Venture Concept No. 1

Good Afternoon folks,

This week we are going to discuss my venture concept in depth for the first time. I know that I have mentioned parts of it throughout these past two months, now I am actually going to put it all together and see what happens.

Summary:

My venture concept is a company where you can rent out watches for a monthly service fee. My target customers would be young adults living in the suburbs or near large cities. Customers can order watches online or utilize our mobile app.

Opportunity:

There are millions of college students and young adults across the United States that are unprepared to dress up for nice occasions such as job interviews and weddings. This reason is not because of ignorance of proper dress code but because of lack of money. Many people are just trying to scrape by the first few years into their career. Many young adults are not really worried about luxury items like watches and earrings. As we move on accessories like watches are beginning to make a comeback in the fashion industry. Adding a nice watch to an outfit can really be the cherry on top in winning over somebodies first opinion. Many of my potential customers will be young adults in there 20s to mid 30s and living near larger cities where dressing up is more prevalent. Any sort of city or suburb to a city are where a majority of my customers will live as many people try and begin their career in a city. Currently, customers are taking on debt, borrowing watches from friends, or not wearing watches at all to deal with this unmet need for watches. Many people do not feel the need to pay hundreds of dollars for a watch when they are barely putting food on the table. Cost seems to be a large issue for customers looking to fulfill this unmet need. I believe this opportunity is larger than people believe it to be. Many people admit they would wear a watch if it was more affordable, but the cost is the driving issue. The opportunity for customers are endless, it is just whether or not somebody can lower the price without cutting profits. This large opportunity will not be here forever, as it will quickly close if nobody takes advantage and finds a way to offer affordable watches to these potential customers. In conclusion, millions of young adults would love to wear watches if they were more affordable.

Innovation:

My innovation is radically innovative, as it has never before been seen within the watch industry. I want to be able to make watches more affordable to these potential customers by creating a company that allows consumers to rent out watches for a monthly service fee. Customers can select and order different watches to rent through our website or through our app. Customers will come in whenever they would like and rent out watches for different occasions. If customers really enjoy the watch they rent, they then have the ability to purchase that watch. There will be three different levels of membership: Bronze, Silver, and Gold. Bronze members will pay $10 a month to be able to rent out watches up to $150 in store value. Silver members will pay $20 a month to be able to rent out watches up to $350 in store value. Gold Members will pay $40 a month to be able to rent out watches up to $1,000 in store value. Included with a monthly subscription, is free access to our mobile app, which allows you to browse through different watches and order a watch to your house on your phone. Members will be required to purchase our watch insurance for an additional $3 per month. Customers can rent up to two watches at a time. Customers cannot request a new watch until the previous one has been received. Customers can only hold onto a watch for up to one month before having to exchange it out of a new one.

Venture Concept:

My company will allow customers to customize their accessories without having to pay thousands of dollars to do so. I believe customers will easily adopt my service because it allows them to wear any watch that they like for an affordable monthly price. Because it is a brand new service within the watch industry, I would not have any immediate competitors. The only competitors I would have are the watchmakers themselves, and they are not able to compete with my variety and low price because they have to set up stores. Being able to operate solely online reduces my costs enough to lower the prices of my watches below my competitors. I would actually let me customers take advantage of brick and mortar stores to showroom the watch they would like and then rent it through my company. My pricing, packaging, and distribution of my product play a huge role in my business concept. Since my business is totally operated online, it would lower my total costs. However, consistently having to safely package and distribute the watches will play a huge role in my companies success. I would try to negotiate a deal with Amazon, FedEx, or UPS so that I will promise to utilize only that shipping company if they offer me a lower price on shipping. I would also negotiate a deal with multiple watch suppliers to receive a portion of the sales. For example, if Rolex were one of my suppliers, then Rolex would only receive additional money from me if a Rolex watch sold, not if a watch were just rented out. Watch suppliers would jump at this as a promotional method to put more watches on the market. If people see more people wearing a specific companies watch, it will influence them to buy that watch. Customers of my company will help determine the current style of watches, which could in turn benefit certain suppliers. Suppliers could also test out brand new watches through my company before actually placing them for sale.

