Celebrating Failure

Celebrating Failure

     I believe that a time this semester that I might consider failing, was when I recently got a concussion in a basketball game. Getting the concussion was not the failure, but I feel like I was not careful on how I was treating my body. That day, I had gone wakeboarding in the morning, then went and worked out, then went to a softball game, and finally played pickup basketball which made me faint and hit my head on the court which led to my concussion. I had to go to the hospital and had to be there a couple of days as well as be on bed rest for the following week. I could not drive, really even look at computer/tv screens which made me not be able to study, and not do any activities.
     I feel like this could of potentially been avoided if I was more careful and made sure to eat, not take too much caffeine, and let my body rest. This accident also obviously cost a lot of money as Shands is not cheap. So, overall I do not know if I would entirely call it a failure because it was truly an accident but I am now much more conscious and proactive about what I am eating/drinking/resting etc. So, I learned that I have to now be much more conscious which I believe will serve me well in the future.
     I do think that failure is hard but I also think that it is key to growing. I would never hope that I was too sheltered to experience failure, which I know would greatly hinder my personal growth. Failure will never be easy though and I hope that I will continue to handle failure better as I get older. I think that this class has helped me change my perspective on failure, especially the video interviews that sometimes made you have to act resiliently.
    

My Exit Strategy

My Exit Strategy

1) Identify the exit strategy you plan to make. Do you intend to sell your business in the next 5 years for a large return? Do you intend to stay with the business for several decades and retire? Do you intend to protect the venture as a family business, and pass it down to your children?

At Juntos, we plan to grow the company in various markets and gain as much market share as possible. We also plan to raise as much funding as possible from VC/PE etc. We look to grow Juntos into an international brand and the only one of it's kind that offers joint purchasing. I think the smartest step for Juntos down the road will be to go public with the company in an IPO, as I believe the company will generate a lot of investor demand which will inject excess capital into the company so that Juntos can even grow further. 

2) Why have you selected this particular exit strategy?

I have selected this particular exit strategy because I think that Juntos will continually need a lot of capital to continue running. Juntos is trying to target an extremely large global market which will require ongoing funding. Going public is a good way for Juntos to secure the amount of capital it will need. 

3) How do you think your exit strategy has influenced the other decisions you've made in your concept? For instance, has it influenced how you have identified an opportunity? Has it influenced your growth intentions or how you plan to acquire and use resources?

 I think that this exit strategy has allowed us to think about different markets that Juntos could move in to. Going public on the equity markets allows Juntos to generate as much capital as it needs which allows us to position Juntos towards global markets. I believe that since Juntos will be a new concept, it needs a lot of capital as well so that barriers to entry are high.

 

Week 12 Reading Reflection

 Week 12 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?

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

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

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

1. The biggest surprise from the reading might be about the entire concept of Entrepreneurial Leadership. I had not heard of this term previously.

2. I was curious to why outsourcing can lead to increased competition.

3. I would ask the author:
Why does outsourcing lead to increased competition? Just because the prices become cheaper?
What do you consider the One-Person-Band Syndrome?

4. No, I do not think the author was wrong about anything.

What's Next?

Whats Next? 

Existing Market. 
Step 1: Talk about what you think is what's next. You may rely on your analyses from "The Amazon Whisperer" exercise (when you discussed what product you thought might come next.)
Step 2: Interview three customers who are already part of the market you have identified, and ask them what they believe is next for a venture like yours. Describe to them your business, and simply ask "What should we be doing that we aren't planning to do?" Next, ask them about your ideas of what customers might want next. Video or audio record these interviews.
Step 3: Based on your own expectations and the feedback you received from customers, set a path for the future. In two to three paragraphs, describe what makes the most sense for your venture in terms of growing in your existing market.

Step 1: I think what is next for Juntos would be to find two markets to go into for selling products and trying to capture market share within those specific markets. I feel like Juntos needs to grow in it's existing markets which right now would be real estate and season tickets. I believe that once we grow our share in these two markets, then we can lateral into new markets. 

Step 2: Customers all have approved of the concept and say they would personally use it. Everyone can not afford everything, so if Juntos can help facilitate joint purchases on these products, than this 'uncaptured potential' can be fulfilled. Juntos will help these customers purchase items they would of had to gone without otherwise. 

Step 3: I believe that the path for our future is bright and it includes moving into many new markets. I am not exactly sure which markets will be best to move into next, but I do believe that after operating in the real estate and ticket market for some time, we will have an idea which other markets can be tapped in to. With Juntos, there is also a legal aspect that we have to think about since it deals with joint contracts and shared purchasing. 


