24A - Venture Concept

Part 1 - Opportunity

The opportunity that I see is there is a gap between the very casual energy drink market and the more hardcore workout supplement market. I had this idea when one of my friends told me that he took a preworkout supplement before a lacrosse game and was unable to continue playing because his heart was pounding uncontrollably. I realized that there should be a convenient way for athletes to get a small dose of caffeine for an energy boost as well as a dose of supplements that will help keep them in the game for longer.

• What are the forces or changes in the environment creating this opportunity?

The big players are Rockstar and Monster, which dominate the energy drink market. On the other side are lesser known companies like Cellucor that control the preworkout market. 

• How is this market defined geographically and demographically?

The market is predominantly in the USA and english-speaking countries with a common culture. The market is overwhelmingly male, especially on the preworkout side.

• How are customers currently satisfying this need?  And how loyal are they to whatever they use now? 

 There isn't really something to adequately satisfy this need. People simply make do with what they have available.

• How big is this opportunity?

Decently large. I could see this product becoming popular with young men who are involved with athletics. 

• How long will the “window of opportunity” be open?

As long as young men are athletes and nobody else takes this idea.

Part 2 - Innovation

I will be selling a pre-game supplement that comes premixed in a bottle or can, ideally in the price range of about $3-4. It will contain a small dose of caffeine and a larger dose of other supplements such as arganine and lysine.

Part 3 - Venture Concept

• What are the reasons to think customers would switch to this new product?  How hard will it be to get them to switch? 

There isn't really something for people to switch from. I don't expect people to stop drinking energy drinks or stop using preworkout supplements, but I am trying to fill a niche.

• Who are the competitors?  What are their possible weaknesses or vulnerabilities? 

Monster and Rockstar target very casual audiences. Redbull kinda targets athletes but it's really just used as a cocktail mixer. Nobody gets ready for an athletic performance and thinks "oh wait, better drink my Redbull first".

·         What role does packaging, your price points, distribution, customer support, the customer experience or the business location play (if any) in defining your business concept?

Packaging and distribution will be key for this brand. The idea for getting folks using this product is to place it in locations where they'd normally go to grab a traditional energy drink, then pick it up to give it a shot before practice or a game or whatever. This is why it's imperative that it tastes good, it needs to bridge the gap between casuals and hardcores.

·         How would you organize a “business” to support the ongoing production of your new product, service, or process? How many employees? What roles are in the venture?  

I could handle some basic conceptualizing for product packaging but it'd be worth it to bring in an outside designer for a product where marketing is so key.

The "secret sauce" for this venture is the niche of the market. It bridges a gap where there are no major competitors.

Next steps for the venture are finalizing my mix so that I can make labels and packaging.

Realistically, I would be more than happy to sell this business off to Coke or Pepsi or a supplement company. I just want the money.

23A - Unfair Advantage

1. I have an opportunity to test out my product on a few people. My brother and his whole lacrosse team are interested in trying it out. This is valuable and somewhat rare, because it is very important to be able to test your product, but if you have decent connections you too will be able to find test subjects.
2. I have unique experience in this field. My expertise in supplementation and how it affects exercise is valuable, rare, and inimitable (because it's myself). If I'm going to run a company based around exercise supplements, this is absolutely crucial. Not many people have a real understanding of these things. However, the only reason I don't say this is non-substitutable is because if I truly wanted to, I could just hire someone who also has knowledge.
3. I have the benefit of being located on a college campus where there are plenty of resources that I can draw on to help me. This is valuable, but not so much the other three.
4. I have the benefit of being able to test this on myself since I do athletic stuff daily. Again, valuable, but not so much the other three.
5. My brand has the benefit of being marketed towards athletes instead of the everyman. Athletes are willing to pay a higher price for what they perceive as giving them a competitive edge. This is valuable and rare within the market, since most energy drink companies market their product to gamers and just general dudes. This is non-substitutable, it needs to exist in order for this brand to function the way I envision it and be able to capture a portion of the market that isn't already dominated by Monster and Rockstar. 
6. My brand has the benefit of cool packaging. It sounds silly, but for a lot of people, the packaging sells it. This is valuable, somewhat rare, and non-substitutable. 
7. I have the benefit of being young and not having and dependents. This is valuable because if I fail and lose all the money involved in the business, my kids don't starve because I don't have any.
8. One benefit that my brand is bringing to the table is flavor. Many workout and athletic supplements make a baseline effort to taste okay, but it just ends up tasting like medicine. I'm gonna make my product actually taste good. This is valuable and rare. 
9. An advantage that I personally have is a lot of free time because I don't have a full-time job currently. This is valuable because I can devote more time and energy to testing and developing my product.
10. A personal advantage that I have is work ethic. This is valuable, but realistically it's not rare or inimitable. It is however, non-substitutable, there's no substitute for hard work.

