The Twenty Percent

The local Entrepreneur I chose to interview is Jerome Reed. He is currently one of the leaders of a start up called R.A.W.E. Recruits, a small time recruitment agency aimed at getting kids in high school who are both exceptional athletes and students in the classroom more notoriety when it comes to scouts and creating opportunities beyond high school.

Here are his responses to the general Questions:

1. Who do you think your target customers are? - I would say that any sports fans from the age 14-45. These include high schoolers, all the way up to the possible age of their parents. Both male and female, as well.

2. Where do you find your customers? - We find our customers through social media outlets, as well as traveling to different high school sporting events to promote RAWE by word-of-mouth and provide our services at games.

3. What are your customers demographics? - Age: 16-45, Gender: Male 65%, Fem. 35%, Ethnicity: No preference, Location: (Year 1) Gainesville area. (Year 2.5) Northern Florida area. (Year 5) Entire Florida area, Income Level: HHI Avg. 55K, College Education: At least 40%, Post-Undergraduate Education: At least 20%

4. What kinds of media do their customers consume? - All variations of social media, as well as TV, movies (Netflix), music found through Spotify, Apple Music or Torrents.

5. What are your customers' problems? - If we're talking in relation to our product, it could be travel-related. Everyone may not have cars to travel to a game we're at and see us in action. Financially, it could be anything from not being able to have the money to fund HS/AAU sports fees, to not being able to pay for the videos we charge for.

6. What are your customers doing to fix their problems? - I would imagine, especially at a time like right now, income tax would come in very handy. However, if we come across a situation where financials are a problem, we do our best to work with them individually.

7. How big on the scale of 1-10 is this problem in your customers' lives? - I haven't seen it too, too often. So at this moment, I'd say a 4.

8. what are some bigger problems your customers are dealing with? - Other than financials, in a city as non-affluent as Gainesville, I can't imagine any bigger issues. Maybe personal health would go above that, but that's getting away from our wheelhouse.

9. Do your customers have a budget to help fix the problem? - I sure hope so lol. But seriously, we should have budgets for all things in life. It helps with planning down the road for other necessary or desired things.

Here are 3 customers and what they had to say in response to the same questions:

Reflection: As far as knowing his customers needs I think Jerome understands one aspect about the problems student athletes are facing but hasn't yet made his business to take care of the problems that are more pertinent to the students and getting noticed via social media. Maybe incorporating, a teaching moment for these students to better learn to develop a presence and notoriety on social media could extend the value of the business and it's prospects.

Week 8 Reading Reflection Post

In this week's reading Ch.8 covered all the possible ways an Entrepreneur could go about funding a business venture.

What I first found interesting early in the chapter was the part that mentioned commercial banks were not the only source of debt financing. Manufacturers are actually another source that I would have never thought of, especially in terms of getting machinery and other tools I might need for the business's daily operations. One other thing I found really interesting was the important of crowdfunding. I see it amongst my friends and usually think that it's small time and that those who are in the major leagues don't need to do that.

Some things I found confusing though, were the disadvantages of debt financing and the concept of the Venture Capitalist. What confuses me about the first is that it is encouraged to use debt financing as one way to fund your business project however the disadvantages almost sound bad enough to negate using it altogether. Not sure why it would be an option if it could put you in such a bad spot. Then as far as the Venture Capitalist goes I didn't know that it was more of a relationship than an just a transaction of investment to project. I also didn't know that the ideal Venture Capitalists looks at managerial experience and is mainly concerned on the return on investment. What if some Venture Capitalists were not like this? Then what?

Some questions I would ask the author would be:

1. Have you ever gone to fund raise for a business venture and if so how much did you raise. 
2. What could you have done differently? 
3. Do you think the business idea was worth more than what you received in funding?

Lastly, something I think the author got wrong was the boxed up description of the venture capitalist. I don't believe that all venture capitalists seek only the return on investment. Maybe some of them prefer overall success of the venture? or seek a career to maintain for life?

Half-Way Reflection

What behaviors have I used to keep up with the course?

1. Determination
2. Open Mindedness
3. Get it done attitude

A moment I felt like giving up:

1. I was in the middle of my week 6 reading reflection and it seemed that the things on my plate would continue to pile up until there was literally no end. I began to think "wtf is the point of this class anyway?!" However, I realized that the purpose since the beginning of the class was to change how I see things not just learn to run a business. You can't start a business or run one using the same defeated mindset and the same tactics over and over again. My want to succeed and my drive to finish what I had started ultimately is what has pulled me through. To have the things you've never had, you have to do things you never have. 

Three tips I'd give to someone who takes this class in the future:

1. Really try to do the exercise no matter what; you might like it.
2. Think: "the minute I am not working, someone else is."
3. Look at things that could be improved all around you even if you have no idea how you would implement the solution.

Trying to give away Free Money

Where will I go?
I decided on Murpheree area on campus because I live there.

