The Twenty Percent

Good Afternoon folks,

This week we are going to discuss the importance of the 80-20 rule, which is an old saying that 20 percent of your customers drive 80 percent of your profit. For this week, we are going to find a business owner and talk with him or her about their most valuable customers so we can see how well he or she knows his customers. After speaking with the business owner, we are going to find 3 target customers and ask the same questions to see if the owner is able to accurately identify needs in his or her target customers. For this assignment I am going to speak with the owner of M&M films, a videographer who develops films for sports players, weddings, and commercials.

Who Are The Target Customers?

When asking Kyle Mogged (Owner) about his target customers, he gave me an answer different than I was expecting. 

"Many of our customers come from a variety of backgrounds, and have different intentions for the videos they are receiving. Some want to get a scholarship, some want to promote their business, and others just want the cherished memories of a wedding or family reunion. Customers vary in age, income level, and race, but the one customer we try and target are the athletes. The athletes generate the most revenue because they need us to cover a lot of games over a short period of time. Also, we can get highlights for two players by recording just one game."

Although they are open to all customers, Kyle believes that high school and college athletes are the 20 percent customers he needs to target. He says they like pop-culture, are very confident in their abilities, and tend to come from lower middle-class families.

Three Target Customers

After talking with Kyle, I went out and found 3 high school athletes looking to play collegiate sports after graduation. 

1. The first person I interviewed was Cody Carden, a senior basketball player from Clearwater, Florida. Cody played 4 years of varsity basketball and is currently seeking offers from several respected smaller schools like Lynn, Weber, and Trinity. Cody claims he likes country music, comes from upper middle class, and says that he would be happy to play anywhere, as long as he can play the sport that he loves. Cody came off as extremely humble, and actually does not really share any of the characteristics Kyle described.

2. The second person I interviewed was Tay Scott, a Senior football player from East Lake High School. Tay played four years of varsity football and is currently committed to play football at Clemson University in South Carolina. Tay plays wide receiver for the eagles and recorded over 10 touchdowns and 1,000 yards receiving over his senior year. Tay likes hip hop music, comes from a lower middle class, and says he wants to make it big so he can support his family later on in life. Tay seemed humble, but confident in his ability to go pro. Tay definitely fit the description of Kyle's target customer.

3. The third person I interviewed was Christian Townsend, a pitcher from Countryside High School. Christian played 4 years of Varsity baseball and is currently committed to playing at Florida Gulf Coast. Christian is into rap, comes from a middle class family, and wants to play baseball for as long as he can. Christian seemed a little conceded, and was kind of like the target customer that Kyle described.

Differences

Based on talking to the three target customers, Kyle did a pretty decent job at identifying more. The only thing I see that Kyle can change is not just focusing on the super star athletes and more on the ones struggling to get offers. People like Cody are going to be easier to get and more willing to pay money for highlights because he really needs them to get into a good college. Kyle seems too focused on the stereotypical athlete and not as much on the lower end athletes. But besides that, Kyle did a pretty good job identifying target customers.  

Week 8 Reading Reflection

Good Afternoon Folks,

This week we are going to talk about raising capital through the week 8 reading reflection!! Lets get started.

Biggest Surprise?

My perspective of venture capitalists was completely different before reading this chapter. For one, i thought that venture capitalist was pretty much the only way to help raise capital. I never really thought about angels or taking on debt as a possibility for raising capital. Also, the stereotype in my head of venture capitalists were greedy people who couldn't come up with an idea so they throw money into yours so they can have power and make more money. Instead, there is a lot of thought that goes into investing in an idea and it does not necessarily have to be innovative technology. Very interesting.

What Confused Me?

Can companies utilize both debt and equity financing without issuing stock, or do they need to go public to use those methods. The way the author explained it confused me a bit, and he made it seem like any company can do it.

Questions?

1. The chapter made it seem like people did one thing or the other. They either practiced deb and equity financing, utilized IPO's, or used venture capitalists. Do some companies use more than one of these methods to raise money, or do they typically just stick to one method?

2. I know that all ways of raising capital have their pros and cons, but do you have a method you prefer over another overall? 

Disagreements?