I'd say that my top advantage is #5. The way that this brand is presented to the consumers will make or break this idea. It's the single most important thing because without it, the brand will get squashed by big energy drink companies before it even has a chance to get started.

21A - Reading Reflection 2

How To Fail At Almost Everything And Still Win Big

1) The general theme of this book is that you have to be willing to throw things at the wall until something sticks. The thing that brings you success won't be the first thing you try and it might not even be the 100th thing you try, but the key is to keep trying and learning from each try.

2) The applications to entrepreneurship are obvious, since a big part of entrepreneurship is trying things over and over again until you get your formula right.

3) For an exercise for this class, I'd say to make a "System" as described in the book. The book discourages goals, as they're traditionally defined, and encourages these "systems". Systems are about a daily routine of working towards success, instead of a deadline goal that sets you up for disappointment.

4) One thing that I liked was encouraging the reader to set their schedule around when they feel the most energetic. I've read a ton of literature encouraging folks to get up at 6AM or whatever and start the day early, but I really just can't do that. I'm simply not functional at that hour and frankly it's a waste of time. This book encourages working when you will do your best work. If you're a night owl, then work at night.

18 - Create a Customer Avatar

My customer would be a young man who is involved in sports. Typically team sports in high school or intramurals in college. A lot of these kids will be athletes involved in sports after their classes, so they need a boost in the afternoon. For hobbies, most will have interests in video games, cars, and sports. They have no children because they're young. They're perhaps a little too cocky for their abilities, and have the delusion that most teenagers do that they are invincible.

As far as what I have in common with this dude, I was a lot like him when I was in high school. Playing lacrosse after school, being tired after lunch, and playing video games and gawking at cars when I got home. It's no coincidence that I'm targeting a niche that I know well.

12 - Figuring Out Buyer Behavior

The segment of buyers that I have selected for this post is High School Athletes. Mostly because they're easy to interview because they have nothing better to do.

The thing is, these kids don't google energy drinks. They mostly don't like coffee, as it's bitter and quite an acquired taste. Usually if they need a boost before practice or something, they'll drive to the gas station after school but before practice and snag an energy drink off the shelf and maybe a small snack. They are able to get these quickly and easily, because there are gas stations everywhere and the inventory they have in stock is pretty static and consistent across the country. Energy drinks, sodas, water bottles, candy bars, crunchy snacks, etc. They're aware of the need for a boost in energy because they're tired from being in school for 7 hours. They know how to solve it, so they just pop on over to the gas station. No need to research it, they know it's there.

11 - Idea Napkin No. 1

1. I'm a college student who will be 20 in a week. I would like to be something more than I currently am, and realize that the kind of opportunity that I'm looking for doesn't just appear in front of you, so I will have to create my own opportunities, ideally within something I'm interested in.
2. I want to sell a product that I can be passionate about, so I'm creating an energy drink (which I drink far too much of) that will be marketed to athletes (I like sports). This will be designed for athletes and eventually I may specialize the formula for individual sports.
3. My customers will be athletes that need more energy. I intend to make this the kind of thing that's not going to give you cancer or something.
4. My intention is to have this product actually taste good, not like medicine you have to take. This product should provide a competitive edge.
5. I myself am an athlete so I at least know what someone would want. As a certified personal trainer, I also have a very in-depth knowledge of various supplements and how they affect the human body.

