Week 8 Reading Reflection

I think one of the biggest surprises I learned about in this chapter was venture capitalists. I had heard this term before but I thought it was just a fancy name for entrepreneur. Little did I know these people are actually investors. They invest in business ventures and provide capital to these ventures for mostly start-ups, early stage or expansion ventures.

I have to admit that this chapter was definitely in an area that is not my expertise. Capital, lending, crowdfunding and financing are all terms that I would not say I truly understood coming into this chapter. I read this chapter multiple times in order to grasp the concepts that were presented and most of them eventually made sense. The only section I think still generates the most confusion is the private placement section and the rules that are listed within that section.

From watching the television show Shark Tank I have heard of the term crowdfunding before but it isn't defined really well on the show. The book talks about it being a 21st century phenomenon, my question pertains to present day companies. Are there any big companies that are successful today that needed or utilized crowdfunding to finance their business early in their startup?

The other question I have about this chapter in the text book is about Initial Public Offerings (aka an IPO). The text mentions several advantages and disadvantages to making this decision but doesn't really discuss the motivation for companies to go public. For example after the success Facebook was having, why did the owner elect to go public?

I don't think there was information that the author was incorrect about. As I stated in a previous paragraph a lot of this information was new to me and there wasn't a lot of knowledge I had on the subject to compare it to.

Halfway Reflection - "We're halfway there!"

"Woah we're halfway there, Woah livin' on a prayer, Take my hand and we'll make it I swear, Woah livin' on a prayer" - Bon Jovi 

Tenacity is a skill that you will definitely need in order to be successful in this course. If you are unsure if you possess this skill or not you will shortly find out. You have to take initiative in this course to get things done well in advance, waiting until the last minute is a bad strategy and you will not succeed if you use that technique. It's really easy to make excuses to not do an assignment, whether it be it seems difficult or time consuming or that it takes you out of your comfort zone. If these are your reasons I challenge you to take them on without reservation, you will feel such accomplishment if you do. One of the biggest tips I would offer is to look ahead at least a week or two in advance. Some assignments take more planning than others and knowing what you need to start strategizing for is a huge help!

One of the first assignments you do in this class is customer interviews. It seems super intimidating to go up to people you don't know and ask them questions on a hypothetical idea that you haven't even worked out completely in your head but don't overthink it and just do it. I was really nervous to do this because I really didn't know if my idea was really a good idea at all but I received so much positive feedback from customers and peers that I was so glad I did it. The other assignment in the first half of the course that really put my tenacity to the test was the "Free Money" assignment. I really wasn't all that nervous on my way to the location I did the experiment but once I got there I immediately wanted to give up. And it didn't help that the first three people I talked to refused to accept the free money I was offering. Talk about low self-esteem and encouragement! But shortly after I found two small kids with their grandmother and was able to successfully give away some money! I felt so good after interacting and giving away the money to the two kids that I was immediately encouraged. If I would have given up after my first three failures I wouldn't have felt the joy of making the kids day! And even though it seems like a small lesson in perseverance it really can be applied to many things in life.

The first tip I would offer to new entrepreneurs in this course is to take risks and push yourself. There are going to be assignments that you might not think fall in your comfort zone but the only way we grow as people is to try new experiences and push on those walls inside of us so we have room to grow as human beings. My second tip would be to be intentional about not giving up. Some of us might have mastered the skill of tenacity but some may need to look up what that word means prior to beginning the class (I fall in the latter category). But whichever group you fall into commit to doing everything 100%, you can't fail if you try. My final tip would be to really try and space out the workload of this course throughout the week. If you wait until the deadline to do all the assignment due for that particular day you will feel incredibly overwhelmed and won't benefit from the exercise.

Week 7 Reading Reflection

The aspect of this article that really surprised me was the length in time marketing has been studied. Ever since World War II marketing has continually evolved from demographic focused marketing, to finding emotional connections in marketing, to even trying to tap into the consumer's subconscious in order to advance marketing efforts. Before there were even televisions to air advertisements companies used other means to send their message out. I think oftentimes we forget how much we as a cultural have evolved and it is astounding to look back on it and see it full circle.