Three Elements:

1.My company’s unfair advantage is its adaptability. Because I am not actually producing any of these watches, I can determine which ones I want to purchase for rent. If a certain watch goes out of style, I do not have to deal with that sunk cost making the watch.

2.  My next opportunity is taking advantage of other accessories. I want to add other accessories such as earrings or necklaces, and I can easily incorporate that into my companies’ strategy. Once I get a foothold on watches, I plan to expand to other popular accessories.

3. I believe in five years, I want to be able to create a demand for watches that once was not there. I want people who did not wear watches, to begin wearing watches because of my company. In ten years, I want to think about expanding my company worldwide. Targeting people all across the world. After beginning expansion, I plan to sell my first company to begin another. I want to always stay ahead of the game, and I do not want to stay in the watch game for too long before it gets too competitive to ma

Week 11 Reading Reflection

Good Afternoon Folks,

What surprised me?

I was surprised that implementing another companies innovation system may not work for your company. I thought that mimicking a successful company would help with your company.

Confusing?

I do not really understand how one can have one company working side by side but independently at the same time. I understand that they should communicate but what is beneficial to one department might be useless to another.

Questions?

1. How does a company determine its innovation strategy?

2. How often should evaluate its innovation strategy to prevent ineffectiveness?

Disagreements?

I don't have any disagreements with the author. Every point he makes seems extremely valid.

The Amazon Whisperer

Good Afternoon Folks!

1. Revenue Drivers
The revenue drivers for my company are the adds for my app, my loyal members, and customers who are buying watches.

2. What am I going to offer next?
I believe the next product I am going to offer are other accessories such as earrings, bracelets, and necklaces. Instead of just allowing people to only rent watches, they will be able to rent other accessories as well. It will foster customer loyalty as they can get all accessories with my company instead of just watches.

3. Amazon Product
One of the products I plan to offer is a professional looking necklace. The necklace I found is a thin silver necklace with a diamond stud. It is very professional and would look great for both a nice occasion and something more casual.

4. Reviews of the Product

Customers said that they like the sparkle of the necklace and the fact that they can wear it with pretty much anything. Many people said they wear it daily and at nice events. The people like the classy simple look along with the nice diamond. The only thing customers complained of was the fragility of the chain itself. Many said it broke and that they needed to buy another chain. 

5. Changes to the product

The only real change I would make to this specific product is the chain itself. I would keep the same look with a thicker more durable chain. Besides that, I think the necklace does an excellent job at attracting target consumers. 

6. Benefits of this product

I think expanding my product to other accessories besides just watches will attract a lot more female customers. Adding necklaces will appeal to my female customers and really help when looking to expand my company.

My Unfair Advantage

Good Afternoon Folks,

This week we are going to find my unfair advantage!

1. Redial App:
My app will coincide with the watches we offer and it will allow customers to browse watches online and order them right there on their phone.

2. Ability to Rent Watches:
There are many different types of companies that allow you to use their services for a monthly service charge and they have proven to be very effective. But, there are none that do this with watches.

3. My Innovativeness:
I am constantly thinking of new things and ways to make things better, once I get the company started I think I will be very good at keeping us ahead of the market and out competitors. My innovativeness will be very valuable down the road.

4. Partnership with Shaun Reid's Promotion Company:
Having a partner in the promotion business is huge when trying to inform people about your service. This is extremely valuable especially when it comes to getting started.

5. Adaptability of My Company:
With a company like mine, it is very easy for me to adapt to the market. If the style of watches changes, or maybe another accessory comes into play, I can easily alter the products that I offer to my customers while other companies cant.

6. Team-oriented Informal Company Culture:
Having a team-oriented company culture promotes innovativeness and efficiency. I want to my workers to enjoy coming to work and I want them to feel comfortable pitching ideas to me or other managers. When people feel like they have a say where they work, they tend to work harder.