The only disagreement I have is that the author seems a little bias towards venture capitalists, and he does not seem to mention any real negatives of using them. Although they are probably very effective to use, there must be some cases or negatives of venture capitalists. Besides that, really informative chapter and I really enjoyed it.

Half-Way Reflection

Good Afternoon Folks,

This week we are going to give a reflection of everything that has happened so far this semester. We are going to discuss how I have succeeded in this class, what has been challenging, and any tips for students taking this course next semester.

How Do I Keep Up With The Course?

My strategy for keeping up with this course is breaking it up day by day. I try not to focus too far ahead but I also do not let myself get behind. I try and complete one assignment per day, and sometimes it can be really tough, but I have learned to push through and get it done. This class has brought me out of my comfort zone and it has made me a much more confident and carefree person. Before this class I used to look for others for assurance whenever doing anything but not I am never afraid to be myself. In addition, I have learned how how effectively and efficiently manage my time. I now have to use a calendar or else I will easily miss an assignment or two.

Challenges?

There have been several times when I had the urge to completely skip an assignment because I did not feel like doing it. Whenever I had this feeling, I would tell myself that little things like these make the difference between success people and failures. Everyone can work when they feel well, but it takes a true champion to work when things get tough. A lot of assignments seemed weird at first, but as the class goes a long I realized how it all tied together. I also use that as motivation, because I know these assignments are helping me become a better entrepreneur. 

Three Tips?

1. Use a calendar or your phone to remind yourself for assignments. It can be very easy to miss things in this class if you do not pay attention. Either use a calendar or some sort of reminder tool to help keep you on top of things.

2. Don't be afraid to go outside of your comfort zone. Many of the activities can be a little weird or intimidating but embrace it. Nobody judges you, and these assignments help you grow as a person and an entrepreneur. 

3. Put in as much as you would like to get out of it. If you go all out on your blog, and actually do every assignment, you are going to learn so much more. It can be easy to just use your friends for assignments, but you need to learn the skill of approaching random people and making conversation if you want to be successful in business. Put in 100% and you will get 150% out of it.

Free Money

Hello again folks,

This week we are going to try an interesting activity called "Free Money" where I try and give away a dollar to five different people. I am going to go to the gym because it is both crowded and near where I live. I am going to approach people who look exhausted because it shows they worked hard and deserve that dollar. I plan on starting the conversation by asking about their workout and then immediately showing the dollar and asking them if they want to take it. I will explain how I had this dollar given to me because I was working hard and that I encourage them to do the same. I believe that the dollar and my smile will speak for itself. I want to keep it simple and offer the money up front because I think it will increase the odds of the person taking it. I think at least 4 out of 5 people will take my dollar. Lets look at the results below!

Week 7 Reading Reflection

Hello again folks,

This week we are going to talk about the week 7 reading.

What Surprised Me?

The article gave a completely different perspective on marketing, specifically with what works and what doesn't. I had always thought things like psychographics were effective, but I guess we were using them the wrong way.

What Confused Me?

In the article, it talks about focusing on valuable customers because they are profitable to the company. But wouldn't that prevent one from being able to utilize marketing segmentation to gain more customers? Also, isn't risky to focus on one specific type of customer?

Questions?

1. How do companies utilize segmentation if they offer different products in different regions?

2. How do specialist plan to validate statistics used to convince senior management to change marketing strategies?

Disagreements?

I do not have any disagreements with the author, as I believe he or she did an effective job explaining his or her point. Marketing is constantly changing and the authors strategy seems very plausible.

Elevator Pitch 2

Hello Folks,

This we week we are gonna try another elevator pitch! Below is the video.

This time I tried to be more enthusiastic and introduce who I am before beginning my rant on my business idea. I think it made it better but let me know. Until next week my friends.

Interviewing Customers No. 3

Hello Everyone,

Third times a charm, as we go for our third round of interviews! Videos are attached below.

For this edition, I really wanted to see if people liked my business idea so after asking questions about the problems I proposed my idea to see what people thought of it.

Week 6 Reading Reflection

Good Afternoon Folks,

This week we are going to talk about the 5 competitive forces in the business world. Week 6 came from a different author, so I am excited to share my thoughts with you.

