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2019 Rise to the Challenge Business Pitch Competition

2019 Rise to the Challenge Business Pitch Competition


welcome welcome to the this is the the
seventh rise to the challenge business competition I’m Marie Marie Allen the
Dean of the Marriott School of Business and welcome everybody here also welcome
everybody who is on facebook life which we’re now broadcasting broadcasting live
this is this is really you know really important a competition for the school
as you know it’s by the way I think it’s great it’s on May 1st you know this is
you know workers you know it is you know all of you know that you know University
of Baltimore it was it was funded by entrepreneurs so it’s very appropriate
we have a on tradition every year here and it was funded for the working men
and women and it’s saying in the initial prospectus it did say working men and
women of Baltimore so a and you know we you know that tradition is still very
important to us we’re you know we the number one school in Maryland for
educating working working adults we’re you know we’re trying to aspire to be
the most transparent Lee school and you’ll see a number of our contestants I
think I’m right you know or you know you’ll see if you talk to them about
their education career everything they transferred in here and we’re really if
you know some great backgrounds and we’re we’re very career-focused that’s
all wait you you you come to numerix school to become something you know
become a an accountant become a marketing professional insurance
professional some of you’re gonna say you come to become an entrepreneur and
and in some students actually do ask me is entrepreneurship a real career and
another thing as you’ll see in a few minutes you know some of our most
prominent alumni they made careers as entrepreneurs and so i think it is a
career but it’s also very important for a business school because you know at
the heart of any business it’s sometime there was some creative spark right and
so just learning and practicing that is very important so you know we had think
a right-hander we had over 70 applicants for this and a we we got this down to we
got this down to a to six so the participants did a lot of work in this
and i really thank them and I thank the judges Henry
is going to introduce the judges we go eminent set of judges from the Baltimore
entrepreneurship equal structure and I want to thank also you know our our
sponsors a who been very generous to us a the Pridgen family entrepreneurship
fund the James Carlton and and an Harv a so burg venture fund the j ripley
entrepreneurship fund the ZM b media the pitch creator rouge fine fine catering
their sponsors i appreciate that so but by the way it’s not only monetary things
I mean I’m the sober gay foundation I would have to you know we’d highlight to
this point you know one of the originators of the competition has been
very generous he’s a judge tonight Henry is going to introduce a two who
represents them tonight and also worst of the students you know so you know you
know that’s a you know that you know it’s a fantastic key sponsorship and I
want to introduce you to you know for two reasons one just to prove the
entrepreneurships are career I want to introduce you to one of our most
prominent alumni this the the main prize tonight is a is comes through real
generosity of the of the Jay Ripley entrepreneurship fund. Jay Ripley is a is
the the chair of the Sequel Youth, Sequel Youth and Family Services. Some of you
might remember Jay gave a great talk a couple of years ago about how he built
this say how he built this a business and he’s a graduate of UB I
think you said your last exam was a few years ago 40 years ago and started his
career and at Ernst and but then has gone through a number of a number of a
of Jif…Jiffy Lube
Jiffy Lube and a and precision auto care they is funded his own you know burger
burger chain which I think he’s sold subsequently and sequel Youth and Family
Services is a large multi-million business you know private enterprise
business in providing services for troubled youth across the U.S. and a and
now in Europe right so so Jay has been extremely generous and I want to give
him a chance just to to say to say a few words and so you can see a real a
entrepreneur and this is what all right. [Jay Ripley] Well thank you Murray. It was 40 years ago
two days from now but I took my last exam here in the Merrick School of
Business I don’t think it was the Merrick School of Business Bobby and I
were talking I don’t think was the Merrick School at that point but that
evening to celebrate my last exam I took my then-girlfriend my now bride
Barbara out the dinner and I proposed to her that evening and so we will
celebrate our 40th anniversary later this year. She is the woman behind all of
the mess that I’ve created but she’s the good part of it so. I want to show you a
picture if I if we could so this is in 1976 before I when I came here this was
only an upper-level school right it was just junior and senior so I went to what
was then called Catonsville Community College for the first two years
transferred over this is in nineteen this is my very first entrepreneurial
venture. who are the participants tonight? By the way can you raise your hand. let
me oh they’re not out here yet. they are okay. but my talk is for those guys okay
for you guys thank you for being here audience what I’m trying to do tonight
is to inspire those that are the finalists here because this was my very
first entrepreneurial venture of many many of which failed and some of which
thank God did very well but this was a snowball truck so my partner and I in
1976 we bought that half-ton step van from the old post office lot I think it
was in Linthicum they would sell these old trucks and we painted this half
orange and the other half which you can’t see was yellow and we put a black
stripe down the middle that’s my older sister Kelly helping me outfit this
thing we put you know we put shelving in there we built our own ice deal where we
would put the blocks of ice that we would use with the shaving machine I
still to we did this all three summers between
our years in college so when I was finishing up at UB we I think we were
just selling this truck but I to this very day that is the most profitable
business I’ve ever been involved in 66% net EBIT Dom margins so if somebody
wants a really great business to go and to go into the snowball business
probably the margins are a little bit smaller today but that was what gave me
that’s what put it in my blood to be an entrepreneur so I went after UB I went
to Ernst in what was then Ernst and Ernst now Ornstein Young which was a
fabulous platform from which to go from there I went to Jiffy Lube in the days
many of you will know the Jiffy Lube story here was a Baltimore story a guy
named Jim Hyneman was the chairman I went to become their controller and then
I ended up running the eastern half of the country in terms of operations and
when I went to Jiffy Lube I said to Jim this is what I this is what I want to do
I’ve got entrepreneurial spirit in my blood and it was an amazing story we put
a thousand units across the country in the 1980s which I wouldn’t recommend to
anybody but it it worked that’s now owned by the Pennzoil Corporation and
they’ve done great they bought it in 1990 so I went through a whole series of
entrepreneurial ventures but it all started with this I mean I was a poor
kid that house is in Catonsville Maryland and I was from a divorced
family and had no money we started this with a $1,400 loan from My Father which
we paid him back in three weeks and that got into my blood of just owning your
own business because even when I went to Ernst and then the Jiffy Lube you know I
like the idea of taking the risk to hopefully get the reward because you
know if you’re just an employee somewhere which so many people are and
they have great careers as employees but for those of us that are entrepreneurs
you get it in your blood but it’s like I want to take this risk and maybe
something can happen so after a whole series of ventures including Jiffy Lube
etc etc 20 years ago with a partner I started the company that Marie
mentioned called sequel Youth and Family Services and it was my second time
around in what we call the behavioral health industry behavioral health being
mental health and substance abuse it’s sort of the mental health side of
healthcare and it’s just been an amazing ride today sequel is we have we serve
about 10,000 people a day we have 4,500 employees across the country it’s just
we’re we’re this year our fiscal year will end June 30 in a couple months here
and we’ll do about 350 million in revenue so Barbara and I were the
majority owners of that after my partner retired five or six years ago we bought
him out and we had this decision to make what do we do with it you know do we
pass it on to our kids do we just keep it in the family do we sell it and then
have a liquidity event and we decided for us because of some experiences that
we had seen that we wanted to have a liquidity event so we year and a half
ago we sold a majority interest in sequel youth and family services to a
private equity firm at a valuation of 400 million which was an amazing
blessing we’re still the second largest shareholders that we’ve just hired our
third CEO in the history of the company who is a person that has a real track
record of taking companies our size to a billion plus and taking them public so
that’s the that’s the goal here was with sequel and my point to the participants
the finalists here today is it started there and if it can happen to me it can
happen to you I’m just a poor kid that had a lot of desire had an
entrepreneurial spirit was willing to work hard learn to treat people right
and and handle people well which is in my view about 90% of business so I hope
to be an inspiration to you so that 40 years from now you’re standing here and
whoever’s Murray’s successor and and Henry’s successor can say hey this other
