Latinos are the fastest-growing segment of Rhode Island entrepreneurs. To get a sense of the issues they face, Providence Business News is following 15 people through a 12-week business planning course for Latino entrepreneurs at the R.I. Small Business Development Center. This is the 10th article in the series.
Oscar Mejias has already developed his software, called TravelSot, to help tour operators manage hotel reservations, travel packages and contracts with vendors and travel agencies. He has tested it with tour operators in Orlando and Puerto Rico, and has gotten positive feedback.
Now, he is ready to take his project to the next level. He has almost completed a business plan, which he plans to pitch to the Slater Technology Fund.
Mejias said he knows how difficult it can be to get funding for a technology startup, given the fierce competition. That’s why he decided to participate in the R.I. Small Business Development Center’s Primer Paso FastTrac 12-week business planning course, which is being taught in Spanish to reach out to the Latino business community.
Mejias wanted to make sure he was taking the right steps to make his software company attractive to investors.
At a recent class, SBDC business counselor and Primer Paso instructor Tomas Avila stressed the importance of improving cash flow, which he said is the No. 1 issue for most small business owners.
“Most of the time, they are concentrating on what’s coming in and what’s going out, without understanding how to maintain positive cash flow,” Avila said.
As Mejias has compiled figures for his business plan, he has determined that he needs an operating budget of at least $150,000 to sustain the company for its first three years.
In addition, he will need startup funds to assist in developing his software for the commercial market – specifically, to add self -installation and backup features, as well to translate the product into Spanish and Portuguese.
Mejias wants to market TravelSot to Latin American tour operators, because he sees a need in that market to replace old software.
For example, he said, much of the software he has seen in the industry was made to be used with Microsoft’s pre-Windows DOS operating system.
Mejias built TravelSot to be compatible with Microsoft Windows, and with MS Word and MS Excel. And he added accounting and payroll applications to make the software a more comprehensive solution to travel companies’ needs.
For 14 years after earning his degree in computer engineering, Mejias worked in the IT department of an oil company in Venezuela. Then, in 2003, he moved to Florida.
He started developing his travel software while working part-time for a tour operator in Orlando. He continues to provide technical support for the company, though he moved to Providence in August.
Mejias said he became interested in developing software for the tourism industry because his close connection through the operator in Orlando convinced him “it’s a big industry.”
“They manage a lot of money,” he said.
After heavily researching the industry, he determined that with a quality product and successful marketing plan, he could turn his startup into a fairly lucrative business.
“This is a market that is growing,” Mejias said. If his dream comes true, he’ll “have millions.”
