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HomeMy WebLinkAboutAmos Kiche - Business Pro By Sunday Goshit & Amos Kiche 2 The Deputy Manager City of Iowa City 410 E. Washington St Iowa City, IA 52240 Ref. Application for Economic Development Grant. We are pleased that the City of Iowa City in collaboration with other entities have studied ,documented, and acknowledged the limited participation of minorities in the local economy. Many business ideas and interests by minorites on starting a business suffer lack of support. We are excited that the City of Iowa City has challenged our diverse communities to demonstrate our interests in contributing to our local economy and improving the lives of diverse people living in the area. The purpose of our proposal is to enable us to start a business by providing us with a grant to acquire a business space or contruct a building to house our business. We are interested in establishing a business which will benefit many minorties, other residents, and the local economy. Our model is grounded on diversity as a source of business inspiration, new markets, and innovations. We recognise open unexploited lands and buildings in our neighborhoods especially in the Southern District. There is demand for services which are missing in our community. Financing the construction of a building or purchasing space for offices, classes, and equipment remain our major barrier. We are therefore requesting a grant of between 1.6M to 1.85M much of it on purchasing a building at $1.6 M or buying land and constructing a building. Our vision, mission and strategies for achieving our goals are expressed in the submitted poroposal. We are available to provide you with additional information on our interests and capabilities and can be reached by phone, text or email. Sincerely, Sunday Goshit 319 621 3959: sunday.goshit@gmail.com Amos Kiche 319 400 3250: amkiche@gmail.com 3 Overview The proposed business is a Centre for Languages, Child Services and Mental Health. It is intended to be established as a non-profit corporation housed in a potential building located at 1901 Broadway St, Iowa City, Iowa or at the land located along Pepperwood Lane in Iowa City. It is expected to provide missing services to clients at affordable costs with convenience, comfort, and safety. A business of three separate but linked services will be housed in one building; to provide an alternative gymnasium with mental health services, an alternative day care center, and an alternative English Language (ESL) classes to the growing diverse immigrant and refugee population in Iowa City area. Many parents want their children to learn other languages at an early age. The center will also cater for diverse unique American and ethnic markets in the area with respect to their gender, socio-economics, marital status, age, culture, and religion. Purpose and Goals The purpose of this business is to provide needed services in the community by venturing into three main areas; 1. Missing Markets: 2. Missing Partnerships: 3. Missing Models of Urban Economy for Renewal and Recovery. The goals of the business are to: A. To generate minority small business by initiating a model of urban renewal, recovery, and economic growth. This partnership will exploit the following opportunities: 1. Micro-Economic Linkages: Service cost and market linkages 2. Integrated Business Partnerships: 3. Economies of Scale in infrastructure, marketing, and services delivery 4. Cultural Economies derived from assurance of safety, comfort, and convenience. B. Increase employment of immigrants and other minorities by participation in urban services economies which support one another in addition to creating employment and income opportunities to persons experiencing socio-economic barriers. 4 C. Partner with established businesses and local organizations to expand existing markets to grow minority entrepreneurship in differentiated lines. D. Participate in an economic recovery model which addresses historically depressed diverse economies and temporary shocks like the Covid-19 where lack of information on relief services, space, technology applications, and affordable space is imminent. Existing providers with financial leverage are more likely to invest in this model both as competitors and collaborators as an option, but the organization goal is to establish these three entities under one management. Benefit to Local Economy and Minorities The benefits from the business are itemized below and the generated growth is estimated to be in the range of 0.025% to 0.05 % across the items. a. Increased minority small-business ownership in the community. b. Enhanced employment of minorities, immigrants, single mothers who face linguistic and economic barriers like lack of affordable child care. c. Enhanced language skills to those who delay or postpone ESL classes due work schedules and unsuitable environments, and lack of child care. In the long run they become economically productive residents. d. Improvement in health of specific cohorts of immigrants and US born persons by providing an alternative gymnasium and mental health services to meet specific needs according to age, gender, religious and cultural restrictions. e. Development of a model of urban minority business partnerships between the local minority populations and their local city, county, or state governments. f. Contribution to the local tax revenue from increased employment, business, and property ownership by minorities. g. Contribution to the affordable business space (infrastructure) by building facilities to house affiliated businesses. Market Opportunities, Competition, and Co-operation Despite advantages like name recognition and loyalty which exists among current providers, there is untapped demand for unique services and possibility of penetrating existing markets. Our services are differentiated and customer tailed, culturally and socially competent. Alternative English language learning programs using teachers or instructors who also speak country of origin languages. In many parts of the world, this is the approach used for all age groups and it has been very successful in producing fluent English speakers who speak their native languages or mother tongues. The business environment for language services is described in Table 1. 