7. My Uncle is a Patent Lawyer:
When coming up with new services and new ideas, it is key to have a patent or copyright on it to prevent others from stealing your idea. Having a family member in that business allows me to quickly patent ideas or inventions that I come up with.

8. My Sense of Humor:
I think my sense of humor and weirdness will help my company grow. As the owner of the company, you reflect people's perception of the company. My uniqueness and genuineness will attract customers because they feel safe using my services and working with me.

9. Online Expansion:
With a company that allows people to rent things for a service fee, I do not have to have the trouble of owning a store. I can utilize brick and mortar stores for show rooming for customers before they rent out my watch. Just like Netflix shut down Blockbuster, I think not having actual stores gives me a competitive advantage over other companies.

10. Global Positioning
Watches are popular all around the world, and watches that are fashionable in that region tend to be made in that region. My company can easily operate all around the world and provide fashionable watches to each region. Also, I can taylor my companies plan to each culture.

1. Redial App. Although some of these can definitely give me a competitive advantage over others, I think the Redial App is the one that gives me an "Unfair Advantage".  An App is something I can copyright and utilize fully. Apps allow me to market my services and expand my customer range to all over the world. With a company that is a one of a kind, this app will also be a one of a kind. If other companies want to copy me, having an app during this technological age gives me a huge advantage over competitors.

Week 10 Reading Reflection

Hello Folks,

This week we are going to talk about the week 10 reading.

Surprises?

I was surprised how companies handle questionable costs. I never really thought about where or how companies assigned repair costs. 

Confusing?

I do not really understand internal rate of return and how it is done. I feel like you are making estimates and then comparing those estimates, but it was tough for me to understand.

Questions?

1. Although a lot of these finances are extremely useful, it tends to be geared towards larger publicly traded companies. What are the differences in a balance sheet between companies offering stock versus those who don't?

2. I understand that different countries have different standards and rules of accounting. What are some major differences between a company outside of the US vs in the US?

Disagreements?

I do not disagree with the author at all. Many of the information is objective and commonly used by all companies across the United States.

Growing My Social Capital

Hello Everyone!

This week we are going to start building my social capital. What that means are people within my industry that I am networking with to help get my company going. With that, lets get started.

Domain Expert

Brad Burgeson is actually the son of the entrepreneur I interviewed. Tom mentioned how his son is really good with technology. We then connected and talked about my assignment and my business idea. Brad has created his own app before and said he would be willing to assist with creating my app. The only expectation he wanted was for me to keep in touch with him and continue to ask him about starting up a company. He mentioned how he wanted to start his own company and wanted me to include him in my idea. The app is half of my business idea, and having someone with the ability to help me set up an app is huge in both my marketing effort and expanding my customers. 

Market Expert

My grandfather happens to be my market expert. My grandfather buys and sells used cars to college students and young adults. My grandfather says many of his customers are early in their career and want a cheap quality car. He told me he would be willing to help me promote my product to his customers and use his garage to store my watches as long as I mention his business to my friends at college. My grandfather will help me target my customers and store my watches, two things that are extremely helpful in a startup.

Supplier

Shaun Reid is an older brother of a friend of mine who had a business similar to mine but with signs. He would make signs that were unique and self working and rent them out to businesses to help them with promotion. I found him because I mentioned this class to some of my friends and he talked about how his brother had his own business. We then connected and talked about my assignment and my business idea. Shaun is able to help me because he deals with promotion all of the time. He really liked my idea and said he had space in his warehouse to hold and sell my watches. He thinks a lot his customers would be open to watches and loves pairing up with me. The only expectation he wanted was 15% of profits and for me to keep in touch with him and continue to ask him about starting up a company. He mentioned how he had help with starting up his company and he wanted to do the same for me.

Elevator Pitch 3

Good Afternoon Folks,

Feedback:

This week we are going to try a third crack at my elevator pitch. Based on the feedback, it was suggested I dress up to make it more professional and I add some more detail to interest the customer more. People loved my enthusiasm so I tried to maintain that in this video.

