Venture Concept No. 1

Opportunity

The concept of Do it yourself is not a new idea.  Craftsman have utilized tools and techniques passed down through the years to create many of things they need.  It was not too long ago where people still built their own houses and created furniture off of the land that they owned.  These days it is far cheaper to buy sticks and stuff from mega stores like Ikea, Wal-Mart, Target, and the like.   These products are created overseas in foreign factories of subpar materials.  They are not made to last, they are made to be convenient and inexpensive.  For some of us, the desire to own something meaningful far outweighs the convenience and price factors.  For some of us, that desire to create that meaningful object still burns deep and gives us something to be proud of.  It is these people that are spurring a movement that is driving applications like Pinterest, and Etsy to staggering popularity.  Do it yourself is back and it is getting bigger and bigger by the day.

The major problem faced in the do it yourself arena is the learning curve.  For many of us, we are trying to do things that we have never tried before.  Sometimes we fail, but sometimes we get it just right.  It is these moments that spur us to the next bigger project, and gives us a I can do that feeling when the next opportunity presents itself.    Another stumbling block faced when these projects come up are tools.  We   don’t always have what we need, and if we have to buy new ones, we have to learn to use them effectively while completing the project.  The type of customer that I am looking for comes from these very scenarios every day.  The big box home improvement stores are full of them every weekend, fighting to get what they need to complete their home projects before the Gators take the field to destroy this weekend’s rival.

My customer is everywhere, they could be:
• Single
• married
• College Students
• White Collar workers
• Blue Collar Workers

My target customer could come from anywhere at any time.  This market segment is huge and growing by the day and by the pin.

Innovation

The concept behind my business target these individuals and the projects that they want to complete.  I look to open a warehouse size workshop, completely equipped with the tools that they need to complete just about any project that they can imagine.  Included in this service would be local professionals that know how to use this equipment, and can give you the tips and techniques that you need to use the equipment safely and successfully.  All that you would have to bring are your supplies, your imagination, and your desire to create.
The cost of this service would vary based upon the level of expertise that you need.  The fee schedule would be as follows:

• First time orientation and safety training                                               $25.00
• Level 1 – Full Service, includes a professional to assist you
        In the completion of your project, tools, workspace, and
        Clean-up.                                                                                       $35.00/hour
• Level 2 – Partial Service, Includes a semi-monitored area
        With a service professional available to answer questions as
        Needed, tools, workspace, and clean-up.                                          $25.00/hour
• Level 3 – Self Service, includes tools, workspace, and
        Clean-up only.  No assistance with this plan.                                   $15.00/hour

Additional areas of interest for customers would come with a varied cost, dependent upon the type of activity.  One aspect of this would be a project of the week, where all supplies and instruction would be included in the set cost.  This activity would be centered on a group like setting where several professionals would teach step by step how to complete a particular project.  This would include lessons on proper usage of tools and equipment associated with the project.  As stated earlier, the cost of these activities would vary based upon the cost of included supplies, level of instruction and time needed to complete the project.

Venture Concept

The venture concept associated with this innovation provides individuals with home projects that do not have the various tools and abilities to do the things that they want to do.  We offer them the outlet that they need to accomplish the things in life that have meaning to them. I feel the opportunity to complete these projects without having to spend an enormous amount of money on tools will drive customers through the door.  Through this process they build skills and abilities that will push them to try bigger and more in-depth projects creating the return customer that we are looking for.

Minor Elements

My secret sauce will ultimately be the driving factor behind this business.  It is my desire to help foster an environment where people can come and do the things they enjoy.  In the process of this they build skills that will help boost their confidence where projects of this nature or home repairs are concerned.  Putting into practice the things that I have learned over the years that help others will push this business to be successful and create a business culture that puts customer success before profits.

