9A - Testing the Hypothesis, Part 2

Who?

There are a lot of people located on the southeastern coast of the United States, which presents great opportunity for a business specializing in Hurricane preparation. However, not all people in that region would be happy to buy such a package. There is a subgroup of customers that prefer evacuating over preparing and enduring the storm. Those people would be uninterested in purchasing a Hurricane Survival Kit.

What?

The point where my product’s need differs from others depends on the location of the customer. Anybody residing in Southeast U.S. during a hurricane will have the need to be prepared. It is a general and widespread need. Once a potential customer decides to relocate for the storm, the need for my product completely vanishes.

Why?

The underlying cause of the outsider’s need is different than those inside the boundary. The needs are mutually exclusive, making it near impossible to try to market for them.

Inside the boundary

1. Who is in - anyone who is residing on the southeast coast during a hurricane 
2. What the need is - a need to be properly prepared for whatever the storm brings
3. Why the need exists - because people would rather be safe and live than risk death

Outside the boundary

1. Who is not - those not living in coastal areas or those who do but evacuate during storms
2. What the need is not - preference to avoid the storm entirely rather than take it on
3. Alternative explanations - people can judge the harshness of the storm or the structural integrity of their shelter and make a decision accordingly

10A – Elevator Pitch No. 1

Here is the link to my elevator pitch

https://youtu.be/5Tevj-a9-2g

8A – Solving The Problem

Every year for a majority of the year, people living in Florida and the rest of the southeastern US are thrusted into a frenzy when the rumors surface of hurricanes brewing in the Atlantic. Every year, people run around to Publix, Walmart, shutter agencies, thrift stores, etc. My solution to this issue is simple. Offering one low price for a Hurricane Starter Kit. For a low price, customers can purchase a box fully equipped with lighters, canned food, flashlights, important tools, and more. The kit will also include discounts and contact information for shutter agencies and insurance agencies. Putting a bunch of what everyone needs into one convenient box would be a great way to solve this annual problem.

7A – Testing the Hypothesis, Part 1

The opportunity I would like to choose to exploit is the opportunity to sell Hurricane preventative supplies during a time where climate change is causing natural disasters to be devastating.

What are the key components of my hypothesis?:

• The WHO: people living on the southeast coast of the United States
• Exploring the who?: This problem mainly deals with those living on the southeast coast of the US. However it also includes those bordering the Gulf of Mexico and those along the northeast coast of the United States. In a more broad sense, people all throughout the country are at risk for natural disasters, whether it's a Hurricane, tornado, earthquake, etc.
• The WHAT: are unprepared and scared every time a Hurricane is reported to hit us
• Exploring the what?: I would like to know more information about how other companies prepare during Hurricane season. Do they offer Hurricane relief packages? Are there discounts on items given the elasticity of the product? Do people seek grocery items or shutter/preventative items in a time of Hurricane distress?
• The WHY: because recent trends confirm that Hurricanes are very dangerous and a lot of companies only offer very specific solutions to the Hurricane.
• Exploring the why?: This why is supported by the news and media. The news and media serve a big role in pushing people to get up and act during a time of Hurricane threats. The hysteria and fear the media strikes into people is what allows the Hurricane to stimulate the economy.

During my interviews, I asked my interviewees questions that attempted to broaden or key-in on aspects of my who, what and why. Most of the answers I received were along the lines of what I said. However, through interviewing, I realized one problem that a lot of people seem to have. A lot of people forget everything they need, or end up needing to go to multiple stores just to gather what they need. Such an inconvenience can cause people to be in conditions that they are not prepared for. This problem is definitely something to key in on if I want to take advantage of this opportunity.

6A – Identifying Opportunities in Economic & Regulatory Trends

Opportunity 1

One economic trend in the US is that Climate Change is causing more natural disasters. I know this opportunity exists because everywhere I look (the news, social media, advertisements),  see people advocating for change. I believe this opportunity exists because I see local businesses in my are taking advantage of this trend. A lot of roofing and shutter companies are marketing heavy right now, since Hurricane season has only just taken off. The prototypical customer is anybody who lives on the east coast, specifically the southeast coast, of the United States. This is the area that always gets threatened during Hurricane season. In my opinion, this opportunity is relatively easy to exploit. All you need to do is find the needs of those prototypical customers on the west coast, and cater your business towards them.

I see this opportunity because I have lived in Florida for a very long time. Every time I see the news of a potential hurricane, I always see people frantically run around and buy water and gas and protective gear. This element of climate change seems to temporarily stimulate the economy every time people are threatened.

Opportunity 2

Another economic trend that is occurring is that the Federal Reserve has leveled the interest rates, and is holding off on raising it until 2021. I know this opportunity exists because I read a headline and an article that explains the Federal Reserve's efforts to level off the interest rates. Also, I understand how important interest rates are for the nature of business. As businesses become established, and do not need to worry about making a profit, they can shift their focus to future planning and investment. With the interest rates leveled, the cost of borrowing for the next two years will remain a low constant. The most prototypical customer will be any entrepreneur that is trying to start up a business. Any start up costs and costs of borrowing will be lower than what it would be two years from now. However, given the nature of how long it takes to start a business, I would say that this opportunity is difficult to exploit.

