Venture Concept #1

Venture Concept No 1.

SafeRate API

Summary:

My product is called the SafeRate API. It would be a piece of software that would gather data about a location and rate the area’s safety in several categories.  It can be thought of as a location based safety metric or rating system.  My system would rate the safety of an area (based on three categories crime, vehicle accidents, and weather damage.) and combine that to create a general safety score of the area.  I would access local police records, accident records, and weather damage records (similar to what insurance companies look into when evaluating risk).  I would take these metrics and use them to produce scores in an area in all three categories.  Then these categories could be combined to create a general safety score.  This software will serve as an API.  As an API, other companies would be able to use this technology in their own applications.  For example, Google Maps could incorporate this technology to help users determine the safest route.

Opportunity:

I believe that there is a massive opportunity for this API. My group of customers would be businesses that specialize in software. Some software companies would have the need for my product, as my product could help make their related products better. Not every software company could realistically incorporate my API into their product. Only software companies that provide services related to location could incorporate this API. Some examples of well-known companies/software platforms that could use my service include Air BnB, Uber, Lyft, Yelp, Google Maps, Apple Maps, and really any other mapping software. The main force or change in the environment creating this opportunity would be the development of this technology. It is hard to differentiate businesses geographically and demographically. The beauty of software is that it is very easy to distribute at very low costs. Therefore differentiating potential business customers by geography would be pointless. I could differentiate potential business customers demographically by only targeting software companies that distribute software that would benefit from my API. Next I will address how customers are currently satisfying this need, and how loyal they are to using it now. Currently my customers, business, are unable to receive this service unless they create this technology on their own. I think that this need is not currently being satisfied due to its reliance on technology that has not been developed yet. This seems like a pretty large opportunity. This opportunity is open because of the lack of technology. There is currently no other product that gathers real time information about crime, accidents, and weather and results in a safety score for the area. This window of opportunity will only be open as long as this technology has not been developed. Once someone else develops this technology, the opportunity will no longer exist.

Innovation:

As I described before, my API will work by accessing police records, accident records, and current weather reports for an area.  The SafeRate API will use these measurements to provide a safety rating for a specific area. As far as I am aware, this technology does not currently exist. Therefore it would fall under the category of radically innovative technology. My API would use specific algorithms to develop a score for each category (crime, weather, accident) and then use another algorithm to combine these scores into one central score.  I plan on making money by selling an API Key. This API key will give the developers an easy way to incorporate my API technology into their own applications. This is how most APIs are sold and I think mine would fair well in the marketplace. One of the beauties of manufacturing software is how easily distributable this technology is. In theory, every developer could have access to my API in an instant. This gives software companies a massive advantage over other startup companies that say have to manufacture a new product each time one is sold. 

Venture Concept:

The SafeRate API will directly address the opportunity I described above. It will allow developers and business to access my API and directly incorporate my technology into their applications. Customers would use my API because there is currently nothing out there like it right now. This is new technology and there would be no competitor that they could switch to. Other potential competitors would be anyone who develops a similar API and, as far as I know, there are currently no competitors in the marketplace. Packaging plays a very small role in my venture. The way I would distribute my API would be by setting up a website in which potential customers (either businesses or developers) could learn about the technology and purchase/download the API and framework. Customer support would have to be provided to some extent. It may also be helpful for my website to include a forum in which customers can ask and have their questions answered by my company or the community. Thankfully our business would not need a consumer facing location. I would organize my API as an ongoing business by hiring developers to continue and strengthen support for the API and to answer customer questions on the forum. My API would have to be constantly updated due to the ever-changing landscape of the tech industry. I cannot say how many employees I would need, as it would depend entirely on the success of the API.

Answering other questions:

-I think that our most important resource would be our human capital. Excellent software requires excellent developers and our company would not survive or even get off the ground without strong developers.

-The next steps for the venture, after obviously creating and effectively selling our product, would be to expand support for our current users. The easier we make it for users to incorporate our technology into their applications the more users we will have and the happier our users will actually be.

-In 5 years our company will have had to adapt to the changing technology landscape. Assuming that we successfully adapt and do not sink, we will explore other products and innovations.

"My Unfair Advantage"

List of resources:

1. Business knowledge - human capital
2. Programming knowledge - human capital
3. A macbook - physical capital
4. In-depth Accounting knowledge - human capital
5. Connection to business professionals - social capital
6. Connection to entrepreneurial professionals - social capital
7. Connection to IT/Programming professionals - social capital
8. Leadership experience / capabilities - human capital 
9. A registered company in Florida - organizational capital
10. Determination - human capital 

1. Business knowledge

Valuable - Extremely

Rare- Not really

inimitable - easy

Non-substitute - Hiring someone or having connections to the same knowledge

2. Programming knowledge

Valuable - Extremely

Rare- Not really

inimitable - easy

Non-substitute - Hiring someone or having connections to the same knowledge

3. A macbook

Valuable - Extremely

Rare- No

inimitable - easy

Non-substitute - For some software, other laptops. For some software, none.

