News
Article Published: July 2005
Where MBA's Go To Pitch
What makes funding in an entrepreneurial environment a reality? It may not be the nearest Venture Capital funding source or a high profile venture center.
What makes funding in an entrepreneurial environment a reality? It may not be the nearest Venture Capital funding source or a high profile venture center. Realizing the dream of starting the next great company is happening with amazing results through the entrepreneurship programs at Colorado universities. The University of ColoradoñDenver Business School and the Bard Center for Entrepreneurship (with MBA level programs) are paving the way in the entrepreneurial community for prospective new ventures and giving fledgling companies a fighting chance through access to investors, prominent business leaders, advisor resources and business advocates.
Alexander ('Sandy') Bracken, the executive director of the Bard Center, believes the key role of the center is to prepare the young entrepreneurs for the actual practice of entrepreneurship and to provide a direct link from the classroom to the start-up and development of companies. A primary benefit to the students, according to Bracken, is the Annual Business Plan Competition held each summer.
Each year, the competition has drawn an amazing number of credible students who prepare plans subject to rigorous requirements. The results? The winners may surprise you! It's not about the best plan or the best presentation, or if a company looks like it can be positioned to get funding. It's about the combination of all three.
The Bard Center is hosting this year's competition at the Marriott City Center on June 15th. Mayor John Hickenlooper is scheduled to deliver the keynote. The competition has attracted hundreds of applicants, with only six finalists who will present business plans.
In the last two years, two very different companies secured the much sought after accreditation. Much to the credit of the Bard Center's ongoing resources and involvement in these start-ups, they are each on their way to amazing things.
MetroBoom
Winner 2004
MetroBoom, founded by Jung Park, is notably a premier style salon for men, providing a wide range of services and products in haircare, grooming and fashion. 'Our customers can expect the latest hairstyle to complement their personality and lifestyle,' says Park. Lifestyle being the operative word. MetroBoom opened its first flagship salon on May 1st and timely for Denver's growing progressive male market.
According to Park, what really differentiates MetroBoom from the competition, is its services and products in fashion. 'We offer personal shoppers and fashion consultation services, as well as apparel and accessory products,' says Park. 'Our customers can purchase clothes, jewelry, belts, caps and any other accessories to complete their look.'
'The idea for MetroBoom came from my own experience,' recalls Park. 'When I moved to Denver from New York City in 2000, it was difficult for me to find a place to get a quality hair cut. I was looking for a place where I could get great service in a comfortable atmosphere and of course, at a reasonable price. As a consultant, helping companies build their brand image, it was important for me to maintain a certain professional appearance and up-to-date look. I eventually let my hair grow out so I wouldn't have to worry about getting it cut.' Many a great idea is sparked out of necessity. 'I had written the idea for MetroBoom in my notebook for ideas, where I record new ideas or interesting concepts I come across.
'I had written the business plan for MetroBoom in Dr. John Ruhnka's business planning class at the Bard Center,' says Park, who had begun writing a business plan for a Customer Relationship Management system but had to switch gear in the middle of the semester when his partner fell through. 'It took me about two months to research and write the plan for MetroBoom. It was a lot of work at a crazy pace.'
According to Park, raising the funds to start MetroBoom was the most difficult part of the entire process. 'The start-up capital required and return on investment were too small for the venture capitalists and angel investors,' he says. 'I had to turn to private investors, friends and family.'
MetroBoom is currently being funded by investments from a few private parties and Park's own personal loans. 'The challenge of funding has put me through emotional rollercoaster on daily basis,' says Park. 'I thought of quitting and taking a corporate job often. However, the thought of passing up an opportunity of a lifetime, not to mention regretting it for the rest of my life, would put me right back on track. I guess if the journey was easy, the harvest at the end wouldn't be as sweet.
'I have met so many great people in the last year since the business competition,' says Park. 'The press I received from winning the competition and various networking events have been great sources for me to expand my network. I have met numerous vendors, partners, and customers. There were also many people who were willing to go above and beyond to lend a helping hand. They were more than generous in offering their service, expertise and advice at no charge. The support and enthusiasm I experienced were just incredible. Although there were few skeptics, the majority of entrepreneurs I have met were encouraging and supportive.
'On the first day of my management class, I remember my professor, Sarah Kovoor-Misra, telling the class that at the end of the day, ebusiness is relationships.' That's has been the most rewarding part of this experience.'
According to Park, the competition opened many doors and introduced him to valuable resources. 'I have found that the competition has an excellent reputation and credibility in the Denver business community. The in-kind sponsors offered generous amounts of complimentary service and advice. My in-kind sponsors, iSherpa and Kendall,Koenig and Oelsner PC, are still providing me with their expertise.'
Park's industry is also sizeable.The hair care industry is estimated at $60 billion and the hair cutting industry was expected to top $40 billion last year.The male grooming industry is also steadily rising at $8 billion per year. Locally, there are more than 2,000 hair salons and barbershops operating in Metro Denver in 2004. According to Park, 'It is for the most part a recession proof industry, as getting a haircut is a must-have and not a nice-tohave for most people.'
That said Park is planning to hire six full-time and three part-time stylists for the first year. According to his plan (and filling his niche), there will also be four to six massage therapists on staff. Park expects to manage the salon for the first year of operation, and by year two, he will hire a full-time manager to replace himself in an effort to focus his efforts on opening the second location and building the franchise model.
Park is a little more prepared than most start-up companies. Park has enough funding for the start-up costs and a few months of operating expenses. His plans are to raise additional funding as necessary. 'The biggest challenge thus far has been funding,' says Park. Since MetroBoom's start-up capital and return on investment were considered to be too small for the venture capitalists and angel investors, Park says it was difficult to raise funding. 'Even SBA loans were tough to qualify due to lack of my personal assets. It truly is challenging to start a new business when all you have is an idea and enthusiasm.'
Of course, with all good ideas and an abundance of enthusiasm, there are surely mistakes to follow and lessons learned. 'The only big mistake I have made thus far is not reserving the domain name for MetroBoom,' says Park. 'In the midst of creating the plan and participating in the competition, registering the domain name completely escaped my mind. As I was trying to register the name the very next day after winning the competition, I found that someone had registered the domain name for MetroBoom only a few hours after the competition. Eventually, I was able to get the name transferred to me.' Park notes the Bard Center was instrumental in resolving the situation. 'Never again will I let legal matters slip through my fingers.'
Park has big plans and a lot of advocates for his concept. In the next three to five years, Park plans to open the second and third MetroBoom locations. He anticipates the second location will be in Denver but the third will be out of state. Once all three locations are operating efficiently, Park plans to register MetroBoom with UFOC and offer a full franchise license.
Park firmly believes relationships are the key driver of all businesses.'It is especially true in this industry. Wordof- mouth is the most effective and widely practiced method of marketing in the hair industry. MetroBoom's most valuable asset will be the relationship we create and nurture with our customers.Through quality, friendly and attentive service, combined with unique product offerings, we will strive to convert every customer into a lifetime MetroBoomer.'
The market advantage: the unique experience MetroBoom offers. 'Currently, there isn't any place where a man can go to get a quality haircut and purchase the latest in grooming, haircare, and fashion products. The in-salon experience will also differentiate MetroBoom.The MetroBoomers can expect to be pampered through attentive and friendly service, time after time,' says Park.
