Venture Concept No.2

1.    Venture Concept 

Opportunity 

People nowadays are very concerned about what they put in their bodies. Food quality isn’t what it used to be, despite the fact that we have more knowledge than ever before. There is an opportunity to create a food product that is safe and healthy to eat. A product that parents trust enough to give to their kids. The product is infant formula that contains zero traces of toxic ingredients. This market can be (roughly) defined geographically. Geographically speaking, this product would be marketed in progressive cities where people have more access to information. People in these areas are going to be more open to the product than rural areas in the south, for example. There’s already organic baby formula out there, but all the brands I researched still have traces of toxic substances. I think this could be a huge opportunity because mothers care about what they put in their child’s body. This opportunity will exist until there are several companies on the market with zero-toxin baby formula. 

Innovation 

Like I said, my product idea is infant formula that doesn’t contain any harmful toxins. All of the ingredients will be high quality and locally-sourced. I would like the price of the formula to be about $20 for 12.5 ounces of product.

Venture Concept 

Customers will want to switch to this infant formula as soon as they know how safe and healthy it is for their children. Also, the fact that it will be just as expensive as name brand formulas is impressive. Especially since most of these brands contain sketchy ingredients. There are plenty of competitors, but they can’t ensure safety like my product can. In addition, the packaging and pricing of the infant formula will be key to getting customers. I will initially start the business by opening a manufacturing facility and hiring around 20 employees. Hopefully the business will take off so I can expand and hire more people.

The most valuable resource for my product is the locally-sourced milk. Milk is arguably the most important ingredient in baby formula, so it needs to be high quality. I would like to make more high-quality infant products, so that’s probably the future of this company. 

2.    I didn’t complete the first venture concept, so I can’t discuss any student feedback. I also didn’t receive any comments on my “What’s Next” assignment. 

3.    Since I didn’t complete the first venture concept, I’m unable to discuss what I learned from the feedback. I did learn a lot from the feedback on other assignments and I applied that knowledge to this venture concept. 

Final Reflection

2.    The most formative experience for me was the idea napkin assignment. The reading reflections were the most memorable activities because I really connected with the books I read. The most joyous experience for me was the celebrating failure activity because acknowledging my failure made me feel better about it. I’m most proud of accomplishing the figuring out buyer behavior assignments. 

3.    I consider myself an entrepreneur, but I still need to work on developing an entrepreneurial mindset. I learned a lot in this class, and I’d like to be able to apply that knowledge to real world business ventures.  

4.    I would recommend future students stay on top of assignments and stay engaged as much as possible. It’s easy to forget about work in this class so try to complete assignments at the beginning of the week. This class can be very rewarding if you pay attention to the material. 

Reading Reflection No. 3

Coco Chanel was a French fashion designer and founder of the Chanel brand. The most surprising thing about Chanel, after reading her biography, is that she grew up in poverty. The Chanel brand is luxurious and expensive, so it’s interesting that the founder was underprivileged during her formative years. This is also the most admirable part of Coco Chanel’s life, in my opinion. The least admirable thing about Chanel was her addiction to morphine, which unfortunately happens to many famous people. Despite failure in her personal and business life, though, Chanel still managed to become one of the most important designers of the twentieth century. She exhibited perseverance and tenacity, which contributed to the success of her brand. There weren’t any parts of the reading that were confusing to me. If I could ask Coco Chanel a couple questions, I would start by asking if she’s happy with how her brand has been handled since her death. I would also ask where she saw the future of fashion going today. I think Chanel believed that hard work is the key to achieving your dreams, which I agree with. 

Your Exit Strategy

I intend to sell my business in the next ten years for a large return. I want to watch my business grow before I cash out, but I definitely don’t want to own the company for more than ten years. This is mostly due to the fact that I don’t ever want to focus on one thing for too long. I don’t know if it’s my ADHD or just my personality, but I’m always on the go looking for the next thing to catch my intention. I will cash out when I feel the time is right, and travel for a while before starting my next business venture. My exit strategy has influenced my growth intentions for the company. I plan on expanding the business rather quickly, since I’m exiting the company quickly. I want to sell to someone or some company that plans on continuing to grow the business. 

Celebrating Failure

This semester, I took a chemistry exam and failed it miserably. Out of fifteen questions, I only got five correct. I studied for this exam, but only for three days prior to taking it. I learned that three days is clearly not enough study time to be successful. If I would’ve studied a little each day, rather than cramming, I could’ve gotten a much better grade.  I’ve learned this lesson several times throughout my academic career, however, this time I really became aware of how unproductive my study habits are. If I can’t pass chemistry, I won’t be able to complete my major. I don’t think it’s healthy to focus too much on possible failure, but then again it can be motivating. In my case, the fear of failure motivated me to try harder on the next exam, which I ended up getting a B on. This class has helped me to see failure as a motivator, and has also inspired me to take more risks.  

