My Venture Concept No. 1: 2 BUS-y 4 U

Opportunity.

 An opportunity may be defined as a group of customers with unmet or under-met needs.

For me, this group is anyone who depends on the public bus system for transportation. This can 

range from students to elderly people and anyone in between. I am personally included in this opportunity group, and this is how I came about realizing that there was a need. I have often found myself depending on a bus to get to class but when it arrived, it was already full and there was no room left for me to get on. Despite the fact that I checked my bus app and knew when the bus would be arriving, I was still left waiting for the next one, hoping that it would have space for me and would get me to class in time. If I had been able to see on my app not only when the bus would be arriving but also if it had available space, I would have had time to plan accordingly and arrange for an alternate means of transportation if necessary.

·         This opportunity is created by a dependence on public transportation and an increasingly fast-paced society that always has somewhere to be.

·         This market, while inspired by a college town environment, can extend internationally and to any person with a smartphone.

·         Currently, people are using existing bus apps that indicate when a bus is coming but not its vacancy or lack thereof. There are not many bus apps available, so I feel that any loyalty is just by default, not because they specifically want to use one app over another.

·         This opportunity is large in the sense that it has a wide market reach.

·         I believe that the “window of opportunity” will exist as long as people continue to own smartphones and take public transportation, assuming no one jumps on this opportunity before myself.

Innovation.

An innovation may be defined as a new or creative service, product, or process that may be applied in the marketplace to address customer needs.

Upon realizing my opportunity and what the current bus apps lack, I developed a new bus app concept which will provide incremental innovation above the existing apps. My bus app, 2 BUS-y 4 U, tells its users not only when the next bus they desire will be arriving, but also if that bus has availability/space for them to board. This will not be difficult information to obtain as bus drivers are already required to log in each person that boards their bus.While the current app is free, this app would cost a one-time purchase fee of $3.99. Concerning profits, this app will work in the same way as other apps that charge a purchase fee.  A user will simply have to log into the app store on their smart phone, purchase and download 2 BUS-y 4 U, and they will then have access to the routes of all buses in their area, their current locations, and their current capacity levels. Additionally, while other bus apps are city-specific, such as RTS, 2 BUS-y 4 U is a universal app that, if location services are on, will adjust to whatever city within the U.S. that the user is in to inform them of the area’s bus routes. As far as I am aware of, this is not offered with any other bus service app.

Venture Concept.

A venture concept may be defined as the application of a specific innovation to address a specific opportunity.

As previously stated, I identified my opportunity when I have attempted to take buses that turned out to be full when they actually arrived at my stop. If I had known that the bus was full, I would have planned to take a different bus, walk down to another bus stop, or arrange for an alternate form of transportation to ensure that I still get where I needed to be on time. By indicating not only where the bus is located but also what its current capacity level is at, 2 BUS-y 4 U addresses the opportunity and unmet need. Customers will want to purchase this app because in today’s world, people are willing to pay for added convenience and reliability, particularly when it concerns a service that they use frequently and are heavily dependent on to accomplish their day’s tasks.

• Customers will want to switch to this app from an app they are potentially using currently because it provides all the necessary information that a frequent bus user would want to know, as opposed to other apps which are provide limited information. I do not believe it would be difficult to get users to switch/begin using this app, as it will greatly increase their ease of bus use, is inexpensive to purchase, and has no monthly or recurring fees.

• The competitors are anyone who currently manufactures a bus service app. Their weakness is that they do not offer the same features that my app does and are therefore a lesser, incomplete service.

• As it is an app that is simply downloaded onto a user’s existing smartphone, my product does not require any packaging, distribution, physical retail location, etc. Rather, my business concept is simply centered around the user’s ownership of a smartphone as well as their use of public transportation.

• To support the longevity of my app, I would start small, assess the success of the app, and then determine levels of expansion from there. I believe that it is best to start out on a smaller scale and then grow as demand warrants. By doing the reverse, one could potentially waste a lot of money, time, and resources.

The three minor elements.

In my venture, I believe that my “secret sauce” will be customer loyalty. As a user will have already paid for my app, which has all the features necessary to a bus user and can be used in any location they go, there would be no need to switch to a new app with the same features. By charging a fee, it will cause the user to want to keep using the app and “get their money’s worth,” rather than incurring the switching costs necessary to try out an alternate app.

