Estudio Re is a company operating in ICTs and communications offshoring. It was started in 2006 and currently has 8 staff and 10 freelance employees. This is an interview with the Managing Director of "Estudio Re", Mr. Jose Tomas Olivares.
Is this the first company that you have started, and what drove you towards it?
"Estudio Re" is our first entrepreneurial experience born in 2006. The company was founded in mid 2006 by 3 young Chilean architects (26 years old on average). The idea was developed earlier in our college career(University of Chile, School of Architecture). During our study assignments, we identified the need for technical solutions in restoration processes for sites of architectural interest, Heritage and Cultural Tourism. These include UNESCO heriatge sites known worldwide, such as wooden Jesuit churches in Chile's archipielago, the Eastern Island archaeological sites, the historical saltpeter mining offices of the northern desert, the oldest camps of cupper mining on the chilean Andes mountains, and historic districts such as the port city of Valparaiso.
"The good mix of technologies, innovative practices and a lot of young enthusiasm in starting a business by our own, gave us a very strong competitive edge..."
Mr. Jose Tomas Olivares, Managing Director, Estudio Re S.A.
We found an opportunity to create differentiation and add value in this area through ICT tools, creativity and expert knowledge of cultural heritage. The good mix of technologies, innovative practices and a lot of young enthusiasm in starting a business by our own, gave us a very strong competitiveness; today we are enabling further development of new applications for niche markets in the field of digital economy and tourism (digital photogrammetry, forensic engineering, google earth, etc.).
We see the light after five years of research and technology transfer: we developed methods, products and services for an efficient preparation of technical documents to support the refurbishment of these cultural sites. We have technical partners are in Canada, the United States and Spain.
How did you finance your start-up operations and how long did it take for the company to become self-sustainable?
"Estudio Re" was initially financed by expert consultants of new enterprises and also received support from the "Santiago Innova Corporation" (business incubator). During 2007, we received US$70,000 in co-financial support (grants for SMEs) from the Chilean Economic Development Agency (CORFO). The partners have contributed with similar amount of seed capital. Therefore, we chose to form an LLC (limited liability company), which is a model that allowed us to issue shares among the entrepreneurs themselves, family and friends. At present, in 2008, the company must develop its business plan and focus on increasing sales – finding new clients and new markets - in Chile and overseas. The company's expected annual sale is US$400,000.
What are your major products and services and how are they unique? What is your competition?
The service consists of generic digital files (AsBuilt) of buildings or neighborhoods of tourism/cultural interest in the country, for use in architectural, urban development and archeological intervention projects. Through the use of this advanced digital technology, it is possible to analyze and model the current, past and future state of the given heritage site. The translation of the real world into a virtual one allows to store the spatial memory, increase access to the cultural goods and explore new applications for niche markets inside the field of the digital economy. The company has no competitors in Chile and the LAC region. Similar services are relatively more expensive in the EU and other developed countries.
How did you first launch the product?
Fortunately, the services that we developed were accepted fast by institutional clients in Chile (government and municipality). in 2007, the company sold for a value of US$150,000.
How do you measure the success of the company?
The company is in an early stage of development. One measure for success is that we have already generated 15 new jobs for young professionals and technicians in such a short time. In addition, the company has been recognized for the high quality of its solutions (high precision, aesthetics and creativity), for work on 5 patrimonial sites, which UNESCO has recognized in Chile.
Who are your clients and how many do you have? How are you focusing on expanding your user community?
The clients are entities that invest in real estate recovery (heritage and cultural goods), in the public space and the city development. They are mainly related with goverment organizations (municipalities, national and regional government), that have their own resources and the financial help of institutions like the Inter-American Development Bank, Foreign Ministry, and UNESCO, among others. There are also corporations, foundations, and NGOs that work in recovering cultural heritage, under the concept of Social Responsibility. Furthermore, some private investors and owners like to be part of the refurbishment of cultural sites. The latter can be associated with architecture or engineering firms, for example.
Are you planning to patent your product and do you see any obstacles in doing so?
We consider that innovation, coupled with our business model [where the core is the integration of existing technologies and development of efficient ICTs] and solutions to customers worldwide already constitute a way of protecting the products and services offered by our company.
What was the biggest challenge in starting an innovative business in your country and how did you overcome that?
The biggest challenge was convincing the market that being a young entrepreneur is not a limiting factor for delivering quality products and services. One strategy was to add affiliaite with our company (as partners, managers or directors) some professionals with a long history and reputation from public and private sector, such as an ex-CEO of an R&D fund, an academic and academic researcher, and an expert manager of heritage and culture. They have networks and contacts with entrepreneurs and professionals in government agencies and important companies into the target industry in Chile.
Who are the shareholders in your company?
The three founders, one partner that now holds a managerial position, and our parents who are also committed to the company.
How have you benefited from business incubation?
By being able to access large networks of support and new opportunities for domestic and international promotion, which give more strength to the branding of "Estudio Re". Ironically, this also proved to be a challenge for our managers because despite the many opportunities coming from business incubation is a short time, we had to try to keep our focus on building a strong base for the business!
It has been a mutually beneficial experience at Santiago Innova, because the success of the project has also enabled the incubator to have a good case for other younger entrepreneurs and encourage them in business start-ups, as well as to the government that offer resources for business incubation.
Do you have some specific lessons that you know now and wish you would have known when you started your business, and which you would like to share with fellow entrepreneurs?
All problems are a source of learning. There are no small problems. We need to confront all situations that come internally and externally to the company, every moment and with a sense of team. The delay in finding solutions increases the chances of failure.
How do you plan to internationalize your product and if so, how?
The business plan aims at expanding the company's operations to Los Angeles and Europe, but these markets are still under analysis. Due to the technological attributes of our service center, it is possible to expand operations to the rest of the Americas and Europe, where we have already tested prototypes, digitization, data processing and transfer of digital records of historical buildings.
With hindsight, are there any particular lessons or messages that you wish you would have known when you started up your company?
To focus on the aspirations of each of the founding partners, and their passion for the project. In addition, there needs to be strong control in cash flow details project and working capital. You must keep a balance in both technology and product quality.
For more information about the Santiago Innova Business Incubator, please see their profile in the Global Network Directory.
The website for Estudio Re is currently under construction, but will be set up here.