The next step for this venture will be the introduction of tool kits aimed at various target applications.  These kits will all be a starting point for the customer to add too as they become more skilled and branch out into other project areas.  Kits would vary in complexity, so that someone who already has technical abilities gets wat they need to continue their growth and accomplish the tasks they need too, while a novice will not have a bunch of tools they have no use for.

The next step for me would be to continue to grow this venture into a family business that could be started in other towns and states.  Ultimately, I would want to be able to turn the business over to my children if it were something that they also had an interest in.  In five years, I still see myself very active in the community and the business, pushing to build this venture to the best it can be.

Amazon Whisperer

• Describe the revenue drivers you currently include in your business concept for this class. Revenue drivers are the different ways you make money.

The revenue drivers for my current concept are an hourly fee paid for by customers who come in and utilize the shop to complete their various home projects.  Another revenue driver is the project of the week, where a customer comes in for a class where all supplies and tools are included, and walked through a project to completion.

• Describe what kind of product offering you believe should be next. What's the next thing your customers want?

I feel the next product offering would be tool kits that vary dependent upon the type of project that you are looking to complete.  Part of the goal of this business is to give the people the confidence to do these projects in their homes, and tools specific to their needs would help.

• Describe how this "next" thing will enhance your existing product/service offering. Does it improve the user experience, does it increase customer switching costs, does it foster customer loyalty, etc.?

I feel this next product would enhance existing service offerings by continually helping the individual to grow in their skills and abilities. As these abilities improve, so does their confidence to try new projects, which in turn would drive repeat business.

• Go to Amazon and try to find a product that is similar to the one you want to offer next. Describe the product. Include a picture of the product.

After searching amazon, I located a Black and Decker Project Kit.  This kit included and 20 volt lithium drill with various bits and accessories for completing a variety of projects.  It also included 66 various hand tools, accessories and a carrying bag to keep it all in.

• What are the customer reviews for the product? What, exactly, do customers not like about the product? What do they like about it?

Likes:
Durable, easy to use
        Battery lasts all day on drill
        Compact and light weight
        Everything you need for most projects

Dislikes:
Storage bag is small
        Does not offer any way to store all the drill bits
        Not as powerful as other equipment
        Bits not as sharp.

• Describe what design/usability changes you'd make to the product.

For my product, I would like to include a larger carry bag that would allow the individual and their tools to grow into overtime.  I would also upgrade the drill bits to a more superior brand name and include some sort of storage/organizer for them.  I would also look to provide a more powerful cordless drill, one that could handle heavier tasks as needed.

• Describe why you think this product would make a good addition to your current product/service offering.

I feel that this would make a good addition to my current service as part of what we are providing is education based.  A tool kit like this, would allow individuals to take those skills home to perform a variety of tasks that we run across on a daily basis.  This repetitive use would give the individual a desire to try something bigger which would bring them back to my business for that continued personal growth and experience.

Week 11 Reading Reflection

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 think that I was most shocked at the amount of operating income generated by Intel, Microsoft, and Apple since the introduction of their different products.  This amount was far greater than I imagined it would be.

2) Identify at least one part of the reading that was confusing to you.

The innovation landscape map was a little confusing.  I would have liked to see an example or diagram of what one would typically look like.  Leaving it too my imagination did not make the subject any clearer. 

3) If you were able to ask two questions to the author, what would you ask? Why?

Question #1- Do you feel that as innovation continues to progress that more and more companies will turn to crowd-sourcing to try and keep up with the demand?

Question #2- How do you handle senior leadership that is not willing to recognize or embrace innovation strategies that would help a company evolve?

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

I felt that the information presented regarding routine innovation was somewhat contradictory.  In one section he states that “routine innovation is often called myopic or suicidal” and in another section he discusses how the hundreds of billions of dollars made by apple, Microsoft, and Intel was considered to be routine innovation.

