Venture Concept No. 1

Opportunity:

Through the course of the semester, I have looked at and read about many different business ventures. By seeing what other people thought about, and how they developed their ideas about their businesses, I began to realize an unmet need that I believed could be fulfilled with a great business idea. As a college student, I know that getting around campus is not always the easiest thing. I have used the bus system, and I know that at many times it can be unreliable, and that the phone application does not always work properly. Through this, and some testimonials from other students that I interviewed, I came up with the idea of a scooter rental service. This idea seemed feasible enough, and there are even zipcars on campus to show that a rental service is possible and can generate profits. The potential customers for this service are mostly students from the university. Students are the customers that would use this service the most, but it is open to teachers, staff, and anyone else on campus that is of age and has a valid license. I see this as an unmet need because, I know first-hand how frustrating it can be to not have a reliable source of transportation around campus. Being late to class, meetings, intramural sports matches, etc. can be avoided by this venture. This opportunity was created as the university has grown and people have had to move farther away from campus in order to find a place to live. Also, people are only moving a couple of miles away, which is the perfect distance for a scooter. People can walk and waste a lot of time, or depend on the unreliable bus system. My business venture will eliminate both of these problems.

This market is defined demographically by college students between the ages of 18 to 23 years old. It is defined geographically by universities that are located in areas were most things are very close by. For example, in the University of Florida and the surrounding areas you can get anywhere by driving for about 5 minutes. Customers are currently satisfying this need by walking, biking, or figuring out the bus system. Customers are not very loyal to any of these three products or services, and they usually switch around all three of them. This opportunity can be large in the market in which it would be positioned. The opportunity window will be open for a couple of years, until either another better option is presented or companies begin to enter into the market by using this same opportunity.

Innovation:

            This service is moderately innovative. It would work in much of the same way that zipcars work today. The scooters would be parked at designated scooter parking spots. These would be specially highlighted spots, so that the customer would know that these are rental scooters. There would be a number pad programed on each scooter that would be used to turn the scooters on and off. The customer will be given this number to operate the scooter on our website after they have purchased the service. After a customer is done using the scooter, the number pad would automatically generate a different code for the next person. Each customer would have to create an account online on our website to be able to purchase this service. Also, when creating an online account, we would verify the customer’s eligibility to drive by having them provide their license plate number along with a scanned copy of their license. Then the customer must sign a liability waiver online, to ensure that they operate the scooter safely, and to ensure us that they know how to operate the scooter. Afterwards, the customer would have to provide a credit card to be able to pay for the service. For this service there would be a monthly fee of $30, and gasoline would not be included in the scooter. Also, there would be a fee if a scooter were returned without any gasoline. Since filling up the tank of a scooter is about $2, we believe that this is a cost that the customer can easily take care of. Each scooter would come with a decal to be able to park it anywhere around campus.

            On the website customers will be able to select how long they want to rent the scooter for: Hours, Days, Weeks, or Months.

If a customer rents a scooter for a day and decides that they would like to keep it longer, they can extend their rental by going online. If a customer keeps the scooter longer than they had requested then there will be a penalty fee of $5 for a day, $10 for two days, $15 for three days, and so on.

Venture Concept:

This venture will save people time. It will give students a reliable form of transportation. No longer will students be late to class, a meeting, work, etc. because of unreliable transportation. Customers would switch to this product not only because it is a reliable source of transportation, but also because it gives them the freedom to go wherever they want whenever they want. I believe it will be relatively easy to get people to switch over since it is an inexpensive product and it provides them with a great service.

Currently, the competitors are the bus system and shops that sell scooters or bicycles. The bus system’s weakness is that it is extremely unreliable, and even the phone application does not always work properly. The shops that sell scooters have them at a price of around $800 or more, and this can be way too expensive for college students. The weakness of bicycles is that they will not get you places in a timely manner, you may have to leave a lot earlier to get somewhere on time, and if you are going to an important meeting you may be sweaty by the time you get there.