What's Next?

Existing market

I can expand my business beyond just baby formula. For example, I could make a line of probiotic drinks for kids. I want to create products that are organic, healthy, and provide a range of benefits for consumers. I talked to three customers about how I could expand my business. One person said I could make a line of baby bottles and other infant products made of biodegradable material. Another suggested probiotic snacks for children. 

Staying in the realm of infant and young children products makes the most sense for my venture. I think there’s a ton of potential in this market, especially after hearing the responses from the people I interviewed. I like the idea of creating biodegradable bottles to be used with the infant formula. 

Every product I create in the future will be safe for consumers and the environment. I think if costumers see your business cares, they will care about your products. Maintaining a healthy lifestyle and caring about the planet will always be core principles of my business. 

New market

My new target could be adults, such as creating probiotic drinks and protein shakes. This could be valuable for adults who want to maintain a healthy lifestyle. All of the people I interviewed said there’s a lot of healthy products I could create for adults. 

I was surprised to find out there’s a lot of potential to grow my business beyond products for young children. I’m especially interested in the idea of protein shakes, since a large portion of people consume them regularly. 

Your Venture's Unfair Advantage

What makes my venture special?

Contact with farm 

·     This resource can be inimitable, however, the farm I’ve found is local and reliable which I consider rare and valuable 

Cheap product

·     Finding products that are high quality, healthy, AND cheap is rare

Doesn’t contain harmful ingredients  

·     The majority of baby formulas on the market contain at least some harmful ingredients, so my product will be considered rare

Competition is limited

·     Since hardly any baby formulas on the market are cheap and contain no harmful ingredients, there is limited competition which is rare

Personal interest

·      I have a personal interest in organic, clean products which is rare

Growth potential 

·     There is a potential to grow this business beyond just baby formula, which isn’t rare 

Work contacts

·      I work at an organic market, so I have made contacts through work that aren’t easily inimitable 

Personal education

·      I have taken classes and acquired knowledge over the years to benefit my business, which is rare 

Community contacts

·      I know people in the community that could benefit my venture, which is inimitable 

Benefits customers 

·     This product is healthy, and beneficial for babies which is inimitable, but important

My personal interest is the most valuable resource I have because I believe passion is what drives the best businesses. You have to care about what you’re selling.

Reading Reflection No.2

The main argument in this book is that it doesn’t matter how many times you’ve failed, you can still be successful. The author, Scott Adams, had gone through many jobs and failed startups. He didn’t give up, though, and that resilience paid off when he created the famous Dilbert office cartoon. 

This book talked a lot about taking risks and seeking opportunities, which connects with what we’ve been learning in class. 

If I had to design an exercise for this class, based on the book, it would be a series of “idea napkin” exercises. They would be short and timed to allow for plenty of mistakes. You would get to choose each time whether you want to revise your previous idea or start fresh. The main idea of the exercise would be that making mistakes is part of the process of becoming successful.  

When I first read the title, I thought this book was going to be about finding success after failing many times. It is, but it focuses more on staying motivated and happy through the failures. The biggest surprise to me in this book was the perspective of the author, which wasn’t what I expected. 

Growing Your Social Capital

1.

1) Merrilyn Sawyer, a senior executive at “The Honest Company”

2) Domain expert 

3) I found this contact through my aunt, who used to work at a holistic company called “The Honest Company.” She called Sawyer and set up a phone interview for me. Sawyer has worked for this company for three years and knows a lot about creating healthy, organic products. 

4) Sawyer gave me a lot of valuable information about how the company she works for operates. She also offered to give me a tour of their headquarters in California. 

5) Sawyer’s information gave me insight on what it really takes to run a successful, health-conscious company. Having her as a contact will be extremely important in figuring out how to start business operations. 

2.

1)   Carol Lennie, who has worked in advertising for eight years 

2)   Market expert

3)   I found this contact through my cousin, who works at the same advertising company as Lennie. My cousin brought me into work with her, which is where I was able to speak with Lennie. 

4)   Lennie gave me information on what parents look for in a product, since she has experience targeting customers with children. 

5)   Lennie’s information would allow me to create the product customers want, rather than the product I think they want. Her insight helped me connect better with my customer base, and I think I have a clear idea of how I will sell my product. 

3. 

1)   Rodney Walt, a farmer at Red Oak Farm 

2)   Supplier 

3)   I found this contact through the internet. I was researching farms in Florida where I could buy milk from. After finding Red Oak Farm, I called the farm and ended up speaking with Walt.

4)   Walt gave me some estimations on what it would cost to purchase milk in bulk from the farm. He also told me what the cows are fed, so I could make sure the milk is safe to consume.

