Final Reflection

I honestly could not choose just one assignment that stood out to me, so I am going to give you my top 3 (in no particular order). Starting off with the Elevator Pitch assignments, I really enjoyed the process from writing up my script to recording it. I think I created a persuasive pitch that was informative and eye-catching, something I am proud of. Next is the Venture Concept assignment. This was something that allowed students to put all the information and ideas together on paper. It helped me concrete a path for my business idea, while also gave me a sense of accomplishment knowing that I was able to come up with a solution to a problem. Last, but not least, my second Reading Reflection. The book I read, Mindset: The New Psychology of Success by Carol Dwek, truly opened my eyes to the kind of mindset I had about learning. I was too focused on the end result, and not on actually retaining and learning new information. I also put too much value in talent and not enough on hard work. Since reading the book, I have been putting 10x more effort, ensuring that I strive for excellence in everything I do.

When I first joined this class, I was stuck thinking that one had to be born an entrepreneur. I now know that it is something you can learn and implement into your life. I definitely have moved a lot closer to developing an entrepreneurial mindset, taking advantage of opportunities I see.

My first recommendation would be to read Mindset: The New Psychology of Success. It will set them on the right path towards achieving the mindset needed to succeed not only in this class, but in your life. Then I would say the best thing you can do to perform well in this class is to make an organized schedule of when you will complete assignments. This will keep you accountable, ensuring you get everything done with enough time, so you don’t have to rush.

Reading Reflection No. 3

Book: Thinking, Fast and Slow, Daniel Kahneman

1)    What was the general theme or argument of the book?

The main theme was how the different ways we think may be affecting our decisions both in business and in life. There are two thinking systems, one is intuitive & quick, while the second is slow & logical. It is important to take the time to analyze problems instead of quickly jumping to conclusions and taking the first thinking system. He also goes into detail about the various ways our minds trick us, by association or comparison bias (perspective plays a big role).

2)    How did the book, in your opinion, connect with and enhance what you are learning in ENT 3003?

This book gave me increased insight into the complex mind that humans hold. This class has taught me that you do not need to be born with a special talent or intelligence to be successful. It is all about how much work you put in, how well you prepare yourself, and the habits you have for yourself. Kahneman aligns with this belief by enforcing the importance of not always relying on your intuition but rather taking the time to understand things before making decisions.

3)    If you had to design an exercise for this class, based on the book you read, what would that exercise involve?

I would give exercises similar to the ones mentioned in the book that teach people about the different ways the mind thinks and tricks us. For example, I would ask you “Do you think the tallest building in the world is greater or less than 2500 feet?” then I would ask you a follow up question, “approximate the size of the tallest building in the world?”. This would help students understand the idea of anchoring bias, which involves using previously given information to make your decisions. The answer people have will change significantly if I switch the number from 2500 feet to 135 ft in the first question.

4) What was your biggest surprise or 'aha' moment when reading the book? In other words, what did you learn that differed most from your expectations?

The biggest surprise was how much these tactics are used by businesses to sell products. I had not put so much thought into how strategic certain promotional strategies were. I will now be more careful in making sure I do not get tricked into making the wrong decisions. I’ve never been a big spender so in a way those advertisements never really worked on me, but I will keep my eye open so I can help those around me not fall into the trap.

Venture Concept No. 2

Opportunity

I originally encountered this opportunity when looking through local news articles and finding out that people have trouble deciding whether to replace or repair their broken appliances. I realized that whenever I would find myself with a broken item, too much time was spent looking for someone who could help, then having them come to take a look at it, and then waiting a couple more days for them to get the materials to fix it. It also reminded me that with the current pandemic going around, people would benefit from a virtual type of repair that would eliminate some of the frustrating steps. I began to do research by interviewing people until I found the best group to target to. I found that my stereotypical customer would fit this demographical description: homeowners in their 30s who find themselves lost when deciding between repairing or replacing a broken appliance. I could even extend it and say a homeowner who wants a quick and reliable solution to deal with a broken appliance. Customers are currently satisfying this need by either asking a friend, googling for tutorial videos/how-to sites, or calling a handyman nearby. I believe that there isn’t too much loyalty associated with these solutions. This is a 5-billion-dollar industry (IBIS World), with approximately 40% of appliances breaking within their first 5 years of life. I would say it is a huge opportunity. The opportunity window is a lot bigger now due to COVID-19, but it will remain an opportunity regardless of what occurs on that front. After conducting further interviews of people outside my target market, I realized that people in the older demographic could see value in simplified version of the app. I will explain this with more detail in the section below.