My Unfair Advantage

1) Tools- power and hand, various assortment
V- The collection of tools that I have amassed over the years will help to offset some of the initial capital need.
R- Although not extremely rare, this resource is a valuable commodity that is at the heart of venture.
I- This collection is unique in that I have purposely and thoughtfully put it together to solve the issues that I have had in home renovation and DIY projects.
N- This venture will require these exact types of tools to be successful.  They are not substitutable, however there will be additions to this collection during the initial outlaying of capital.

2) Creative (Human Capital)
V- Being raised in a family where there was always some sort of home renovation or craft project in the works has turned me into the type of person that would rather create it myself than pay someone else.
R- My unique experiences over the years are extremely varied from my years in the Army, to bachelorhood, and now into my family years.  This varied experience has created the essence of this company.
I- My experience and abilities are not imitable, everyone’s level will vary.
N- This venture will require this type of well-rounded individual to be successful.  This resource is not substitutable.

3) Wife (also creative and would have shanked Martha Stewart in prison with a shiv fashioned from a tampon tube.  She is that bad ass!)
V- You have heard of people having a creative side, however my wife is just creative all the way around.  There is not one item in our house that we have purchased over the years that she has not made over in some way, shape, or form.
R- She is my biggest commodity and brings a sense of direction to the company.  She is the reason why I build stuff.
I- Thankfully she is one of a kind!
N- Due to her unique and creative mind, there may be imitations but there are no substitutes for this resource.

4) Determination (Human Capital)
V- I am too stubborn to give up on something once I get started.
R- Unfortunately, this is a not rare, as many men suffer from the same problem.
I- This resource is imitable, as many men are “determined”.
N- This venture will require someone with determination.  This resource is not substitutable.

5) Problem Solver (Human Capital)
V- As stated with prior resource, I am too stubborn to give up on something once I get started.  I will always find a way regardless of how long it takes.
R- Again, unfortunately, this is a not rare, as many people suffer from the same problem.
I- This resource is imitable, due to many people having this same resource.
N- This venture will require someone with this resource.  This resource is not substitutable.

6) Friends in Management at Home Depot
V- This resource is of great value, as it adds access to market segments that we are targeting.
R- This resource is not extremely rare, as big box stores are everywhere.
I- This resource is imitable, anyone could also have this resource.
N- This venture will require this resource as a continual source of new customers.  This resource is not substitutable.

7) Access to a large vacant warehouse
V- This resource is of great value, it is exactly the size space that we are looking for and needing to properly set up the different areas for projects.
R- Although this resource is not rare, due to its size and availability at the price we would be able to contract at it would be extremely valuable.
I- This resource is imitable, anyone could also have this resource for a heftier price tag.
N- This venture will require this resource at a large size and is not substitutable.

8) Parent with financial capital to invest
V- This resource gives us the capital required to put this business in motion at an interest rate that we can afford to borrow at.
R- This resource is not rare, there is financial capital available, just at higher interest rates.
I- This resource is imitable, anyone could also have this resource.
N- This venture will require this resource as a cornerstone to acquire the remaining resources needed to be successful.  This resource is not substitutable.

9) Organizational Culture
V- The premise behind this business is to empower individuals to create things that will have meaning to them and bring value to their lives.  The individuals involved with reflect this mission and strive to help every customer succeed.  This will be the biggest driving factor of this company.
R- This resource is extremely rare these days, not many businesses put an emphasis on the success of its customers over the profits of the company.
I- This resource is imitable, and I would love to see more companies follow suit.  The world would be a much better place.
N- This venture will require this resource as a continual source of new customers.  This resource is substitutable, the company could be a success without it.  However, it would be the company that I envision or the one that I set out to create.

10) Large Local Social Network
V- This resource is of great value, as it adds access to market segments that we are targeting.
R- This resource is not extremely rare, social networks are easy to tap into.
I- This resource is imitable, anyone could also have this resource.
N- This venture will require this resource as a continual source of new customers.  This resource is substitutable, other forms of marketing could be used.

