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Final Blog

I have really enjoyed the entrepreneurship course. I have learned a lot about starting a new business and found out that there is a lot more involved than you would think. It made me realize how much thought goes into creating a new product or service. Creating a business plan took a lot of research and hard work, but the Futurpreneur planner and assignments along the way made it much easier to complete. Many of the assignments were fun and allowed me to gain new insights. It’s been a pleasure!!!

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Investor Meeting

I have decided that I don’t have enough time to meet with my small business centre or a bank. Therefore, in preparation for my financial section, I will need to do some research on the financial section in order to complete my business plan and fill in and expand the required areas.

If I was to have a meeting with my small business centre, I would need to be able to communicate and understand all the information contained within my business plan and answer questions relating to the different sections. It would be important to be well-prepared by reading over the business plan ahead of time and preparing expected questions and answers from the investor and also questions to ask the investor. By doing this, I would get a better understanding of what to expect when creating my own business.

To prepare for the meeting, I would need to print 2 copies of the business plan, prepare a 5 minute pitch, dress appropriately, and leave plenty of time for questions. Dressing appropriately and using professional language and non-verbal communication (eye contact, sitting up straight, not fidgeting, etc.) in the meeting would be necessary for an effective meeting. This would show the investor that it was important to me and they would take me more seriously.

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Dell: from $1000 to $93 billion

Dell Inc started as a company that customized computers but has since expanded into new technologies. It was started by Michael Dell while in university in 1984 with only $1000 to purchase computer parts (Biography.com Editors, 2019). Revenues for 2020 are expected to be between $93 billion and $96 billion (CNBC, 2019).

This is a great example of how the right idea at the right time can succeed without a huge investment. In past years, Dell has faced many obstacles and ups and downs, but has adapted to the changes and has succeeded through it all.

Some of the things that I learned for my own company is that a company can succeed without a big start-up, with the right idea, and by taking chances with new markets and technologies.

Dell Canada website: https://www.dell.com/en-ca

References  

Biography.com  Editors. (2019, April 16). Michael Dell Biography. Retrieved from The  Biography.com website: https://www.biography.com/business-figure/michael-dell

CNBC. (2019,  March 1). Dell beats revenue estimates in first report as public company.  Retrieved from CNBC: https://www.cnbc.com/2019/03/01/dell-beats-revenue-estimates-in-first-report-as-public-company.html

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Launch Timing

The timing of my Student Life app launch was set for September 1 because I thought that would generate the largest number of customers as it coincides with the beginning of the school year. Upon further reflection, I feel that it would be more beneficial to launch the app in late October to mid November because this is just before exams when students feel the most overwhelmed. They will be searching for an app to simplify their lives.

Another thing to consider in the timing of the launch is high post-secondary enrollment rates. If enrollment is down when the app is launched, the results will be poor. This can be affected by several factors in the economy. In a recessionary period, this could amount to budget cuts, teacher lay-offs, hiring freezes, and lower than average student enrollment.

Technology and competition are also factors. Waiting to launch the app may result in a competitor using a more advanced technology to come up with a better solution. Technology is advancing at a rapid rate and this can render the app obsolete very quickly.

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The 4 M’s (Money, Methods, Machines, and Manpower)

As I was going through these sections with my own business (a mobile app), I realized there is a lot more expense, time, and things to think about than I originally thought.

Money:

This was the largest section for my business. A mobile app business can vary in prices from as low as a few thousand dollars to hundreds of thousands of dollars. My budget needs to take into consideration many variables including the following:

·       Type of app: Native app (iPhone only at this point)

Note: based on my research 55% of students use iPhone and 45% use Android, so this would be my cheapest option.

·       Platform: Apple apps (iOS Developer Program $99/year) are quicker and cheaper to build than Android Apps. Apple users are more likely to pay for an app and the customer lifetime value is longer than that of Android. There are also stricter guidelines for approval, resulting in higher quality apps. Drawbacks are that the app needs to be constantly updated and needs to be approved by the app store.

·       Talent/Developer: (Freelancer, small agency, large agency)

For this I think I should go with a medium sized agency because of the complexity of the app. These prices range anywhere from $15,000 to $1,000,000 depending on the agency.

·       Business Model:

o   Will you sell it for a fixed price? (easier to create) (average app price is $1.02)

o   Will you earn money via in-app purchases? (take longer to implement and more expensive)

o   Advertisements?

o   Design?

For this, because 82% of my target market (Apple users) would be will willing to pay for the app, I will set a fixed price for the app and include most features for free. This is less expensive to implement currently. Some added features may have a cost to them in the future.

For the design, most users use Facebook or Instagram, so the design will be a mix of those.

·       Functionality and type:

o   Table/List: display a simple collection of information

o   Database: designed to allow users to find, sort, and display data from very large data sets, connect to an online server

o   Dynamic: like database, but instead of connecting to online server, needs to cooperate with other platforms and software via APIs.

o   Games: hardest type of app to develop and most expensive

Database probably will work best for this type of app.

·       Intellectual property: patents, copyrights, trademark

·       Admin and tech support: (updates, managing user profiles, managing APIs, collecting data, monitoring user behaviour, etc.)

