Feasibility Study: StudentBiz

1. Introduction
The What: StudentBiz is a business concept for an online platform developed by myself, which connects businesses with students. Now instead of businesses receiving hundreds of CVs in reply to an advertisement, and having to have to sift through them for the ones that fit the job, businesses can search a site which will cross-match all the requirements to the students CV, and display the CVs of students based on a percentage match to the specified requirements. The Why:
In my career as both a student, a project manager within the industry and an assistant at the University of Pretoria I have realised that businesses want to work with students or graduates but they struggle to reach the students that fit their specific needs. I have been called multiple times by previous employers who are looking for students to help with a project or a tender and most times, unfortunately, I dont know someone in the field or area they are searching for and Im forced to post the message on social networks they in turn get CVs from multiple people who do not even fit the requirements. On a larger scale, according to official statistics, South Africa has the highest long-term youth unemployment rate among medium-income nations, with those between the ages of 15 and 24 accounting for 48.2% of those unemployed. The National Development Plan has warned that this could become a major problem, and government has in turn launched several initiatives to address this issue, initiatives that make it more profitable for businesses to use students. From my personal experience and the statistics we can gather that, 1students/graduates cant find work, 2businesses want to use students 3but dont know where to find them, and that is where StudentBiz fits in. The online platform will serve as the mediator between businesses and students/graduates.

The How:
The site will therefore deal mainly in information services: offering student information in the form of online CVs to businesses, and also offering students guidance in terms of what it is that businesses expect in a CV by indicating to students which fields are required and also giving business approved examples. We are also looking at additional services such as documentation on how to prepare for an interview and so forth which can be downloaded from the site. We will also be offering a product, which is a downloadable pdf of student CVs for businesses, which can then be used for interview and other administrative purposes. Please refer to Platform format

to view how this option will be incorporated. This means that the information that is available on the site can also be available physically for businesses and students to use for whatever purposes. The site will generate income by requiring subscriptions from businesses to access the information database, based on their specified geographical interests. A small business in Pretoria for example will pay either R60 per month or R660 per year for all information pertaining to students from Pretoria. A large organisation such as a bank will pay R500 a month or R5500 per year for all the information on the site pertaining to all geographical areas.

The How Much:

We have determined an initial set up cost of R160 000.00 which will be allocated as follows: Function Description Web This will be the largest of the initial cost of Development the business, as this function is the central building block on which the business will be run. Web developing agencies as well as freelance web developers have been contacted to determine what the websystem would cost. Graphic The look and feel of the website is also very Design important as this has to combine both the wants of students and businesses. The allocation to graphic design also includes other advertising designs such as pamphlets etc. Graphic designers have also been contacted to derive an estimation of the cost for the system. Marketing The initial idea for the marketing of the business is based on an incentivised approach students can win IPods and so forth. The other options that we are looking at are newspaper advertisements as well as personal advertisements to businesses. Running Costs Even though the cost of running a website is minimal (R250 for the domain per year) the updating of the site and management and marketing of the business will require an office with internet access, a telephone and other utilities as well as the human capital to run these functions. Cost R50 000.00 (Although this is higher than the quotations received, the entrepreneur believes that provision should be made for extra functions and so forth)

R30 000.00 (Once again, quotations for the Graphic elements were below the stated amount, provision is made for changes etc.)

R40 000.00 (Although the social networking will not bear any cost to the business, newspaper adverts and pamphlets as well as prizes for two months has been estimated at R35 000 as the business partners will act as marketing agents which further reduces the cost) R40 000.00 (The businesses aims to rent a fully operational office at one of the shareholders offices, which acts as their contribution to the business start-up cost, thus the money will be allocated to the persons who will work there for 3 months, stationary, petrol etc.)

Furthermore we have estimated minimal profitability as follows; of the 3 500 000 businesses in South Africa (data acquired from StatsSA) if we only aim for % which is 3500 businesses in the first year, and they all choose the low-priced option of R60 per month or R660 per year this relates to between R2 520 000 and R2 310 000 for one year.