Once my venture has an established user-base and has created a name for itself, I could then use that to create other types of apps that also focus on increasing ease of travel/transportation, such as a similar app for planes, trains, taxis, etc.

With this venture concept, in five years I would see myself having expanded internationally so that the app is not only available in the U.S. I plan to move to Italy in the near future and if I could take this venture abroad with me, that would be a wonderful way to get my start in a new place – with something successful and familiar.

My Week 11 Reading Reflection

What stood out most to me in the reading was the statement that no matter how good a company's business strategy is, the organization's various parts will end up having conflicting priorities if there is not a clear innovation strategy as well. It is important for there to be diversity and creativity within the company, but these ideas must all be centralized around the same concept in order for them to work together cohesively. If not, this diversity will quickly become a weakness rather than an asset.

I was confused by the statement that innovative ideas attract imitators attract imitators at the same rate that they attract customers. I had never thought as these two things happening at the same rate before. I always assumed that an innovation would first attract many customers and then, seeing this, competitors would follow suit.

If I could ask the author two questions, I would ask "What do you feel is the most important element of a successful innovation?" I would also ask "What is the most impacting and personal experience you have had with innovation?" I would be very interested to hear his response to both of these questions.

In this reading, there was nothing that I disagreed with the author on or felt that he was wrong about.

My Unfair Advantage

• Expert Connections - Ron Hosey, domain expert, and Allen Decker, supplier, both in my industry. These connections are unique, cannot be acquired by others, and are important to the set-up of my venture.

• Personal Understanding - As a public bus system user myself, I have an insider understanding of the issues people have as riders. Not everyone has as much experience as I do with their intended field, and I feel it gives me a "one-up" on them.

• Bus Driver/Employee Connections -  I have made connections with several of my bus drivers in Gainesville, and I know they would be open to helping me with any questions I had with my app development. These are relationships I have established outside of a business context, and I feel that those are often the most valuable as they are founded on more than just needing someone's help at the time.

• Use/Understanding of Competitor - I consistently use an existing bus app and so I am aware of its issues and what it lacks. I think it is good that I have so much experience with a competitor's product, as it almost served as a trial run for my product and I can then develop my app with the necessary adjustments right away. It was because of my understanding of the competitor that I even realized the need to begin with.

• People Skills - I am very good at connecting with people and can get their inputs on how to make the app the best possible it can be. Not everyone is able to approach people comfortably and strike up a conversation, and in being able to do so I have greater access to a wider range of potential customers.

• Access to Users - My access to a large pool of people (students) who use public transportation on a daily basis. This gives me an immediate advantage over someone who does not have easy access to their target customers.

 
 

• Location - Living in Gainesville gives me an advantage over someone trying to start an app in a small town with little need for its services. I would be able to implement my idea locally and immediately with probable success before considering expansion.

• Field of Study - As I study travel and tourism, I have a good understanding of the industry and what it demands of public transportation. There is so much more to the industry than many people realize or give it credit for, and this unique knowledge helps me to better tailor my idea to what is best for the industry and its customers.

• Knowledge - This course has taught me a lot about what it means to be an entrepreneur and how to be successful, and I would certainly apply this knowledge to my venture. While there are other students who have taken this course as well, it is unique to UF and so the vast majority of entrepreneurs in the world will not have taken this exact course. They will not have the same knowledge that I do, nor will they have had the same experiences as me.

• Personal Connection - Alex Solarino, a friend and manager at a technology company. This connection could prove very useful to me in the future set-up of my app and is not available to anyone else. 

I believe that my most valuable resource is the fact that I am a daily user of the public bus system as well as a regular user of a "competitor's" product. I  have a personal connection and understanding of what it is like to depend on the bus and to not have one available when you need it most. I have also used the existing bus app so frequently that I am very aware of how it works and what its flaws are. Judging by the feedback I have received on my previous assignments, other students share my opinions and also see the need for my venture.