person gave this money so that we can fund this next award for you so in in in
in a couple final words that is a 1963 Volkswagen Beetle when I bought that I
was in high school and I didn’t realize until I got at home
that that it had holes in the floorboards so I had to like redo the
entire inside put new carpet and everything Barbara’s father had a 1965
VW Beetle and he was sort of my inspiration to get this thing it was
just a great car it went in the snow when everywhere but the funny story is I
started our instant young and back in those days it was all there was no sport
coach right there was suit and tie it was white shirts or blue shirts back and
in that it was just after the time when you know the the guys had stopped
wearing fedoras so I’m driving in to work in this little I hadn’t hadn’t you
know worked enough to get out of paychecks to replace this vehicle yet so
I’m driving down I think I was right there at Green Street and there’s a gas
station on the far right corner and I remember some young kids have been
sitting on our corner the night before it at our house well what I didn’t
realize is they had loosened the lug nuts on the front and right tire of this
thing and I as I take off when the light turns green the front right I see I hear
my car go boom down to the right and then I see my tire and wheel going
before me into the parking lot of this this gas station so here I am all suited
up ready for my day and Ernst and Ernst and I’m changing my tire right up this
old little car so that just shows where I came from and so I Love You B because
that’s where we all come from that you be right we’re working people that come
back to get an education we have the desire to do it and I stand here today
to say hey if it can happen to me it can happen to you Murray’s back to you I told you entrepreneurships a career
and that’s it so thank you Jay thank you very much and Dave now let me let let me
introduce you to Henry Mortimer who’s the director of the center for
entrepreneurship and innovation Henry is going to be the master of
ceremonies tonight he’s going to juice the and moderate the event I want to
remind everybody there’s a you get a ballot there’s a the judges as well as
the judges the y’all get to divorce as well so we have a crowd favorite as well
so don’t forget to vote and this is kind of like Chicago you can vote vote often
okay so so thank you Henry good evening everyone thank you for
coming Thank You Jay for that incredible story I think the message tonight if you
walk away with anything is that it can start with a snow cone and snowball from
there right into entrepreneurship as Murray said I’m Henry Mortimer I’m the
director for the Center for Entrepreneurship and innovation here at
UB basically we’re a support organization for current students
graduates alumni anybody affiliated with the UB community who has an idea for a
business can come and meet with our entrepreneurs and residents you can
attend events like this we also have workshops to do a lot of how-to oriented
workshops each semester so I have a speech prepared but I think you guys are
here for more than just listening to folks like me so I’m going to skip my
PSA if anybody has any questions about the center be happy to talk with you
afterwards and as you can gather already and now on what I am going to tell you
about is is what can happen to you if you are affiliated here
UB it really is an honor for me tonight to maybe turn the evening on its head a
little bit because I’m going to introduce you to our keynote speaker
brianna Billups who is really the after picture right if you assume that our
upcoming speakers or presenters are are what you know they’re aspiring to be
Brianna has graduated from the e Fellows Program here at UB which is part of the
Entrepreneurship Center and has in the last year transformed her winnings from
this evening she was the winner of the existing business category which is
actually the cart and silver prize money and she took that seed money and she’s
really transformed her it was a small fledgling business into something
greater than that and so I’ll let Brianna tell her story better than I can
but I’d like you guys to imagine that not only in 40 years time which you can
become but even within a year’s time with some help and some finance and some
some great coaching so without further ado Brianna Billups please good evening everyone first I would like
to say how incredibly humbled I was when Henry asked me to be tonight’s keynote
speaker it was a pretty uncertain a major time in my evolution as an
entrepreneur when he acts and it gave me a much neater ego boost so Thank You
Henry and everyone here this evening for having me as you can see from the title
my talk this evening is about evolution in the entrepreneur I like to share my
story with you all as well as the major lessons I’ve learned along the way so
I’d like to start with where my journey as an entrepreneur began thank you the
year was 2013 and I was a first generation college student attending
Anne Arundel Community College for culinary school in my writing
composition class I had decided to do my research paper on food deserts the topic
jumped out at me because I had never seen the word food joined together with
the word desert so here I was 18 years old
freshman in college when I discovered that I had lived in a food desert my
entire life here in Baltimore City after researching the causes and contributors
and possible solutions I was so incredibly shocked and inspired all at
the same time that I began implementing a few of those solutions the early
stages of what I would soon realize would be the basis of my own nonprofit
was a combination of gardening and cooking classes I had piloted at a
six-week summer at a six-week summer day camp in West Baltimore City where I grew
up I taught students pre-k to sixth grade how to grow their own produce and
prepare healthy meals using the produce grown in the garden it was truly amazing
seeing students eyes wiving when they realized that cucumbers and tomatoes
grew from the ground what pushed me to action the most was the fact that while
I had grown up in a food desert my entire life I didn’t necessarily miss
out on knowing or going to love my vegetables but so many children did and
it was somehow by design fast forward a few years later to 2016 I had been
accepted into the e Fellows program here at UB with the intent on starting a
nonprofit called the garden project which was sitting around my social
mission to teach urban agriculture to Baltimore City public school students
specifically located in food deserts but it was here at UB that I had decided to
figure out a way that business could be a part of that solution
thanks after giving it much thought I decided to take a product that I loved
since I was a kid which was fruit roll-ups and create a healthy and
delicious version of it I named my all-natural snack company fully grown
and a percentage of our profits will go to were supporting ever been our culture
in city schools I spent the rest of 2016 in most of 2017
during recipe development sampling it to co-workers at Whole Foods bringing my
snacks to events just like this one and finding local cafes interested in
selling my product little did I know fully grown would soon be expanding its
products and services by 2018 I began offering meal prep services for busy
individuals and families meal prep had been something I did for myself as a
college student to save money but once I started sharing my meals on social media
I began getting inquiry inquiries about offering it as a service at the time it
fell under the umbrella of what I believe fully-grown stood for which was
whether you live in a food desert or in the suburbs surrounded by grocery stores
everyone deserves to have access to healthy and delicious food this was the
second evolution in my journey in 2018 fully-grown offered meal prep services
sold all natural fruit snacks and own its own nonprofit called the garden
project and it wasn’t exhausting as it sounds 2018 was a year full of hard work
but also lifelong lessons my biggest takeaway was learning the value of
continuous improvement there were many things I was unfamiliar with like
establishing delivery routes hiring kitchen staff scheduling kitchen staff
and keeping track of a food budget but after getting things wrong one too many
times I worked harder at getting better at the things I thought I just wasn’t
cut out for by the end of 2018 I realized I had gone through a couple of
changes since starting down this path of entrepreneurship but one thing remained
the same and that was my desire to teach urban agriculture so I had come to a
roadblock one that I spent many months pondering
over was are really about to make another change to my business what about
all the hard work I have put in to get my business thus far today so many
questions ran through my mind but I remember the last thing I thought was
you started down this path with a passion and it has taken you this far so
no matter what the next stage is your passion for what you do and what you
believe in will continue to take you far and the rest will follow it was one of
those much-needed pep talks we give ourselves we’re about to take a huge
leap of faith and I have to say it’s worked the beginning of this year
brought my third evolution as an entrepreneur or shall I say revolution
because my journey short did come full circle I now stand before you as the
founder and CEO of fully grown an all-natural snack company who supports
the education of urban agriculture in Baltimore City Public Schools through
its partnership with my nonprofit the garden project
my focus is now selling our all-natural fruit snax direct to customers at local
farmers markets you can find me and my awesome mom at the rotunda farmers
market every other Tuesday from 11 to 2 p.m.
Pratt Street farmers market every Thursday from 11 to 2 p.m. in the
Baltimore Museum of Industry farmers market every Saturday from 9 to 1 p.m.