5 Table 1. Other Providers and Type of Competition and Co-operation Level of Competition and Market Share Targeted Market, Size ($), and Revenues Language Services (Classes and Language Translation Services) Classes to include English as a second language (ESL), and major foreign languages like Spanish, Swahili, French, German, Chinese, Russian . 1.Provide ESL and other Language services by hiring immigrants who can teach English and other languages. 2. Kirkwood College may accommodate enrolling some of their students to an alternative arrangement and contracts on compensation for services, curriculum, and certification. Small -medium competition given that the service is differentiated.in terms of delivery. This will be the only place offering English as a second language other than the Kirkwood College. ESL evening classes are currently offered at Oakdale campus due to planned closure of Iowa City campus. 1. Immigrants who live at Broadway neighborhood and few blocks from the proposed building, 1901 Broadway St and are lacking transport. 2.Those who cannot afford transport to Oakdale campus in the evening. 3. Those who find regular English schedules inconvenient due to lack of childcare. 4. Single mothers and spouses of male immigrants who delay enrollment in evening English classes due to lack of child care can take advantage of the center. 5. Target the market for foreign language classes for children and adults. . Population Size: 11,000 Share of market 20% Culturally competent trained counselors and mental health professionals to cater for the hidden demand by immigrants who are reluctant to visit traditional mental health services. There is urgent need to improve mental health services training and services and a desire to employ immigrant mental health professionals who understand different cultures. The basic business environment is described in Table 2. 6 Table 2 . Other Providers and Type of Competition and Cooperation options Level of Competition and Market Share Targeted Market, Size and share Physical and Mental Health Services 1. Alternative gym arrangements or scheduling to meet specific client demands 2. Diverse Mental Health Services 1. A traditional all gender, all age competitors can invest in our model to cater to these hidden markets. 2. Provide the services Small or non-existent This will be the only place offering alternative child and adult mental health services to immigrants and their children 1. Immigrants who live at Broadway neighborhood and few blocks from the proposed building, 1901 Broadway St and lack transport. 2.Those who cannot afford transport to Oakdale campus in the evening. 3. Those who find regular English schedule inconvenient due to lack of childcare. 4. Single mothers and spouses of male immigrants who delay English classes due to lack of child care. . Size: 11,400 immigrants and refugees in Johnson County, with growing demand for language and alternative health services Size: 11,000 Share: 15% Child care remains a big problem leading to unemployed, low income and lack of participation in the economy by acquiring language and other skill. Available childcare schedules have rigid schedules and terms. Single mothers and other parents who work at night have a hard time getting someone to take care of their children while in night shifts. They must pay someone to come to their homes. This tends to be very costly and likely to decrease the number of hours they work. The business environment for child care services is described in table 3. Table 3. Other Providers and Type of Competition and Level of Competition and Market Share Targeted Market, Size ($), and Revenues 7 Collaboration Childcare Services 1. Will provide the service 2 New and existing day care providers can invest in our model to take advantage of the linked market and cost of operation Moderate competition Flexibility and subsidized space can lead to competitive pricing. 2. There is a shortage of child care providers in the Iowa City who can provide services to clients at the Gym or in classes in the building. 3. Other clients will also be accepted. Size: 4,000 Share : 30% The Budget: Expected Cost, Financing and Revenues ($) Service unit Building/Space year 2 Year 3 Year 4 Year 5 Year 6 building costs 1.800,000 0 0 0 0 0 rental 3 units 100000 100000 100000 100000 100000 employees 80,000 110,000 115,000 120, 000 125,000 Total Costs 180,000 210,000 215,000 220,000 225,000 Language Services Revenues 60, 000 70,000 90,000 120,000 126,000 Gym and mental health Revenues 90,000 100,000 110,000 120,000 130,000 childcare services revenues 60,000 80,000 90,000 95,000 100,000 Total Revenues 210,000 250,000 290,000 335,000 355,000 Net income 30,000 40,000 75,000 115,000 130,000 private grants funding 20,000 10,000 10,000 10,000 10,000 10,000 public funding 1,600000 20,000 20,000 20,000 20,000 20,000 8 Preliminary Time Line Year 1: Building and Marketing Year 2: Launch Operations Year 3: Continue operations and make necessary adjustments Leverage: Abilities and Experience Mr. Amos Kiche owns a small janitorial business, purchased from an owner who passed on after working for her as operations manager for about 10 years. Currently providing Janitorial Services to churches and offices. He is an economist with interests and experience in economic development and is currently engaged in immigrant health and education. Dr. Sunday Goshit is a director of Equity at systems unlimited and a consultant in Diversity, Equity and Inclusion. He also teaches at the University of Iowa where he graduated with a PhD in Geography. Potential Partners includes Dr. Anne Kiche who is a lecturer in Global Health Studies at the University of Iowa and teaches ESL at Kirkwood Community College. Ms Colleen schmitt is a lecture of ESL at Kirkwood Community college and is interested in alternative ESL instruction.