgrounds upon completion of applications to be accepted as a resident of the housing complex. As of now, customers that are housed in off-campus housing need to be making a significant income to afford the rent of a place located close to campus and with decent living conditions- rent for a place like The Standard or Social 28 can range anywhere from $900-$1200 a month! With my idea, customers will absolutely be looking to find a place that can provide similar living conditions and maintain close proximity to campus for classes and studies for a low rate. Many low-income students don't get to experience these luxuries due to their financial situations, and my business idea gives them the opportunity to do just that- live in a place close, affordable, and nice for a low cost and small labor contribution to the complex. 

Innovation

The "product" I am offering is a housing complex designed for low-income students that will allow residents the ability to enjoy luxury-style amenities and decent housing while also remaining close to campus, especially for those students who cannot afford to bring a car to college or the bus routes do not reach their current apartment. Because this business would be in partnership with other complexes in the area that have maintenance staff and other business necessities, the monthly cost for residents would have to start out at around $530, which is an extremely good price for the location and style of housing. After the business has gained traction and become functional, the rent rate could eventually go down by as much as $100. To get the company started, students can be expected to pay the equivalent to a security deposit upon signing a lease, which could be up to a $400 deposit for unexpected costs that may arise during their time with the company. This housing complex can also ensure that there is an even amount of students from each grade level residing with them by maintaining a cap of how many 1-4th year students and graduate students are allowed to sign a lease during a semester. As the business begins to take off, expansion can happen as well and the cap can slowly become bigger and bigger depending on how well the system works. To keep rent costs low, students who are residents can contribute a small workload each week that normal apartment complexes would have maintenance do, such as sweeping hallways and delivering mail in exchange for low rent. These tasks can also be used for resumes and experience as the graduate student-run complex can also provide letters of recommendations for those students who so choose to put this experience on their resumes.

Venture Concept

All in all, I don't find it'll be difficult to get customers to switch to this product. I already am aware that this need exists to a great extent within student populations worldwide, and this business idea could really take off and expand if all were to go well. After going through many forums and speaking to low-income students firsthand, I've come to find this idea that a small labor task in exchange for residency at such a clean, convenient housing is more than worth it for the price of its monthly rent. I would be facing many other competitors, such as all the other apartment complexes close to campus that offer similar or even better facilities/location, but I think my offer for lower rent supersedes the need for these apartment complexes. Again, my market segment is somewhat limited in demographics of who can apply for a lease, but I know that at least the people in my target group would be extremely interested and I believe I will have a steady number of customers. Additionally, the convenience of it just being within walking distance to campus is enough to attract customers to my product idea.

Secret Sauce

I believe that my most important resource will be convenience in conjunction with affordability. The two seem to be mutually exclusive with regards to housing units around campus, and this business idea offers the best of both worlds. Not many places to live off-campus offer decent living conditions for a low price, and the incorporation of the two in this product is what will ultimately attract customers to want to purchase it. In the future, it may be cool to extend the business and offer a line of "rental" cars or scooters that students can borrow for the year. This would be designed again for low-income students who cannot afford to have their own cars or scooters on campus with them for transportation during the school year. For my own next steps, I would like this business venture to introduce me to the world of hospitality and kick-start my dream of working in the tourism and travel industry. This would just be the start to my career in hospitality and remind me of my humble beginnings when I hopefully own my own company in the future someday

Feedback

I mainly got positive feedback rather than constructive criticism, which was unfortunate. However, I definitely wanted to highlight the positive feedback which I greatly appreciated while also giving my own constructive criticism for someone who may want to actually implement this business venture in the future. I appreciated that the idea was received well and that there are others who agree my design is unique and extremely needed by college campuses. I terms of logistics, I think we could come up with a better idea on how to keep the complex sustainable without having to "borrow" workers from other complexes essentially. Maybe in the future we can partner with the university instead and employ workers with their budget.