New Market.
Step 1: Identify a radically different market from what you're currently planning to target. If you're currently targeting B2B, think about going after a B2C market. If you're currently targeting an affluent part of society, think about targeting a very poor part of society.
Step 2: Once you have identified a radically different market, describe how you think your venture concept might be able to create value for people in that market. You may have to get creative with this -- that's OK -- and perfectly welcome!
Step 3: Interview three people from this new market. Again, describe to each interviewee what your concept is. Then, ask them how they think your business might be help to meet customers like them. What kinds of adaptations to the product/service mix do they think you should make to be successful in this new market? Video or audio record these interviews.
Step 4:  Reflect, in two to three paragraphs, on what you learned about this new market. What surprised you the most? Were any of your expectations/assumptions correct? Does this new market, on second thought, appear to be as attractive as your existing market? And so on. 

Step1: A new market that we would be considering would be the boat and car markets. These markets are two things that I think possibly work for joint purchasing. I think that toys like boats are purchases that are not always used so it allows the opportunity for shared time usage. Also, many people are not able to buy a boat or sometimes a car because it typically can be extra spending that they do not have. If Juntos can help them purchase this item, then these are potential new markets. 

Step 2: It would create value by simply helping people purchase things that they would not be able to own previously. 

Step 3: Again, the customers agreed that both of these markets are possible. Some had concerns about the car market just because most of the time, sharing a car would be difficult. Also, you have to make sure that both buyers are extremely reputable which Juntos already plans on doing. 

Step 4: I believe that these markets would be the next step for Juntos after we gain share in the real estate and ticket markets. I think that with the feedback that we received and the problems that we have worked through, Juntos could facilitate in these new markets and provide value to many different types of customers. I believe that our original market is our main focus right now and I think that Juntos fits right into both of these markets with ease so that is where Juntos will head.

Venture Concept No. 1

Venture Concept No. 1 

Juntos

Juntos: Venture Concept No. 1

Overview

Juntos, meaning "together" in Spanish, is an online marketplace that connects people who are looking to make similar major purchases, allowing them to buy things together. Unlike Amazon or eBay, Juntos will help buyers find, contact, and communicate with other buyers before they make a joint purchase. Unlike timeshare markets, Juntos will allow for the shared purchase of any major item. Examples of such items include: boats, season tickets, condos, recreational vehicles, and bulk goods. Buyers will then be matched with a reliable legal service that will, if necessary, quickly work out a contract granting joint ownership of the purchased item.

Problem

When someone desires a product or property that is out of their price rage, unless that person personally knows someone who is interested in making a similar purchase, they will either have to stretch themselves financial to pay full price, or simply go without it. Each year untold billions of dollars in major purchases are not made because the buyer cannot bear the cost alone. This loss of economic transactions is referred to as un-captured potential. Un-captured potential hurts sellers as products go unsold, and hurts buyers as they miss out on products they want or need. If only like-minded buyers could easily find each other and work together, the potential transactions could take place.

Solution

Juntos provides an easy-to-use online marketplace in which buyers can browse product and property listings, search for and connect with potential buying partners, find contract lawyers, and split the cost of products. Sellers can use the platform to list products, selling more than they would otherwise, and reducing un-captured potential. Juntos screens marketplace participants, and securely processes the transaction between any number of buyers and the seller, protecting both parties from fraudulent transactions.

Opportunity

Global e-commerce sales topped $1 trillion in 2012, a growth of nearly 16% over the previous year. Timeshares, boats, recreational vehicles, and season tickets are a few of the items commonly bought jointly. The timeshare industry reached $10 billion in sales in 2011. The recreational boating industry reached $83 billion. Recreational vehicles sales topped $42 billion in 2012 and are growing by over 15% per year. The season ticket sales in sports, music, and drama are a combined $50 billion industry. There is great opportunity to direct much of the transactions in these industries to Juntos as each industry has only a few scattered, ineffective online sales sites, none of which cater to joint purchases. Beyond capturing large market share of the transactions already taking place, Juntos facilitates transactions that would otherwise not occur, through its buyer connecting platform.

Inovation

·     Connecting buyers: Any buyer can use the Juntos website to quickly find buyers in their area, who are considering the same purchase, allowing them to communicate beforehand to ensure that the joint ownership will go smoothly.

·     Joint payment: No other online marketplace is focused on or even allows shared payment. Doing so is a shift from the norm and opens up vast new sales potential.

·     Marketplace consolidation: Anything that can be bought jointly is found in one easy-to-navigate marketplace. Buyers and sellers are also able to add or request any item to be added to the marketplace. 