2. Product & Service Viability

Description:
The StudentBiz is both a product and service orientated business. As mentioned it was envisioned as an online business where student and business information can be shared and acquired. The product can be seen as a function of the service however, and therefore the service viability is the main aspect of this study. The service works as follows:

Basically students/graduates can log in to the system for free; here they create an online portfolio based on certain required fields. This in turn creates an online CV that businesses who subscribe to the site can view by searching their required fields. Businesses also create portfolios which students can view, students can follow a business this means that when a business searches the system for students/graduates the students that follow them will appear automatically at the bottom of the screen under followers so as to show businesses which applicants have shown interest in their business. This means that instead of students/graduates searching for jobs and bombarding businesses with 1000s of e-mails and phone calls when they do not even meet the requirements specified, businesses and other institutions now have the power. They search the site based on a tick-thebox system e.g. we are looking for:
A student in the Engineering Industry With knowledge of Project Management Skilled in X Program With a code B drivers licence No experience needed For a part-time job

The system then conveys a search of all the student portfolios based on the specified criteria and the top ten candidates are listed based on a percentage match:

Limitations:
StudentBiz does not take part in the recruitment process, only information is given, students must be contacted, recruited and interviewed by the businesses The web-system can become unstable if it becomes very busy and could even crash if there are too many users on the system at the same time The web-system could be hacked and student and business information could be unsecure which may pose a threat to the clients Imitation of web-based service is easy and quick when a systems code is revealed or hacked, which means direct competition can emerge quickly Because of the focus on online services, the business also runs the risk of losing touch with their customers once site is active this means constant upgrading and so forth The service is only available for students/graduates/young-adults between the ages of 18 and 28; this is hard to monitor however as identification information can be falsified. High indirect competition such as LinkedIn, although the focus is much more on professionals seeking other professionals and the searches are from the job-searchers side, the search function StudentBiz wants to use can be imitated or incorporated to their current services

Concept & Usability Testing

The concept and usability testing for this service was done on the 2nd of August by telephone and on the University of Pretoria Main Campus. As both students and businesses are critical to the success of the business both parties were contacted. The following table relays the questions that were asked to both businesses and students and the findings:

Question asked Businesses*: Would you pay R60 a month to have access to information pertaining to students/ graduates/young professionals in your area for recruitment purposes? When questioned on the usability if the business, businesses were explained exactly how the site would work and asked to rate the site on a scale from 1 to 5 as well as comment on features they would like to be added. Please see documentation Platform format which was shown to businesses. Students: Would you use a site where you can create an online CV for free which can then be searched by businesses looking for students/ graduates/ young professionals to work for them?

Respondents Options
1 Definitely would pay 2 Probably would pay 3 Might or might not pay 4 Probably would not pay 5 Definitely would not pay

Respondent Average Answers 1) 9 2) 8 3) 2 4) 1 5) 0 On average the businesses showed that they would definitely or probably pay for this service.

1 Very user friendly 2 User friendly 3 Mediocre usability 4 Not user friendly 4 Very unfriendly to user

1) 16 2) 4 3) 0 4) 0 5) 0

The businesses were very impressed with the format and structure of the proposed site and scored the site as very user friendly or user friendly. Two respondents commented on the fact that an on-site messaging system might be useful.

1 Definitely would use 2 Probably would use 3 Might or might not use 4 Probably would not use 5 Definitely would not use

1) 17 2) 0 3) 0 4) 2 5)1

The majority of the students asked said that they would definitely use the service, the students that chose option 4, when asked, commented on the fact that they have bursaries/internships to work off after their studies and therefore probably would not use it at the time, also one respondent mentioned that there are not many companies in his field of study so his options are limited and he does not think these companies would use such a site.

*It should be noted that for concept and usability testing businesses in the financial industry and engineering industry was focussed on as marketing will initially focus on these industries as they have indicated use of a multitude of students in previous marketing research

3. Technical Viability
Technical Requirements
StudentBiz will rely almost exclusively on the web system for operative status. This means that the actual development of the system must be of such a standard and quality that the system can be fully operational at all times, no matter how many users are logged in or how much information is loaded onto the site. The system also has certain social aspects such as the following of businesses the searches between business and students, advertising space that is available etc. which requires users to have certain technical abilities. This should also be integrated in such a way that it is easy to use and access. As this document is being written the scope and system operation documentation has already been written by expert and experienced web developers this documentation serves as the blueprint for the site and includes all the features and actions which must be incorporated into the site via coding. A prototype will be launched first and tested by a focus group of users before the final launch. The findings of this focus group will then be used to resolve any problems the users may find. There will also be different versions of the site, version one will be the basic site with the services mentioned above, the other versions will be incorporated into the site as it grows adding new services, such as a mobile version and an app. We are also planning to create versions for expansion into other countries although students from other countries looking for work in South Africa can use the first version as well; the versions therefore will be country specific. As mentioned before, constant updating of the site to ensure site-relation to user needs will also be necessary. The following diagram shows how the business will be operated from a technical perspective:

Systems Control Physical Office Marketing Personnel

System Administration System Development System Marketing

The physical premises of the business can be situated anywhere in South Africa (anywhere there is fast & reliable internet connection that is). The business is fortunate enough to already have a premise in Pretoria where there is a fast connection and also a generator if power is cut. The business is going to require system operators and marketers as well as administrative staff. The System Controllers will be able to access the system from anywhere they have a reliable connection to the internet, this will mainly be done from the office, but if a problem arises for example in the middle of the night they can access the site from wherever they are with wireless or ADSL. Our team of web-developers have indicated that this job will not be impossible for one person to manage. The marketing personnel will use the office as their home-base; this is where documentation will be stored, phones are available to contact clients and so forth. They are however not restricted to the office as their job will need to go and present the business to larger clients, investors and other interested parties. Our thinking was that two marketing personnel, both of whom are shareholders in the business, will be sufficient for initial marketing, but this number can grow to five. The administrative personnel will also make use of the office, their job will be to handle all student and business enquiries and also relay enquiries to the system controller if such problems arise. They will also be in charge of the subscription communications with businesses letting businesses know via email when their subscription is going to end and how to renew etc. on the site. The finances however will not be their responsibility; this function will be outsourced to an auditing firm, as this is not the core business of StudentBiz.

4. Business Model Viability

Proposed Business Model:
Key Resources StudentBiz will be making use of a social network format that fit both the needs of the students/graduates and businesses. Negotiations have already started between StudentBiz and a well-known web systems developer as well as graphic designer that specialises in systems like this one. These human and intellectual resources are critical for the businesses success. The financial resources requires to develop, incubate, market and sustain this network is also crucial. Key Partnerships StudentBiz will firstly rely on partnerships with the Universities across South Africa. The business is further associated with the Capital City Business Chambers, Junior Capital City Business Chamber and their affiliates in the academic, governmental and business sectors. Revenue Streams StudentBiz will rely on subscriptions from businesses during the Start-up and Growth phase businesses pay either a monthly or yearly fee to access the student/graduate information. Online advertisements will later also be used as a revenue stream for the company.

Cost Structure The business is value driven: focussing on value creation for students aged 18-26 in the form of an online CV that is supported by the business sector, as well as the value of easy to access relevant information to the subscribed businesses. Initial Costs include the System Development and graphic designs as well as focussed marketing. Fixed Costs include the updating of the website, online portal costs and online banking application costs. Variable Costs include cellular and internet accounts, any changes to the system after the launch and additional marketing costs. Customer Relationships: We strive to give our customers a customised self-service portal as well as personal assistance, if necessary, through providing the information that they acquire in a format they understand Instead of a business receiving irrelevant CVs they can now with the click of a button search their specifications online, receive the best student applicants and then decide whom to make contact with. Businesses get the information they want and not the information the students/graduates think they would like. By using required field the system also aims to teach students/graduates what it is that a business would like to see on a CV. Customer Segments: StudentBiz is focussed on businesses who want to use students/graduates/young adults in their businesses on a permanent, short term, part time or contractual basis as well as businesses and institutions such as schools that sponsor scholarships, graduate programs, internships and so forth.

Value Proposition:

The Student Hub aims to create value for both businesses and students across South Africa by creating an online platform on which essential information pertaining to both parties can be shared and acquired. Offering easy, accessible, convenient and relevant information is our aim.

Competitive Advantage:
StudentBiz is different firstly because we use a different approach to recruitment information we do not advertise available opportunities, we provide businesses with the information to search for people with specific requirements that match their available openings. Secondly we focus on young South Africans, eager to work and learn, and also not as expensive as an MBA with 10 years experience. This is also in line with proposed government policies to reward businesses who make use of students because of the large unemployment percentage in this age group. StudentBiz also has unique features such as the follow upload portfolio connect with (YouTube, Facebook, Twitter etc.) feature which makes it more attractive for young adults to use, which will mean more users on our site*.