I think my biggest challenge with this product will be marketing it to people and differentiating it from the rest of the energy drink market. People have a negative view towards energy drinks as "unhealthy", so I obviously don't want this image for a product marketed towards athletes, who are usually more health-conscious than the typical consumer.

9 - Testing the Hypothesis, Part 2, Electric Boogaloo

A few basic conclusions before I launch into the table:

Not everyone likes/wants caffeine

Not everyone likes sweet flavors that are typically associated with energy drinks

Older people generally don't want this product

People with pre-existing heart conditions definitely shouldn't drink any caffeine

• Who is in?
• Teenagers
• Younger Athletes
• What is the need?
• A beverage that contains a small dose of caffeine as well as other supplements that enhance athletic performance.
• Why does the need exist?
• There is no middle ground between preworkout and energy drinks.

• Who is not?
• Old people
• People with heart conditions
• Pregnant or breastfeeding women
• People who dislike stimulants
• Nerds
• What is the need not?
• This is not soda. It is not preworkout.
• Alternative explanations?
• This could be too niche of a product. However, I believe that a great flavor will go a long way to bringing this product to a larger audience. 

8 - Solving The Problem (What exactly are you selling?)

My solution to the aforementioned opportunity is simple. An energy drink designed specifically for athletes playing high-intensity sports such as soccer, lacrosse, football, basketball, or anything similar. This drink would contain a caffeine content lower than other drinks of similar volume, so as to not elevate the heartrate of the athlete to an unreasonable degree while still providing a boost in energy and mental clarity. This drink will also contain other compounds that help with athletic endurance such as beta-alanine, lecithin, L-Arganine, and others. I haven't worked out the specific formula yet, but the goal is to provide endurance benefits without affecting heartrate, speed, coordination, or any other ability that is crucial to sports.

7 - Testing the Hypothesis

Many athletes want an energy drink that is optimized for sports but without the very high caffeine content of most preworkouts on the market.

Who: Athletes, especially those in sports that involve some sort of endurance.
What: They are lacking a beverage designed for before a big game.
Why: Preworkout companies focus on gym rats, and energy drink companies focus on people who drink caffeine casually but hate coffee.

Not everyone in the current "who" share this need. Some people don't want or need caffeine. There are others, however, that might buy this product. For example, people who aren't athletes but need some quick energy for physical activity (hiking, moving, running from werewolves, etc.)

In the "what": Some people might prefer just a cup of coffee, and that's okay. We can't force everyone to like a certain flavor. We can, however, provide benefits and compounds that coffee doesn't contain, such as taurine, beta-alanine, and lecithin.

Why: People will buy this for different reasons. Some amateur athletes may buy it just because it has cool packaging or they like the flavor, or just to fit in. Some people might buy it because they want a little edge over the competition, even if they don't understand it 100%. Towards the top, some science-oriented athletes may understand the benefits of individual compounds and specifically choose our product because of the superior blend.

After interviewing some of my friends who play club sports, most of them just said something along the lines of "why wouldn't I just drink coffee" or "why not just have an energy drink". Therefore, it seems that my biggest hurdle will be separating this product from the other categories of energy drinks and coffees by marketing it specifically towards athletes.

5A - Identifying Local Opportunities

1.
"Despite delays, Brightline is now on track, says president"
https://infoweb-newsbank-com.lp.hscl.ufl.edu/apps/news/document-view?p=WORLDNEWS&t=pubname%3AMIHB%21Miami%2BHerald%252C%2BThe%2B%2528FL%2529/year%3A2018%212018/mody%3A0914%21September%2B14&f=advanced&action=browse&format=text&docref=news/16E6F70D543080B8

The story details the difficulties that the company, Brightline, has had with opening their new railway from Miami to West Palm Beach.

There are a few problems, including the issue of noise, delays to fire-and-rescue teams, and 7 fatalities due to Brightline trains in the last two years,.