Growing My Social Capital

Domain Expert: Ron Hosey

1. Operator Supervisor at Manatee County Area Transit

2. Daily Operations: 

"I oversee shift work for the Transit Bus Operations on a daily basis. Customer service is a high priority, insuring on-time performance of the schedule, carrying out the policies and procedures of the county and making sure we have a safe environment for our passengers and employees. I am responsible for scheduling for work for the Trolleys, and write Employee Evaluations of my direct report employees. I give directions for new riders in our system and take complaints bringing a resolution to the issues at hand."

3. Ron lives at the residential community where my father is a manager, and so he put us into contact.

4. No return expectation.

5. This person works directly in the system that my app is related to, and having this contact can greatly help in the future with my knowledge and understanding of the bus system and its needs.

Market Expert: 

I was actually unable to make contact with anyone that met the parameters for this section of the assignment. Sorry Dr. Pryor!

Supplier: Allen Decker

1. Technology Consultant 

2. Specializing in small business, non-profits, & churches. Web, Email, Networking, SEO, Social Networking, Web Marketing & Direct Mail Marketing.

3. Allen is the technology and computer specialist where my father works, so he put us into contact as well.

4. No return expectation.

5. This connection can help me in the formulation of my app, should I choose to do so, as I am not technologically inclined and would greatly need the assistance.

Refection:

This experience has shaped the way I view future networking events because it has taught me how to better "target" my networking and tailor it in a manner that is most effective for my current needs/situation. This assignment was similar to some of the networking I have done in the past in the sense that I reached out to someone for a specific purpose. In one case in particular, this exact kind of networking has transformed itself into a job offer and an upcoming internship. I completely understand the value of knowing how to network and properly market yourself, as simply who you know can ultimately be the difference between success and failure in many situations.

 

My Elevator Pitch No. 3: 2 BUS-y 4 U

1) The pitch.

2) A reflection on the feedback you received from your last pitch. 

I got a lot of positive feedback on my idea and people agreed with me that there is a need for this type of app. One commenter said, "I am usually stressed that I will not be able to make it somewhere on time because the bus will not arrive on time or does not have any open seats or room for more passengers." This is exactly the kind of customer that I am trying to target.

3) What did you change, based on the feedback?

I did not change too much about my pitch, I just tried to make sure that I spoke well and explained my idea clearly. One commenter mentioned working on my "pauses," so I tried to do that although I wasn't too sure exactly what they had in mind.

My Week 10 Reading Reflection

In the reading, I was most surprised to learn that break-even analysis can be used even when the exact costs are unknown. It is convenient that this analysis can still be used even if fixed or variable costs can only be estimated at the time.

I was most confused by the pro-forma statements, simply because I had not previously been familiar with them. However, upon reading about them they seem very logical and a beneficial step in the budgeting process.

If I could ask the author two questions, I would first ask, "What struggles or obstacles have you encountered in your own experiences with financial budgeting as an entrepreneur?" I would also ask, "What do you believe to be the most important takeaway from this chapter?" I would be interested to hear his responses on both of these questions.

I did not believe that the author was incorrect in anything in this chapter.

My Secret Sauce

Describe five ways in which you think you have human capital (knowledge, skills, abilities, emotions) that is truly unique.

• I am very personable and relate well to others.
• I have worked in the food and hospitality industry for a long time.
• I learn quickly and pick up on instructions easily.
• I am a happy and joyous person to be around.
• I come from a culturally-varied background and am therefore comfortable in many different settings and with a wide variety of different people.

Interview the five people who know you the best.

MOM:

My mom said she believes that my best human capital traits are an outgoing personality, perseverance, persistence, loyalty, and generosity. 

DAD:

My dad said my best human capital traits are compassion, drive, being goal-oriented, a good sense of humor, intelligence, and capability.

FRIEND/ROOMMATE:

My friend, Logan, believes that my best human capital traits are being outgoing and not being afraid to speak to anyone, being very personable and intimate with people, and being a go-getter.

SISTER:

My sister believes my unique human capital traits to be communication, outgoing personality, getting along well with others, persuasiveness, and a professional yet approachable manner of presenting myself.

Reflect on the differences. 