What Surprised Me?

What really surprised me that buyers serve as a competitive force. Whenever I think of competitive forces I think of competitors within that particular industry, not things like suppliers and buyers.

What Confused Me?

I know that the author said how competition is not like a tug-of war between two competitors but instead with 5 forces. I understand the 5 forces, but I guess I cannot visualize how exactly the five forces interact.

Questions For the Author?

1. The first question I have is have other industries besides the airlines industry reacted in similar ways to the competitive forces?

2. My second question is how companies have created other competitive strategies to increase profits?

Disagreements?

The only disagreement I have is that not necessarily every industry has the same weight on all of the same five forces. Suppliers for example have more weight on the buyer side, while buyers have more weight on the supplier side, and so forth. I agree all industries have the same five forces, but the author should not that some competitive forces are stronger than others.

Idea Napkin No. 1

Hello Everyone!

This week we are going to discuss my business plan (Napkin Idea).

Who am I?

First, let me tell you about who I am. My name is Travis Bowen and I am a second year Finance major from Clearwater, Florida. I am really good at getting along with others and solving problems. I also consider myself pretty enthusiastic and ambitious. My experiences include working as a personal trainer at the gym and interning as a research assistant for a profressor here at the University of Florida.

What am I offering?

As person who loves watches, I absolutely hate the fact that I can only own three of them. Every time I go into a store, I instantly look at the watches to only dream about one day wearing them. Also, I often find myself not being able to wear a watch because it is not the right occasion or it does not quite match my outfit. What I want to offer is a company that rents out watches. Customers would pay a monthly service fee to be able to come in and try out different watches for different occasions. 

Who am I offering it to?

This concept would apply to pretty much anyone, but specifically college students and young adults. Many younger individuals who just graduate college have trouble putting together a nice wardrobe. Many people in their early 20s need to attend job interviews, weddings, and other nice events that require dressing up. Having a watch can add the perfect touch a nice outfit. 

Why do They Care?

People notice a nice watch, and it can really make a good first impression. Also, there are a ton of times where it would be nice to wear a specific watch for one occasion without actually having to purchase it. My company would allow individuals to both try out different watches before purchasing them or just use them for one occasion. Watches can be a lot of money, and it would be extremely convenient to have the ability to switch up watches whenever you like.

Core Competencies?

A business that rents watches has never been seen before. It is unique in its own way that it allows customers to practically own a wide variety of watches for a monthly price. Styles constantly are changing, so why not keep renting out watches for a low monthly price instead of paying hundreds of dollars for it to go out of style in a couple of years.

I believe that all of these elements fit perfectly into my business plan. The only criticism I can give myself is that I am really only targeting a small percentage of people and it is an extremely niche company. But, I think my business can bring watches back into style. If people had more money, they would definitely like a couple more watches to wear. Whenever creating a completely new business you are taking a risk, but other companies like Netflix have implemented similar ideas and have proven to be really successful. 

Interviewing Customers Round 2

Good Afternoon Folks,

We are back with our interviewing customers round 2! More excitement and fun talking about problems and pitching my potential solution.

Attached Below are the videos: People took very well to my idea and seemed to be interested.

Week 5 Reading Reflection

Hello again,

This week we are going to cover the Chapter 5 Reading Reflection.

What Surprised Me?

Before the reading, I never really realized how the amount of small technical problems that entrepreneurs deal with when starting up a company. For instance, pricing the product, identifying customers, location of store, and determining the right timing for a launch.

What Confused Me?

In the reading, it says the entrepreneur and manager should not start a business if there is a probable chance of negative cash flows, but soon after it discusses ways to deal with negative cash flows. I thought entrepreneurs are supposed to take risks?

Questions for the Author?

1. How much profile analysis can one really do before entering the market? If everyone sat back and waited, then new companies would never get started.

2. Do you think it is good experience to go through a failed start-up? To really understand and learn how everything works.

Disagreements?

I personally do not think forecasting is as accurate as the author makes it out to be. When putting a new product on the market, you never really know how the public is going to respond to it. You can analyze anything but as soon as the product launches a curveball can be thrown in.