What kind of people will you approach?
Anyone in the area. I feel like answering this question otherwise would inherently discriminate against other potential subjects that could give me insight during the exercise. 

What will you say to get the conversation started?
"Hey what's up, so i have this dollar but I'm trying to give it away, think you can help me out?"

What is your plan for the conversation?
Persuade them to take the dollar by any means necessary. Okay, so not so harshly, but enough so that they feel it's alright to take my dollar.

Out of five attempts, how many dollars do you think you'll give away?
About 4, because I mean, who doesn't like free money?

So I didn't get to record the encounters... While doing the exercise I actually forgot.

My results, however, are pretty weird. Giving away a dollar to a stranger was really hard. More than half the people I approached thought I was crazy. The other half treated the situation so awkwardly I'm not sure if I would've just preferred them decline the dollar and move on. When people asked why I was giving away the dollar my first reason wasn't valid enough and so people didn't take it. It wasn't until I started switching my approach that people began to take more interest in the dollar. I assumed that people would love free money but it seems that where the free money comes from matters a lot more than I thought. You would see some people and think, "they'll take the dollar," and more often they were the ones to have the biggest issue with it. This was definitely a harder exercise than I thought it would be.

Week 7 Reading Reflection

The biggest surprise for me was realizing that segments are subject to change and that they should not be treated as so concrete. I found this surprising because it inherently goes against human nature to simplify and box things up in order to better "understand" them. Eventually your realize that attitudes and customer behavior changes but this encourages you to recognize that the change is inevitable and rather than realize it when it has already happened, anticipate it and the direction in which the change is going.

The Gravity of Decision Spectrum was a bit confusing because I feel like they could have said all the things they did in a much simpler manner. Even the chart/ diagram could've been simplified in my opinion.

Some questions I would ask are first, what are some current companies who are taking the lead on effective market segmentation and what are they doing that makes it so successful? Second, success isn't permanent, so how would a company use market segmentation to prolong it's success?

The only thing I believe the author is wrong about is stating the demographics used in the piece as non-demographic segmentation. I say that because that name is too narrow and doesn't account for the fact that over time a segmentation can change alongside customer behavior and values. Personality does not directly affect someone's consumer profile and behavior.

Elevator Pitch No. 2

Th gist of the first pitch went something like: "The RTS buses here in Gainesville are absolutely horrible on the weekends. Not enough are running and not enough are going to the places you need to go. You have to wait upwards of 30 minutes between buses and lets not forget you're stranded after 6 p.m. My solution: Swift, a 24/7 weekend shuttle service for students who need to get where the need to go no matter the hour of day in a timely fashion."

On my last pitch there were problems seeing the video to begin with so one thing I definitely did differently here was making sure I had a working video for the actual pitch portion. In the comments though and even when I talked to students about this potential service, Uber was always brought up followed by the usual question, "how is it different?" After a while I think it's silly because although it's like Uber it really isn't and is aimed at being a better bus service than personal taxi service. 

Based on the feedback i have received thus far I incorporated a much more straightforward discussion about how it would be better and different from Uber. I didn't incorporate the comfort factor because I still want to determine if that is truly something people will value enough to choose my service over another. 

Customer Interviews No. 3

So essentially my business concept is a weekend 24 hour shuttle service called Swift. Similar to the RTS system, the shuttle service would be a system with routes going from campus to archer, downtown, and Newberry. There will be two additional off campus routes that would cater to people who need to get around from off campus to other places as well. To ride a shuttle would be a flat $3.50 no matter how far you go. The shuttles would be either similar to the SNAP vans or the smaller scale yellow school busses. The buses would reach stops every 10 to 15 minutes outside of heavy traffic.

In this third round of interviews (my personal second) I tried to be a bit more different in the way the interview was guided. I felt that I controlled much of the interviews last time and so I wanted them to flow a bit more from the interviewee rather than myself, the interviewer. The people I asked were once again students because that is the audience I want to appeal to the most.

I think what I learned from these interviews is that there are definitely some more areas I need to look at in regards to what I would be offering with the service. Also, price is extremely important if it is to be successful because that would be an incentive for college students to even consider using the service. Things I found especially interesting from two interviews were the thought of incorporating mobile phone use for ease of payment and a stress on comfort within the shuttle cabin.

Week 6 Reading Reflection

There were a few things that stood out to me when reading "The Five Competitive Forces that shape strategy. First, was the very real concept of barriers to exit. You think that if you wanted to leave a market or industry that you could but you don't estimate how hard that would realistically be. You invest in a company or may have even once had a substantial share of the market and are just now taking on losses. Second, was the power suppliers can hold over an industry and your business. The Microsoft example really messed with me because so many brands would be dead in the water if Microsoft failed.