Of all my resources, I would say that resource #9 would be my top resource.  I feel that this type of organizational culture will help us to stand out and build the word of mouth reputation that we will need.  Utilizing social media to help advertise will be crucial in the beginning, and having a staff that is focused on the success of the individuals utilizing this business will help this blossom.  When you care about your customers, they know it and that will make the biggest difference.

Week 10 Reading Reflection

For the week 10 reading reflection post I read: Kuratko Chapter 11 Financial Preparation for Entrepreneurial Ventures, and answered the following questions.

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 found the information on financial ratios to be the most surprising.  Reading the information on each ratio gave me a huge insight into just how much information you can garner from your financial statements.

2) Identify at least one part of the reading that was confusing to you.

I found explanation and example of simple linear regression to be confusing.  I could not fully wrap my mind around the way the author explained this in the book.

3) If you were able to ask two questions to the author, what would you ask? Why?

Question #1:  When comparing the accrual system of accounting against the cash system of accounting.  Does one have advantages over the other or offer a benefit towards a certain type of business?

Question #2:  During the performance of break-even point computations which approach works best or is just an entrepreneur’s preference?

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

I did not disagree with the author on any of the points, however any of the information that contained a formula could have been better presented.  Some of the formulas where confusing and needed further explanation or examples.

Elevator Pitch No. 3

1) The pitch. 

Opportunity

My Wife and Children are avid pinners on Pinterest and various other craft sites and apps.  The issue we face constantly is that one cool project that we see and immediately want to try. The only issue is, a lot of the projects call for tools that we don’t currently own or have never used before.  This leads us to buying or renting tools we may never use again, and worst of all have no idea how to use.

Solution

The solution to this problem lies in the opportunity that I am here to present to you today.  My Companies name is called “Nailed it!” and the opportunity that it presents will revolutionize Pinners, DIYers and craft junkies everywhere.  We will offer a warehouse size workshop, filled with the latest tools and gadgets, big and small, required for completing any project that you can imagine.  This workshop will be staffed by trained professionals who can instruct and guide individuals with no experience in these fields on how to safely and successfully use the equipment.   Need a table saw to rip sheets of plywood to complete that latest closet hack?  College students, trying to decorate your dorm room and need access to tools that you don’t own?  No problem, we have them and will gladly show you how to use them.  We even offer a project of the week, which will help people gain new techniques or introduce them to skills that they have never performed before.  These classes are perfect for the beginner or anyone who may want to try something out before investing a lot of time and money into it. 

For a flat hourly rate you can come in to our workshop, safely perform your project and then take it home to enjoy.  We will take care of the clean-up, and have professionals standing by to ensure that at the end of your next project that you “Nailed It!”

2) A reflection on the feedback you received from your last pitch. 

 The feedback that I received from the last pitch was very positive.  Everyone really seems to think that I have a great business idea. Some of the feedback pointed out the need for this type of service by college students, and helped me rethink the process of projects of the week. I feel that the feedback regarding the different market segments was very important. I was surprised the most by the fact that I didn’t think of college students myself!  I appreciated all the feedback and did not feel that any of it was wrong or silly.

3) What did you change, based on the feedback?

Overall, the majority of the pitch was the same.  I did add portions trying to touch on this need for college students, and the thought that even somebody who has completed projects in the past might be able to pick up a new skill from the guided weekly projects. 

My Secret Sauce

Describe five ways in which you think you have human capital that is truly unique. What is it about you, exactly, that makes you different? Write this up in a detailed list. 
     1) Good work ethic- No matter how you feel you should show up and perform to the best of your abilities.
     2) Compassionate- Take the needs of others into my daily activities.
     3) Problem Solver- If there is an issue that needs to be fixed, I look for a solution, or for an improvement if the problem cannot be totally fixed at the time.
     4) Excellent Common Sense- When presented with new or unfamiliar situations, use past experience to guide and help maneuver through task at hand.
     5) Sense of humor- No matter how bad things get, I always try to find humor in the situation and try to use that to improve the situation or at least lighten the mood.

