Business Incubator Atlantic Cape Community College - Research Proposal Example

?Proposal for a Business Incubator Project Executive Summary Business department of the Atlantic Cape Community College has sponsored a project whichenvisages educational experience for the students. The project has been designed to help the small start up businesses by providing the marketing and planning materials needed to move them forward. This business incubator project will connect the entrepreneurs to the business department of ten colleges. The paper seeks to outline the project proposal for necessary approval by the business department of the Atlantic Cape Community College. The project providing office facilities to about eight to ten businesses will be executed in phases and expected to be completed in ten to 12 months. The project is commercially viable as a business and will form foundation for the development of new businesses and entrepreneurship. Background There is a growing preference among the young people for self-employment with plans for future expansion through experience and accumulated knowledge gained over the period of time in the business. The initial expenses in setting up the office for the business involve rental, purchase of office equipments and appointment of office assistant, in addition to purchasing vehicle for transport in connection with the business. Many of the dreams and well conceived plans for the businesses do not see the day light due to lack of seed capital. The business incubator project proposed is expected to address these problems effectively with little investment on the part of the entrepreneur. Business problems and the concept underlying the project The project aims to solve the problems in raising seed capital for the businesses by the entrepreneurs. The businesses initially started by the entrepreneurs are mostly one man shows. The entrepreneurs need to plan their businesses, establish administrative facilities for the businesses and engage in marketing their products or services. The most important part in the initial stages of the business is to establish office facilities or creating an ‘address’ for the business. This is important since the suppliers or service providers, the customers and other agencies need to contact the people in business in person or send couriers or leave messages. It is also required for storage of materials like drawings, CDs and books connected with the business. Therefore, a place with easy access to customers will be useful in keeping the contacts alive for growth in business and for being abreast of the developments in the markets and technology. Costly rental, capital investment needed for installation of facilities and working capital required for maintaining the office or work place act as deterrents in start-up businesses in most of the cases. Therefore, if the problems associated with this part of the business are effectively addressed, the entrepreneurs are free to plan their other business and marketing activities without bothering about the issues related to establishment of an office. Solution to the business problems There are several jobs which require minimal paper work but extensive travelling in meeting the customers to explain about the product or services. For example, CRM software for a small boutique, clubs or optical products stores keeping in tune with the changes taking place in technological front could catch up in the market in future. Sophisticated software used by the big corporations will be too costly to install in small businesses. This software developed by an entrepreneur might solve various issues connected to the data management relating to small businesses. The development of software is not a problem to a software engineer. But, marketing of the software needs extensive travelling, demonstration of the product to the prospective clients’ needs conference hall and the business needs an office to attend the calls of the clients and receive the couriers addressed to the business. It is also important to note that the office should be equipped with facilities for communication, office assistant and receptionist. The business man may need rest after long business tours and travels and sometimes overnight stay in the office for fixing up the problems cropped up in their business or for other purposes. The project proposed fits well at this juncture to provide these facilities to the entrepreneur. Since these facilities are managed by the Project Manager and his team, the entrepreneur is relieved of the administrative problems in maintaining an office. Utilization of Idle capacity and cost reduction It could be observed that the room provided for the entrepreneur is not occupied for the whole day by the entrepreneur. There are common facilities, the Project Manager, a Receptionist and an Office Assistant to take care of the activities related to his business in his absence, like attending the calls, receiving courier or attending to the visitors. Since his materials, documents and files could be stored in a cub-board and locked the work place could be utilized by another entrepreneur during his absence. In this concept of time sharing, the two or more entrepreneurs sharing a room can be arranged by fixing the timings for their office hours during the day or night for occupying the office for business. This will result in cost reduction to the business depending upon the usage. In this way, the available rooms, say eight to ten could be used by more than twenty businesses. Proposal The facilities proposed for the incubator project include the following: 1. Receptionist for taking calls and giving information to the clients. 2. Office Assistant for handling the assignments given by the clients. 3. Conference hall. 4. Toilet facilities. 5. Office facilities, photo copier, scanning machine, internet connection with modem to connect several desk top computers. 6. Pantry for storage of beverages and making coffee. 7. Rest/Guest room for taking rest or overnight stay. 8. Petty cash management of the business, to be replenished by the business. Vision The project can provide the facilities to the entrepreneurs at nominal monthly charges. The entrepreneur can focus his attention on his business rather than boggled down into the setting up of infrastructural facilities required for the administration in business. The services provided by the project include: 1. Assisting the business in providing complete office facilities, secretarial services and the administrative services related to office maintenance. 2. Providing conference hall for presentation, meetings, get-together, parties and entertainment. 