so I’m also proud to announce that our first partner school this year will be
Callaway elementary school in West Baltimore City where 1% of all our
revenue from snacks will go to lunch on-site gardening and cooking clubs
while it has certainly been difficult to let go of a part of my business that I
worked so hard on I thought I would have done myself a disservice if I’d lost
sight of what I was most passionate about so as I’ve walked you through my
evolution as an entrepreneur I hope to leave you with three key things embrace
the evolution we only get better with growth and some experiences in business
or life in general will help us do just that grow remain focused on continuous
improvement as we evolve we should be able to take what we’ve learned to
become better at whatever it is we choose to do in this life and lastly
always follow your passion it is what will get you through those late nights
and early mornings I like to close with a quote for one of
my favorite entrepreneurs madam CJ Walker don’t sit down and wait for
opportunities to come get up and make them thank you and good luck to all the
good was I right
what an amazing transformation what a story I honestly have to say you you
really are fully grown now congratulations
oh all right no more speeches I know why you all are here right let’s get on with
the competition so first I want to thank the many volunteers whose tireless
efforts have made this evening possible including our first-round judges and
coaches some of whom are here and they’re listed on the back of your
program as well as the army of students who truly keep things afloat here help
me manage the center on a weekly basis on top of all the other things that
students here at UB do I work full-time the full load of work launching a
business and helping guys with Greybeards keep afloat and then I’d also
like to thank and introduce our judges for tonight so quickly because I know we
want to get on with it when I but when I call your name please wave or stand for
the audience so they know who’s here first up we have John Cammack he’s
managing partner at King cedar holdings John where are you joining us as well as
Gretchen the grand executive director for code in the schools round of
applause and then tonight we’re blessed with three alumni judges first up is
t’keyah ross founder of excess mattias 2011 if I’m correct right next up alum stu Silber the executive
director of the ub foundation stood and then lastly a greg stone is a patent
attorney partner and co-chair of the intellectual property practice at wifer
taylor Preston Greg thank you for your time tonight all right
so real quickly here’s how the evenings going to go each of the finalists will
have three to five minutes to pitch their businesses
they will appear in order as listed on your program and then the judges each
have a combined I should say have five minutes to ask questions I’ll keep time
I don’t have a gong but I do I do want to keep things moving along as we have a
large group if seven this year but I also want to mention that you all as
audience are also playing a role tonight we encourage all most demand you you’re
enthusiastic cheers and support throughout the evening my only caveat is
please don’t cheer or make noise during their presentations but leading up to
and after feel free to make a lot of noise and then your other most important
role is you provide a vote tonight you will pick one of our winners we have a
crowd favorite and that’s Marie mentioned your ballot is in your program
so please only choose one so that we can so we can tally quickly at the end but I
do encourage you to vote so anyway let’s get on with the show is everybody ready
back there all right excellent then let’s bring out our first finalist
Melvin Clark who will be presenting AMJ fishing gloves how about a round of
applause for Melvin know someone who fishes all the time
short hangs yeah I thought so I’m gonna try people who go fishing all the time
day or night and in any weather condition so we time I know anyway my
name is Melvin Clark the third and I’m the CEO and founder of AMJ fishing clubs
thank you so as a disabled War veteran who suffers from post-traumatic stress
disorder I’ve turned my 25 year lifelong enjoyment for fishing into a passion in
two ways first by allowing fishing to help me recover from my disabilities and
second by launching my new fishing career okay so part of my recovery was to engage
with those around me and here is where I discovered you go here’s what I
discovered there videos for the recreational anglers I faced with the
problem of finding high quality fishing gloves that can protect from fish knives
casting baiting rigging and that’s durable in any weather condition as you
can see from my demonstrators here AMJ have solved this is a problem by
providing durable high performance fishing gloves that protects from hook
punctures night bites fish cuts fish pin cuts fish handlers disease and
everything that you could think of in between also while maximizing sorry
also while maximizing their fishing experience their casting distance their
fish grip and their overall hand safety so as you can see my competitors like
glacier glue deal and fish monkey they also assemble the products but nothing
and you guys when I say this nothing compares to a MJ fishing gloves so our
total addressable market of sport and recreational anglers had a total
estimated number of forty six point two million and given our wholesale number
at twenty-five dollars per pair we estimated the value of this business to
be at over 1 billion dollars come on work with me here
given our revenue model and financial projections we can plan to use three
revenue model storm with our sport recreational anglers
in here in Maryland there are over 300,000 sporting recreational fishermen
and we plan to target 13,000 of them in the close of 2020 giving us a total
revenue of five hundred twenty thousand – our cost of goods sold which is our
parts in labor of 169,000 giving us a growth profit 351 pounds by the Year
2021 we look to grain traction with our retail revenue targeting 17,000 units
dipping us to total revenue of 600 1000 with the cost of goods sold – 221,000
giving us a growth profit of 380,000 since our inception seven months ago
seven months yeah seven months since our inception seven months ago we’ve
designed a glut okay we talked to 150 baiting that bait local shop offers
along with recreational in sport anglers today we are Reed engineering our glove
with a local sporting apparel company and we’ve also designed our Kickstarter
campaign to get a start in the near future we look to finalize our beta
testing with our final product we look to finalize the IP for our glove as well
acquire manufacturing and build our e-commerce website my team members
consist of Damien PZ who’s our concept designer LaQuinta Wilson who’s our
stitching pattern designer Tom Amy brown he couldn’t be here today but he’s out
he’s our art designer my advisors consists of Jim Lindsay Meyer Kimmel up
Under Armour Kevin Fullmer and Karima McClendon when we hooked a big prize of
$15 we plan to use it as follows 6002 IP and legal surf into research and
development I wasn’t website and fourth will be
retained for our working capital and growth initiatives and with this round
we look for answer to our next milestone so now I must ask thank you thank you Melvin judges it’s
time to open up for questions so who has a question for Melvin anyone want to
start Greg Melvin tell me more about your
competition so you you’ve identified three folks that are out there that have
competitive gloves how do you differ I actually found nine people in
competitive and how I differ is because I offer things that they don’t like
water resistance that’s one thing that they don’t offer being safety like as
you talking my demonstrators they were able to stab themselves in the hand with
the knives you can’t do that no other glove you’ve seen I’m actually go across
they hand as you’re saying mr. Damian he put the hook right through his fingers
that’s how we differ we really provide overall hand safety what else you having
to worry about nothing while fishing even from the water itself with like go
ahead and then for your customer base that you’ve identified so far our folks
are fishermen in Maryland buying product from those competitors now that you’ll
display some of yes sir but not as much as I thought that would be because of
how they offer and they product them gloves out they don’t offer everything
that a fisherman or angular needs like that’s where we come in thanks yeah
great presentation I had the question I would have is how do you compete in an
online market where you’re dealing with people that will use your your invention
your idea your concept and they go online and purchase a product at a
better price okay so what we plan to do with that sir is dry our people from our
Facebook and our Instagram and our snapchat pages and drive them right to
our e-commerce website and from there that’s how we want to start our base so
that along with also going out into the market talking to folks and I’ll sell
them right right team thank you any more questions I’m not a fisherman so how
often would a consumer purchase your product what is the lifespan so what is
it one glove a year is it you know – like how do you do how do you know the
life’s meaning of your so presently we had we’re still trying to determine that
like we just developed a seven months ago so like we’re still trying to see
how far and how long they’ll last as of right now they’re lasting up against
everything that we’ve done so far like we’ve really gone really hard into fish
and I’m top of cast and heart and when you go out to the atrium you’ll see some
of the rods and equipments that we use but until we like really go into some
years we won’t know until actually get some traction and sometime behind it
thank you any more questions so Melvin I am a fisherman yes I want to know where
your best fishing hole is in Maryland so it could be the honest to be honest my
best fishing hole is matter peek all right that’s right we’re gonna talk
so so I actually I really I’m a serious fisherman so I think promoting your
gloves is a question I have and have you had any of the you know Pro bass guys
try your gloves and do that first of all pro bass fishing is a real sport right
it’s a real sport so are they wearing gloves from they were out competing so
what I did was actually we’re gonna talk to a few friends of mine who are sport
you know an actual trophy bass fisherman yeah they do it for the sport and I ask
them just try no tell me what you think tell me some of the problems that you’re
having does this fix it like does this work for
you and that’s how I got to know them mm-hmm but any of them give you an
endorsement and wear their gloves I haven’t went that far as far as to ask
him because we were just in the custody of developer he’s leather long just
designing the glove itself and then have you gone to pro bass shops and and
looked at elf space and things like that actually yes and I don’t talk to the
general manager there and kind of cannot just asked about shelf space we kind of
see what their margins was and everything else because they want to
kind of get real close and personal with my business yep
all right any more questions you passed all the way down my question
is about the current market and what the other gloves that are your competition
are selling for both wholesale and retail so right now at wholesale they
range from $6.99 to $35.99 and that wholesale they’re ranging from like $3
to $25 that’s the whole stuff and you said your product is is about three
dollars to make there’s the potential for a big margin there great thank you
any more questions thank you thank you thank you phone up all right Thank You
audience Thank You Melvin and like I said you’re not going to be you’re gonna
be impressed tonight you’re not gonna be disappointed by the variety and and
skills that these presenters are bringing to the table here and we’re
gonna go from from fishing to KC Loffler who will be presenting lightning cycles
bring a round of applause for PC how y’all doing today so my name is
Casey Leffler and I save lives it might not be the way our lovely nurses doctors