*Previous marketing research revealed students do not make use of sites such as linked-in because it is complicated, boring and unsociable. The following diagram illustrated the Sustainable Competitive Advantage of StudentBiz:

Unique Service Features

Adaptable profiles Putting business back in control of recruitment process

Notable Product Features

Follow & other social features Downloadable information

Price/Value
Price based on geographical location makes it possible for all businesses to afford the product

Customer Convenience
Information easy to use, accessible, relevant to individual requirements

Customer experience
Saves time and money Connecting relevant users to each other

Connecting Businesses with appropriate candidates at the click of a button

5. Market & Marketing Viability

Target Market:
Our target market is primarily businesses, as they are the subscribers to the site, more specifically businesses in industries that make use of students, graduates and young professionals in their business. Previous marketing research has shown that businesses in the financial industry such as auditing firms, banks and so forth makes use of students on a daily basis in their operations, also firms in the engineering industry such as civil engineering firms or construction based firms. These will be the industries that we focus on at first.

Competition:

Direct Competition: Firms that use the same approach to recruitment such as CV Warehouse are mainly international and offer jobs overseas

Indirect Competition: LinkedIn, Job Mail and other similar sites whom advertise jobs on their sites Recruitment agencies Graduate Placement Programs at universities Career Centres

Future Competitors Businesses in South Africa who imitate this search function

Marketing and Sales Strategy:

The StudentBiz aims to use an integrated marketing strategy to reach both businesses and students. Student Marketing: Incentive based marketing on social networks, Upload your CV and win an I Pod Pamphlets to be handed out with university newspapers such as Die Matie Arrangements are also underway to advertise on student radio stations such as tuksfm

Business Marketing Advertisements in newspapers and books such as the Business Day Advertising through business chambers such as the CCBC who are affiliates of the business Direct Advertising setting up meetings with larger clients HR departments and pitching the service to them at a lower cost for example, making use of our network (one partner worked previously in the auditing industry and the other in the banking industry) Incentive based, such as the first 50 businesses to register get the first three months free

We therefore rely heavily on our marketing team and advertisements to invoke sales, the advertisements therefore are also designed by the graphic designer who designed the web graphics. This creates some form of uniformity and branding, we have decided to use a concept that combines the old with the new as seen on the following page;

These pictures were sourced from the graphics developed from the site. The same black and white old-style pictures with orange and turquoise will be used for pamphlets and newspaper advertisements.

6. Management Model Viability

Proposed Key Managers
Marketing & Sales Manager: Monita van Jaarsveld o Responsibilities: In charge of business marketing team, responsible for direct marketing to businesses & sales, relaying information to administrative and system teams o Relevant background: 25 years experience in management, sales, previous experience as franchisee and also in banking industry as sales manager o Skills: Management, sales, administration Responsibilities: In charge of Systems Control, including updating of system information etc. as well as student marketing team, relaying information to administrative and system teams, initially responsible for administrative team o Relevant background: 3 years experience in business administration and project management, previously worked in auditing and PM field, excellent knowledge of web systems and web system administration o Skills: Management, administration, web system skills Responsibilities: Deals with debtors and creditors of the business, as well as liaison with auditing form in charge of subscription management o Relevant Background: 27 years experience in electronic engineering, management and project management o Skills: Management, networking, financial management Administrative personnel: StudentBiz will need someone to answer the phone, respond to emails and queries and relay messages to the different teams. o Marketing personnel: The student and business market cannot be saturated with one person marketing the service and therefore two additional members to the marketing teams will be required *The StudentBiz will be making use of their web developer if any problems arise with the system that the system controllers cant handle; this is done on a freelance basis, although a contract has been set up to ensure involvement Future personnel requirements o Financial Manager: Alwyn van Jaarsveld o System & Student Marketing Manager: Rianda Reyneke o

