Most Exciting: The ability to provide the homeless a respectable place to sleep, shower and refresh.
Competitors: Every competitor is beholden to the largess of public/private donations. No long-term endeavor is successful without adequate financing. My model to serve the homeless is financially viable.
Road Blocks: Financing, banks are unwilling to support an untested business model. Government regulation and NIMBYism will need to be addressed.
Getting Around: Financing will be raised from venture capital & seed investors. Architectural plans would need to be submitted and amended according to city requirements. Using a dilapidated or underutilized building would make approval favorable.
Who: The homeless will be able to sleep in a safe and clean environment at the lowest price point in a city. They will avoid the uncertainty of finding shelter at charities along with barriers such as drug and alcohol testing and forced religious programming.
How: More than food and clothing, dependable shelter is needed first. Safe shelter provides dignity, self-respect & is proven to better mental & physical health.
Potential: The market size is approximately $4.1 Billion in 2019.
What I Will Do With $5,000
Depending on the city each hostel has a startup cost of $2.0 to $5.0 million. In order to raise such funds I need architectural plans, a professional Html5 or CSS website and a budget to travel to meet with investors in different locations. $5,000 would help in alleviating some of the initial start up costs.
I plan to meet with venture capitalists & seed investors in other cities. The possible validation from 5x5 will help strengthen my case and get my foot in the door.