I think that the table underneath the section titled "What is at Stake?" could have been a little clearer. Some of the information included in the boxes was confusing in terms of being able to understand what the author really wanted to drive with his point. For example, the bottom row of boxes gave some examples but didn't elaborate on the examples making it difficult to relate to what the author really wanted to express in his example.

The article discusses World War II as being a big point in history where consumer products really launched from and became important in terms of marketing. What are some examples of marketing tactics that were used during this time? With a difficult way to distribute mass media to the public, besides the newspaper, how to companies successfully do this during this era?

I know one of the big terms that is used now is customer acquisition costs. This article kind of touches upon it when it discusses segmenting the market in order to gain customers with purchasing power. My question is what is a range in customer acquisition costs that would be the most optimal? How do these companies go about discovering the customer with the most purchasing power for their product?

I think this author offered an interesting article that really provided the history and a variety of ways that marketing segmentation takes place. I believe that the author did a great job with this article and did a lot of research to back up his points. He presented many facts that are difficult to argue with as a reader.

Free Money?

For this exercise I decided to go to the place where people tend to get the most bang for their buck, the dollar store!!! I picked this location because I thought this would provide an environment where people could actually appreciate the value of the dollar I was giving them.

Originally I planned on approaching anyone I ran into while I was in the store. My gameplan is to just walk up to them, say hi and offer them a dollar. My explanation if necessary in the situation would be to say I hope that it would make them smile. In the dollar store I really hope that everyone would be willing to accept my dollar since it would allow them to get anything they wanted or needed.

This exercise was so much more difficult than I anticipated. Approaching someone while they are busy and shopping proved to be hard because it really took me out of my comfort zone. I tried to think if the situation were reversed would I accept the dollar or not? I actually only was able to give away two dollars during the experiment and it was to two young kids. I decided to go down the dollar store of the toy aisle and they were with their grandmother picking out toys to buy and I was able to give them each a dollar. When they finally accepted the dollar it actually felt good to have someone finally accept it after the skepticism and the looks I had received at my previous failed attempts. The young girl was pretty shy but as the video shows the little boy "already had a dollar" haha. With the other attempts I had I tried to explain it was free and that I just wanted to something nice for somebody but each one still rejected it. All in all it was a good exercise that taught me a lot about reaching outside of my comfort zone and offering something to a stranger.

Elevator Pitch No. 2: Stud-ease

This elevator pitch was much easier than the first elevator pitch I gave. First of all it took a lot less takes in order to stop stuttering and fumbling over my words. I received a lot of great feedback from my last elevator pitch and used that advice in order to make this elevator pitch better. The first piece of advice I was given was to narrow down the who in terms of the target customer. I chose to narrow in on the college aged students specifically for my service. I also received feedback that I moved too much and talked too much with my hands which I know I have a bad habit of doing. So I made a big effort to not use my hands as much and only utilize them when I needed to. I think the comment I received that surprised me the most from my last pitch was the fact that people thought my pitch was really good. When I uploaded my first pitch I honestly felt pretty defeated because I didn't think I delivered it the best I could but after take 100 I decided it wasn't going to get much better. The fact that people thought it was dynamic and interesting made me feel as though I was being too hard on myself which is something I often do as well.

Week 6 Reading Reflection

In this article I think I fell into the first generalized category of people that tend to believe that when you think of competition you think of established competitors in your market. I didn't really think that the four other categories would be classified as competition as well. But the other four categories that are listed do affect and sometimes can be the primary cause of change in profitability. Customers, suppliers, new entrants and substitute options for a product can all affect the profitability line of a company equally if not greater than direct competition. 