·     Legal services: After a joint purchase is made, Juntos will direct the buyers to a contract law firm that will quickly work with the buyers to complete the necessary contractual documents.

Venture Concept

Juntos receives revenue from each payment transaction it processes. Products or properties will be listed online by a merchant or individual seller. As the primary benefit of the platform is to buyers, they pay between 3% and 5% of each transaction to Juntos, depending on the dollar value of the transaction and the number of buyers involved. Each transaction is subject to a minimum transaction fee of $5.00 per buyer. As merchants can list products on their own sites, no fee will be charged for listing products. However, for timeshares and other real estate, a 5% commission will be charged to the property seller. Revenues will also be brought in through partnerships with law firms. Juntos will partner with contract law firms, sending every transaction of a specific type to that law firm, where the details of the new joint ownership will be quickly agreed upon.  

Example Transaction

Will lives in San Diego and is looking to buy a boat. Will browses the marketplace section of juntos.com and sees that the type of boat he is interested in is sold for $10,000. However, most he is willing to spend is $6,000.

Will creates a posting in the buyer section of juntos.com. The posting specifies his location, desired item, and the percentage of the price he is willing to pay. Will decides he would like to have 50% ownership.

Tom also lives in San Diego and is interested in buying a boat, but does not know what type. Tom goes on to juntos.com and narrows down the buyer postings by searching the “Boats” category in “San Diego”.

Among other postings, Tom sees Will’s posting and likes the look of the boat and decides to send him a private message. Tom asks Will about the details of the boat and after a few messages back and forth decides it is what he wants.

Tom and Will agree on a 50-50 split ownership and each pay $5250 through the Juntos online payment system, with total combined payment at $10,500. The $10,500 consists of $10,000 from the cost of the boat, plus the 5% Juntos fee.

The payment is then processed and $10,000 is sent to the seller who listed the boat. Juntos refers Tom and Will to a contractual law firm that handles of all the Juntos boat transactions, and a contract specifying joint ownership and usage is created. Delivery or pickup is carried out as specified by the seller in the product listing.

My Unfair Advantage

My Unfair Advantage

1.       Size of Market: The actual size of the market that Juntos operates in is extremely valuable as it provides huge growth curves. I would not necessarily say it is rare again, it is a big market space. Not easily inimitable and non-substitutable.

2.       Overall Concept: I believe our concept is extremely rare and valuable, which is why I believe it reached the finals of a national collegiate business plan competition. I think the concept would be rather hard to intimate just because the scope and capital it would need to get launched. That is to say, if we developed a market presence first. I also believe that it is non-substitutable for the same reasons.

3.       Human Capital/Team: I would like to say that me and my partner (cousin) who worked on it are extremely rare and valuable as well. We both bring to the project something different but both something non-inimitable and non-substitutable.

4.       Financial Capital: We do not have the financial capital for the project yet, but my point here is that if we were to obtain financial capital and were to successfully launch Juntos, it would be rare and valuable just because of how much capital it would require. This makes it non-inimitable and non-substitutable as well because there would not necessarily be space for capital for Juntos and another website trying to offer the same service.

5.       Mentors: We have some great mentors on our team who have signed on to help. I believe they qualify above for all of the VRIN analysis.

6.       Ability to expand: Similar to point number 1, our ability to expand into other services is rare and valuable. It also makes it non-inimitable and non-substitutable if we get ahead in those new spaces quickly as well.

7.       Convenience: I think Juntos taps into such a large population of people who want to purchase products but cannot finance the cost alone.

8.       Legal Capital: I think another thing that could make Juntos unique is our ideas for the legal side. We would like to offer a streamlined service that quickly grants joint-ownership and contractual agreements which I believe could be its own sort of business later on.

9.       Social Capital: I also think Juntos fulfills the VRIN framework, as Juntos also provides users with a certain social aspect that they cannot get through any other service now. Since Juntos brings qualified buyers together, it has the opportunity to connect people who are interested in similar things.

10.   Ethical Asset: I also believe that Juntos possible could eventually offer some sort of ethical capital as it provides to people the opportunity to purchase things that would be typically outside of their financial range. This opens them up to so many new opportunities.

I think our biggest asset currently, is just how new and unique this business is. There really is no such thing as this on the market currently and nothing even close. I believe this asset will make it successful also because we believe there is a high demand for our service. 

Week 10 Reading Reflection

Week 10 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?

I was surprised that the text discussed simple linear regression analysis in developing operating budgets.

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

Nothing was confusing to me.

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

What analysis uses the Payback method?
Why would you use Payback method over NPV or IRR?

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 think the author was necessarily wrong about anything.