Interview the five people who know you the best. Ask them what they think makes you different -- remember, focus on your knowledge, skills, abilities, emotions -- in other words, your human capital. Try to stay away from discussing your other types of capital (such as who you know). Record each interview. In your blog post, please post each interview, as well as a two-three sentence summary of each interview, explaining what your key takeaways are.

Interview # 1 – Christy
I have known Christy for 17 years, she felt that there were quite a few things that separate me.  She felt that my work ethic was excellent and that it helps me during challenges.  She feels that I always find the positive and that I use this to help others during these situations.

Interview # 2 – Addison
I have known Addison for 9 years, we talked for quite a while about what she felt made me different from others.  In the end, she felt it was my kind, caring and patient attitude that stood out.  She also felt that I was funny and liked to help people.

 
Interview # 3 – Jesse
I have known Jesse for 16 years, he is a local college student that I helped many times throughout the years.  He felt that I had the ability to overcome just about anything that I set my mind too.

Interview # 4 – Kathy
I have known Kathy (my loving Mother) for 44 years.  She felt that I have passion for what I do in all parts of my life.  She felt that I am caring for people and that I have a positive attitude that helps me in all aspects of my life.

Interview # 5 – Pete
I have known Pete for 32 years, in the recording I mistakenly said 44.  He felt that I had good common sense and that I look at things objectively. That in using these skills I apply them to try and make proper decisions.

Interview # 6 – Lila
I have known Lila for 5 years, which is exactly how old she is.  My youngest daughter did not want to be left out of this process, so we listened to what she had to say.  Being the youngest, I was cringing because of the old saying “out of the mouths of babes!” To my surprise it was worthy of submitting, she felt that I was kind, sweet, and that I take them to fun places.

Reflect on the differences. How do you see yourself, and how do others see you? Are there differences in how you assess yourself compared to others? What do you think causes these differences? Do you think your interviewees are correct about you? Finally, going back to your list from part 1, would you make any corrections to the list? How? 

Overall, I felt that the way that I saw myself and the way others saw me were pretty similar.  I have always tried to keep a level head and make the right decision, by myself and others.  I feel that these actions have been noticed by them and have helped to shape the way they see me as a person.  I feel that the interviewees are correct about me, as I do strive for these characteristics on a daily basis.  I would not make any corrections to my list.  I would probably add understanding to the list though.  I feel that being human, you never truly act the way you want at all times, and that being understanding of this and taking the context of someone’s actions into consideration is also a great attribute.

Week 9 Reading Reflection

For this week's  reading reflection post, I addressed the following areas:

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 really did not find any of this week’s reading to be a big surprise.  Most of it seemed quite familiar after taking a Marketing last semester.  If I had to put my finger on one particular thing it would be the introduction of the 4 C’s.

2)    Identify at least one part of the reading that was confusing to you.

I found the section regarding quantitative vs qualitative research to be confusing.  They both rely on analytical testing and seem to only very by size.  I would like to have seen an example of each to better each understand the difference.

3)    If you were able to ask two questions to the author, what would you ask? Why?

Question # 1 - Can you further explain the difference between quantitative and qualitative research and give examples.

Question # 2 – If consumer driven philosophy approach is often more effective, than why don’t more venture adopt it?

4)    Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

I disagreed with the steps in developing a marketing plan.  I feel that along with the current marketing research and sales analysis it should be evaluated against what plans have been used in the past.  If a plan was unsuccessful than information may be able to be pulled from those plans that could help to better shape future plans.