The people with the problem are the citizens, especially near the construction areas. Brightline is a private company, so the people who suddenly have a train running near their house can't do much to complain, since it's not a government project. They also have to worry about the danger of the railways, both direct (7 deaths) and indirect (response times for EMS).

2.
"Miami moves to regulate gambling, likely derailing Magic City's Edgewater poker room"

https://infoweb-newsbank-com.lp.hscl.ufl.edu/apps/news/document-view?p=WORLDNEWS&t=pubname%3AMIHB%21Miami%2BHerald%252C%2BThe%2B%2528FL%2529/year%3A2018%212018/mody%3A0914%21September%2B14&f=advanced&action=browse&format=text&docref=news/16E702D49F588940

The gist of the story is that certain people on the commission board have moved to change zoning regulations specifically to screw one guy, Isadore Havenick.

The problem in the story is that Havenick is trying to open a gambling room, but the commissioners can't find a legal problem with his establishment, so they're changing the law to stop him.

There are two main parties that have a problem. Havenick and his associates want to open this business, and have even promised to not pursue slot machines or casino style games like roulette, as to not enable gambling problems in the community. On the other hand, the commissioners don't want this to happen, because their constituents have expressed concerns about a business that they percieve as shady.

3.
"Home Depot just recalled 210,000 of these hurricane helpers for possible shock hazard"

https://infoweb-newsbank-com.lp.hscl.ufl.edu/apps/news/document-view?p=WORLDNEWS&t=pubname%3AMIHB%21Miami%2BHerald%252C%2BThe%2B%2528FL%2529/year%3A2018%212018/mody%3A0912%21September%2B12&f=advanced&action=browse&format=text&docref=news/16E64565D4872468

The article doesn't say much that the title doesn't. 210,00 wet-vacs can cause a dangerous electrical shock when they get wet. That's not good.

The problem is that if you plug in your vacuum that is designed to remove water, the water that it's designed to remove will cause it to zap you pretty badly.

The person with the most immediate problem is the guy holding the vacuum. But more indirectly, Home Depot now has a pretty huge undertaking in their supply lines to get functional, non-zappy vacuums to their stores in the areas that are going to be hit by the hurricane.

4.

"UF makes huge change in graduation ceremony. Thousands of Gators don't like it."

https://infoweb-newsbank-com.lp.hscl.ufl.edu/apps/news/document-view?p=WORLDNEWS&t=pubname%3AMIHB%21Miami%2BHerald%252C%2BThe%2B%2528FL%2529/year%3A2018%212018/mody%3A0912%21September%2B12&f=advanced&action=browse&format=text&docref=news/16E65A14644B32E0

The major change in the graduation ceremonies are that students will no longer hear their names called. Instead, we can go to a sweaty, warm, two hour session of the administration patting itself on the back and preaching at us and all we have to do is pay them a bunch of money in fees as well as cap-and-gown. 

The problem is that nobody wants to go to a ceremony that isn't personal to the students. Without that, it's not much better than President Fuchs' twitter account. Not only that, many students feel robbed out of that special tradition. 

The people with the problems are the students. At the end of the day, we're the ones hurt by this. This is quite obviously in response to the thinly veiled racism that happened at the May graduation when the marshal kicked the students of color off the stage for celebrating. Instead of apologizing and dealing with the employee internally, they're ruining the experience for the students because they're afraid that they won't be able to control their employees and that could lead to some bad PR.

5.

"Stretch of Turnpike extension near Miami-Dade County line to be expanded to 8 lanes"

https://infoweb-newsbank-com.lp.hscl.ufl.edu/apps/news/document-view?p=WORLDNEWS&t=pubname%3AMIHB%21Miami%2BHerald%252C%2BThe%2B%2528FL%2529/year%3A2018%212018/mody%3A0907%21September%2B07&f=advanced&action=browse&format=text&docref=news/16E4F3E568837D90

The section of highway near the junction of the turnpike and I75 will be expanded from four to eight lanes. 