This article made a lot of sense to me and all of the areas where I would typically get confused, new vocabulary, but it was explained and was provided with real life present day situations that made it relatable and understandable. As a viewer of the show "Shark Tank" I actually had some knowledge of terms that I didn't know had names. For example on the show entrepreneurs often times come in asking for money because they need to lower their cost of production by ordering more units of their product and supplies. Little did I know this issue is actually associated with barriers to entry and is called "Supply-side economies of scale" and it actually is a big conflict many businesses face. 

The first question I would ask the author is related to the "Power of Suppliers" section in the article. The first paragraph listed a range of actions that powerful suppliers do to companies to exercise their power. I would like to know if these actions are considered to be legal? Perhaps they are legal, even though many seems extreme, but not really ethical? For example one thing listed is lowering the quality of service of the products produced by the suppliers. This doesn't seem like it would be legal.

The second question I have in regards to this article is in the "Rivalry Among Existing Competitors" part of the text. It says competition is high in a market if the exit barriers are high. This section didn't really give an example of what an exit barrier would constitute of and I want to know if there is a present day example of what this would be like? 

There was nothing in this particular article that I believed the author of the article was incorrect about. The author thoroughly explained the information he presented and gave great examples to many of his points which allowed the information he presented to be put in context. The information he presented was also more factual in nature therefore making it difficult to really argue with. 

Idea Napkin No. 1

I am someone who devotes 100% to every single thing I do. When I make the decision to commit to something I am not the type to halfway do it or back out of my commitments. This attribute is something that I easily apply to any business venture I pursue. I am someone who is also extremely organized which benefits me greatly. I am often times the one people ask to do tasks that need organization which is something I delight in. This idea I've had for a study company is something I think would be successful. If I chose to attempt making this concept a reality I would devote a lot of my time and energy to making sure this company would be successful. Although I think this is a great concept I don't know if I would be the right person to run the day to day operations because I don't necessarily have the passion for this specific product. There are so many other dreams and aspirations I want to follow, one of which would be pursuing opening my own music store and teaching lessons to all ages. I think a part of entrepreneurship that can sometimes be neglected is passion.

The specific product that I have been conceptualizing and thinking through is my company called Stud-ease. This company offers a variety of services that includes online tutors, videos and study tips for every subject imaginable all of which is personalized to your learning style. I have first hand experience with the struggle students face in finding a way to study for exams, especially in the leap from high school to college. Everyone retains information and learns differently and finding the most optimal way of studying should be evaluated on an individual basis.

This product is specifically aimed at students. There isn't really a specific age range since anyone who is classified as a student can benefit from the study tools my company provides. I noticed a big knowledge gap between my high school and college days but others struggle much sooner when they try to discover a study technique that serves them best. I would say my target group would probably range from middle schoolers through college students.

With the competition that students face today in trying to get into college getting good grades in high school and on pre college tests, ACT/SAT, have become so much more important. Not only is it important for those on their way to college but learning how to efficiently study can help a student throughout their collegiate career as well. Learning how to retain new information can be beneficial for all age groups from the first year college freshman to the student pursuing their doctorate. Although the class subject might change, the way that everyone learns is consistent.

One thing that I believe sets my company apart is the focus that I place on the individual student's learning style. Whether someone is visual, auditory, kinesthetic learner, or a little bit of each the free test evaluation will offer programs and tips that are adapted to how you best learn. For example diagrams and charts, no matter how organized, are not going to connect with someone who understands through listening to someone explain a concept to them. My program will help pinpoint how you learn best and adapt a study plan just for you.

I think that the concept I have created is realistic and something that I have not actually heard of before. I think creating tools and plans for each type of person may take time and research but is something that can be achieved. The only aspect of this company that creates pause is the market I would be attempting to enter. There are a lot of big name players in the studying and education space and if I didn't capture the market quickly they could create something similar to my concept.

Customer Interviews No. 2 - Study Techniques

I believe that my company Stud-ease is still a great opportunity that if pursued properly would help out a problem for a lot of students. Learning how to study that is beneficial for you can be the difference in a C and a B, and a B and an A.