My price point is very inexpensive. This will help to get customers to buy into my service, and at least try it. My business would not need many employees. I believe that with about 5 employees it would be able to succeed, at least at the beginning. These employees would be in charge of periodically checking the scooters and reporting any and all problems. Also, they would have to keep up with the website and any emails they receive from the customers.

Minor Elements:

            My most important resource will be my ability to connect with my customers. Since I am a college student and I can completely understand their situation, I can make a lasting connection with my customers.

            The next set for my venture would be to sell discount scooters. These scooters would be the rental scooters that I currently have. After a couple of years of the scooters being used, I would sell them at a discounted price to compete against scooter stores.

            In five years I expect to be providing this service to most campuses in the state of Florida, and at least to three campuses in each state nearby.

Amazon Whisperer

• My revenue drivers are the income generated from renting scooters. This service is very similar to zipcar. Also, the monthly or yearly subscriptions some people might have. 

• I believe my next product offering should be selling actual scooters, instead of renting them. I could use scooters that have been well kept and rented for a couple of years, and sell them at a much cheaper price than brand new scooters. 

• This can enhance my existing product/service by generating more customer loyalty. If customers rent the same scooter for a long period of time, then will be more inclined to buy it. It would be like if they were able to test drive it for a year at a small fee, and then purchase it for a lowered price than if they bought a brand new scooter. Since, customers would already trust the product (since they will have used the scooter when they rent it) they would be more inclined and comfortable in buying it. 

• The product I am offering would be a 50cc gas scooter. This is the same product that I am currently offering customers to rent. I would now be offering to sell this product instead of just renting it out to customers. 

• Customer reviews are mostly positive. Customers like that everything you need is in the box, you just need to assembly some parts. There is also a simple video that takes you through the steps to set up the product. People also like the price, and think it is cheap for what you are getting. Some of the negative comments include that the scooter stopped working shortly after being bought, the brakes were faulty, and some of the parts were missing in the package. 

• I would make sure the product is correctly built, by testing it out beforehand. Also, I would make sure that there are no parts missing, and that everything works perfectly. I would also add a warranty since these scooters would have been previously used by people that rented them. The warranty would include a money-back guarantee, and a year warranty in case there was a problem that was found on the scooter itself. 

• I believe this product would be a good addition to my current service since it would be a good way to generate more profits and create a higher sense of customer loyalty. If customers are on the fence about purchasing a scooter, they can rent them through my original service idea, and then buy the same scooter they rented if they feel comfortable with it. Also, I believe this is a good idea to save money since after a couple of years I can sell the rented scooters (before they get too old and lose all their value) and purchase new ones. I believe that customers that already rented my scooters would be more inclined to buy scooters from me than from another dealer, since they would already know and trust my company. I think I would be able to easily transfer into the scooter selling market. 

Week 11 Reading Reflection

1. I was surprised to find out that many companies do not enhance and work on bettering their innovations. I thought this was an important thing to help companies grow and stay competitive in their market place.

2. I was confused about when to innovate and create a new product, and when to keep selling the same product. I feel like this section could of been explained better.

3. Is innovation better than increasing and bettering technology? How do large companies stay competitive without working on innovation?

4. I do not disagree with anything the author said, but I am a bit confused about how companies do not seem to utilize innovation as much as I thought they did.

My Unfair Advantage

1. Bilingual. I can speak English and Spanish fluently, and I am proficient in Portuguese. Being bilingual is an invaluable asset.
 Valuable: yes
 Rare: yes
 Inimitable: no
 Non-substitutable: yes

2. Social Personality. I can easily relate to people, and get along with them. I can be very persuasive by noticing people's likes and wants.
 Valuable: yes
 Rare: no
 Inimitable: no
 Non-substitutable: yes

3. Persistent. I am very persistent, and I do not give up easily because of any obstacles I may face. Most of the people I know have not been as persistent as I usually am.
 Valuable: yes
 Rare: yes
 Inimitable: no
 Non-substitutable: yes

4. Network of friends. I have a great network of close friends that could help me work and improve on my venture. These friends could help bring in capital, skills that others may not have, and different ideas to make the venture the best it can be.
 Valuable: yes
 Rare: yes
 Inimitable: yes
 Non-substitutable: yes