The problem is the obvious delays and noise from construction, that will conclude in 2022. Officials say that there will be sound barriers built for some "qualifying" neighborhoods, but surely there will be plenty more that don't fit the budget and are upset about it.

The people with the problem are those who will have to deal with the delayed commutes for the next four years and those who will have to deal with hearing dump trucks and excavators running. 

4 - Forming an opportunity belief

I believe that there is a need for weighted, breathable blankets designed for veterans and other people with PTSD because they like the pressure while they sleep. This need has existed for some time, but people are not currently meeting it to its full potential. Currently, service dogs are trained to lay across the legs of people who want this sort of thing, but it seems like that's a very complex solution when it doesn't have to be. As someone who has spent time in a mental hospital, I've known a lot of people that struggle with this specific problem. I'd say I'm 80% sure that this opportunity exists.

The prototypical customer would be people with PTSD or other mental conditions who crave the comfort of weight. Further, people that would be even more likely to buy this product would be people who, for some reason, can't or don't have a service animal. These people could include people with allergies, people living in dense urban areas where a dog isn't practical, or people who just don't like dogs (they exist!).

Note: The following names are NOT the real names of the interviewees. Their names have been changed to protect their identities. This can be a touchy subject.

Justin: "I've had my dog for six years, I got him about a month and a half after I got back from Iraq. He sleeps in the bed with me, and will lay his head on my chest or legs. Just having him there with me helps a lot in getting me calmed down. I guess I never really thought about it, but yeah, the pressure is probably part of it."

Tanner: "I served in the first Gulf War. I have dogs, but they sleep on the floor. I don't really think about it or anything. Yeah, I sleep with a light blanket, like a sheet. My wife sleeps next to me, but she's not sleeping across my legs [laughter]. I don't know if I'd buy a weighted blanket or something."

Aisha: "My dad is a war vet; he was in Korea and the Gulf War. He's had more dogs than I can count, there's been dogs around since I was born. The dogs always sleep in the bed with him. I don't think he'd replace them for anything, but now that you point it out, he always sleeps with big heavy blankets and a ton of fluffy pillows. I guess you could say he has claustrophilia! So yeah, I think he'd buy a blanket like that."

Reflection: I still think that the blanket would sell, but I'd have to focus on the segment of the population that doesn't have a dog.

2 - The bug list

1. The construction on 6th street has been going on for weeks and is so loud that my dog is scared to go outside. 

Why? Probably because major road work takes time because the concrete needs to settle, and also the company is paid to finish the road work, not paid to do it quickly.

2. There’s no good way for my dog to communicate that he needs to go outside. I just have to guess and try to time it. 

Why? The dog doesn't know English and things like signals and conditioning take time to add, especially for a young dog.

3. Every time I look up a recipe, the nutrition facts are never listed. It just says to add a pound of butter or something ridiculous and doesn’t list macros. 

Why? Most people don't care about macros, they just care about the recipe tasting good because it gets them that sweet, sweet 5 star rating.

4. The bus app is almost always inaccurate.

Why? I suspect the app works off of the GPS location of the bus and just calculates the time it should take the bus to arrive. It doesn't take into account things like traffic or a shift change for the bus drivers. 

5. The cost for printing one-sided is $0.08 and the cost of printing two-sided is $0.16, providing students with no incentive to print double sided and save paper. 

Why? Either nobody has pointed it out so the university doesn't realize, or they don't care that much about saving paper/

6. The traffic near campus, especially in the evening, is absolutely ungodly. 

Why? There's 50,000 students and many more Gainesville citizens moving about, and most travel in the same direction to and from work/class.

7. My shoes get wet when it rains, even if I use an umbrella or rain coat. 

Why? There's no way to reliably protect your feet from rain without wrapping your whole body, or at least your shoes, in water-proof material.

8. There’s nowhere to take my dog when it rains if he has to go to the bathroom. 

Why? It's not worth the cost for the apartment complex to think of a solution that both is convenient for dogs and owners as well as avoiding smells. 

9. There’s no dishwasher setting for smaller loads of only a few plates to save water. 

Why? There's probably some point of dishwasher engineering that I don't understand, as this seems like common sense. Or maybe the dishwasher companies are in cahoots with the water companies.