One thing that was a bit confusing for me was how there may be a cost of switching to a substitute product. Wouldn't switching period be exiting the industry? and if true were there no barriers to exit or are the barriers there but ultimately surmountable depending on the business owners discretion? Basically wouldn't even considering switching to the substitute mean leaving the industry and if that happens, do barriers to exit really exist or are they just a thing that's there but not really paid attention to?

Something I would ask the author is how he uses these 5 Forces to create a successful business strategy and to name a time where a strategy actually went wrong an how did they fix it.

Overall, I would completely agree with the author on almost every level. When competing in business especially big business I truly believe you have to be aware of your surroundings no matter what. Nothing lasts, forever and having hubris is the fastest way to lose it all.

Idea Napkin No. 1

Let's begin shall we...

1. I am a Dominican and Puerto Rican second year college student. I have a lot of talents but when I'm asked to write or speak about them, I usually forget to mention a good number. I am creative, passionate, and driven. I like to look outside the box and try to push through any obstacle, even if that makes me a bit stubborn. I am a leader and have the ability to inspire others, making the people around me better. My aspirations in broad terms are to be successful but specifically I want to be able to use my creative abilities to connect with the world. Regarding my business concept, Swift, I want people to get where they need to go when they want get there. The role it would play in my life would erase my need to rely on unreliable forms of transportation when I need to get places especially as someone with no car.

2. What I am offering to customers is a 24 hour weekend shuttle service for students and patrons in the Gainesville area. Swift, would meet the demand for better, more reliable, and much faster transport on the weekend for individuals whose days don't just end at 6 p.m. The service would be designed to have a shuttle run reaching stops every 10-12 minutes or sooner. It would be a flat rate cost to ride, eliminating a pricing model, and designed to have shorter routes with more vehicles assigned to certain routes

3. Who I am offering the service to would be students who have to rely on the buss on the weekends because they do not have any other form of transportation available. These students would ideally also have enough things to do in their schedule that they have late nights and particular early mornings.

4. Customers will believe this to be valuable for a number of reasons. They will be able to get to some of the most important places in Gainesville no matter the time on the weekend, like Walmart, campus, a friends house, and etc.

5. What would set my service apart from a service like Uber is the fact tat would have routes similar to but more efficient than the RTS system and a flat rate charge to ride. Uber is convenient however, the pricing model leaves too much room for fluctuation especially when drivers are in high demand, in which case the price is amplified. Lastly, the service would be 24 hours on the weekend; giving patrons the ability to get anywhere anytime.

I believe that my concept is good in theory but much harder to get down logistically on paper. On numerous occasions when describing my service I have gotten the response, "oh, so kind of like Uber?," which only leads me to believe that it would be much harder to separate the concept from a business that already exists. The flat rate charge per ride would be convenient for customers however it may not provide enough to employ the amount of shuttles I would like to have ideally at a given time which would therefore increase wait times and essentially defeat the purpose of the service altogether. Also customers who have been largely dissatified with the weekend bus system have largely adapted to not relying on the service. Building reliance and demand could be harder than anticipated.

Interviewing Customers No. 2 (There's no No.1)

So from these interviews I learned that my service could potentially be extremely useful. Also, when you don't ask strict questions you get a lot more out of people and what are the problems your hope to solve/ can solve.

3 tips I'd give future students...

1. Be open and explain the goal of the interview in full.

2. Smile and listen actively.

3. Don't wait till the last minute to conduct interviews.

Week 5 Reading Reflection

Legal Challenges for Entrepreneurial Ventures is something I don't think about. Mostly because whenever realistic challenges begin to pile on against an idea I may have I end up trashing it and "coming back down to Earth."

One thing I found extremely interesting was the process of getting a patent and the basic rules you should follow. In starting a business alone I have never really associated the patent process as being a part of that process. However, after reading this section, I am baffled that I did not know this information sooner. There is nothing more precious than an idea and it's crazy to think that if not protected in the right way or covered to a certain extent your idea could be used by others, stolen, and fed off of.

There was nothing that was confusing to me but I would surely want to ask why information like this is only found out about through the textbook or taking the Entrepreneurship class. I feel like information like this should be taught and available in a much more open way. After all we live in a free market economy and surely we should be encouraged to create more and more businesses. Not knowing information like this could hinder and bar certain people from the ability to start a successful business whether it be small or have the potential to become a corporate giant.

This entire chapter was a learning process for me and so I don't believe the author was ever wrong. However, with more research I think I will be able to call out the author on a few things. If I can't I will just have to understand that sometimes it really is, "it is what it is."

Elevator Pitch No. 1

The RTS buses here in Gainesville are absolutely horrible on the weekends. Not enough are running and not enough are going to the places you need to go. You have to wait upwards of 30 minutes between buses and lets not forget you're stranded after 6 p.m. My solution: Swift, a 24/7 weekend shuttle service for students who need to get where the need to go no matter the hour of day in a timely fashion.