I believe that I have targeted the right audience in the student age group. I again chose to interview high school and middle school students for this group of interviews to gain more knowledge about their studying habits. This provided a greater sample size and allowed me to start recognizing trends in my data.

The questions I used to conduct each interview:

·         What grade are you in?

·         Do you study for your exams or tests?

·         How long would you say that you typically study for?

·         What are your study techniques? How do you study?

·         Has anyone ever taught you how to study?

·         Would you be open to learning a new way to study?

Based on some of the feedback I received and the direction I wanted to go with my opportunity I wanted to know if anyone had taught my customers to study before. This question would gauge potential customer’s previous experience with learning how to study. I also removed a few of the questions that seemed to be irrelevant to the purpose of my interviews.

Interview 1: https://youtu.be/oqMWbuIghtg

Interview 2: https://youtu.be/yGtNycREXi0

Interview 3: https://youtu.be/aEj0zwP9rlg

Interview 4: https://youtu.be/ZQktdlSOk7o

Interview 5: https://youtu.be/aF2zVI-vOLY

When I first started exploring this opportunity I thought it was just a small problem that I faced when I was in high school and now in college. But I have realized that through these interviews that this problem is still one faced by many today. Studying is something that leads to success and is also something being neglected to be taught to students today.

When I started interviewing potential customers I found it to be somewhat intimidating. But the more you do the less intimidating it became. Some tips I would offer is to be bold in your questioning. Get answers that are going to really help you learn about the solutions to the opportunity you have found. Another tip I would offer is to know what you are doing, or at the least fake it until you make it. Seem confident with your questions and ask them in that manner. The last tip I would offer is just to be yourself. There is nothing that makes a potential customer more comfortable than a friendly smile and warm personality. :)  

Week 5 Reading Reflection

One thing I guess I really didn't analyze or think about in real depth was the fact that there are so many ways that a venture can fail. There are so many problems that range from internal problems, start-up problems, external problems and the list goes on. When you think about these problems there are so many that are out of your control as an entrepreneur. For example when the housing market crashed many Realtors who just started their businesses couldn't have foreseen that happening. Even people who were putting their house on the market suffered losses because of this but there was nothing they could have done to change the outcome of the crash.   

The only aspect of the text that I had wish was a little clearer came in the 6.3 table. There are a bunch of formulas listed with the title of the formula next to them but I wish there were examples given with these. This would help put the formulas in context of when they would be used and how they add value to a company individually. Just having formulas listed doesn't help the reader put in context the use of the formula. 

When looking at the "Pitfalls in Selecting New Ventures" section of the text I think there is another category that could be added and that would be the market opportunity. I think in the interviews that we have done on our opportunities the discovery has played a vital role in determining whether there is a market for our product or not. If you just assume or blindly walk into an venture without knowing this information it could be a mistake. Do you think this could be added as one of the subtitles of this section? 

The other question that I would ask the author is in regards to the feasibility criteria approach. Some of the questions listed in this section seem very specific, for example "Does the product have potential for very high margins?". When you are thinking of launching a product are these things that are really of importance to ask? I understand making money is important to a business but it doesn't have to make you a millionaire. It seems as though if the answer to this approach is no than it is implied that it might not be a good product. Is that a misunderstanding or really what this approach implies? 

I feel as though the author presented the material, except for the few things listed above, in a clear and understandable way. There wasn't anything that glaringly seemed to be incorrect in this chapter's material. 

Elevator Pitch No. 1: Stud-ease

Learning how to effectively study for tests is never a talking point in school. Teaching yourself how to do this proves to be especially difficult and finding the right technique for you is even more difficult. This usually involves trial and error and could be frustrating and defeating to kids and adults alike. In order to solve this problem I've created an idea of generating a study plan just for you based upon your learning style. It will pinpoint how you learn best through a quiz and will use your results to find the best study fit for you.