MANDADO

In Mexico, the entrepreneur faces many challenges as excessive bureaucracy and institutional corruption. Therefore, they preferred to operate in the informal economy, that according to the Mexican government, has a value of $760,000MD. However, they deal with additional cost, insecurity, unfair bargaining, and lack of technological tools to improve their business.

MANDADO is a subscription business model that uses an App to connect “associates” (Entrepreneur, Nonprofits & Producer) with the Conscious Consumer, looking for convenience to fulfill their houses monthly with high-quality groceries and home décor products, that came from fair trade. MANDADO will be creating the demand, selecting the products, assembling the boxes, and delivered them, using the delivery by community approach.

This alternative channel gives the entrepreneur a transparent option to trade, avoiding hiding costs, having a presence in different locations, and creating data information for the decision-making process.

Open a business in Mexico is the solution for many Mexicans, who invest them saving to have better revenue or for having a job, which increases the pressure to succeed in the business at any cost. A similar situation is happening with the Nonprofit, which struggle with being self-sufficient. as an answer, many nonprofits, started to produce goods to increase the income and be sustainable, but the efforts are not enough. In both cases, the lack of experience and the unregulated market represent a risk to close in any day if they are not prepared with a Plan B to selling their products. The lack of frameworks that affected just in Mexico City more of 498 000 economic units, which represent 6,268 thousand jobs at risk if the informal sector collapse.   

In Mexico City, the context like corruption, lack of financial access, and excessive bureaucracy, incentive choose the informality to start a business. Additionally, the lack of technology infrastructure as a negative impact on business development. During the COVID 19, the pandemic emphasized the lack of technological investment and business sustainability, for the informal and formal business. 

MANDADO is a subscription business model that uses the platform to connect “associates” (Entrepreneur, Nonprofits, Producer) with the Conscious Consumer

The Associates: In the platform, the associates can upload a set of products or products that they decide. MANDADO will be selecting the products to assure high quality and review the fair trade. 

The User: we will be choosing new options of products currently available in the market and allowing having access to new trends, products with a cause in OnDemand services on groceries, and home décor products. 

MANDADO will be doing the packaging and delivering the boxes in Mexico City. Consumer Data development and bringing forecasted demand for the suppliers that can be used for the associates or other clients to make a business decision.

MANDADO will be using an APP, that can be easily downloaded in any smartphone. The associate can be requested to join the platform. The User can do the subscription. Using the application of MANDADO, they will be able to scan each box. The app can track at any point who has the box and a digital sign as delivery confirmation for the user.

The target population is the entrepreneur, nonprofit, and producer that are currently selling groceries and home decor products in Mexico City, in the farmers market, or using commercial intermediaries as a distribution channel. The number of economic units that are in this category is 498,000, which represent of 6,268 thousand jobs.   

The team has experience working as a consultant, volunteers for nonprofit organizations, and did interviews with owners, producers to understand the challenges. 

Service for the final user:  Will provide a convenient service to delivered new high quality, with cause for the conscious consumer on a monthly subscription basis.

Service company: Will be provide a technological platform that will be giving an option of selling avoiding the common retailers. Allow diminishing the inventory and uncertainty of demand, avoiding unfair contracts or hostiles negotiations. 

Delivering service: will be proving a new source of jobs for the women in Mexico City and embrace the trust in the community, which is practical for the employee, but also as a delivery strategy is quick and flexible.

One of the biggest challenges for the entrepreneur in Mexico City is the uncertainty of the demand and the untrusted environment selling their products. Decide to address the market using informal and unregulated channels, do not promote the growth of the business; therefore, the job creation is complicated.

MANDADO will be bringing an additional channel of selling as a subscription model to promote the use of technology at the lowest cost, creating trust in an organized Channel. Encouraging the consumer loyalty for new products, having a positive impact on the little company, growing in other parts of Mexico.  

The subscription model in Mexico is an innovative channel that is not explored yet. After COVID19, competitors like Don Mandado, Mandadito, Frubana, and Central de abastos, appeared in the market, they only served by order, delivered near to the point of sale, works by web page. The catalogs between them are similar, the same brands and the user experience end after the payment.

MANDADO will be selling products as a subscription and allow us to create value for all the participants. The service for the user includes two type memberships, 3, 6 months, as part of the acquisition process, the user can choose one month to know the product. Also, if they decide to choose the long-term contract, the price will be competitive. This change on the purchase brings us: competitive prices, risk distribution, and long-term contracts to acquire more information about the quality of the products for the entrepreneurs.

