The answers that I received from Leo during my first interview were very deep and insightful. The fact that the classroom is merely a connector between the students is a valuable piece of knowledge that should be utilized for schools across the nation.
Me: “What challenges does an entrepreneur face on a daily basis?”
Leo: “The fact of scarcity is always present. There are always more things to get done everyday than we have time for, and that is okay. It is our job to prioritize. This is the key to a sustainable future.”
Me: “What is one advice you would give to people who are looking to be entrepreneurs?”
Leo: “Do not be afraid to fail. I know it sounds cliche, but going into a project knowing that the outcome does not matter is the reckless and lethal mindset that an entrepreneur must have.”
Me: “What is a habit that successful entrepreneurs possess?”
Leo: “Reading. This is the best way to obtain knowledge. It is like living through multiple people, and when they fail, you can learn from their failures even if you haven’t had the same problem yet. Reading is often overlooked, but it is the way to more success in this growing technological world.”
I am now a lot more comfortable talking about entrepreneurship as compared to three months ago. I feel that I have grown as a person and as a student studying entrepreneurship. Leo did think that I progressed in my journey as an entrepreneur. After discussing my venture, he thought that it would be implementable. Although there will be trials and tribulations, that is with any great concept.
I just recently failed in my math class. I tried to find many ways to study and to prepare for the exam, yet none of the ways that I prepared seemed to be successful.
I learned that there must be other ways that I can be successful in studying for math. I also learned not to wait until the last minute and to ask questions when I do not know something.
Failure is extremely hard for me. I feel that I put in so much work into something and for it not to work out, is very devastating. I do not usually handle failure very well and have a hard time accepting failure. This class has helped me with my perspective on failure. I am now more likely to take a risk, but I still have a little fear of failure.
1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? I was most surprised with the emotional bias of the seller. I did not think that there would be an emotional response in the business sector.
2) Identify at least one part of the reading that was confusing to you. One part of the reading that was confusing was the part about the “Rollup Frenzy”: An Acquisition Nightmare. I have no understanding of the AutoNation or NationsRent businesses.
3) If you were able to ask two questions to the author, what would you ask? Why? The first question I would ask the author would be: what is the main importance of due diligence? and the other question would be: how does undercapitalization have to do with the business cycle? I would ask these questions because they are two facts that I would like to expand on more in my search for the entrepreneurial mindset.
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How? I do not think that there was anything that the author was wrong about. I think that he is mainly correct in the points that he made.
1) Identify the exit strategy you plan to make. Do you intend to sell your business in the next 5 years for a large return? Do you intend to stay with the business for several decades and retire? Do you intend to protect the venture as a family business, and pass it down to your children?
I plan to stay with my business for about 7-10 years and to build it up so it owns most of the red ocean market share. I want to eventually sell the company to a larger company and potentially work for that company. I think licensing my product to colleges and fitness centers might be a better strategy because I would get residuals for a longer period of time.
2) Why have you selected this particular exit strategy?
I have selected this particular exit strategy because I think it is the best way for me to make money and to build up my company into its greatest potential that it can possibly be.
3) How do you think your exit strategy has influenced the other decisions you've made in your concept? For instance, has it influenced how you have identified an opportunity? Has it influenced your growth intentions or how you plan to acquire and use resources?
I think that my exit strategy has influenced my other decisions that I have made in my concept. I think that licensing my product and technology will reap the most benefits for me in creating this company into something larger than merely a shower shoe company. It has directly influenced my growth intentions to go into the medical market, the beach market, and the farming market.
A rough prototype example of my product can be seen below:
1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? The biggest surprise for me in the reading was that the lack of strategic planning mainly comes from time scarcity. I think there is always time for something if you just prioritize it. Saying that you do not have time for something just means that you are not willing to place it as a priority.
2) Identify at least one part of the reading that was confusing to you. The Strategic Management Process seems a bit convoluted. It appears to be a bit all over the place and not exactly easy to read. The external environment and internal environment both lead to the strategic intent and strategic mission which is confusing to me.
3) If you were able to ask two questions to the author, what would you ask? Why? The first question I would ask the author would be: How important is the strategy formulation process to the strategy implementation? and How large is the value of strategic planning? These are two questions that might be opinion-based, but I am curious to see what the author would respond to each question.
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How? I do think that there was anything that the author was wrong about. I do not disagree with what he was saying, although some of the reading could have been a lot more cleaned up and easier to comprehend.