Innovation

The solution I have come up with is an app that aids in the process of repairing/replacing broken home appliances. This would include virtual visits as well as in-app technology that will allow users to send a picture to specialists and receive a prompt response on what needs to be done. If the repair can be done easily, then users will be given access to a tutorial video on how to fix their broken appliance. If the verdict is that it needs to be replaced, the best deals will be presented, and you will be able to order directly from the app. If it can be repaired, but needs special tools, users will be able to schedule visits by hand-selected professionals. With COVID-19, a special tool renting service will be provided where if the person does not want anyone in their house, the app will ship them what they need so they can do the repair themselves. Additionally, all repairs and replacements will be matched with current market prices so that customers know they are getting the best deals possible. The app will be free to download with a small 2% fee being charged for every transaction that takes place (repair or replacement). The payment structure will be similar to apps like Uber or Lyft, meaning handymen will be paid and contracted all through the app. This means that we will be a middleman that connect buyers and sellers together all in one marketplace. I also developed a second version of the app that could appeal to the older generation of homeowners who might want to reap the benefits of such a tool. The way it would work would be to display only three buttons: call, rent, upload. This will make it very easy for less tech inclined individuals to get the solution they are looking for. All they will have to do is press the call button to speak to a representative who will guide them and direct them on what to do (based on their needs). They will be there every step of the way, from teaching them how to upload a video of the broken appliance, to connecting them with a handyman who can help. I would like to mention that I will most likely not pursue this version of the app unless I see huge demand for it. I believe that the promotion costs of targeting this type of customer will not be worth it. I would much rather focus on my previously mentioned market, and launch these alternative versions as the business expands, later down the line.

Venture Concept

This app will put an end to the time-consuming process that is involved when dealing with a broken appliance. Customers will no longer have to contemplate between repairing or replacing an item, nor trying to figure out the quickest and most reliable way to fix the issue. Additionally, we will tailor to clients who do not want anyone in their homes due to COVID-19 or other reasons, by giving them access to a tool renting service as well as videos that guide them on how to fix the issue without the need of a physical repairman there. Moreover, this app will give customers quick responses that will take away the extra step of the handyman coming in to check out the problem just to have to leave again and come another time. This app will save its users a lot of time and money (its free to download), so I don’t think it will be hard to get people to switch from the other alternatives. That being said, I identified a few similar apps that offer a database of handymen available to help with a variety of home repairs. I noticed that it was positioned in a way that tailored more to construction rather than specifically appliances. I believe that all the features I provide, as well as the type of person I market to, will make it stand out from competitors and bring new customers to the mix. The app itself will have very strict guidelines and requirements for repairmen, ensuring that we get the best and most experienced people. Customer service will also be exceptional, with people on call 24/7, always ready to help. At the beginning we will need at least one employee in each of these categories: App Development, Marketing and Sales, Customer-Service, Finance, and Human Resources. As the business grows, more hiring will be done to handle the demands. The handymen will not be employees but independent contractors. If I were to add the simple version, I would need to employ multiple phone representatives that can be on call to respond to inquiries.

Secret Sauce

I believe that my most important resource is my experience starting a business before. This is something that will save me a lot of time and money because I am more knowledgeable of how business really works. It will prevent a lot of trial and error that usually breaks businesses and people.

What’s Next?

I will continue to develop and improve upon the original idea, tweaking as I see fit. Budgeting will play a huge role in what happens next. First step will defintely be to select an app developer that can turn this to life. This idea will be more of a side hustle as I continue to study for my degree. I have a huge passion for Finance, so I will most likely pursue that as my main job. That being said, I could see myself growing this into a million-dollar business that I will later sell to an interested buyer.

What I Changed

After conducting the last few interviews of the class, I came up with a new implementation that I could add to the business. While I do not think it is plausible in the beginning, I definitely think it could be a lucrative bonus to have in the future. I did not receive any feedback on my first Venture Concept, but I decided to implement the new added insights from interviews/other assignments into this new version.

Citations

Consumer Reports. “How Long Will Your Appliances Last?” Consumer Reports, www.consumerreports.org/appliances/how-long-will-your-appliances-last/.

“Industry Market Research, Reports, and Statistics.” IBISWorld, www.ibisworld.com/united-states/market-research-reports/appliance-repair-industry/.

Jameson, Marni. “MARNI JAMESON: Experts Answer Age-Old Question: Repair or Replace Broken Home Appliances?” The Palm Beach Post, The Palm Beach Post, 22 May 2020, www.palmbeachpost.com/news/20200522/marni-jameson-experts-answer-age-old-question-repair-or-replace-broken-home-appliances.

