Breaking even in the first year of business is a significant achievement, but YATTA, a company established by eight UQ students, managed to make a profit in just 24 weeks.
UQ’s first team entry to the Young Achievement Australia (YAA) Business Skills Program comprised eight undergraduate students with a range of expertise.
The group’s task was to develop a product, establish a company and generate a return for their shareholders, all in six months.
YATTA decided to manufacture wheat bags – therapeutic pads used to soothe pains and muscular stress.
Coming up with the product idea was a strategic decision, according to Sales Director and commerce student, Winnie Yeung.
“Each person in the group offered about five ideas and we went through a process of elimination,” Ms Yeung said.
“Producing wheat bags seemed the most feasible option.
“YAA businesses are allowed to raise a maximum of $1000 and we managed to raise $500 through the support of family and friends.
“Since we weren’t able to raise a huge amount of share capital we needed a product which wouldn’t strain our financial resources too much.”
Company Secretary and commerce/law student, Lulu Ou, said the team also took advantage of the clearly defined wheat bag market.
“Since we were under such tight time restraints it seemed a good idea to choose a product with an already-established market,” Ms Ou said.
“We did try to think of new marketing techniques and ways to value-add to the product.
“Our wheat bags were environmentally friendly, biodegradable and affordable.”
The YATTA team sold the wheat bags at various markets in the Brisbane area.
At the end of the 24 weeks all YAA companies were liquidated, and those which made a profit were eligible for YAA business awards, announced on November 2.
YATTA was able to provide dividends of $1.29 per $2 share, and won awards for the best use of technology and the company's annual report.
Ms Yeung was also named Business Person of the Year.
YATTA team members said that, despite the fact they had learned a lot, they felt relieved after the mandatory liquidation.
“This program has really inspired me to start up and operate a business in the future,” Ms Yeung said.
“What I learned during the 24 weeks is definitely applicable to all careers and disciplines.”
Further Information, Winnie Yeung (s4099108@student.uq.edu.au) or Penny Robinson (3365 9723, penny.robinson@uq.edu.au)
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