or first responders save lives but I do it in my own way so according to
statistics I’m a teen there’s 118 thousand registered motorcyclists in the
state of Maryland the most is in California with eight hundred and forty
thousand followed by Florida with five hundred eighty-five thousand so that’s a
that’s a pretty chunky big chunk of people who actually do ride who own
motorcycles I’ve known people in my whole life it’s been in my blood my dad
I remember in 1995 when my dad bought his first harley-davidson
I was on the back of that bike as much as I could my mom rides my uncle’s ride
I knew so many people in this industry so about eight years ago I decided to
pursue my passion for motorcycles I was in a job that wasn’t really happy in so
guess what I quit that job I moved to Florida and I went to Motorcycle
Mechanics Institute to learn how to work on harley-davidson motorcycles and then
recently I just became a master of Technology for harley-davidson which is
the highest ranking achievement the technician can accomplish
according to Harley so within so the the problem is a lot of people
face are taking their boat bike to get a sip oil change these services it takes
days and or weeks just to get an appointment set up with these
dealerships the way I plan on solving this problem is a Jiffy Lube type method
of a fast paced turnaround for motorcycle services for oil changes I
also plan on making sure that each and every one of my bikes that come through
my shop will be looked over a hundred percent make sure everybody is safe to
ride because if someone’s father mother aunt uncle
son daughter whoever is riding these things that’s how I plan that’s how I
save lives make sure that their vehicle is work on one hundred and ten percent
so the shop I had in mind was like I said it was like a Jiffy Lube type
system I do plan on having a pit in the ground but having a crate over it that
way there’s a 55-gallon drum in the pit that way when the technician drops the
drain plugs oil will go into a funnel and feed into the 55-gallon drum that
used oil I plan on using for a used oil heater to help run the shop in winter
time on the quarter days so save on the utility bills
it will also be other lifts in there for motor upgrades parts accessories or to
diagnose poorly running motorcycles the top middle picture I just got done
working on it my work at Baltimore Harley $30,000 parsing accessory
upgrades and he paid in cash so people are out there that are willing to spend
the money to accessorize their vehicles and there’s plenty of profit in the
industry the bottom right picture is what my garage looks like in the
summertime while I’m not at school so like I said the shop I plan on used
to be about fifty thousand dollars for like a startup costs the thing is I
already own a tire machine i re own a balancer re own three lifts I own a full
set of tools at work I own another full set of tools on my house I pretty much
have all the hardware needed to make this business lightning cycles reality
the startup cost will include phones computers IT software getting the
start up getting the software side of things up and running marketing I would
use social media platforms mainly Twitter MySpace Instagram and word of
mouth word of mouth is a fantastic best way to make this industry the way this
community works the other thing so with two technicians including myself two
clerical staff part-time I projected with be six hundred three thousand
dollars in revenue after the overhead and labor cost your operating profit
would be about three hundred six thousand dollars then of course Uncle
Sam wants to get his his cut wish I figured there’d be about forty percent
so you’re left with a net income of about 183 thousand dollars which is
about thirty percent net profit ratio which isn’t too bad the thing with this
model is is scaleable three years 1 million dollar revenue five years to
shops ten years smokeless shops whether it might not be in Maryland it could be
in California Florida where you have more people who ride you would have more
of a target market in those other states another aspect I did not put on here is
a web-based subscription service kind of like a target which a lot of you guys
know about doing how to videos of how you can how I can show people how to
maintain and work on their bike safely effectively and also there will be a
forum concept on the website so people can talk to one another so that way if
people cannot potentially bring their bike to me for whatever reason I can
still help them be safe on the road and still collect revenue thank you Thank You Casey
judges you have questions yeah let me start off great presentation the thing
that worries me most about this and maybe you can calm my concern is parts
inventory now we talk about maintenance of a cycle and there are parts that are
that relate to you know a preventative maintenance and annual maintenance what
would how will you handle your parts inventory on so many cycles from from
Honda through Mitsubishi all the way up to Harley I would try to like my main
clientele right now is Harley Davidson even though I will be able to cater to
other motorcycles it would try to have just a bare minimum stock of inventory
on hand and then with more repeated of customers I’ll be able to then determine
which bike comes in more frequently that way I can determine which inventory
level to stock more frequent than the others okay thank you hi I know nothing
about motorcycles let me put that out there first so I’m I guess I’m trying to
understand the market a little bit better there’s a hundred and eighteen
approx motorcyclists in Maryland he said right so what is the sort of maintenance
life cycle for each one of those riders how often do they have to get an oil
change what other things are they getting done in a shop as Harley
Davidsons they get serviced every 5,000 miles
the average rider usually is about 3,000 to 4,000 miles a year so most likely
it’s about if the average rider is about once a year I do know people who ride 10
15 20 thousand miles in one year a lot of upkeep every 10,000 miles is usually
spark plugs for Harley as you also have top-end maintenance also tires or a big
selling point to everybody needs tires it depends on the type of tire that they
use some can last 15 16 thousand miles others can last 9,000 miles so there is
roughly depending on the rider but the average rider is probably about maybe
one or two oil changes a year and do you have a sense of the of the riders how
many of those people kind of do their own maintenance because
they’re into the bikes or how many people are actually looking for a jiffy
loop type service where they can drop off for 30 minutes and so I don’t know
the exact percentage but I do know a lot of people that do like to try to work on
their own bikes which is why I would like to also do the subscription-based
side of things as well because they might want to tackle their bike and work
on it themselves but they might have some questions doing the services that
way I can guide them and hopefully help them do it right the first time thank
you so just real quick I understand the
problem that you’re addressing is it takes forever to get in a peach cycle
right for that type of service with three folks in in your shop aren’t you
how are you going to avoid running into the same problem of having you know a
big backlog of bikes that you have to service well I also if you do take your
vehicle like I said to Jiffy Lube you do have to wait sometimes for a little bit
just to for the cars in front of you to get their vehicle serviced so it’d be
about the same concept I do plan with me being the owner I’ll stay as late as I
need to I’ve been in my garage so four o’clock in the morning work in two hours
sleep go back to work the next day but I do if someone is at my shop waiting I
will stay there until they get done so where my thinking is going is the
density of potential customers so you got a hundred and seventeen thousand
motorcycles in Maryland right yes sir what percent are Harley’s you know so
this it’s a big brand so it’s gonna be pretty high
but then you got to also factor how far people will drive to come into your shop
so it’s like what’s your addressable market within an hour of your shop right
and my question would be can you kind of work back to that to see if there’s
enough customers there that you can staff up the way you you
did in your proposal and then the other way if I turn it around I can look at
addressable market and it’s a market there to support your business model but
then I’m interested because you showed kind of a financial forecast which was
pretty impressive how many how many cycles you have to service over the
course of a year to hit your top line that would be two technicians including
me each bill in 2080 hours which would be
two hundred and two hundred eight thousand dollars per technician with
like I said with me working non-stop throughout the night that would be four
thousand and one hundred and sixty billable hours or so so that would be
obvious selling those hours and trying to get stay late as possible they also
include other services as well I can provide yep okay so it’s whether the
number of units of sale and service you got to do can be supported by the
addressable market I’d love to hear from you on whether you think you know what
are you gonna sit up and wear and Marilyn you’re going to set up right now
I would probably set up in Harford County because Harford County of Cecil
County because they only Harley dealers and shop around there’s Pete cycle and
bel-air Eisenhower Harley Davidson Darlington and Baltimore Harley down off
Route 40 and Rosedale there’s not any other motorcycle shops around there but
yet there’s a wide variety of people in Cecil County that do ride and I know it
I don’t say all of them but I do know a bunch of people that do ride so I would
probably an area that’s a little bit of weights from the dealership that way
they can also enjoy what I would like to do would be in a destination shop
somewhere to go for the weekend hang out that way and then also get your bike
what worked on while just hanging out sounds good thank you very much if only we knew somebody in this
audience who worked at Jiffy Lube maybe we could connect you with all right our
next presenter for aspiring business is Kevin McHugh who will be talking about
Bloom box have a round of applause for Kevin my raise of hand how many members
of the audience value quality of life and well-being I do – that’s exactly why
I wanted the start bloom box my name is Kevin McHugh and I allow people to grow
essentially bloom box is a subscription model company that will send you the
tools and equipment needed to plant grow sprouts within the comfort of your own
living facility most people know sprouts as Brussels sprouts but sprouts can also
be garlic sprouts as well as onion sprouts so let’s dig into our market so
the market for home gardening industry is about a two billion dollar market
nationwide 40 million statewide but our target market isn’t necessarily in this
market because of people we are targeting are people aged 20 to 30 in
apartments as well as people over the age of 65 in retirement facilities so
for that being said let’s move into our model why the subscription model not
only do we believe the subscription model will propel our business for
success but according to Harvard Business Review the main reason startups
fail is because they lack adequate cash flow we believe that we can use our
subscription model to prepare ourself for success so what exactly are you
going to find in a Bloom box essentially when you get a bloom box you’ll find the
planter you’ll find the seeds you’ll find some 3d printed tools as well as
printing material but the number that I do want to point out is our price point
$19.99 a month when we interview customers the last few months
predominantly those in living facilities elder living facilities we found when
asking how much it would pay for the service twenty to twenty-five dollars a
month which is our price point and let me ask
you if you had the opportunity to make the world a better place
would you one who currently has a family member suffering from dementia Bloom Box