7. Economic and Financial Model

Economic Model

As previously shown in the how much section of the introduction, the following start up and running costs were estimated for the first three months after the launch (this includes the web system development) and running costs for the first year: R50 000.00 WEB DEVELOPMENT R30 000.00 GRAPHIC DESIGN R40 000.00 MARKETING R40 000.00 OPERATIONAL COSTS + R180 000.00 RUNNING COST FIRST YEAR ESTIMATION* R340 000.00 TOTAL COST (Start-up and pre-start-up costs) *This has been added to the initial costs as set out in the how much section for running the business from the office In Monetary terms therefore the economic model would be: The number of units to be sold X by their selling price = Estimated 3500 units at R660 a year 3500 X 660 = R2 310 000

Break Even Analysis:

R340 000.00 = 516 units X R660 per year = R340560 OR R340 000.00 = 473 units X R60 per month = R340560

Financial Model:

Financial Projections: As mentioned before the aim for the first year is to quire 3500 subscribers to the site, which culminates to between R2 310 000 and R2 520 000. The aim for the second year is to acquire 1000 more subscribers and upkeep the previous years suppliers, and also further developing the mobile

applications for the site. From year 3 to 5 the main aim would be to continue to renew subscriptions and also develop the site for other countries. As mentioned in the how much section R160 000 was estimated to develop the system and initially start the business, with R180 000 needed to run the business for the first year.

8. Business Analysis
Strengths New recruitment approach Ease of use Variety of products/service future plans Accessibility Social features Web System expandability Capitalize on Strengths IP protection, extensive marketing creation of strong brand loyalty Market and pilot test regularly Add new products or services regularly to keep site current Keep domain current and ensure system stability Keep adding to follow features and linkage to social sites to ensure current connected service Constantly search for new markets and market trends to capitalise on and adjust system to market needs Minimize Weaknesses Maintain strong local hosting, maybe look at international hosting if business expands to other countries and permanent employment of a web developer to continually strengthen code StudentBiz could employ a company to manage the online security or make use of current online security packages such as AvastBusiness If market interest from other age groups become very large the business can look at expanding Make use of outsourcing such as to Auditing firms and web developers, admin could also be outsourced Maximize Opportunities Find businesses that do not have websites but can make use of the service and lure them to the site, profile can act as advertisement for them Small businesses may only want to use the site once, or during a certain period, StudentBiz could create an option where you can view the information maybe on a daily or weekly basis StudentUni for example could also be created to better connect students to Universities or even

Weaknesses Website stability

Website security Limited to age group Limited knowledge of founders/ duties they are not really interests in

Opportunities Businesses not on the web, do not need a website to make use of service Once-off clients

New site opportunities

Other related products Finding businesses through students

UniBiz that connect businesses with Universities and their projects/tenders etc. Business consulting and student consulting services for example Students could advise StudentBiz on which businesses they would like to follow that is not on the site which the business can then source

Threats Ease of entry/ imitation Big online companies such as LinkedIn Internet failure/ hosting failure/ hacking

Online credit card theft Personal information of customers theft

Minimize Threats Establish a solid brand and develop IP protection Communicate the working together, creating a share your profile on LinkedIn for example Use a reliable hosting company, establish minimum service conditions, terms & conditions of using the site and maximum security features updated regularly Keep maximum site security current Keep maximum site security current, relay terms & conditions to users

9. Conclusion
In concluding this feasibility analysis it should be mentioned that this research and previous market research has shown the viability of this service and the need in the market for such a service. Previous pitching sessions to businesses and business chambers has also received the StudentBiz well. A major challenge however would be the implementation of this idea into a service; more attention should be given to the operational needs of the business. If this service idea is implemented well and constantly developed for the needs of the specific market individuals this service is very much feasible and viable. Other services can also be developed form this service, for example an online platform for persons other that students/graduates or young professionals, or platforms that specifically relate to graduate programs and internships or even university tenders to use students and graduates. Continuing with the business plan: We have already registered the business as a private company StudentBiz We initially wanted The Student Hub as a company name but this was denied by Cipro, but we are happy with the accepted name as this is a amalgamate of the two functions of the business We have not yet registered any patents or trademarks, a meeting with Spoor & Fischer is scheduled for the 3rd of September A bank account has been opened in the business name

Accountants and attorneys are provided for thanks to shareholders Alwyn & Monita van Jaarsveld whom already owns other companies and have these parties available at their request We will be using our network with the business chambers, department of trade and industry as well as Universities who support this initiative to further exploit the market