Your Exit Strategy

1.     As I have said in previous posts, I have a huge passion for Finance. That is the career I wish to pursue. That being said, I plan to build up this business as I study in college, and have it be a side/passive job while I work. Eventually, once the business has seen significant growth (3-5 years), I will sell it.

2.     I selected this particular exit strategy because while I believe I identified a great opportunity with a lot of potential, I want to pursue my dream of being a wealth manager or the CFO of a large corporation (still haven’t decided).

3.     My exit strategy only reiterates the fact that I need to put a lot of effort now to get it ready to be sold in three years. I would like it to equate to a large sum of money that I can use to invest into real estate early on in my life.  As far as how my exit strategy influences my resources, I will continue as previously planned.

Celebrating Failure

     As a long-term investor, I tend to stay away from consistently day trading. I find that it usually ends in a loss because at the end of the day, you are a calculated gambler. This semester while in quarantine, I found myself day trading way too much. Getting into riskier positions and putting more at stake. I spent 2 months doing this and was able to come out with a sizable profit. All of a sudden, all my good luck (skilled strategies) had took a turn for the worse. I had a super red week that nearly wiped 2 months of gains. I stayed in positions too long (hours instead of minutes) and didn’t cut losses. This brought me back to the reality that my original thoughts on day trading had been correct, and that long-term investing was the best way to consistently make money in the stock market. It also taught me the importance of sticking with the strategies that work, and not letting emotions get the better of you. I took this loss/failure as a redirector that put me back on the right track. While some may see this as me quitting at the sign of loss, I see it as a teaching moment that I should stay true to what I know. This class has reiterated my belief that without failure, nothing is possible. It is what keeps us learning and growing, not only in business but in life. I have always been a person that takes calculated risks, so I believe this class has only confirmed the idea that failure is ok as long as you learn from it.

What's Next?

Existing Market

My current market is homeowners in their 30s who find themselves lost when dealing with a broken appliance (they don’t know whether to fix or replace an item).

After conducting three interviews with people in my target market, I have realized that my next steps would be to develop a clean and user-friendly way of organizing all of the features that the app offers. When first listening to the idea, interviewees are quite satisfied with everything the app has to offer but are just concerned with the complexity of it all. They want to ensure that it is clear and easy to use, doesn’t take long to get the hang of, and really saves people time.

In terms of growing in my existing market, it will be critical that I am able to create an easy-to-understand way of displaying all of the benefits, so that it is appealing to the potential customers. They need to know that they are truly saving time and money by using this alternative. Not only will creating the app in this manner be key, but also promoting it in a way that forms customer loyalty.

New Market

Given my current market is targeted to more tech savvy individuals (millennials), a radically different market to reach out to will be the older generation that may not be so tech inclined. They may see great value in the app but could feel intimidated with the way it is presented. Additionally, given the pandemic, older individuals are more at risk, so this virtual side of the app could be of great interest. I also think that as the app becomes more popular in the US, a new market to reach could be other second or third world countries. This, of course, would be very much in the future (5 years ahead).

After conducting interviews with senior individuals, I found that their initial reaction was to reject the idea. They tend to run away from things that sounds too technical or complicated from a software/technology standpoint. They wanted to understand how the system would distinguish between a repair or replacement, and also struggled with the idea of having to take a picture (how do I know I took the picture correctly, one person asked).

Once further explaining the concept, interviewees were in agreement that the app would solve a huge problem, especially with everything going on in the world. One senior from Miami said that she would need my help learning how to use it, but that she liked the idea. Another senior said that we should offer a phone number to call that could quickly connect them to a handyman so they could explain the problem directly to them. He said he was more comfortable talking on the phone than doing it through the app.

Reflection

I think that with the responses I got, it is clear that this new alternative market could have some potential. It would have to be positioned in a different way, so that it attracts the new type of customer. Maybe creating two versions of the app, one that is really simple and only has three buttons, and the real more complex version. The simplified version would have the following buttons: Call, Rent, Upload Picture/video. This way it will be very easy to use. All they have to do is click the call button, explain the problem, and upload a picture/video of their broken appliance and a representative will send someone over. If they opt for the ‘do it yourself’, then they click the rent button to get the tools/parts they need, as well as a person who will guide them in the process virtually.

That being said, I believe that promoting to this new market will be quite costly and I would much rather focus on my original stereotypical customer. While I was not surprised with the responses I got, it did provide some insight on how I could potentially sell to that new market (I came up with the simple app method).