MANDADO is using technology as an ally to make a continuous assessment of the service and capture the value of the three pillars, Entrepreneurs, Delivery, and User. The platform will be flexible to bring entrepreneurs, products and grow the number of users in real-time. Also, organize information and share the information with the entrepreneurs to make a better business decision and will be bringing data analysis to open the possibility of obtained side businesses.

MANDADO It is not only about connecting the supply with the demand is about to create an environment of trust and ethics through the supply chain.

The platform will be built using different technologies to secure the correct function, and to enhance the user experience, from entrepreneur, with easy and intuitive access, to upload the information from their product and to read the data collected. The platform will be connecting different current technologies to support: 

•             Electronic paying system 

•             Catalog of the products.

•             Database

•             Data analysis

•             Cybersecurity Protocols

•             Delivery protocol.

•             Electronic package allocation.

•             Evaluation of the Delivery.

•             Check-in point with the user in the point. 

The subscription model will be operating seasonal, which means that the user can have the option of paying in advance for 3, 6 months, or by the box. The payment will do it automatically and will be tracked at any moment the process of the box. The business model depends on the technological capacity because we want to build a transparent process to obtain a trusty relationship with the supply, simplify the inventories, obtain real-time information to build a Database. Also, give the User control over the box content and create a community on social media.

To develop the platform, we will be using Technology Salesforce, CRM, ERP CMS, awsec2, awsrds. Stripe, a mobile platform like android and IOS, NFCTAGCHIPS, VIDEOCAMARAS whitTQRC, Stripe, googlomapsfor logistic mapping or oppenig  strip maps for tracking or apple maps, Tablue, web technologies stack. These technologies are already in use in many business models, already in the market.

According to the National Institute of Statistics and Geography (INEGI), the informal economy has a value of $760,000 MD. The Market value for Grocery and home and deco products is $42,860, MD. The principal market is Mexico City, in which many entrepreneurs and Nonprofits choose to launch their product in the unregulated framework due to the lack of experience. However, this decision implies additional risks like corruption and hiding costs. 

Papers like doing business.org 2020 mention that corruption, additional fees, and the lack of entrepreneurial ecosystem have a negative effect on business creation, today Mexico is the number 60. More than 498,000 businesses are facing these challenges every day. 

MANDADO is developing as a technological platform that sells products using the subscription business model given an additional channel for trade, for the entrepreneurs, Nonprofits, and Producers, that are currently selling in the informality or use commercial intermediaries to sell their products in Mexico City. We will be addressing the uncertainty of the demand and the lack of forums to launch a new product. 

MANDADO is allowing capturing the market on a big scale with one shot. The platform validates the quality of the products and the ethical production process, to finally connect with the Conscience Consumer. 

The system will be helping the entrepreneur to diminish the inventory problems, with a transparent process and fair price. Using the delivery by the community, we created additional jobs for the community, and the user can see the positive effect of acquires local products. 

As part of the Business Model, MANDADO can share feedback with the entrepreneurs to stimulate the production of new products or improve the currents one. 

MANDADO wants to diminish the number of unregulated businesses, given the opportunity to the entrepreneur to becoming a formal company and eventually increase legal jobs. As an organization, we want to and identify the critical business needs it at the local level to promote the investments in sectors that have the potential to grow. 

At the moment, we are in the development of the concept. However, as part of the marketing research, we create a forecast of impact for the following five years. 

 In Mexico, the informal economy represents 22.5% of national GDP, and the NGO represents 3% of GDP. According to INEGI in Mexico City, the number of Small business and NGO that exist are more of 498 000.  The amount of money that these economic units represent is 87,677 M of dollars.  

 We create a forecast of users with the available information of the National Institute of Statistics and Geographic (INEGI), considering the number of users that are currently making online purchases. For Year 1, we want to reach  3 Million users as base scenario, and for the worst, we are assuming  822 thousands of users. In the case of Year 5, the number of users in the base scenario is seven million users, assuming that for year 5, we can go national.  

For the entrepreneurs or “associate” Mandado create a forecast about how many entrepreneur or NGO we can acquire. During Y1, the number of“ associates” is 99,640  we are assuming a market penetration of 20% as base scenario, we are also considering an annual grow, the number of users each year and the average trend. For year 5, the number of entrepreneurs that we want to bring is more of 167,000. 

MANDADO wants to create trust in all the value chain.  In Mexico, the informal sector created 26% of jobs in smaller companies of 1 to 5 employees. As a Platform, we want to show to the Mexican entrepreneurial system the benefits of technology when it is applied with ethics to create more opportunities for the business creation that allowed to grow and secured the current jobs or create more. Our goal in 5 years is to acquire around 167,000 associates (Producer, entrepreneurs, and Nonprofits). The new business represents more jobs, and the effect goes beyond companies; it will change the lives of thousands of families.  We are planning to grow with the Horizontal Scaling, with one simple service, before moving to sides business. 