5. Organizational Skills/Time Management. I manage my time very well, and I know how to get things done as efficiently as possible. For example, I may have two different assignments in different classes but they might use the same resources, so I would do both assignments at the same time to save time later on.
 Valuable: yes
 Rare: yes
 Inimitable: yes
 Non-substitutable: yes

6. Punctual. I do not see this as an extremely great advantage just because I feel like most people are punctual. It is still a very important trait to have.
 Valuable: yes
 Rare: no
 Inimitable: no
 Non-substitutable: no

7. Education/Major. I am majoring in food and resource economics. This is a major that is very different from the norm. This gives me an advantage in coming up with creative ideas, that people in more traditional majors might not have been exposed to.
 Valuable: yes
 Rare: yes
 Inimitable: no
 Non-substitutable: yes

8. Social Media. Through all of the different social media sites I have, along with the networking I have performed in each site, I can connect myself with people from all over the world. This resource can help me the needs and wants of people everywhere. Also, if I wanted to grow and expand my venture, my social media would be a great resource to utilize.
 Valuable: yes
 Rare: yes
 Inimitable: yes
 Non-substitutable: yes

9. Research. I enjoy researching every big idea that I have. When I have an idea about doing something, I take the time to see what is already known about it. I will usually spend days making sure I can learn as much as possible about what I want to do before setting out and doing it. This helps me to do the best job possible, and to decrease the amount of mistakes that could occur.
 Valuable: yes
 Rare: no
 Inimitable: no
 Non-substitutable: yes

10. Capital. I do not have a large amount of capital, but my credit score is very good. I can use this to help me raise money, and to persuade others to invest in my venture. If they see that I have a good credit score, they know that I take calculated risks, and that they will see a return on their investment.
 Valuable: yes
 Rare: no
 Inimitable: no
 Non-substitutable: yes

After performing the VRIN analysis, I believe that my top resource is my network of friends. These are a group of very intelligent people that can not only help me raise capital, but also provide me with new ideas for my venture. Also, these people do have many invaluable skills that I could utilize with my venture.

Week 10 Reading Reflection

1. Nothing stood out to me in this chapter. This chapter was like a review from the accounting and finance classes I have taken. I remember most of the things in the chapter from those classes.

2. Everything was pretty familiar. I was not confused about anything, since this was basically a review from previous classes I have taken.

3. How important is accounting to an entrepreneur? I feel like entrepreneurs should know basic accounting, but overall I think they would hire someone to deal with this side of the company.

What is the best way to be able to balance the budget?

4. All of the information in this chapter was the same as what I learned in my accounting and finance classes, so I do not disagree with what the author wrote.

Elevator Pitch No. 3

1. The Pitch 

2. What stood out to me as important is that people do believe that this would be a useful service. Also, some people did have concerns about the pricing, and how to know that you are giving the scooter to the Smart Scoot staff. I was surprised that there weren't more concerns, but since this is the third time we add to the original pitch I do believe that I have been able to fix some of the concerns.

3. In my new pitch, I added more information on how to find the Smart Scoot staff. They will be wearing a uniform with the company logo on it. Also, I tried to emphasize that the price of around $10 a month for a subscription is relatively cheap when compared to the price of 1 parking ticket. I also, emphasized that this service will save students money since they will be paying less than the price of 1 parking ticket. They will be able to use this service for 3 months before the price is about the same as the price of 1 parking ticket.

Week 9 Reading Reflection

1. My biggest surprise was how important the social media sector is. I did not think that social media was such a great tool.

2. Something that was confusing to me was the marketing philosophy. I was confused that the short-term focus ignores the preferences for the customers. I would of thought that customer preference would be a top priority, and not something to be ignored.

3. Two questions to ask the author:
    1. What do you think it the biggest challenge when it comes to the market for entrepreneurs creating a new firm or product?
    2. Which pricing model do you think is the best one to use and why?

4. I disagree with what the author said about primary and secondary data. I believe that primary data should be gathered first, not secondary data.