I see this opportunity because I am taking Business Finance semester, which has taught me the business importance of interest rates. Interest rates control everything within a business, from notes to bonds to Plant, Property, and Equipment. By taking this class, I have successfully found an opportunity out of this headline.

Opportunity 3

One regulatory trend in the US is that cyber security is becoming an increasing threat to our personal lives. I see this opportunity everywhere in the news about every couple of months. The news is a cycle of repeating stories, each about some credit card company or bank that has been breached and millions of people's personal information have been leaked. I know this opportunity exists because people are taking action against hackers more than ever now. People are buying anti-virus in record numbers, and many are pursuing a civil lawsuit regarding their information breach. The most prototypical customer for a cyber security software is anyone who works in the financial sector, and has their name tied to many large, extensive databases. However, developing a software that successfully protects people from hacking is very hard to do and requires a lot of computer science skills. Therefore, this opportunity is particularly hard to follow through on.

I see this opportunity because I have always had the fear that my information will be leaked, and I'm not even as involved with online databases as other older adults. I always try to make my passwords unpredictable and I always log out when I log into something on a public computer. I see this opportunity because I would be one to purchase a product that exploits this opportunity.

Opportunity 4

Another regulatory trend is that Bitcoin, and a lot of other cryptocurrencies are going mainstream. I know this opportunity exists because I trade cryptocurrency myself. There are tens of cryptocurrencies that all have independent evaluation. People are buying and selling electronic currency at an all-time high right now. The prototypical customer in this industry will be the upper-middle class: those with enough money to invest some in the side, but not enough money to where they are constantly finding ways to increase their returns. Making an easy-to-use, user-friendly app that allows for the buying, selling, and trading of Bitcoin will be a great idea to exploit this trend. However, the start up costs are very high, which make this opportunity very difficult to exploit.

I see this opportunity because my dad was one of the initial investors of Bitcoin. He works as an IT, so he is always up-to-date on technological trends. He made back exceptional numbers after his initial investment, which is what prompted me to start trading cryptocurrencies. Right now, the market for cryptocurrency is household, and it can only open up more from there.

5A – Identifying Local Opportunities

Opportunity 1

Title: Florida seniors leading the state in medical marijuana use

Link: https://www.palmbeachpost.com/news/20190913/florida-seniors-leading-state-in-medical-marijuana-use

This story is describing a trend in Florida regarding medical marijuana. It explains how citizens 55 years old and up are the leaders of the medical marijuana movement. There is not necessarily a problem in this story, but there is plenty of opportunity. A lot of medical marijuana companies like to market young adults, people who stereotypically use the most medical marijuana. However, a smart business idea would be to create a medical marijuana company that markets and caters to the Baby Boomers.

Opportunity 2

Title: Cheesecake Factory to open in Gainesville

Link: https://www.wcjb.com/content/news/Cheesecake-Factory-to-open-in-Gainesville-560175041.html

This article describes the grand opening of a new Cheesecake Factory in Butler Town Center. It has hired 300 employees and it set to open on Tuesday, September 17th. Again, there is no problem in this story. The problem requires a bit of analysis. Cheesecake Factory, considering its aesthetic and nice environment, is a prime date location. As Butler Town Center introduces new stores opening up, there has been no type of entertainment for a date night, other than restaurants. A great business opportunity would be opening up a movie theater next to these restaurants, and employ some kind of deal connecting the two. Perhaps, if you go to Cheesecake Factory and bring your receipt into the theater, you can get 15% off the movie. Just a suggestion, but nonetheless, the opportunity is there.

Opportunity 3

Title: First Florida distribution facility for Pharmco to be built in Marion County

Link: https://www.wcjb.com/content/news/First-Florida-distribution-facility-for-Pharmco-to-be-built-in-Marion-County-512625181.html

This article details the opening of a brand new Pharmco distribution facility in Ocala. It is very large, a total of 265,000 sq. ft, and will benefit companies who specialize in herbal-based extracts. This is a tremendous opportunity for starting an herbal-supplement company in Gainesville. If this facility was not being opened, companies of the same nature would have to pay almost 5 times the amount to receive the exact same products, and at a later time. This new facility would cut supply costs and make delivery more convenient.

Opportunity 4

Title: Commissioners vote to ban plastic bags in Alachua County

Link: https://www.wcjb.com/content/news/Commissioners-vote-to-ban-plastic-bags-in-Alachua-County--512514912.html

This article outlines the city's plan to ban all plastic bags in an effort to preserve the environment. This change will go into effect on January 1st of next year, and will financially penalize companies who do not follow the law. This is a great business opportunity for paper and cloth bag sellers. With the law in place, many local businesses will scramble and try to find the cheapest alternative to plastic bags. This would be a perfect time to capitalize.