For Year 1. The goal is to acquire the number of 99,64 “associates” to use the platform. We are planning to capture 4 000 Millions of dollars of sells, in our base scenario.

Generate a Balance scorecard that allows us to measure the positive impact of being sold on the MERCADO platform. We are planning to be present in different forums to attract entrepreneurs, like public universities, visiting directly on their business.

During Y2 and Y4, we will be focused on Cybersecurity, data collections, Technological development to improve the User experience from both sides, the Final User, and the associates.

For year 5, we will be able to generate a robust data analysis to star to grow national or growing vertical with additional services for Mexico city.

As a new business channel, the challenge is to educate the community to use the platform and understand the value of selling using the platform. Unfortunately, the owner of small business in Mexico doesn’t trust on the institutionalization of the commerce. However, a new generation of entrepreneurs understands that being digital will be the next channel to grow.  

Grow the network. We need to create partnerships with different organizations to increase networking. Have the right Sponsor is vital to be recognize as a legitimate platform. 

Lack of investment. Unfortunately, many investors are not willing to take the risk due to the foundation of social company. The lack of knowledge about the benefits of invest in this kind of business is a barrier to attract capital. 

The legal regulations. As part of the challenges, we want to protect the intellectual property of new protocols, develop inside the platform. Also, understand the possible legal implication of contracts with the producer, cybersecurity, and protect the user, the associated, and the delivery team, with the legal framework.

Implementation of the delivery protocol.  Since it is a new process, we will be exposing to the insecurity of Mexico City. Because MANDADO decides used delivery by community, our worst scenario is that organized crime could use the network for criminal purposes. 

Educate the user. As part of our strategy, we will be taking advantage of the new generation of entrepreneurs. We are planning to start with small businesses, universities, and nonprofits that are currently selling, on the farmer's markets, or any other informality format. In this case, the resistance to change is lower and will be quickly adapt the product and demand.

Grow the network. We are planning to create a partnership with recognized institutions to bring new Associate (Entrepreneurs, producer, Nonprofit). We need a big name as MIT to generate recognition of the business model. Also, we are planning to invite public and private universities to start testing the market using the platform. 

Lack of investment. Since its a new business model, we will be asking for and opportunity in other forums like Contest, Foundations, and prizes. 

Implementation of the delivery protocol. We are currently creating a digital protocol, that will be tracking the person who delivers the box, the route, the number of boxes, and all the connection in between to minimize the risk of losses caused by crime. 

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We are currently three team members:

Vanessa Jimenez. MBA, team leader, working full time on the project, developing the business model, and documentation process of the business plan. She coordinates and is looking for meetings with possible investors or partnerships. 

Nancy Gonzalez.  MBA, master’s in science in business administration. She is in charge of financial impact. She is currently working part-time in the project. 

Francisco Granados. He is in charge of the technology platform as a developer and program engineer. He is currently working in the solution Part-time.

Vanessa Jimenez. An economist from IPN and MBA graduate from IPADE, with 11 years of experience. Working in international companies, developing analytical and statistical models to prevent losses, risk measures, and econometric tools for Financial services. She also counts with expertise developing commercial strategies to identify new market trends and targeting new costumers. She also has experience as financial analysis, budgeting, forecasting, compensation system, board of director relationship. She was part of the team building the network of Pagatodo and in charge of the technological transformation for two projects in Citi Bank.  

Nancy Gonzalez, MBA from IPADE and M.S in business administration from IPN, B.A in public accounting and tourism, with ten years of experience in high-impact project management, focused on strategic planning, sustainability and worked in high-performance teams, through leadership focused on competences. Co-author of two books in Human Resources & 4st Industrial Revolution. She is developing her career in finance and sustainable administration of the business. 

Francisco Granados is an Economist (IPN) and graduate from The Stanford LEAD: Corporate Innovation Certificate focusing on business fundamentals: finance, strategy, and critical thinking, design thinking and the innovation process, building business models, negotiation strategies, and overcoming resistance to change. Francisco also counts with 12 years of experience in technological companies; nowadays, he is working as a software development lead in one of the most important technology companies in Silicon Valley. He also has experience as an entrepreneur creating one consulting firm Bistro Digital, that develops technological solutions for Mexican companies. 

In this phase of the process we don’t have partnerships.

