Idea Generation 1

Idea #1: Wholesaling with a difference

In Jamaica it is a known fact that wholesales sell a lot cheaper than supermarkets, however,
many individuals including myself continue to shop at the supermarket. This is due to the
disorder, lack of customer service, the physical environment, the long wait (as it is who
have the loudest mouth gets through first) often meted to the customers in wholesale.
Another observation that I have made of wholesales, particularly, in the Portmore area is
that most wholesales prices are just a little lower than the prices at a regular shop, which
would therefore force the consumers in Portmore to travel to Kingston (Down Town) to get
their groceries at a cheaper cost.

Resulting from my personal experiences, being exposed to the operation of a grocery shop
basically for all my life in addition to having a strong technological background, my desire
is to be the proprietor of a wholesale based in the Portmore area. A wholesale with an
experience, a difference and one with the wow factor and which will be seen as a solution
by the Portmore residents.

General Features of the Wholesale

Opening Hours: 7:30 in the morning to 9:00 in the night. The Pick up centre is
opened until 10:00 in the night. The opening hours conveniently cater to both the
early morning and late night shoppers.
Physical Structure: an office setting with customer service representatives who
take orders from the customers. The office will be air-conditioned and have a
sitting area available for customers waiting. The commodities will be stored in a
warehouse which is located behind the office.
Procedure: There will be a number system in place therefore customers will get
through in the order in which they arrive.
Trained and Motivated Staff: The staff will be trained to offer the highest level of
customer service. This will be one of our defining features; our staff members will
be constantly acknowledged and awarded for achievements if they perform well.
We offer items both on wholesale and retail.
 Idea Generation 2

Other Features
Several options will be available to the customers who shop at the wholesale:
1. They can come directly to the wholesale to purchase goods
2. They can fax in their orders
3. They can shop online. An inventory of goods will be on display so the
customers will know the products that we have in stock. They will be
able to pay for the goods using their credit card or pay for it at the pick
up point.
4. The customers have the options of picking up orders or have their orders
deliver to them within Portmore (free), Kingston and Spanish Town
(both at a cost)
5. We will compile a database which holds particulars of everyone that
shops at the wholesale and we will email or mail to them any specials or
new products available.

Target Customers
Persons living in the Portmore, Kingston and Spanish Town areas.
Persons who are busy and constantly on the go and have no time to come in the
office to shop (persons who seek convenience).
Persons who are service oriented.
The early morning shoppers.
The late night shoppers.

Jamaicans do cherish excellent customer service and convenience but they have to walk
very far to find places which have these features. These two needs are two of the many
needs that this wholesale will satisfy.

Idea # 2: The Total Care Gym

Jamaicans are fastly becoming health conscious and are therefore turning to a healthy
lifestyle which includes regular visits to the gym and eating more nutritious food.
 Idea Generation 3

Some individuals have difficulty going to the gym because of time constraints as they have
to get their children ready for school, they have to go to work and after work they have
evening classes.

There are others who do not have anyone to baby-sit for them while they go to the gym.

Also most gyms have a hype surrounding them and their program does not cater to the
elderly (persons over age 65) and it is important that these persons exercise regularly to
keep their body in good order.

This creates a good opportunity to start a gym that caters to the needs of:
The working and studying individuals
Persons with children
The Elderly
The Hype Young Person

This has led to the idea of a total care gym which will offer the following:
Gym with the latest gym equipments Treadmills, Exercise Bikes, Strength
Machines, Weight and Bars, Martial Arts Equipments etc.
A session each day for the Elderly/Retired
Highly Trained Gym Instructors
A Massage and Aroma Therapy Centre
Basic Karate Class/Self Defense Training Sessions
A kiddies gym and play area to be supervised by trained caregivers and gym
instructors. (Children between the ages of 6 months to 12 years old) this will
accommodate the parents with children
Dance Classes/ Exercises Latino, Dancehall/Reggae among others
Yoga Classes
A sitting room for persons who after coming from the gym want to relax, read the
newspapers and journals or watch the television or lyme with friends.
 Idea Generation 4

Beauty Saloon for persons who want to have a complete experience can access the
following quick services:
1. Washing, Blow Drying and Styling
2. Blow Drying and Styling
3. Styling
4. Facial, pedicure and basic manicure

The most defining feature is that the Gym will be opened for 20 hours, from 4 o clock in
the morning to 12 o clock midnight for five days in the week. Opens from 7 o clock in
the morning to 6 o clock in the evening on a Saturday and a Sunday.