is way more than a business trying to make money boom box goal is if we can
put if we better time a better place and put a smile on their face we’ve done our
job is it gonna be bringing Bloom box well the third largest retirement
facility in the United get to the master essentially when we’re looking at our
startup costs we want to use the money to start building our boxes as well as
building our digital platforms and finally what separates us from our
competition is our value proposition which is we provide an experience that
no other company can provide we believe that the destination is just as
important as the journey because if Bloom Box we have one goal and that
doesn’t make the world bloom one box at a time thank you Thank You judges questions yes so this
is awesome I love sprouts and I love growing food in small spaces so I have a
couple questions that I’ll try to get you really quickly um my first question
is around how the box works when somebody gets it what kind of setup do
they need to have at home to make the sprouts bloom thank you great question
so the great thing about Bloom Box is it doesn’t take up any space pretty much
whatsoever so the way it work is you’ll get your box right and you’ll have your
seeds you just put them in the dirt and you watch them sprout you watch them
grow which is a psychological benefit to watching things grow when you’re in
living facility and you know we provide the opportunity that they wouldn’t have
gardening any other way more specifically do they need what kind of
lighting do they need to make that grow do they need are they going to need
artificial lights if they have a north-facing window or so with sprouts
you don’t need pretty much any lighting whatsoever they can grow in any
environment any time during the year which is why we wanted to start with
sprouts because of those are it’s our best way to start bringing things to
mark and start building our brand one more quick question for your box what
are the shipping costs because I see that you’ve got the costs of you’re sort
of the supplies and materials that come inside the box but I’m not seeing what
it’s gonna cost to ship it to your customer right thank you so good
question so what we’re currently doing right now the one phase is that we’re
looking into is our logistics phase and we are trying to figure out how much it
would cost at this point but we’ve contacted UPS FedEx as well as USPS to
kind of see how much they would would charge and we’re trying to figure out
that the other thing is we’re trying to figure out exactly what the net weight
of it’s gonna be and that’s the problem that we haven’t figured out yet but
that’s something we can definitely get back to you on thank you thank you great
presentation two things as perishability you know you’re dealing in product that
has a life cycle how will you deal with the inventory of that life cycle if it
doesn’t sell and the second question so that it’s almost like a political thing
you handle each question and and the second question is when you’re
dealing with sprouts what is your next product you know and and and how much
will you be able to add to this product base to entice people to go on a monthly
basis so thank you for those questions first off for the lifecycle of sprouts
sprout seeds can sprout anywhere between six days to a week so they can be used
right away in regards to our shipping and packaging them they don’t really
they don’t sprout until you really I guess position them for sprouting which
putting in the water on them and putting them in the dirt and we will provide the
material of how to do that it’s really easy really simple and the second
question was variety so yeah so one thing we just wanted to make sure is our
first year we would just wanted to do sprouts keep it simple have as less
inventory but what still would people would want for the future we’d love to
do more seasonal and regional based material so for example for
Christmastime you would get some points Etta’s or in the springtime in Maryland
you might get a tomato plant and so it’s definitely things that we’re looking in
the future but it’s just right now we’re starting with sprouts but we’re
definitely thinking of ways we can expand our brand and products in the
future so it seems subscription boxes are really really popular right now I
I’d question how you’re going to maintain a competitive advantage if
you’re having success folks that are subscription seed services I would think
would would create significant competition but but you know something
that’s triggered for me is the bloom box and the brand that you have and then
some of the things that you were saying in your presentation the little catch
phrases really good on the on the on the marketing and branding perspective but
just to just from that side of the competition somebody seeing that you’re
having tremendous success in the box subscription model you know how do you
how do you position yourself to address the subscription seed company from
coming in displacing you thank you so we want to eventually
because they’re not targeting our target market which are people in apartments
and retirement communities so that’s how initially going to enter and that’s how
we believe our first profitability phase will be in the future again we want to
be more proactive instead of reactive so we want to make sure that we come up
with products that other competitors won’t necessarily have or membership
opportunities as well as we want to do tear systems eventually so we’ll have
like a so eventually maybe your first phase will be sprouts right and then you
could upgrade to a platinum level with with more opportunities but you know we
want to do as much research as we can into how we can differentiate ourselves
from our competitors and future competitors how do you deal with people
who can’t sprout so that kills like live plants and how do you deal with those
people see they’re okay alright yeah so the one thing we had is printing call so
one thing we wanted to put in our box was just basic material that’ll tell you
exactly step by step how to plan it and how to grow and one thing that we’re
gonna eventually implement is if you if it doesn’t grow nothing happens we’ll
send you another box so you know we want to turn your black thumbs and the green
thumbs that’s another goal of ours yeah thank you super all right excellent so we are now
rounding out our aspiring business category group with Nicole Street who
will be presenting premium RV repair and maintenance round of applause for Nicole
oh come on you could be better than that this is not easy people wear a mobile a
veteran owned mobile RV repair service imagine you purchased a $25,000 vehicle
and your first road trip it breaks down it’s 10 o’clock Saturday night you
cannot get a hold of the dealership when you get a hold of the dealership the
next day they tell you it’ll be three months to get it fixed what’s up this is
what happened to me when we purchased our RV our first outing the freshwater
tank wouldn’t empty so we emptied it 40 gallons of water filled up the belly of
our RV my husband our lead technician he’s both he’s handy he sliced it open
that’s our insulation in our water that had been in the bottom of our RV there
was no way we were driving home with that so our solution a mobile RV repair
service come to you you call us you have a
problem we come to you and we can fix everything from A to W we like to say including regular maintenance which is
your going to be your bearing repack your winterizing your d winterizing
stuff like that I mean your repairs of any of the systems that break our
average customer is the part-time recreational camper they want their
repair done fast they want it done in a timely manner not three months from now
and they’re willing to pay for that fast response we’re estimating around three
thousand in revenue per year currently I’m sorry I keep hitting the button
we’re starting out our low-end at 300 customers a year that includes the
repairs and the maintenance is and our low-end
for just the maintenance the yearly maintenance is three hundred for a total
of a hundred and five thousand a year huh high-end the RV industry Association
says the average camper is 49 and a homeowner and 11 percent of US homes own
an RV the number of Maryland householders 45 to 54 369,000 are 11%
times were estimating 3000 which is your regular maintenance in a yeah repair or
two and we’re looking at a hundred and twenty two million high-end our secret
sauce is over 40 years of camping experience and of course our adventures
with our own our excuse me our own RV our first night when we had that one
issue we had 17 other issues that we had to fix ourselves um so we have plenty of
experience well he has a lot of experience I hand him the tools
um competitors I’m not sure why this is so wide area
competitors that I was able to discover and this is after some serious google
searching is mid-atlantic RV repair Jim Donny’s RV repair and then of course we
have a couple of dealerships here in the area our biggest selling point is that
we’ll get to you quickly and we’ll charge you fair prices our other selling
point that I don’t think anyone else can offer is because I’m a veteran we have
base access which means Aberdeen Proving Ground Fort Meade and down at Pax River
we can get on there as well our team our lead techs up top myself co-founding and
our little baby because I couldn’t argue with a three-year-old milestones
we’re cutoff 2016 is when we took our first camping trip I started looking
into if other people were having this problem it does seem to be a nationwide
issue as far as dealerships taking an extra long time to fix your February I
started entr with 300 with Professor Rosato out there I’m gonna point them
out now we’re hoping to launch in the fall at the RV show with promotional
items like frisbees for the dogs and can openers or something that the average RV
air will have available to them they’ll have our name and number handy when
something goes wrong because something will eventually go wrong and our end
goal is ultimately to franchise into other states and expand we’re targeting
a ten thousand dollar use of funds basic supplies marketing advertising booth
fees for the RV we’re anticipating the majority of our
excitement is going to be circled around the RV shows it’s a very niche community
so we’re hoping to gather steam where we can we’re also looking at 4,000 other
gross growth initiatives and working capital and $1,000 to get up to the
recent rvi certification training standards any questions registry have questions you mentioned
that you were going to be providing mobile services yes so what is your area
what is your radius to be able to get to an RV so our RV has to be in a certain
mileage for you might be able to get there quickly
so what is your mileage radius from where you will be stationed to be able
to get to your customers because the majority of our camping so far has been
at the military campgrounds my initial thought was a PG down to Pax River
however it was pointed out by our tech that that wasn’t a big enough area
ideally we’d like to grow to include all of Maryland with a set we’re finding a
large number of campgrounds in the DC area and down Ocean City
Eastern Shore area so what we’re dealing weed hope to set up is Monday’s will be
in this area for maintenance tuesdays in this area and then answer the emergency
calls as needed hey there so what I’d like you to clarify what type of repairs
you can do because you’ve got the RV right where you live
hang out and then you got the the vehicle in the engine there’s moving you
around can you do repairs on both are you more just on the actual living space
so you’re talking about the difference between travel trailer and like a class
a well in other words are you are you capable of repairing engines and doing
that type of worker is it more your just working on the the actual you know
interior and things like that he can he can do both because yes he’s taken
several classes on on auto body and yep he maintains our vehicles as well yeah
so so that leads to the question and was asked with the motorcycle entrepreneur
