Retirement is the perfect time for something that you had pursued but never achieved – like traveling around the world or and exploring old passions. But it can also be a great time to start a business.
Deputy general manager Kim Young-gwan from Startup support team explains about the brands of the CEO PLAN: Independent model.
That was the case for 60 Hyundai Card·Hyundai Capital·Hyundai Commercial employees, who participated in “CEO PLAN: Independent model” on Wednesday. The event was designed to help those seeking to launch their own business in retirement.
The participants gathering at the Federation of Korean Industries building in Yeouido in Seoul showed interest in two franchises developed by Hyundai Card: The GREEN STUDY, a study room, and BLACK MOTIV, a coffee shop.
Numerous questions were raised when a Hyundai Card official delivered a presentation about the two brand that the company invented last year. The participants asked about the brands’ launching cost, profits status and business prospect. Some wondered about facilities and menus.
(from left) THE GREEN STUDY showroom, BLACK MOTIVE showroomArmed with lower barrier, unique brand
Figuring out which businesses can be the most profitable can be time-consuming, given that most white-collar workers here begin to consider launching their own businesses right before the retirement.
Even if they managed to open up their own businesses, they often come across barriers. It stems from the fact there are significant gaps entrepreneurial ambition and business feasibility. The challenges were compounded by the lack of expertise in managing markets and services.
That is why Hyundai Card developed “CEO PLAN: Independent Model.” The company’s startup supporting team came up with a franchise model to lower the barriers for opening up a new business.
Running a franchise store requires lower level of expertise than launching a whole new business. One of the biggest advantages are they can leverage pre-established business model, which can offer designated products and services to the franchisee. Considering the rise of sharing economy, Hyundai Card selected study room and desert café as lucrative business items.
(from left) Relax zone at THE GREEN STUDY Sangam branch located in Mapo-gu, Seoul. Building overview of THE GREEN STUDY
When it comes to the study room business, the company partnered with Locus 101, a local franchise for premium study room, to launch “The GREEN STUDY.” Its brand concept and interior design were established by Hyundai Card, while Locus 101 uses its business know-hows to operate stores. Regarding coffee shop business, local coffee roasteryBLACK MOTIV was chosen by Hyundai Card. The two brands can only be used by Hyundai Card employees.
BLACK MOTIV’ Sadang branch, located in Dongjak-gu, Seoul.
Reducing a financial barrier for launching a new store can be another perk. When Hyundai Card employees open a new franchise, they don’t have to pay a royalty or other membership fees. Construction cost is about 70 to 80 percent cheaper than that of other brands.CEO PLAN prompts unique models
Currently, there are six “The GREEN STUDY” stores in operation. Among them, four combine coffee shops and the other two are only used for a study room. When it comes to “BLACK MOTIV,” five stores are in operation.
The initiative began with the perception that starting a new business cannot be successful without comprehensive business strategy. According to the 2015 survey from Hyundai Research Institute, half of the self-employed people who closed their businesses were in their 40s. Things would likely get worse due to the sluggish economy.
Launching your own business without solid strategy is dangerous. That is why CEO PLAN invests 6 months on education and training, provides a separate fund to support businesses and offers up-close management for 2 years after opening the store, Hyundai Card said.
“We developed CEO PLAN in this context. And that is why the initiative can have more significant implication,” said Won Im, who leads start-up support team at Hyundai Card. “We’ll provide continued support to help our employees achieve economic independence.”