·       Infrastructure: (hosted somewhere secure, data stored)

·       Maintenance: (average of 20-30% of total development costs to maintain app. Ex. Development costs $100,000, maintenance at least $20,000/year)

Methods:

·       Policies and procedures:

o   Privacy policy: PIPEDA

o   Industry standards and regulations (Click-wrap: Rules/terms of use of the app stating “I agree” or “I accept”)

·       Day-to-day operations:

o   Monitoring the use of the app

o   Marketing

o   Maintenance/tech support

o   Handling feedback

Machines

·       Facility: home based while in planning stage, move to a more secure networking site later

·       Equipment: 2 or 3 PCS/laptops, testing system, one server (leased in beginning stages before security is an issue) with source control system, WIFI high speed internet, Apple iPhone for testing, download mechanisms for mobile device, software (Slack, studio designers, development software, etc.), desk, chair

·       Telecommunications: Internet provider

·       Insurance

·       Security: Firewall

Manpower

·       Suppliers: Internet providers, tech support people

·       Customers: Beta testers

·       Staff/management: owner run to begin with (partners), web developers/designers

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IAMMAI – Persona

My persona is a 24-year old gym teacher and personal trainer named Colin. He has a wife and 2 young children. He is middle class financially and enjoys a healthy lifestyle. He is a bodybuilder and takes part in bodybuilding competitions annually. He uses supplements on top of his diet and exercise routines to enhance his physique. He lives in a mid-sized city (Sudbury) and watches his diet and exercise. He loves our product because he can stay cool while at the gym during his high-intensity workout sessions 4 days a week and during his classes where he teaches physical activity. He participates in a variety of sporting events in his spare time such as the local baseball team, coaching his son’s soccer team, and playing pick-up hockey.

His primary goal is to ensure a healthy lifestyle (keep fit) for himself and his family. His secondary goals are to win at the bodybuilding competitions and improve strength. His primary challenge is keeping a good work-life balance and juggling his busy lifestyle. His secondary challenge is finding the time to keep his workout routine constant and eat healthy while on the go.

We can help Colin achieve his goals by providing him with the clothing he requires during his busy days. He doesn’t have a lot of time to shower and change between jobs and home and he is constantly active. Our shirts will ensure that he saves time by keeping him dry, cool and comfortable all day. We can help him with his bodybuilding competitions by keeping him cool, so he doesn’t overheat and lose energy. Our shirts are also built to last. To help Colin keep his work-life balance, we have built our clothing to be durable for working out or for casual playtime with his children. We can help to save him time from unnecessary showering, changing, or exercise breaks from the heat with our technology.

Quote: “My wife thinks that I spend more time at the gym than with her and the kids”.

Objections:

·       Colin may have a brand that he is already loyal to (UnderArmour).

·       Our tank tops are too expensive ($48 for a tank).

·       He doesn’t like the backwards writing (not his style).

Marketing message: Our solution to Colin’s problem is to help him to workout longer, with more endurance, while saving him time from unnecessary breaks, changing and showering. We will be more convenient for him because our shirts are versatile for work, home or the gym, and will save him money on his more frequent purchases of t-shirts (UnderArmour) that don’t last as long.

Elevator Pitch:

Our company, IAMMAI, has developed a shirt that cools you down as your body temperature rises. This will help busy athletes endure for longer periods of time, create versatility, save time, and money. The cooling effects last for the lifetime of the shirt, saving you from wasted energy, purchases, and unnecessary breaks.

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For my positioning map, I decided to choose the Kickstarter project, IAMMAI (the coolest work out shirt). There were many dimensions I could have used to position this product, but I thought two of its main advantages were its ability to cool down with use, and how it lasts longer than other moisture wicking technologies.

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It’s All About the Customer

Based on my reading of Dan Cavanagh’s successful business venture, I have learned that market research is a very important aspect for any business. The areas that I need to focus on are knowing my customers, knowing the problem, the trends, my competition, and my company.

Know your customer by doing surveys and questionnaires. Research trends to keep your business current with the changes in demands, continually looking for improvements. Stay on top of your competition by focusing on new solutions to the problems faced rather than the way your product can meet a need. For example, instead of searching for an improvement to your drill, look for a new way to make a hole. The customer isn’t looking for a drill; they are looking to make a hole. There may be a better solution to the same problem.

Have a clear target market and create an example of who this person is, so you can better meet their needs (like 17-year old Amber who just moved to the city and lives on her own). Research how this target market uses technology or social media to interact with your customers and potential customers. Use feedback productively to improve your product and help guide you in the future.

Join an association or look for partners who can help create a database of potential leads and contacts. They may be able to offer some advice and share their failures and successes. Learn from others’ experiences and avoid making the same mistakes.

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Johnny’s Cupcakes

I am fascinated by the story behind Johnny’s Cupcakes for several reasons. First, Johnny had 16 business before the age of 16. Second, he created a product from a nickname. Third, he quit his job and band to produce t-shirts with cupcakes on them. Fourth, people line up to buy t-shirts with cupcakes on them out of ovens and refrigerators. Fifth, Johnny has such a great personality and sense of humour and loves tricking hungry cupcake fans.

What I have learnt is that any idea, no matter how silly, can become a brand with the right approach and passion. I believe that, because of his personality, he has a great relationship with his customers. This is one of his biggest assets. What surprises me the most is that Johnny is not afraid to take chances and has fun with his business. He is very creative and unique which sets his brand apart from the competition.

My takeaways from Johnny’s story is to never give up, be creative and different, take chances, and have fun along the way.

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The Elevator Pitch

By watching elevator pitches of entrepreneurs, I am excited about learning how to turn the idea of one person into a vision that can be shared by many. It is interesting that with only one minute of time, a sentence can say so much. There is a lot of planning that goes into a pitch for it to be successful. It needs to resonate with your audience and solve a common problem or issue shared by your listeners. You need to show how you have come up with a unique or better solution to this common problem.

What I find unsettling about doing a pitch is the fact that so many pitches fail and there is so much competition. There is also only a short period of time to convince others that you have the best solution to their problem. You need to be able to condense your idea and speak about only those benefits that will have the most impact on your listener.Bottom of Form