do you have to keep parts in inventory yes we’re anticipating keeping a small
stock of inventory with RVs whether it’s the say 10 10 15 thousand is your base
model to the hundred thousand some of the components inside are the same the
the AC system is going to be the same in both models the refrigerator is going to
be the same in both models some of that is going to be the same do you have
enough experience where you could say you know we think 30% of our repairs
will be around these two or three things in other words rather than being a
jack-of-all-trades could you guys kind of specialize in doing certain things that is a possibility all right um I
don’t know the RV community at all so if you’re traveling in an RV just how far
do people go and the reason why I’m asking them I’m curious your marketing
to a local base of folks that own RVs are they the ones that are going to
actually be in your service area or when they take their RV out do they go to
upstate New York or or to Georgia and you’ve got folks from out of state
coming into Maryland and if so how would you market to those out-of-state folks I
I mean I’m most curious about tell me about the RV community do you travel to
other states or is your customer base gonna be folks in Maryland
both ideally what we’re aiming to do is the crowds that attend the RV shows here
locally however we’ve also been contacting local campgrounds to have our
name as the the preferred hey something goes wrong call these people and we’re
in in talks with that right now thank you just as a as a idea the area
of Bethany and and that whole Delaware market is wide open to RV and this kind
of enterprise I think you do exceedingly well if you looked into that area as
well that’s that’s also something we
considered giving given the proximity so I I have done some RVing actually but I
don’t do a lot of it but I also own a house where things break a lot so I
think that this is a really interesting idea I my question is around the the
revenue model that you have set up here so fifty percent of total revenue is pay
for service recognized by month you say right is that are you talking about like
a subscription model where people are paying you a monthly or quarterly sort
of you know retention fee and you come out and do the maintenance for them for
that and then there’s added things is that with that one of the ideas that we
had floated was that the idea of yes essentially a subscription will do this
this and this service for you for this year and with a small discounted price
what’s the what is the frequency would you say of the average RV owners like
what do they need something done quarterly like the winterization or the
springer is a ssin or whatever it is yeah that one springer ization sorry the
Witter ization and the D winterization of course once a year for each of them
the bearings repacked the the roof needs to be looked at
obviously it’s under trees a large amount of times stuff like that we had
considered putting into a package type deal so you could have I mean I’m asking
because I’ve known recently all of the people that come to
fix my house have set me up on this quarterly model where I pay them 150 to
200 dollars every quarter they come out and perform a very simple service and
then they find other things that are wrong that cost me more money
which I find to be a very good model for them so I’m just wondering if that’s
similar here because I think that your market you know while there may not be a
huge number of RV owners they are tend to be people that have the money to
spend on those repairs I would think areas are not cheap to purchase so that
was my question thank you Thank You Nicole
well done so we’ve come to the seventh-inning stretch here if you buddy
wants to stand up and stretch a little bit until we are ready for our next
presenter you do so what do you guys think so far impressive right it’s it’s
not really hard to see the transition from pre before it to after here at UB
all right so we are prepping our next presenter here who as you can see has
wardrobe malfunction all right and I want to remind everybody that after this
is over we do have food out in the the lobby area which encouraged you to come
out and take of that and meet with each of the presenters and up business cards
etc but don’t go anywhere yet we’re not done all right next up we have in our
our existing business category all right can I get your attention the seventh
inning is over John Denver has sung his song
the batter is taking the box ladies and gentlemen let me introduce Karima
McClendon McClendon Bridal hello everyone since we’ve been pals for
about two seconds now I’d like to tell you about the time that I got married
this was in 2005 and at that time I was 31 years old and even though I’d spent
most of my life to this point in the fashion industry I thought I’m planning
a wedding from Illinois getting married in Minneapolis I can’t sew my own gown
so I went through the whole process of wanting to go and say yes to the dress
and it was a disaster I went into the bridal salons and every store that I
went to at the time had that corset look and so it looked like you were wearing
lingerie with the skirt attached to it and I could not have my cleavage at age
31 up to my nose and so that became a problem and I realized at that point
that it was a problem for me it was probably a problem for other brides and
as I’ve gone along in life and talked to other brides that were my age or older
getting married it absolutely it was a problem and the problem is that there
are no gowns that are suitable for an older Brides aesthetic we don’t want to
wear gowns that are basically mother and the bride gowns and white but we also
don’t want to wear anything that’s too showy and so most brides that were in my
position when you when they go into a bridal shop they just throw their hands
up and either settle for a gown that doesn’t really suit their aesthetic or
they take out you know buy a car buy a gown that’s the price of a small car or
you just give up and have your your friend make it and hope for the best and
it usually is not the best luckily I knew from working in the bridal industry
who to go to for sourcing and to embroider my gown and to have it made
and I knew that it was going to be a quality garment but over the years I
felt that this was such a problem that this could be a solution for the stores
because the stores just don’t know that this is why brides are not buying in
their gowns buying their gowns and stores so what Karima McClendon
Baltimore aims to do is to fill this gap and the retail stores of supplying gowns
that are sophisticated but not matronly and we would make the gowns here in the
United States namely here in Baltimore and using silks and embroidery and
provide a gown at a reasonable price somewhere between nineteen hundred
dollars and forty five hundred dollars at the top-end that’s retail so our
market our our business model is twofold first when we sell the actual samples to
the stores that’s where we make money and these are the ones that you see when
they’re hanging and this in the shop when you you go by that’s the actual
sample that was sold to the store by the designer so we would make money there we
figured we can sell six Styles per year or three per season on top of that every
time a bride says yes to our dress that’s another source of revenue and so
between those two we figure that for each store that we could make we would
make a hundred and one thousand five hundred dollars but take away our
expensive expenses and we figured we can that forty-nine thousand three hundred
dollars per store now to put this in perspective the bridal industry is a
three billion dollar industry it has six over six thousand stores and we’re only
aiming to capture one percent of that market and so even with capturing one
percent of that market we feel that we could with sixty two stores make three
million dollars per year with those stores and create 1515 jobs here that
are in Baltimore of stitchers who are the with the living wage so right now we
are finishing our our capsule collection of four gowns you see two right here and
through September we are doing a soft introduction to stores that are in the
mid-atlantic region I’ve already established a relationship with
Gambardella as a matter of fact Brian Rogers who is one of the co-owners of
Gambardella is one of my mentors who’s guiding me in the right direction
of how to sell to my market and beginning in October of 2019 is when we
will start doing a soft rollout via trunk shows in the mid-atlantic region
to introduce ourself to these stores so now I have competition of course but
what I do better than my competition is that I can provide a gown in eight weeks
time with the median price of under five thousand dollars my next competitors for
aid nori her gowns take 12 weeks to deliver and if you’re wanting a gown
from Berta I hope you have $15,000 and 6 months because you will be waiting for a
slow boat from China to get your wedding gown most people don’t have that kind of
time so should I win the cup this competition
most of the money will be spent for working capital to help finish it help
get us into trunk shows take care of travel hire a part-time seems just to
help me with the initial launch and also we need to purchase a plus-sized dress
form because that takes a particular fit and it’s a very special fit and we need
a specialized dress form to be able to offer gowns for brides from size 18 to
size 24 my my experience is that I have over 20 years experience in the fashion
and beauty industry notably notably I am a protege of Arnold Scaasi and I’m not
sure if you’re familiar with him but he has addressed some oscar-winning
actresses in addition I consulted for a company called Nicki Versace lingerie
based in the United Kingdom and in addition to myself I have a team of
mentors I see you Jim Linda Meyer who has helped me tremendously here at UB
and got in the business to where it is now and so that is everything about me I
would welcome questions and thank you so much Russians judge first um great
presentation I have two questions so currently who’s making your dresses are
you making them I am making them my first hire is someone else to make them
perfect so you’re currently making all of the dresses okay and so when a bride
if you sell these dresses and a bra says yes to your dress yes they are each one
of them then made yes and it’s made to her measurements and so if she tries on
if she wants her down in a size 12 we will adjust I adjust the pattern so that
it comes it arrives to the store in her size okay so with 62 if you’re let’s say
you get you hit your number yes as 62 stores yes right and let’s just say one
bride picks one of your dresses right that’s 62 brides you are going to be
able to live to deliver this dress in that timeframe with 62 brides yes in 8
weeks yes so we have so it’s a schedule so for instance the the dress with all
the embroidery from the time the right prices there order the first thing we
send out is the embroidery so while the embroidery is being completed we’re
doing we’re doing the grading for all the sizes that all the brides want and
doing all the cutting and making the dress so when that embroidery comes in
we put the embroider on on top and and that’s what helps push it up push it out
the doors if you order the embroidery like the day they set their they place
their order okay oh did I answer your question yes yes yes you answered me you
did okay so you mentioned you’re gonna you’re gonna create jobs in Baltimore
which i think is great right so where do you find this talent and how much
training do they need okay so what’s wonderful there’s a
company called so lab that’s been working with open works and they
actually have a training program it’s a 12-week training program where they
teach people how to on the industrial sewing machines and so
that’s where I would grab them the the learning curve once you learn how to sew
on a straight stitch Dookie it’s just a matter of showing people okay this is
how you do this little bit of handwork but really what I need someone is not be
afraid to sew on a jukey which so is like most people are terrified I’m still
terrified I have a regulator so I sew a little bit slower but that’s where you