Changes:

Based on my feedback I dressed up to make it seem more professional. I also tried to go in more depth about my company and stay away from generalizations. I also tried to use some examples and really sell my company instead of just informing you of what it is.

Let me know what you think!

My Secret Sauce

Good Afternoon Folks,

This week we have a lot to go through! I am going to discuss five ways that I think my human capital is unique then I am going to interview five of my closest friends and ask them the same questions. Finally, we are going to compare answers and see any differences. With that, lets get started!

5 Things That Make Me Unique

1. I have a high emotional intelligence. Many people seem to like me and I am excellent at utilizing empathy.

2. I am very competitive, and will turn anything into a competition. I also love arguing, and think constructive arguments help us better ourself.

3. I am not afraid to be myself around others and people are drawn to it. I embrace being goofy and weird because it is who I am. I often utilize this as charisma to get people on a project.

4. I know how to market and sell myself, something many people don't know how to do. As a personal trainer, I am constantly marketing and selling myself.

5. I believe I am excellent at strategizing and finding value in things or people. Whether it is fantasy football, stocks, or buying groceries, I am really good at getting the best bang for my buck. I also find myself very good at games that require a lot of strategy.

1. Ben is one of my really good friends, and currently one of my roommates. He mentioned my interpersonal skills, my creativity, and my work ethic as my top three aspects of my human capital.

Andrea is my girlfriend and also my best friend, she knows me better than pretty much anyone. She mentioned my charisma and my positive attitude as the two top things that I can bring to the table.

Chris is my other roommate and another one of my closest friends. Chris mentioned my creativity, work ethic, attention to detail, and ability to work with others as my strong suites.

Brandon is one of my close friends whom I met through work. Brandon mentioned my innovativeness, personality, and work ethic as my top human capital skills.

Christa is another one of my close friends whom I have met through work. She talked about my accountability, emotional intelligence, and honesty as my strongest traits.

Reflection:

I see myself as an outgoing, creative, hardworking, competitive, strategic person. My friends tend to see my interpersonal skills, my innovativeness, and my hard work, but they do not mention my competitiveness and strategic mind. I think they did not mention my competitive side because they did not think of it and I think they did not talk about how I love strategy because I kind of keep it to myself. My friends were all right, but there were some things I think they all missed. If I were to go back to my list, I would add creativity to my list instead of selling myself.

Week 9 Reading Reflection

Good Afternoon Folks,

This week we are going to discuss marketing and my thoughts on the week 9 reading.

Surprises:

I was actually really surprised at the amount of strategies companies can choose from when considering a market plan. Starting with what questions to ask, who to ask, and what form to ask them in. All the way to how to advertise and how much money to allocate to marketing.

What Was Confusing?

I was confused how entrepreneurs are able to identify consumer characteristics within their market and how they use them to help market and sell their products.

Questions:

1. Typically entrepreneurs work alone or have a few people working with them when they start their business. How how much time should they be spending on marketing in the beginning phases?

2. What marketing techniques do you recommend for a small growing business versus an established company?

Disagreements:

I love the information the author gave regarding marketing, but it seemed to be for established companies and not so much brand new companies. For instance, forecasting sales, pricing, finding a market are all things that are extremely difficult for a business just starting out. The author fails to address those issues, and I wish he could have spent more time discussing problems for businesses just beginning instead of ones that are already established.

Napkin Idea Number 2

Hello Everyone,

This week we are going to expand on my first napkin idea. With that, lets get started!

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.

 I would have three levels of customers, Bronze, Silver, and Gold and each one would correlate with a class of watches. So the bronze members would pay less per month and would only be able to rent watches up to $125 in value. The silver customers will pay a little bit more and rent watches up to $250. The gold members will pay more money and receive watches up to $750 in value. Before signing up, members must purchase insurance through the company for an extra monthly fee. 

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. I also am offering this to people who normally would not buy watches because of price but would be interested in trying them out.

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.