Venture Concept No. 1

Opportunity

I originally encountered this opportunity when looking through local news articles and finding out that people have trouble deciding whether to replace or repair their broken appliances. I realized that whenever I would find myself with a broken item, too much time was spent looking for someone who could help, then having them come to take a look at it, and then waiting a couple more days for them to get the materials to fix it. It also reminded me that with the current pandemic going around, people would benefit from a virtual type of repair that would eliminate some of the frustrating steps. I began to do research by interviewing people until I found the best group to target to. I found that my stereotypical customer would fit this demographical description: homeowners in their 30s who find themselves lost when deciding between repairing or replacing a broken appliance. I could even extend it and say a homeowner who wants a quick and reliable solution to deal with a broken appliance. Customers are currently satisfying this need by either asking a friend, googling for tutorial videos/how-to sites, or calling a handyman nearby. I believe that there isn’t too much loyalty associated with these solutions. This is a 5-billion-dollar industry (IBIS World), with approximately 40% of appliances breaking within their first 5 years of life. I would say it is a huge opportunity. The opportunity window is a lot bigger now due to COVID-19, but it will remain an opportunity regardless of what occurs on that front.

Innovation

The solution I have come up with is an app that aids in the process of repairing/replacing broken home appliances. This would include virtual visits as well as in-app technology that will allow users to send a picture to specialists and receive a prompt response on what needs to be done. If the repair can be done easily, then users will be given access to a tutorial video on how to fix their broken appliance. If the verdict is that it needs to be replaced, the best deals will be presented, and you will be able to order directly from the app. If it can be repaired, but needs special tools, users will be able to schedule visits by hand-selected professionals. With COVID-19, a special tool renting service will be provided where if the person does not want anyone in their house, the app will ship them what they need so they can do the repair themselves. Additionally, all repairs and replacements will be matched with current market prices so that customers know they are getting the best deals possible. The app will be free to download with a small 2% fee being charged for every transaction that takes place (repair or replacement). The payment structure will be similar to apps like Uber or Lyft, meaning handymen will be paid and contracted all through the app. This means that we will be a middle man that connect buyers and sellers together all in one market place.

Venture Concept

This app will put an end to the time-consuming process that is involved when dealing with a broken appliance. Customers will no longer have to contemplate between repairing or replacing an item, nor trying to figure out the quickest and most reliable way to fix the issue. Additionally, we will tailor to clients who do not want anyone in their homes due to COVID-19 or other reasons, by giving them access to a tool renting service as well as videos that guide them on how to fix the issue without the need of a physical repairman there. Moreover, this app will give customers quick responses that will take away the extra step of the handyman coming in to check out the problem just to have to leave again and come another time. This app will save its users a lot of time and money (its free to download), so I don’t think it will be hard to get people to switch from the other alternatives. That being said, I identified a few similar apps that offer a database of handymen available to help with a variety of home repairs. I noticed that it was positioned in a way that tailored more to construction rather than specifically appliances. I believe that all the features I provide, as well as the type of person I market to, will make it stand out from competitors and bring new customers to the mix. The app itself will have very strict guidelines and requirements for repairmen, ensuring that we get the best and most experienced people. Customer service will also be exceptional, with people on call 24/7, always ready to help. At the beginning we will need at least one employee in each of these categories: App Development, Marketing and Sales, Customer-Service, Finance, and Human Resources. As the business grows, more hiring will be done to handle the demands. The handymen will not be employees but independent contractors.

Secret Sauce

I believe that my most important resource is my experience starting a business before. This is something that will save me a lot of time and money because I am more knowledgeable of how business really works. It will prevent a lot of trial and error that usually breaks businesses and people.

What’s Next?

I will continue to develop and improve upon the original idea, tweaking as I see fit. Budgeting will play a huge role in what happens next. This idea will be more of a side hustle as I continue to study for my degree. I have a huge passion for Finance, so I will most likely pursue that as my main job. That being said, I could see myself growing this into a million-dollar business that I will later sell to an interested buyer.

Citations

Consumer Reports. “How Long Will Your Appliances Last?” Consumer Reports, www.consumerreports.org/appliances/how-long-will-your-appliances-last/.

“Industry Market Research, Reports, and Statistics.” IBISWorld, www.ibisworld.com/united-states/market-research-reports/appliance-repair-industry/.

Jameson, Marni. “MARNI JAMESON: Experts Answer Age-Old Question: Repair or Replace Broken Home Appliances?” The Palm Beach Post, The Palm Beach Post, 22 May 2020, www.palmbeachpost.com/news/20200522/marni-jameson-experts-answer-age-old-question-repair-or-replace-broken-home-appliances.