It seems that how I view myself is pretty similar to how others view me as well. I try to always be as self-aware as possible, and I think that shows in this exercise. A few things that I had not thought of (and were nice to hear!) were that I am driven/a go-getter, loyal, and am not surface-y with people, but rather take the time to really get to know them. This meant a lot to me, as I really try to be friends with everyone in a real and authentic way. If I were to edit my initial list, I would probably add that I am driven and finish any task I start, as that seemed to be a common theme throughout my interviews.

My Week 9 Reading Reflection

1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?

In the reading, I was most surprised to learn that "many entrepreneurs know very little about their market,and some even attempt to launch new ventures without identifying any market" (pg. 311). Considering everything we have learned so far this semester about the importance of identifying and understanding your target market, this is certainly a necessary step to take before launching a new product/idea. This goes to show how uninformed people can be and how greatly they would benefit from doing some research and understanding the basic steps of entrepreneurial start-up.

2) Identify at least one part of the reading that was confusing to you.

I was confused by the statement that when it comes to pricing, "most buyers expect to pay even-numbered prices for prestigious items and odd-numbered prices for commonly available goods" (pg. 328). I had never heard this theory before, and it seems like a very odd and random expectation. I would love to know the reasoning behind this.

 
3) If you were able to ask two questions to the author, what would you ask? Why?

If I could ask the author two questions, I would first ask, "What additional tips would you give to a budding entrepreneur trying to come up with a marketing plan?" I would also ask, "Which type of marketing philosophy have you utilized the most in your own ventures?" I would be interested to hear his responses.

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

I did not disagree with any of the author's statements.

Idea Napkin No. 2: 2 BUS-y 4 U

1) You.  
My name is Marissa Mosher and I am a junior at the University of Florida, majoring in General Business with a Specialization in Travel and Tourism Management. I have worked in the hospitality industry for the majority of my life, and from this experience I have learned how to be personable, relate to others well, and patient with many different types of people. I aspire to work in the hotel industry and travel often. In regards to my business concept, I could certainly see this working well in my life. While it is not directly related to hotels, proper public transportation is an important and essential segment in the tourism industry. 

2) What are you offering to customers?
With 2 BUS-y 4 U, through this app people will be able to see not only WHEN the next bus is arriving but also if it is already FULL. This is essential to time management and ensuring that one arrives on time to their destination. Even beyond helping a student see if a bus is full as he is on his way to class, it could help a tourist see whether or not they are able to take the next bus to the airport or if they need to arrange for an alternative plan.

3) Who are you offering it to? 
This app would be beneficial to any and all people who use a public bus system to get around. While I was inspired by my fellow students, as well as my own experiences, this app is not only helpful to students. It would greatly aid tourists, anyone without a car, those too young or old to drive, etc. No matter who you are, you want to know how and WHEN you will be getting somewhere. If you believed that you would be able to take a bus in 5 minutes but it arrived full and you had to wait another 30 minutes for the next one, that can be problematic.

4) Why do they care? / 5) What are your core competencies? 
Customers will pay for this app because time and time again, it has been proven that people are willing to pay a bit extra for added convenience and accessibility. While there are already some bus apps on the market for free, people will be willing to pay for 2 BUS-y 4 U for the information of knowing which buses are full and the added ease of better planning out their departure/arrival time.

I believe that all of these elements fit well together and make for a cohesive idea plan. This transportation-centered issue meshes with my interest in travel and tourism, and I know that this app is filling a need as I myself have this need. While this concept seems fairly strong to me, I know that if I actually began the steps to put my ideas into action and create this app, there would be bumps along the way, as with any new business venture. It is impossible to foresee all potential future issues, but that is where tenacity and perseverance would come in so that I may keep striving towards my end goal.

The five key takeaways that I got from my feedback on Idea Napkin No.1 are:

 1) My idea has a lot of potential
 2) People are willing to pay for convenience and accessibility
 3) The availability of this app to everyone increases its value
 4) The commenters have personally experienced the issue of a crowded bus
 5) My background in the hospitality industry will help me in running a business/company


As all of my comments were positive and none offered and new suggestions/ideas, I did not do much to alter my Idea Napkin. It provided a clear understanding of who I am, what my product is/does, and who my target audience would be, so I did not feel that it would greatly benefit from too many alterations.