4. In-depth accounting knowledge 

Valuable - Very

Rare- somewhat

inimitable - easy

Non-substitute - Hiring someone or having connections to the same knowledge

5. Connection to business professional

Valuable - pretty valuable

Rare- No

inimitable - easy

Non-substitute - Hiring someone who has the same experience, having the same experience

6. Connection to entrepreneurial professional

Valuable - pretty valuable

Rare- No

inimitable - easy

Non-substitute - Hiring someone who has the same experience, having the same experience

7. Connection to IT/programming professional

Valuable - pretty valuable

Rare- No

inimitable - easy

Non-substitute - Hiring someone who has the same experience, having the same experience

8. Leadership experience

Valuable - Very

Rare- somewhat

inimitable - easy

Non-substitute - Hiring someone who has the same experience

9. A registered company in Florida

Valuable - Very

Rare- No

inimitable - easy

Non-substitute - Having a registered company in a different state

10. Determination

Valuable - Valuable

Rare- No

inimitable - somewhat

Non-substitute - Hiring someone who is determined, establishing determination as a company culture.

The top resource to my company is probably my leadership experience. I have experience leading a startup and that's not something a lot of people have. If I chose to seriously pursue this venture, my leadership experience would come in handy. Another top resource is my accounting knowledge. I am an accounting major, and my in-depth understanding of company processes and financials would significantly help my potential venture.

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? 

Nothing really surprised me in this reading. I am an accounting major, so I have covered all of this in the past.

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

There weren't any parts of the reading that were confusing to me.

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

How in-depth does an entrepreneur's financial knowledge have to be?

At what point do entrepreneurs need to hire out a professional or seek professional services?

I'm curious to see the extent in which most entrepreneurs need to learn financial knowledge.

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

No there really wasn't much that the author could be wrong about.  The majority of the reading was very basic, fundamental accounting and generally accepted definitions. There really isn't anything here to disagree with.

Elevator Pitch #3

Reflection from last pitch:

I received several comments suggesting other things I could add if I was creating a consumer facing application.  There were so many diverse and great suggestions that it made me realize how many different ways this technology could be used.  It also made me realize that I couldn't build something that does everything.  That's why I decided to move more in the API direction rather than a consumer focused direction.

Changes in this pitch:

So in response to the feedback that my tone wasn't "warm or happy", I tried to make my tone warmer and happier.  Someone also suggested that I not hold my laptop, so I didn't hold my laptop.  I also stood farther away from the camera like one comment suggested.

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? 

-I thought that the complexity and importance of market research was cool.  I never really thought about market research that way (or of all the different ways market research can be gathered and conducted.)

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

-There weren't any parts of the reading that were confusing to me.  It was a pretty easy read and nothing confused me.

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

-What are some low cost ways entrepreneurs can market their product to their target market?

-Is overexposure of your product bad?

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

I didn't notice anything that I disagree with the author about.  I thought the different marketing philosophies were very interesting. (Production-driven philosophy, sales-driven, and consumer-driven philosophy).  

"Idea Napkin No. 2"

1) You. Who you are. What your talents are. What your skills and experiences are. Also: what are your aspirations? Specifically regarding your business concept, how do you see this business (if you were to start it) playing a role in your life?

So the first part of this answer hasn’t really changed based on the feedback I received last time.  Feedback wouldn’t really affect your skillset, so my skill set would be the same.  As far as how I would see the business playing a role in my life, it’s entirely dependent on how profitable this idea is.  If this idea is profitable I would pursue it at least in some fashion.  If not, then it probably isn’t worth investing any surmountable time in.

2) What are you offering to customers? Describe the product or service (in other words, how you'll solve customers' unmet needs). 

The feedback I received on my previous go around was all pretty positive.  One person suggested that I take it a step further and provide more services directly to the consumer.  They suggested I create an app and provide other services like the ability to alert campus police or let friends know where they are.  These are good ideas but the more profitable option for this technology would probably be the API route rather than a direct product to a consumer.  In response to Greg’s comment about other software companies making something similar – you’ll always run the risk that larger companies will make the product you are making.  Unless there is some barrier like legal (patents), you’ll run the risk of competition arising.  All you can really do is focus on execution and the product.  Most of the time with these large software companies, it is easier (and usually cost effective) to acquire any competition than to start a division directly to compete with them.

3) Who are you offering it to? Describe, in as much detail as possible, the demographic and psychographic characteristics of your customers. Think especially of this question: what do your customers all have in common?

I’ve decided that my product would be better structured as an API as opposed to a direct consumer product.  An API would basically allow me to sell my technology to other companies and businesses to use in their own apps.  So rather than provide direct services to consumers, I would provide the backbone for other entrepreneurs to build software off of.

4) Why do they care? Your solution is only valuable insofar as customers believe its valuable to them. Here, explain why customers will actually pay you money to use your product or service. 

The only way people or business will pay to use this API is if the data acquired by this API is accurate and useful.  If this API works like it could (and how I want it) it would be easy and helpful to incorporate into other people’s applications.

5) What are your core competencies? What sets you apart from everyone else? Also: what do you have that nobody else has? 

Well if this technology were to work as advertised, we would have unique technology that nobody else has.  So that would set us apart.

I think these pieces are coming together better thanks to the feedback I received on my last assignment.  My business plan is stronger now.  My first take away from the feedback I received was that my commenters thought that the idea was strong and could be successful.  The second take away from the feedback was that several commenters thought my product would be more “consumer aligned” as opposed to an API.  Now I have narrowed my idea down to only be an API.  The third take away was that if I was going to more directly target consumers, that I would have to incorporate other services.  This is part of the reason I didn’t want to target the end user directly.  The fourth take away was that I could encounter competition from other tech companies if they decide to enter the market.  The fifth and final take away was that I needed to narrow my focus and make a decision on what I wanted to actually offer as a product.  I addressed this feedback directly in my idea napkin and described any counter points (or solutions) to the points brought up in the comments on my last post.