Idea Napkin No. 2

1) I am a father, and husband, who enjoys taking daily obstacles and overcoming them.  Whether it is a car breaking down, a computer that stops working, or something around the house that just needs to be fixed.  I want to be the one to fix it.  Nobody is going to take care of things I own better than me or put the effort behind fixing them like I will.  So why pay someone to do what I can do.  If I do not know how to repair a particular item, through the magic of the internet, you can figure out how to repair just about anything.  Through this process, I really enjoy working with my children and my wife to make these repairs and various improvements around the house.  I am very mechanically inclined and stubborn enough not to give up the first I time I don’t actually repair something.  I aspire to open a self-service type space that would allow individuals with projects that they want to complete themselves, the tools and resources to do just that.  My wife and daughters love Pinterest and are forever finding new projects that they want to try.  Nobody wants to run out and buy a new tool every time they want to attempt a new project.  The business that I envision, would allow these individuals to bring their own supplies and complete a project right there in the warehouse space, or complete just the part they do not have the tools for and then take it home to complete.  I could see this business being a considerable part of my life due to the enjoyment I would receive from helping others complete projects, and increase their confidence with these types of activities.
2) This warehouse space would be fully stocked with the tools that are needed to complete the majority of household projects and repairs.  It would also be staffed by individuals with the expertise to assist and answer questions on proper use of equipment.  It would also offer a project of the week that would allow individuals who are not quite certain if this is for them, the opportunity to be introduced properly to a project and guided step by step to a successful completion.  These classes would help others to gain new skills to further their own current and future projects.  Best of all, you wouldn’t have to buy the tools yourself and then figure out how to use them.  Or let them sit in the corner of your garage collecting dust, waiting for you to actually use it.
3) I am offering this opportunity to anyone who has a need that could be met by this service.  It could be housewife’s who are tired of waiting for their husbands to get around to their latest kitchen hack, college students who want to create a new space in their dorm, or the handyman like myself who doesn’t need the help, but might need a certain tool and just a little time to use it.  This business could attract people from across all demographics who just want to make improvements in their lives and not pay somebody else to do it.
4) Tools are expensive, and dangerous when not used properly.  Why not let somebody else purchase the equipment and then let you use it for a small charge?  The kicker, is at the end of it all, you don’t even have to clean up.  The fee includes a clean-up charge that would allow you to just take your completed project and leave.  I would have gladly paid someone to clean up after my last my project.  After completing the farm house window framing idea that my wife saw on Pinterest, I had a garage and a kitchen to clean up.  As one of the greatest internet memes of all times says, “Aint nobody got time for that!”
5) I do not honestly think that I have anything that sets me apart from everyone else.  I am an average guy who likes to tinker, and create things.  I take a lot of pride in what I do, and it shows in the end result.  I want the people that I help to have that same feeling.
I do believe that my five elements fit together, as they all point me in the same direction.  People have a need for this, Pinterest, and DIY channels are quite popular and increasing in popularity as new channels are created daily.  This business offers individuals without the knowhow, or resources to take part and create things that matter to them.  These items will improve their lives and give them a sense of satisfaction at the same time, since they did it themselves.  I still need to work out the payment aspect of this business.  Whether it would be pay by the hour, or by the number of tools that are needed, or intensity of the project.  Funding to start up the business also needs to be worked out.  All those tools would be quite expensive, and there would be a need for maintenance and repair.
I did not receive any feedback on idea napkin #1, as I did not complete that assignment. I did receive feedback on the initial concept that I have included below.
1) Pinterest is a growing community that will present opportunity for this business to grow.
2) Great idea for college towns, where students do not have access to nor have lots of tools.
3) With this type of community growing, finding other areas that would benefit from this idea would only help to improve outcomes.
4) The thought of a weekly project was well liked, as it gave people opportunities to learn skills that they may have never learned otherwise.
5) Kids classes are a direction to look into, would help to spur another generation of individuals that want to created something themselves.
I incorporated the ideas of the college towns, weekly projects, and the premise that the DIY movement is a growing community.  Originally, my thought was just for people like me, who might have a need for a certain tool they didn’t already have.  This would save them from that purchase, then with the feedback, the idea grew to include other groups of people I had not previously thought of.