5)   Having Walt as a contact would be very beneficial when starting my business, because I would have a reliable source for the main ingredient of my product. 

This networking experience was different from experiences in the past because it felt more serious. Rather than reaching out to family and friends, I was speaking to workers in the business industry. In the future, I will try to do more “targeted networking” in order to receive “targeted feedback.” 

Idea Napkin No.2

1)   I am a college student who possesses creative thinking and interpersonal skills. I have an interest in buying, as well as creating, healthy, organic products. If I were to start a business selling a product like this, I would put my heart and soul into it because it’s something I’m passionate about. 

2)   A lot of people are unaware of the toxic ingredients found in almost every baby formula. Perchlorate, melamine, and other toxic ingredients pollute the food we give to infants. I am offering an alternative, a formula created with all clean ingredients. This formula will be organic, as well.

3)   The obvious thing all my customers have in common is that they have a baby. More specifically, though, these mothers and/or fathers are health-conscious and want their baby to consume the safest products. 

4)   Since most people value the health and safety of their child, I think people will pay money to ensure their baby isn’t being fed harmful toxins. 

5)   What sets this product apart is the ingredients. No other company on the market has as clean of ingredients as this baby formula will. 

I believe these elements fit together quite nicely. The unmet need is justified by the fact that people care about what they’re giving their child. Overall, I think this business idea is solid.

Someone left a comment on my first idea napkin about broadening my customer base. I didn’t realize that I left out a lot of potential customers the first time around. I kept this feedback in mind, however, I don’t think the baby formula customer base can be extended beyond people who have a kid. You have to have a baby to need baby formula. I didn’t receive any other feedback on my first idea napkin, but I’m hoping I will be given more on this post. 

Create a Customer Avatar

My prototypical customer is a twenty-five-year-old female yoga instructor. She enjoys yoga (obviously), as well as volunteering within the community. She often participates in 5k runs for charity. Environmental protection is very important to her, and she tries to reduce her carbon footprint whenever possible. She drives a Prius because it’s more eco-friendly (she can’t afford a Tesla). She’s not married, nor does she have any kids. For the past five years, she has been a vegetarian. She buys produce from a local farmers market, which is her favorite part of the week. I have a lot in common with this prototypical customer. I enjoy yoga, as well as going to the farmers market each week. I also care deeply about the environment, as everyone should. I don’t think it’s a coincidence that I have a lot in common with this avatar because I am the one that created her.

Whats Your Secret Sauce?

I have more work experience than most college students my age, because I’ve been working full time the last three years. I consider myself a hard worker, as well as very consistent. Another human capital I possess is my ability to communicate with people. I participated in musical theatre growing up so I’m not a shy person at all. I’ve never had any trouble talking to people because of this. Also, I’m a very practical and realistic thinker which allows me to make decisions that aren’t influenced by emotions. I consider this my most valuable human capital. 

Interview #1- Mother 

Me: What makes me different in terms of knowledge, skills, abilities, and emotions?

Mother: You’ve always been a very independent and determined person. I believe there’s nothing you couldn’t accomplish if you set your mind to it.

My mother gave me a very mom-like response, but she is right about the independent part. I’ve always been self-motivated and determined.

Interview #2- Father 

Father: You’re a very self-motivated person and that’s one of your greatest abilities. It makes you a productive achiever. You’re also very logical in your thinking.

I was glad my dad pointed out my logical thinking because that’s what I consider to be my most valuable human capital. He also said I was self-motivated, which I agree with. 

Interview #3- Grandma 

Grandma: You have a unique mix of creative abilities and analytical thinking. You’ve always been great at math and science, but what you’re really best at is talking.

I think what my grandma said about talking was a backhanded compliment, but I’m still going to consider it a skill. I do think my left and right brain skills are pretty equal, which is what she meant by creative abilities and analytical thinking. 

Interview #4- Friend 
Friend: You’re always unaffected by negativity, which I’ve always been jealous of. You’ve also always wanted to move to another country and never look back which I think shows how much of a fearless person you are.

I never thought about how unaffected I am by negativity because that's just always how I've been. I wouldn't consider myself fearless, but rather brave.

Interview #5- Friend 
Friend: You have the best people skills I know, like you never get scared to talk to employees or order food at a restaurant. You also never take crap from anyone and have really tough skin. 

For some reason this friend thinks my ability to talk to workers is incredible, which I find hilarious. I agree that I have tough skin, because I don't let other people get to me. 

I think others see me as better than I see myself, but that rings true with pretty much everyone. I’m much more critical of myself than I am of other people. I think everything my interviewees said was correct, though. I didn’t add self-motivated to my list of human capital, but after conducting the interviews I would add that.