that’s where I would get the people as the people who are being trained by so
lab and it’s a three-month program and that’s that’s that that’s that’s long
enough that I feel comfortable with taking those people then and then
showing them the nuances of creating again like this you mentioned that one
of your key advantages your price point and so what is it that enables you to
meet that price point that your other competitors aren’t able to do one of the
key things is that my designs are I have a cleaner design and so less embroidery
means that I can intrinsically keep the price lower the other thing is that I
know where to source and also that I hold a little bit of stock in and my
colors so I at any given time would hold 30 yards so that I can hurry up and
holding stock like that keeps my price point down too because I I get it at
cheaper price from my supplier as everyone thinks of their first idea they
should be thinking of their second idea let’s assume for a moment that you’re
successful and and I wish you all the success in the world would your second
idea be that because of the price points and the cost of getting married and
especially at that age that you might want to go into the rental business the
rental business there have been companies who have tried this since the
70s and the problem with renting bridal gowns and there’s actually a startup
that tried to start up rental a bridal rental with the high-end again back in
2013 and it failed and now they’re just selling used bridal gowns the problem is
that once you fit it to a bride say like myself that’s it unless you have someone
else she’s five five feet and pounds there
yeah you you you can’t really get that money back and and even when you try to
pin say like the white gown the sweep is just not quite the same and so a lot
there have been companies who have tried to rent for women since the 70s and
they’ve all failed and that’s the key reason why it’s like once you once you
try to do the alterations for one it’s difficult to then go back and do the
alterations again also at a certain price point
now you’re talking you you’re better off going to David’s Bridal if you get it to
a certain cheaper price point you go why would I rent you know Berta when I can
go and get David’s Bridal it’s not good enough but if I’m gonna rent anyway yes I love the dresses and I love the idea
especially the niche market you’re currently this is an existing business
so you’re currently making these dresses yourself and selling them in the current
business model just because of how much I invested so far but I am not sold yet
okay so I’m wondering in your revenue model
if this includes the price of your of the help this is piggybacking off the
ticky ‘iz question if this includes the price of the cost of hiring absolutely
and when I figure in the cost of who’s helping me I’m actually figuring it from
someone who I have to outsource say to New York City if I’m in our hurry if I
suddenly get six stores and I don’t have the people in Baltimore I know that
they’re people I can go to in New York City but I’m gonna have to pay another
$10 per hour so that price is actually figured in oh so you’re figuring in the
higher cost okay great so do you have a sense of or I’m trying to get a sense
from you of what the scalability is so how many dresses can you make by
yourself how many dresses can you make with one other person how many okay so
once so the the hardest part the longest part is actually working out the the
pattern so now that those patterns are done I know the
I can turn around a dress if you give me 72 hours I can turn around that white
dress with the taupe underlay and if you give me a week
it provided I already have the embroidery I can turn out the other one
because it takes it takes a little bit more it’s a little more nuance for the
sewing so and someone who’s a lot better at sewing than I am can do it a lot
faster so the company that I worked for back in New York City we had we she had
20 stores and just three stitchers yeah and so a lot of the cutting you the
surround the the a-line skirts you can send off somewhere and have them cut in
bulk and have them sitting and that’s what they can so while you’re waiting
for the but about us to come in all right so we have two more contestants to
go and but I’m just thinking if you were shopping here again at the end of this
event I encourage everybody to go out into the auditorium but if you were
shopping here you could walk away with you know a great fishing glove have your
Harley fixed but while you wait throw on your wedding gown ride out into
the country get in your RV which has now been serviced and put a little water on
your bean sprouts right that’s already what we’ve accomplished tonight so I
encourage you guys all to go out with your checkbooks ready to go to hire our
contestants so next up next up we have another existing business contestant
this is Tracy Shand who we’ll be talking about Licata boutique give a round of
applause for Tracy look at the boutique is a mobile salon
that offers you beautification services in a location of your choice we are
seeking the opportunity to offer our services within a storefront and this
competition will assist us on that venture our services consist of hair
makeup and nails the problem with our industry today is clients is not a
priority their money is it takes too long to receive services and also the
service is not of good quality this I’m sorry okay so what Licata boutique can
offer our clients we give them priority service there are no long waits because
we don’t double booked we provide quick convenient quality
service by skilled service providers for a reasonable cost we offer you mobile
and also in-store services our customers consist of stay-at-home moms and dads
children between the ages of 5 to 12 teenagers businessmen and women college
students and our elderly our potential competitors mobile competitors will only
offer you their services within a certain distance of where they’re
located and Licata boutique you will receive our services throughout the
metropolitan area that is DC Maryland and Virginia including here in Baltimore full service competitors they offer you
their services at a high cost Licata boutique is able to offer you our
services at a reasonable cost charging you the going rate for that service in
that area traditional competitors we’re gonna get your hair done or your nails
done but you’re not getting both at Licata boutique you’re able to get a
full beautification from head to toe giving you a one-stop shop our revenue
sixty percent of our revenue is generated from in-store services
twenty-five percent will come from our mobile contractors and fifteen percent
will come from our booth renters on the income summary side forty percent of
forty percent of the commission that every contractor takes in Licata booties
get another forty percent of the commission that the mobile stylist
takes in we get and we will charge our booth renters two hundred and fifty
dollars per booth per week with an increase of twenty five dollars per year
up to five years our total addressable market now if you take a look at this
slide if you got a hair technician that does weave let’s say she charges her
client two hundred and twelve dollars and we have six six chairs and they get
four clients per chair they’re gonna take home well Licata boutique will take
home eighty two thousand dollars for that year nail technicians if they do
for clients making four hundred four hundred and thirty nine dollars thirty
nine thousand dollars thirty nine dollars
3900 and thirty nine dollars per week I’m sorry
eight four eight clients they will generate forty three thousand dollars
that’s what six nail technicians okay booth renters
again two hundred and fifty dollars per booth per week at the end of the year we
take home seventy two thousand for all of our booth minors six of them we have
fifteen mobile stylists today and our mobile stylist does hair and our nails
and they generate one hundred and twenty five thousand dollars at the end of the
year that’s it they work full-time my mobile Styles work part-time today
I’m a licensed technician I have been licensed since 2005 I specialize in hair
weaves braids make natural hair care and basic manicure and pedicure I have a
degree in paralegal studies my name is Tracy SH and I’m the CEO and also a
stylist and Licata boutique salon thank you all right so I got a tray see I got kind
of excited because I what what I what I thought your business was is like the
uber of beauty right like I can order food and I can get a pedicure you know
so so that’s part of your business right but but you also gonna have a site right
you’re gonna have a storefront yes what we do is that we go to people’s homes
yeah we provide them with personal grooming and now we’re looking to open a
storefront to also do this thing to our mobile but also so just talk to me about
that so you won’t so your existing business and you’re in the existing
category was you sent people into homes of people that couldn’t get out or
couldn’t get to a beauty salon to make them more beautiful right so if you’re
in your office and you and you need a haircut and you cannot make it to the
barber shop you call me and I’ll send you a barber to come and cut your hair
and that way you’re at work and you can continue working out cut your hair we
clean up and we leave so so here’s my question is that business that you’re
already in is if you had more people that work part time for you could you
grow is there a lot of growth in that business or is that business plateauing
out and that’s why you got open the the storefront um
the store the mobile service does not go out it’s just consistent yeah but I will
generate more with the storefront so that that will give me an opportunity to
provide more services and more product yep gotta understand okay so um my question is with Maryland
state law around cosmetology and providing hair services on a mobile
basis how are you getting around the fact that mobile hair styling is not
licensed in the state of Maryland well we don’t provide mobile services within
a vehicle we don’t park our vehicle in front of someone’s house because in the
state of Maryland DC and also I’m assuming in Baltimore but I know for DC
ml because I’m a licensed I live in DC Maryland
you cannot park your vehicle on on the street and provide services they don’t
have a way of taxing you and it’s against the law for Maryland so what I
do I take my equipment into people’s homes so if you were to call me for
service you wouldn’t come out to a van I will actually come into your home to
have all my equipment set up so I have all the curling irons the tables
everything I need to provide you with an excellent service and so I’m sorry one
more time you said you competitor there are some competitors that provide a
mobile service and so what what is your biggest distinction that sets you apart
from those other folks that we travel a further distance than our competitors do
if you were to call other competitors they will only go within a certain
mileage or miles from where they are originally located with Licata boutique
it doesn’t matter where you’re located we become anywhere we’ll go to Virginia
we’ll go to New York we’ll go to anywhere because we’re gonna charge you
seventy-five cents per half a mile to come to you and as long as you want us
to pay the fee we’re willing to come and we provide you with excellent service
Thanks I didn’t have a question until you said that at seventy-five cents a
half a mile that’s pretty uh okay that’s pretty expensive you you talk about your
revenue but you didn’t talk about your profit margin you know
what is what’s your expense posture and and what do you pay these people that
perform these services and what are you naturally net out of this you know grand
plan of one hundred and twenty five thousand dollars per year okay so from
the each contractor that goes out they recharge a total fee to the client the
contractor gets sixty percent of whatever that fee is we do not take
their tips they get to keep their tips so with our hair service nail service
and also on the makeup service we all we always get the forty percent back and at