Idea # 3: Real Estate Old House Renovation and Sale

My Husband and I have been actively house hunting since the past three years and we are
yet to find an affordable home. We are faced with the following:
The new housing schemes such as Caribbean Estate (New Era Development) and
Portmore Country Club averages over $6.5M and the loan pay back is
approximately $55,000.00. The cheaper new housing schemes which averages
about $4M are far from Kingston where we both work and attend school.

The deposit, closing cost and escalation costs for these houses are very high,
persons in a similar situation are often forced to borrow money to make up the
deposit. Therefore, in addition to having a mortgage, there is also a loan for the
deposit to be paid.

The houses available on the open market are equally expensive and require a high
deposit too.

Most of the houses on the open market that we have seen need renovation to create
that home atmosphere. This poses a problem because having spent a lot of money
to acquire the property; no money is left over to do any fixing up.
 Idea Generation 5

An opportunity came up three weeks ago to purchase a house in the Southborough area of
Portmore. We bargained with the owner to sell at $1.8M because of the dilapidated
condition of the house.

A business idea came out of this as we are currently thinking of purchasing the house and
do a total renovation which includes:
Tiling the entire house (two bedroom, 1 bathroom, sitting room and kitchen)
Replacing the bathroom fixtures
Replacing the kitchen cupboard and kitchen fixtures
Painting the entire house
Other minor repairs

The total estimated cost of repair is approximately $370,000.00 and having a brother who
is a building contractor and two other brothers who are sub-contractors; we have the human
capital to pursue a business of this nature.

This business venture will create a solution to other young persons who are desirous of
owning a home but lack the financial resources to purchase a Caribbean Estate Home and a
house on the open market. After renovating the property we will be able to sell it for a
price between $2.8M to $3.1M which is the current market value range for two bedroom
houses in that neighbourhood. This price is definitely in the reach of many young persons
who are seeking a start in life.

This promises to be a very good business venture as with dedicated team members, the
capital can be turned over within 2- 3 months. Also, based on personal observations, in
Portmore alone, there are many houses that are locked up, have been vandalized which can
be acquired from the owner at a relatively cheap cost, be renovated and sold at a reasonable
cost.
 Idea Generation 6

Quick Screen Exercise - Real Estate Old House Renovation and Sale

i. Market and Margin Related Issues

Criterion Higher Potential Lower Potential

Need/Want/Problem/Pain-point Identified
Customers Reachable and receptive
Payback to users Less than one year
Value added or created IRR 40%+
Market size < $10,000,000
Market growth rate > 20%
Gross Margin > 40% and durable
Overall Potential: Market - Higher Potential
Margins- Higher Potential

ii. Competitive Advantages: Relative to the Current and Evolving Set of Competitors
Higher Potential Lower Potential
Fixed and variable cost Highest
Degree of Control
Prices and cost Stronger
Channels of supply & distribution Stronger
Barriers to competitors entry Weak/None
Proprietary advantage Defensible
Lead time advantage None
Service Chain Strong Edge
Contractual Advantage None
Contracts and networks Limited
Overall Potential
1. Costs lower potential 2. Channel higher potential
3. Barriers to entry - lower potential 4. Timing average potential
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iii. Value Creation and Realization Issues

Higher Potential Lower Potential
Profit after tax 10-15% or more and durable
Time to breakeven < 2 years
Time to positive cash flow > 3 years
ROI potential 40-70% +, durable
Value High strategic value
Capitalization Requirement Very high, diff. to fund
Exit Mechanism IPO, acquisition
Overall Potential
1. Timing average potential
2. Profit / Free Cash Flow higher potential
3. Exit/Liquidity - higher potential

iv. Overall Potential

Go No Go Go, if
1. Margins and markets *
2. Competitive advantages *
3. Value creation and realization *
4. Fit: O+R+ T *
5. Risk-reward balance *
6. Timing *
7. Other compelling issues
Availability of capital *