First and foremost…
“We are not your usual retailing firm”
uBox is a locker rental service for budding entrepreneurs to convert a space in our shop into their very own retail business which they can be proud of. uBox’s target market consists of students from SMU, YMCA and SOTA who will be both uBoxers (clients who rent boxes) and customers.
The uBox Team
uBox was founded in January 2013 by 3 daring student entrepreneurs from SMU: Nigel Gnoh, Kok Ziyi and Denise Lui. The team is competent and committed to grow the company through developing strong business values, with emphasis on competitive advantage and creative marketing strategies to promote and strengthen uBox’s position in the industry.
Sales and Revenue Mix
uBox’s growth is financed by rental revenue from uBoxers and sales commission to be received from walk-in customers. There are two types of rental boxes available – small and medium, with the rent being $30 and $55 respectively. With 240 boxes in the shop, the team expects to secure a 40% take up rate (67 small boxes and medium boxes) in the first year and a rental growth compounded 10% annually. The CAGR is computed taking inflation and projected growth of the local retail industry into account. Furthermore, with low fixed costs and a strong marketing plan, the team is confident of a net profit of $21,298 in the first year of operations.
The founders seek to minimize leverage and as such, uBox is financed mainly by contribution from founders totaling $16,000 and a $5,887 personal loan. Debt will be repaid at the end of the first year of operations. Founders are poised to receive dividends from a percentage of profits depending on performance of uBox in the financial year.
1) uBox is located at the heart of SMU placing it in close proximity to its target market of SMU students.
2) With the founders’ strong network in the SMU community, interested uBoxers have already been secured.
3) Attractive sales perks such as student discounts upon referring a friend will be rolled out to lure potential clients.
The team is seeking a $20,000 investment in exchange for 15% equity in uBox, valuing the company at $105,981. The funds will be allocated to marketing efforts, capital acquisition and expansion plans. After 5 years, the team is looking to set up uBox in local tertiary institutions including NUS, NTU, SIM and polytechnics.