Opportunity 5

Title: Innovation Hub Expansion Nears Completion

Link: https://www.wcjb.com/content/news/Innovation-Hub-Expansion-Nears-Completion--441765813.html

This article describes the last finishing touches being put on the UF Innovation Hub. This building will be used for innovative UF students to plan businesses and hold meetings. This area is geared toward success in the business sector. As a UF student, this offers incredible opportunity, as office space is always a giant expense in a lot of start-ups. The reopening of the innovation center should springboard a lot of new local companies into existence.

4A – Forming An Opportunity Belief

My Beginning Point

I have several brewing beliefs of differing opportunities around me. In this assignment, I will focus on the opportunity of opening a late-night bakery near midtown, and the unmet need of eating sweets after a night out.

Describe My Belief

There is a large unmet need that I think a lot of UF students have noticed in the past, but have done nothing to act on it and little to communicate it. This unmet need is the need to eat sweet food/desserts after a night at midtown. This need is mostly met whenever a UF student goes out to midtown and consumes a lot of alcohol, more often on a full stomach. If a student were to drink on an empty stomach, that student would most likely crave carbohydrate- and protein-filled meals rather than a fattening dessert. Since I am a junior and only know about the immediate food establishments that exist around midtown, I do not know if this problem has been persisting since the popularization of midtown. However, this problem has persisted for at least 3 years, since my freshman year. Of course, there are alternative options if a student were to have a sweet tooth after a night at midtown. Students in the same predicament have ordered Midnight Cookies, or taken trips to McDonalds/Checkers in the past. A bakery would do those students justice by offering both quality and convenience.

Prototypical Customer

The first prototypical customer I will interview is a good friend of mine, and avid (and legal) drinker and bar hopper. He typically spends his nights at midtown.

The second prototypical customer I will interview is another friend of mine, who goes out to midtown for special occasions.

The third prototypical customer I will interview is a mutual friend of mine. He goes out around 3-4 times a week and goes to midtown more than any other bar destination.

Iteration No. 1

The first customer I talked to absolutely loved the idea. He told me that a bakery is a perfect choice for a sweet tooth in midtown. The desserts served at the bakery will contain enough carbohydrates to entice intoxicated students to purchase the dessert, in an effort to reduce how intoxicated they are. However, he also explained that most, if not all, of the students who walk in past 1:00 am will most likely be intoxicated. He told me this because he only gets the urge to eat something after he drinks, but usually when he does drink, he does get a sweet tooth. He also explained to me that this has been a need of his for a long time. He has had this need since his junior year (last year). When I asked, how he dealt with the problem, he would explain that he would just settle for a burger or pita at Relish/Pita Pit. Overall, though, he loved the bakery idea.

Iteration No. 2

The second customer I talked to had initial reservations about the bakery idea, but confirmed that she would still be a customer. She tells me that every time she goes out and drinks, she has a need to eat something. She is small and 'lightweight' so food usually helps her to detoxify herself. However, she explained that a bakery's desserts might be too unhealthy to attract a large female customer base. She said that a bakery is what midtown needed for a very long time and that she may stop by during the day once or twice a month. Just like the previous customer, she says that since she has been going out and drinking as a student at UF, she has always had the issue of being hungry and finding something to eat. She was yet another approving voice to the bakery idea.

Iteration No. 3

The third customer sounded ecstatic about the idea. This student has been going out and drinking for years in Gainesville. He explains to me that this idea is brilliant and unpredictable at the same time. He explained that most students who go out do not plan on getting something to eat after. Instead, the alcohol puts students at a point of weak will as a customer, and they make last-minute decisions to order food. The proximity of the bakery will be a huge factor. This student explained to me that this has not really been a problem for him in the past, but he would probably still go to the bakery regardless.

Reflection

I learned through my interviews that the bakery is a very solid idea with a lot of potential given the open opportunity to fill the unmet need of UF students at midtown. I learned that even if no one would think about the bakery before going out, a lot of students would go anyway after a night out. Interviewing potential prototype customers has allowed me to get a better 3rd person perspective on the opportunity behind the midtown bakery.

Summarize

If anything, I am more confident in my solution after interviewing prototypical customers. I now have a refined vision of my original idea, shaped by the needs and comments of prototypical customers. Entrepreneurs should definitely utilize the opinions and values of customers. Without a market behind your idea, there will be no business. So, it is important to understand every need of your market.

3A – Your Entrepreneurship Story

One of the most entrepreneurial tasks in my life was quite literally entrepreneurial. I had a friend of mine take ENT3003 last semester. He decided to pursue a business venture of his and enroll to compete in the Warrington Big Idea Competition. He added me on to the team as the CFO, but I learned mostly everything I could ever need to know about operating a business from the experience. Over the course of several months, we designed the business model and composed a complete business plan. It was a very valuable experience to have, even though we didn't end up advancing past the first cuts.

The experience I described before is the main reason I am taking this class. I am a Finance major with a passion for business, but I hope to take this class and further my knowledge about entrepreneurs. That reason, along with the reason that I would like to have the resources and knowledge available to pursue a business opportunity if one comes up, is the reason I am taking this class.