the end our profit we don’t have any loans my business is not in any expense
we actually raise our money to be able to buy equipment so I have already
thirty thousand dollars set to go towards my business I’ve spent ten
thousand dollars buying equipment meaning my nail tables my shampoo arm
bowls and all those things already so with that being said after all the
equipment is bought and then I still have contractors going out and I get the
the salon opened up we’re looking at make two hundred and ninety two thousand
at the end of the year and that’s without even having any loans at all now
if I was to get alone I could pay back any loan within three years all right we have one contestant left
are we ready all right so again please don’t go
anywhere quite yet one more to go and then there’s lots of food and mingling
and other goodies going on out in the auditorium are you guys impressed have
we have we put on a good show tonight all right I hope so I hope it’s worth it
we went a little long but I apologize but I do believe it was worth it and I
think our last contestant is going to bring it home for you you know the the
amount and the different types of businesses and students that come
through you’d be impressed me on a regular basis I mean everything from a
motorcycle repair to a subscription for for garden boxes to to our last
presenter who really sort of takes us to the other end of the spectrum so without
further ado I’d like to introduce Stuart Tweedy who will be talking about stoned
audio ladies and gentlemen Stuart we before we get started could I get a show
of hands of people here tonight who own air pods okay you got a good amount so
this story is kind of weird because I stumbled upon stone almost completely
randomly I had gone out to get air pods and they were sold out and rather than
wait I decided to try all of the best down to some of the worst in ear
headphones I noticed if I wanted great sound I would have to pay extra for
features I didn’t really need as a college student the extra 100 150
dollars really adds up so I decided to call my friend Zach an avid musician
audiophile an entrepreneur for some recommendations Zach quickly mentioned
that I should get stoned now it’s not it’s not what you think
stone is a company that Zach started a few years ago to focus on one thing
sound as soon as I had tried the product out I fell in love
they were sleek sounded great and extremely comfortable that said there
was one major issue stone needs updating now zach is a serial serial entrepreneur
who started almost 35 companies in the past five years and he’s moved on to
other opportunities when I expressed interest in the brand as well as the
product and mentioned my experience in the e Fellows program Zach mentioned I
should relaunch the company as CEO our mission is pretty simple we want people
to have great experiences whether it’s your podcasts audio book or music
through audiophile grade sound Stone started with around $20,000 in funding
which in under two months drove over a hundred thirty-five thousand dollars in
sales we also grew a pretty massive community becoming one of the top
wireless audio companies on Facebook now our model revolves around designing and
marketing products and outsourcing the development to our partners in Shenzhen
China Shenzhen is the hardware capital of the world giving us access to the
latest in wireless audio technology the total market size for wireless audio
tech will hit 38 billion dollars in 2022 we aim to capture some of this growth by
using highly individualized marketing and e-commerce solutions this allows us
to have more efficient conversions by better understanding our customer
preferences now we create our sales and marketing channels by combining our
campaign data with data from Nova a service provider with almost 600 million
monthly active users this allows us to know who to target and when as well as
which influencers we should we should work with now our network of influencers
has a reach of around a hundred million users giving us access to an even wider
customer audience our team is a group of highly motivated
music enthusiasts located between Shanghai Hong Kong and Los Angeles we
estimate around $600,000 revenue by the by the end of 2019 with a margin of
around 59% now keep in mind this this margin will grow as our order sizes
increase and so far we’ve been getting feedback on our initial prototypes and
incorporating that into our designs for a soft launch we are planning a soft
launch in June followed up with a larger public launch in July now we’re competing in a marketplace
with highly differentiated products and to compete we’ve had to carve out a
niche between sportswear luxury and audiophile grade sound we need funds to
finalize our designs but for the most part rise will be absolutely
instrumental in helping us relaunch the brand we have a list of around 200,000
select customers and no capital to reach them
furthermore the as the e Fellows program draws to a close
winning this will help me transition from student entrepreneur into you know
an actual entrepreneur o skipped one but I would like to take the time to thank
everyone for being here tonight especially my classmates in finance 770
you guys have all provided feedback throughout the entire semester and
that’s kind of what got us here tonight so thank you since sure so tell me more about the
product need and how is it unique or is this it is this a product that other
companies are selling just under under different branding no so these are these
are like original designs so we’ve partnered with like OD M’s original
design manufacturers to create our own product and then the chipsets themselves
were not creating that so that’s the chipsets are off the shelf but we’ve
tested hundreds of them and figured out which are which are the ones we want in
our product what kind of IP protection do you have for for the design that for
the design is oh we we can we can trademark that but so last last time the
stone was launched the design itself ended up getting copied some
manufacturers that did some samples we didn’t go with them ended up just
producing it so that that is a problem but what’s really important is the
branding itself and if people are interested in that and I was gonna say I
mean it seems principally like a like a branding play and a social media play
that yeah that you’re knocking out of the park yeah definitely how much do
they cost what retailers are around $120
how much does it cost for you to make them all in including marketing is
around 35 $30 are they being match manufactured outside of the United
States and Shenzhen China and they’re being shipped here don’t you include a
shipping cost yeah so that’s shipping shipping fulfillment marketing cost
product itself that’s that’s the margin that we have for on 59% thank you yep
hey so I was really interested when you showed kind of your slide where you were
trying to position the product can you go back to that see there we go this one
nope keep going that one more here we go okay
so so tell me tell me how you decided what niche you wanted to be in question
number one and then two based on that niche how you going to position the
product what’s your tagline or how are you going to promote it to get people to
want to use it so the the niche was created
just because the community that we grew initially demanded a newer product so
they wanted waterproof headphones and we can deliver that they also want
something that’s like sleek and they can wear with an actual outfit not only to
the gym and then our main focus is on just great sounds so that’s kind of how
we carved that out to answer your second question the tagline
it’s well one of one of the ones it’s work the best is get your family stone
for Christmas that’s that we’ve a/b tested a few and
that’s the one that keeps sticking so we want we want to be able to have an
initial launch get a few orders in and then also buy like Black Friday
Christmas be able to like drive hard to get your family stone angle it’s yeah so
that’s that’s how we’re gonna get that out there so is it just so it’s just
sound it’s not you can’t talk no no you can talk yes okay yes so like the what
we’re not building is headphones with like heartbeat sensors you know there
isn’t act active noise cancellation there’s noise isolation so there are
certain features that use up a lot of battery life that we don’t have and
because we don’t have that we can have bigger drivers so we can have crisp
sound and offer it at around $120 yeah you can talk like there’s a microphone
headset all that yeah yeah what differentiates you from Apple again
basically that we’re not creating smart headphones we’re not pushing the
boundaries with technology and what we can do in wireless audio we’re just
focusing on designing you know useful products and then finding chipsets that
exists so we don’t have like a massive rnd budget like other companies but we
can buy those headphones see what they’re doing what they’re using and
emulate that I want to get stoned right now
no but seriously that air pots don’t fit in my ears so I love the silicone your
tips that’s great my question is around what what you actually need to take this
to market what’s what are the start-up costs that so initial order is around
like three to five thousand dollars so we need some capital just for that to
order a batch that’s large enough that we’re not getting charged a lot for and
then marketing is the biggest biggest expense so if we the more money we have
the market the more people we can reach so we can have a little less to start
but having a keep turning that off would you do use this money as the sort of
marketing strategy and do some sort of pre sale before market partially partial
pre sale and then partial like soft launch with around two to five hundred
units so we’re putting up our capital for that and for the designs but we want
we we need money just to actually market it and get it out there great thank you
thanks all right thank you everyone and that brings us to the end of our program
I just want to say once again thank you to all of our participants can we get
another round of applause this is not easy to do
and as I as I mentioned they are all students at the University of Baltimore
what an amazing array of talent and ideas just a couple quick notes please
make sure you vote for your crowd favorite pull your ballot out in the
middle find a friend and get a pen to vote for that and you can hand them to
our hand into our students over there on your way out I’d like to thank our
judges I’d like to thank folks like Jason tag ler from pitch creator for
helping prepare all of these great presentations a round of applause for
them all of our coaches and mentors thanks to focal point productions and
zmb for doing all the live streaming of the world and then that’s it I would
like yeah we could would you guys like to give me a finalist one more round of
applause to their faces want out everybody how about that how
about the University of Baltimore right here folks great and as I mentioned
before they will all be available to answer your questions take your business
cards and maybe even a few checks thank you all again for coming I hope you
enjoy the evening there’s plenty of food and I know you don’t want to hear me
speak any longer so without further ado let’s get to
announcing our winners first up first up is crowd favorite goes to bloom box congratulations excellent and all amateur photographers
are welcome I’ll give you my business card please send us those photos all
right next up for idea stage business goes to a MJ fishing gloves oh thanks gotta get the media in here
alright next up we have existing business and the winner for the existing
business category is karima McClendon just as a little backstory crema was
actually in a hospital like three days ago weren’t you yeah so she what a great
job what a great job alright and finally last but not least for most promising
business everybody must get stoned there you go we’re Stewart all right
that concludes the the evenings presentations everyone as I said stick
around have some food enjoy yourselves thank you again for coming

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