3. Taking care of the personal needs of the members by providing rest rooms for increasing efficiency in their business operations. Project Goals The project aims creation of office facilities managed by the Project Manger. The facilities could be provided to more than twenty businesses. Construction of board room/conference hall is a part of the project which could be used by the members for their business purposes. The project includes construction of two rest rooms with all amenities for taking rest by the business men during the day or for overnight stay. Time frame The vacant building provided by the college for the project will be converted to house about 8 to 10 businesses at one time with common facilities. It is planned to finish setting up of the office facilities and appointment of the required personnel in 3 months. There is a big hall in the vacant building which needs to be renovated and furnished for using it as board room/conference hall. The renovation work will be taken up at the beginning of the fourth month and completed within 3 months. The rest rooms have to be constructed in the first floor for which there is a staircase already available. This will take about four months as it involves approval of the plan by the college at various levels and getting the plans approved by the local authorities. The project is expected to be complete with all the facilities planned, within a year taking into account the other contingencies that may crop up during execution stage. Project Deliverables Title Description Facilities Office Facilities Provision of furnished office Photo copier Scanning machine Internet connection Receptionist Secretarial services Office assistance Administrative services Pantry services Toilet facilities Conference hall Provision of furnished conference hall Lighting, video & audio Pantry services Toilet Rest/Guest rooms Provision of fully furnished rooms Television Air-conditioner Refrigerator Attached bath rooms Water heater Project Resources Type Quantity Notes Office Rooms Eight to ten About 20 businesses could be accommodated on Time Sharing basis. Conference Hall One About 25 people can be accommodated. Rest/Guest Rooms Two Double bedrooms with all living facilities. Budget Estimates Amount (US$) Notes Capital investment Office Rooms Alteration/Renovation 5,000 8 to 10 rooms Furnishing 3,500 Common facilities Alteration/Renovation 4,000 Incl. toilet, pantry, etc Office Equipments 5,000 Furnishing 1,500 Conference Hall Renovation 3,000 Furnishing 4,000 Rest/Guest Rooms Construction 7,000 Furnishing/Equipments 4,000 Total Budgeted Expenses 37000 Projected Income From office rooms @ 300 for 20/month 6000 Conference hall @ 100 for 25 days/month 2500 Est. occupied 25 days/month Rest/Guest Rooms @ 90 for 25 days/month 4500 - do - Total income per month 13000 Total income per year 156000 Expenses per month Salaries & wages 7500 Electricity, telephone, etc 3000 Other establishment charges 2100 Total expenses per month 12600 Total expenses per year 151200 Profit from the project 4800 Rate of return on investment p.a. (ROI) 12.97% Project Ownership Role Name Contact Details Sponsor Name: Phone: Head of the Business Department, Email: The Atlantic Cape Community College Project Customer Name: Phone: Email Project Manager Name Phone: Email Reporting The Weekly Progress Report will be submitted to the sponsor, the Head of the Business Department for his approval and concurrence. It will be published in the project blog for everyone to know the progress of the project and the businesses to contact the Project Manager for booking of the rooms. The Project Manger will be appointed on the advice and concurrence of the sponsor. Whenever, the Sponsor likes to visit the work-in-progress, it is the responsibility of the Project Manager to organize for the visit. Risks & Issues The project risks are mainly related to power connection needed for the vacant building and approval new constructions by the local authorities. Project Risks Risk Details Likelihood 1 Office rooms Power connection We can apply for connectivity. 2 Conference hall Power connection - do - 3 Rest/Guest rooms Building plan Plan should be approved by the Local authorities We can apply for power connection once the proposal is approved and the funds are sanctioned. The building plan approval may take some time by the local authorities. But, as it is taken up later, the delay is acceptable. Project Issues Issue Details Likelihood The Incubator Project Approval and The approval of the project Sanction of funds is expected to take a month’s time. The sanction of funds is subject to approval, which may take 15 days. Implications The approval of the proposal would be in line with the policy of the department in creating an incubator project to encourage the small start up business by providing the marketing and planning materials needed to move them forward. Declining approval or sanction of funds to the project would hamper the prospects of several business projects planned to be undertaken, but facing problems due to lack of required capital for setting up of independent office with all the facilities required. Success Criteria The success of the project lies in its capacity to act as a launch pad for new projects by the people from the economically weaker sections of the society who have well conceived plans with good business models. The success of the project could be determined based on the following criteria: 1. Number of businesses enrolled for availing the facility. 2. Profitability of the Incubator Project over a period of time. 3. The level of services provided by the project to the businessmen. 4. The quality of the services provided. 5. Efficiency in time sharing. Conclusion There is a growing preference among the young people for self-employment. However, costly rentals, capital investment for installation of facilities, working capital required for maintaining the office or work place are the major obstacles for the start-up firms. The creation of incubator project is expected to become a model for the private entrepreneurs to set up more of such facilities for the growth and development of the economy. The total cost of the project works out to US $ 37,000 approximately, and the project is estimated to be completed within 10 months to one year. In case, there are constraints in funding, construction of rest/guest rooms could be postponed to a later date depending upon the success of the project. However, the number of rooms and the common facilities could be increased in future depending upon the success of the project to cater to the needs of more businessmen. Read More