Two Fort Lewis College students are trying to help raise money for the La Plata County Humane Society with their startup business Gamma Hot Cocoa.
On Saturday (Nov. 19) and Dec. 3, juniors Melody Conrad and Vassar Stephens will be selling their brand of hot cocoa at the La Plata County Humane Society Thrift Store from 11 a.m. to 4 p.m. All proceeds will go toward the humane society’s efforts to house animals during the winter months. The money will help funding for shelter renovations, food and general care for the animals.
“We want to do this for the animals in the shelter and if it turns out well, we're planning on trying to do it outside of school in the future,” Conrad said.
The goal is to raise $1,000 combined from the two days the students will be offering cocoa at the humane society.
The business is part of FLC’s New Business Venturing Course taught by Michael Valdez. The course introduces students to starting and operating small businesses. It teaches students about customer psychology, economics, and data analysis and interpretation.
The students are put into teams to develop a business idea, conduct research and write a business plan for their business idea, and then they start a small business with a $20 startup fund lent to them from the Alpine Bank Loyalty Card Grant at Fort Lewis College. The different groups are competing against each other to see who can bring in the most cash.
“Vassar and I are bound and determine we’re going to earn the most,” Conrad said.
The hot cocoa will come in a variety of flavors including regular cocoa, cocoa mocha, peppermint, pumpkin spice and vanilla bean cocoa. Gamma will also have a variety of toppings available including Oreos and Heath Bars. Each hot cocoa will be sold in a 16-ounce cup for $4.
The Humane Society will also have a few animals hanging out near the hot cocoa stand for customers to play with.
Conrad said they determined their prices by doing analysis on what price Starbucks and Durango Joes charged for their cocoa.
Because the students were given only $20 as a startup loan, they had to choose products that were cheap to make. Conrad and Stephens debated selling lemonade but later decided cocoa was the perfect product for the holiday season.
Conrad said the course has taught her how to run a nonprofit organization and understanding how finances differ from a for-profit business.
The group members must provide financial reports with receipts showing what they paid, what was collected and what had to be deducted for the purposes of paying for the product at the end of the semester.
“I learned how you can work in the community and draw people into doing something beneficial like the humane society and have fun with doing it,” she said.
After graduating from FLC, Conrad intends to start a business with her husband that combines a specialty meat hot dog stand and mini golf courses. She said the Four Corners needs more entertainment and wants to be the person to provide it.
tbrown@durangoherald.com