10. It’s 2018 and indoor dog parks still don’t exist.

Why? Building such a large indoor grassy area would require a ton of funding, and anyone who could build something like that would want it to generate revenue in return.

11. The water in most dorms and apartments is unfiltered and gross.

Why? Again, it's a case of it could be better but nobody cares enough about it to let it affect their profit margins. 

12. There is only one “value stand” in the stadium despite there being over 90,000 fans. 

Why? The university doesn't actually want to lower the prices on concessions, this is just a ploy to make it seem like they're putting fans first without significantly affecting revenue.

13. There is no coordinated way to see all my assignments at once as a big overview for all my classes.

Why? There's too many professors in too many classes giving too many assignments in too many ways for there to be a consolidated system for it all. 

14. A lot of people straight up don’t put their weights away at the gym.

Why? People are lazy. End of story. 

15. Most grocery stores don’t allow dogs.

Why? It's kind of unsanitary to have dogs walking around by food. 

16. It takes like an hour for my rice to cook. 

Why? Rice physics or something. There has to be a better way to do this.

17. I like sleeping with the pressure of a heavier blanket, but in the summer it’s way too warm.

Why? Generally heavier materials are more dense, and allow less heat to escape, making it too warm. This could actually be a great thing for people like veterans with PTSD though, a lot of people with such a disorder enjoy the pressure, to the point that service dogs are trained to sleep across their legs to give a feeling of security. 

18. It’s always a pain to call and schedule an appointment with a doctor. 

Why? It's always like this with doctors. If you show up on time, you might end up waiting an hour for the appointment you scheduled months in advance. They know you can't do anything, because it's easy for them to find more patients but it's not so easy for you to just swing by another doctor.

19. I can’t find a parking spot without driving in circles for a long time. 

Why? Too crowded, and it's very expensive to implement an electronic system like the one Disney has. 

20. My blinds, while effective at keeping people from seeing into the window, don’t filter out much light at all. 

Why? Better blinds and curtains are expensive, and the apartment complex would rather just provide the bare minimum and let the tenants handle the rest.

Reflection:

This was a lot tougher than I expected, especially since I complain all the time. However, things that I normally complain about like "the sun is too hot" and "I don't like doing homework" aren't really applicable to this assignment. Furthermore, although a lot of the "Why"'s could be answered with "because it's just like that", that's obviously not the point of the assignment.

3 - My entrepreneurship story

My parents have always encouraged me to be my own boss. I think in a lot of ways they wish that they had been able to start their own business or have their own idea at a young age, so they wanted me brother and I to have a head start with that mindset. We did all the basic stuff, like lemonade stands that turned out a couple dollars that we used to buy toys and the like. The first time I remember trying to start a business was when I started selling "pet rocks". The gist of it was I would go outside, find a nice looking rock, then take a sharpie and draw a face on it, then try to peddle it for 50 cents. That business went under because the board of directors just didn't see things my way. The next time I started a business was a little more refined. I started a newsletter for my neighbors for a dollar a copy, that included birthdays and updates around the neighborhood. That one was actually decent, and I ran a few issues before my little child mind got bored and stopped making them.

My mom owns an embroidery and monogramming business. She is good at what she does, but she is comfortable with where the business is now and doesn't really intend on growing it much more because of all the stress that comes with expanding a business. My dad works for a company, but the go-getter attitude that he's always had allows him to get ahead and get promotion and recognition within the company. He talks a lot about opening a little business, maybe once he retires.

I enrolled in this class because the idea of working to make someone else rich really rubs me the wrong way. If I'm going to be working my tail off anyway, then I'd rather do it in a way that makes me richer instead of my boss. I really can't stand the idea of working at someone else's company for 30 years doing unremarkable work until I either retire or drop dead of heart failure.

Pictured: The logo for my mom's business. If any sorority girls are reading this, she does monograms so go buy a makeup bag or something.

Test Post

If this doesn't work I'll drop the class.