My Secret Sauce

1. My human capital:1. I am a very social and outgoing person. This helps me in communication with people, and I am open to taking advice from other people.
     2. I am a thinker. I like to analyze problems, and figure out more than one way to solve the problem.
     3. I am very determined. I will not stop until I accomplish what I am working on.
     4. I am hardworking. I do not like to have free time, and I work diligently on everything I do. I strive to do the best I can with the work I am given.
     5. I am a loyal and trustworthy person.

Interviews:

Luis is a good listener. He is an honest person, and gives good advice.  

 

Luis has a lot of perseverance. When he sets his mind to doing something he always accomplishes it. 

Luis is a very friendly person. He can always help to make your day better. 

Luis is very persistent. He does not take no for an answer. 

Luis is very passionate. He is very persistent in what he does, and he always accomplishes what he sets his mind to. 

3. Reflecting back on these interviews, I believe that my list reflects how people see me. I feel that what I wrote about is very similar to what most of the people said in my interviews. The only thing that stood at to me a bit was the part about being a good listener. I do believe that I have this trait, but I never really thought about how important of a trait it could be. 

Idea Napkin No. 2

1. I am Luis Soto. I am a senior at the University of Florida majoring in food and resource economics. I have previous experiences with sales, marketing, and management positions. I have had various jobs in which I have collected data based on people's wants and needs. Also, I understand how to handle finances, and I know that one of the most important aspects of starting a company is the financial aspect. My aspirations are to create a scooter rental service for students, faculty, staff, and any other member of the Gainesville community. This service will be mostly geared toward students, since students already have many expenses. Many students need a cheap and reliable source of transportation, and I believe that my service will provide just that.

2. I am offering students the peace of mind that they will be able to go places without the worry of not having reliable transportation. Students will not miss class, meetings, or interviews because of a lack of transportation. Also, I am offering the freedom to be able to travel around the Gainesville area without the worry of knowing the bus system or fear of missing the bus and being stuck somewhere. Also, I am offering this service in a very inexpensive way, since most students already have many other costs to worry about.

3. I am offering this service to all of the Gainesville community, but my largest demographic is the University of Florida students. My customers would most likely be students without a form of transportation aside from public transportation. These customers are people that have very busy days, and need a reliable form of transportation to be able to attend their classes, meetings, interviews, etc. in a timely manner.

4. The customers care because, they want to be able to make all of their events on time. These people want a reliable source of transportation so that they are able to attend classes and meetings without being late. Also, there is the want for freedom, and this service will provide them with the freedom of being able to go wherever they want whenever they want. I am also taking away the cost of having to purchase a scooter, which many students cannot afford, and providing them with an inexpensive form of transportation.

5. I am providing customers with a new idea. I have not seen this idea implemented elsewhere, and as of now I do not see any competitors in this market. I also understand my customers' needs and wants since I am also a college student with a similar situation. This service is also very inexpensive compared to the actual price of a scooter. Scooters usually cost around $700 - $1200 or more, and my service will cost about $10 to $20 a day or $100 month.

The different elements in this idea, do build on each other. This service is not meant to make money, but rather offer college students a reliable and cheap form of transportation. I believe that college students deserve an inexpensive and reliable form of transportation since they already have to pay for tuition, books, rent, and other expenses. This is an opportunity to help college students.

Five main points that I took away from my feedback were that I could use bicycles with small 80cc engines and reduce the cost further, I need to figure out how to fund this idea better, having a drop off and pick up service, how can I protect my investment (scooters), and I may need to charge higher prices. I think the bicycles could be an interesting idea as long as they were street legal and still safe. In order to fund this idea I would need a large loan to by some scooters, or I would need to try to get this idea started with a company that is already well-known in the Gainesville area for selling scooters. I still need to figure out if a drop off and pick up area concept is something that I would be able to do. I believe that I could have different areas on campus, like zipcars, where you would go to pick up your scooter. I could align these areas next to the bus stops so that it would be easy for people to get to these areas. I could again, use a scooter company in Gainesville in order to figure out where to store scooters if they are not in use. Overall, these are things that I have not completely figured out, but I do need to come up with a solution before going forward with this idea.