Step 1: Talk about what you think is what's next. You may rely on your analyses from "The Amazon Whisperer" exercise (when you discussed what product you thought might come next.)
Step 2: Interview three customers who are already part of the market you have identified, and ask them what they believe is next for a venture like yours. Describe to them your business, and simply ask "What should we be doing that we aren't planning to do?" Next, ask them about your ideas of what customers might want next. Video or audio record these interviews.
Step 3: Based on your own expectations and the feedback you received from customers, set a path for the future. In two to three paragraphs, describe what makes the most sense for your venture in terms of growing in your existing market.
I think I received some great feedback from customers about my product. Many of the people that I interviewed thought that bringing my product's technology into a whole different field would be beneficial. For example, the patented technology could be translated into the farming industry for gloves or the medical industry. Even bringing my product to the beach scene would be a great market to dive into.
I think what makes the most sense for my venture is to secure my product that I currently have and then worry about add-ons or various other products down the road. Working to my strengths and to bring an idea to life that has been proven in the market is the first step to success. I will take the ideas I received into consideration, but will definitely work on what I have for now.
New Market.
Step 1: Identify a radically different market from what you're currently planning to target. If you're currently targeting B2B, think about going after a B2C market. If you're currently targeting an affluent part of society, think about targeting a very poor part of society.
Step 2: Once you have identified a radically different market, describe how you think your venture concept might be able to create value for people in that market. You may have to get creative with this -- that's OK -- and perfectly welcome!
Step 3: Interview three people from this new market. Again, describe to each interviewee what your concept is. Then, ask them how they think your business might be help to meet customers like them. What kinds of adaptations to the product/service mix do they think you should make to be successful in this new market? Video or audio record these interviews.
Step 4: Reflect, in two to three paragraphs, on what you learned about this new market. What surprised you the most? Were any of your expectations/assumptions correct? Does this new market, on second thought, appear to be as attractive as your existing market? And so on.
I learned a lot from my customers that were not specifically part of my target market. I believe that, by nature, my product appeals to so many different people that it is difficult to find a market that would not fit into the category of my target market. Although, the people that I did talk to who were not gym enthusiasts or people who frequently used public showers, they would want to have a trial-run for free or for a reduced price. I think this is a great strategy to capture a more broad market.
This market does not seem as attractive as my existing market. I think this is because they might not be willing to pay a premium for a product that they do not see a great use in. I think once they use the trial run and notice the various benefits of my product, they will for sure be willing to pay a premium for a versatile product with so many benefits.
The opportunity that has risen for me in finding my venture concept helps the needs of college kids, gym-goers, and fitness enthusiasts around the country. The potential customers are basically anyone that lives in a dormitory in the United States and anyone who showers at their fitness center. The need arises from the problem of shower shoes not being suffice. The demographics of this market is generally healthy, young, elderly folks who are willing to pay a premium for a product that will be more convenient, cleaner, and cooler than the original shower shoe. This is a huge opportunity that has not been tapped into, and after hearing feedback from multiple customer bases, I think that this opportunity is a viable source of income for our company. This window of opportunity will not be open for long, considering that the idea may come about if action is not taken soon.
Innovation
I believe that my product is unique, proprietary, and is something that nobody else has ever come up with before. It is taking a simple product and twisting it into an innovative, more helpful product. The formula in the bottle will spray on to people’s feet and will protect their feet from the ground, against bacteria and will give them the peace of mind knowing that their foot is not touching the dirty, gross shower floor. I would sell this product in a can for $20/can and the can would have about 50 uses out of it.
Venture Concept
My innovation will solve the problem of stinky gym bags, athlete’s foot, toe fungus, stinky cars, and wet gym bags. Customers will buy this product because it will save them time, energy, and from having to buy a new gym bag that does not stink. My competitors are the shower shoe people who will try to knock me off. Packaging, price points, and distribution will play a huge role in my product. I plan to have a sweet logo and will license my product to colleges, gyms, and fitness centers around the country.
Minor Elements
My most important resource will be testing. I have to get this blend tested to make sure it is safe on the feet and does not cause any harm to the user. Our next innovative product will be a traction shoe for the pool that people can use to play pool volleyball, aerobics, or work out in the pool. I want to create this product relatively soon after my first product in order to create a strong backing from both the swimming world and the gym world.