MANDADO is a subscription business model that uses an App to connect “associates” (Entrepreneur, Nonprofits & Producer) with the Conscious Consumer, looking for convenience to fulfill their houses monthly with high-quality groceries and home décor products, that came from fair trade. 

MANDADO will be creating the demand, selecting the products to validate that is ethical, assembling the boxes, and delivered them, using the delivery by community approach.

The entrepreneur uploads the request to join the Platform. MANDADO team will be validating the quality of the product, review the ethical production process, and if the product meets the requirements, we will be using the product on the box as “New launch.” 

In the App, the consumer can give feedback for the products, and these observations will be shared with the entrepreneur to improve the user's experiences for their costumer. If the product obtains a high rating for the consumers, we will be inviting him to be part of our regular box for the next 3 months. 

As part of the business model, we are considering two revenue sources. 

·      3% fee for every launch do it by the Platform. 

·      2% fee per every regular purchase doing by the Platform. 

MANDADO is an alternative channel non explore in Mexico City and gives the entrepreneur a transparent option to trade, avoiding hiding costs, having a presence in different locations, and creating data information for the decision-making process.

As part of our preliminary plan, we are considering use donations and prizes to actually build the Demo of the application and hire people. The expectation from the firsts three years is growth horizontally with a simple service. As part of the model, we are considering two revenue sources. During the forecasting analysis, we used three different scenarios, and in all of them, the source of revenues cover the expenses strategy. The financial plan based on variable costs reduced fixed cost.

We are committed to the idea of work and serving others, using our expertise to open new opportunities from people that don’t have one. We came from humble backgrounds in Mexico City, places in which have a job is a privilege. We understand the necessities of people who put on risk all their capital to create a business. 

We are working on bringing a sustainable solution using the subscription model for the little companies in Mexico 2 years ago. Also, developing the idea of delivery by community as an independent business as a solution to the stolen package. We identify that in Mexico City, the community members build trust; we decide to use the network for delivering packaging. 

The team commits to understand the problem and use the technology to create a sustainable platform, taking additional courses to enhance the user experience with design thinking. We also are doing research working as a volunteer in different NGOs as a consultant, focusing on business creation to be sustainable. Also, we participate in a contest of a retail business that operates in the same segments as our Target Market.

However, the culture of social entrepreneurship in Mexico is not common, and attract investors is a challenge.  

After COVID19, the team decides to develop a business model, as a possible solution to the economic crack. We believe that initiatives like SOLVE can help us to find the right tools need it to make MANDADO in reality and create better opportunities from everybody.

We are currently looking for partners that:

·      Mentorship, to grow to make the change between the Business Plan to Prototype. Also, it helps us to define the operating process delivery. 

·      Sponsor, we are looking for partnerships that help us to obtain recognition for the project and help us to attract investors on the project.  

·      Partnership with institutions, universities, accelerators, and NGOs that want to use the platform as a new channel of selling.

·      Legal Mentor. That helps us to create the legal framework to operate in transparency with all the clients. 

We want to obtain help on mentorship for MIT. It will be an honor that MIT can help us with the Venture Mentoring Service (VMS), which is only available for the MIT community and only works locally. But it will be relay great have online access to mentorship or online resources. Solve a platform to connect with partners that can provide us with feedback to improve the business model.

Also, it will be an honor to have access to the resources on the Stanford Technology Ventures Program (STVP) because it will help us to improve the concept and validate the market. Most importantly, we want to know how to attract investors to the project. We want to bring to life the platform from the paper and research to the real world. 

Of course, we want to know the social entrepreneurship ecosystem in Mexico. As Graduates of IPN and IPADE, we understand how the business environment in Mexico works, and also the innovation. Embracing the values that we acquire in these institutions, we want to meet organizations that are really interested in the economic development of the base of the pyramid. 

The solution that MANDADO is generating has as a purpose to embrace the formality of the company as an institution. Because one of the main problems in Mexico City is the lack of opportunities for new business, principal the small ones, they are exclude from the current approaches on the market.  

Something that we learn during the interviews, and the consultations, was that the entrepreneurial, or producer wants to trust on the institution, to fell listen and empowered, because at the moment just the uncertainty of the market and the non written rules about made business in Mexico do not help to create trust. 

If we win the price, we will be using the money to start bringing the associate, to show them that we are creating an ethical business and not only a Utopia of how business can work to serve the society. MANDADO will be using the facilities and the first face of the platform. Also, in legal advisor to create fare contracts, and the framework to secure all the associates information and interest. Creating a sustainable prototype to acquire more associates and users in a community