Ideo: Using Market Research to Innovate

Recently I discovered the company IDEO. IDEO is a company that prides itself in being innovative and groundbreaking. They are hired as consultants to perform two tasks. 1. To do the market research to discover exactly what the consumer wants. 2. To design a product based on that research. When developing and launching a new product line, being creative is the key. Companies like IDEO have mastered the art of creative design.


From their president Tim Brown: “Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” 


I found the creative process that IDEO uses to be brilliant. When working, they separate themselves into small workgroups which each focuses on a single aspect of the design process. They assign a group leader and begin an open discussion about what they are trying to design. Each group builds off the work of the previous group to create a unified product. 


I read about them re-inventing the way we think about work desks. They saw the classic school desk to be obsolete. They went into schools and examined not only how desks were being used, but how the children were learning. They realized that the desks were heavy, unpractical, and immobile.


They split up into their small work groups, each focusing on a single design aspect. In the end they came up with the "node chair."

"The final product, dubbed the Node chair, has received praise for promoting student collaboration, allowing educators to reconfigure classrooms to fit different teaching styles, and enabling institutions to save money by making spaces more flexible and accommodating for varied uses." -http://www.ideo.com/work/node-chair/


The chair allows students to store their belongings, move freely about the classroom, adjust their posture based on what is going on in class, and move the writing surface 360 degrees based on their needs.


The product was an immediate success. The company had over 500,000 pre-sale orders at $399 a unit.


I believe that the creative process that IDEO has utilized could be adapted into any form of design. It streamlines the efforts of many into specific tasks and allows the participants imagination to soar. 

ESPN College Game Day Shoot at Full Sail

Had a BLAST today at the ESPN College Game Day shoot at Full Sail!! It was a great experience to see how ESPN handles an event this size. I got to goof off with all the mascots, meet some cheerleaders, and even appeared in the shoot! All in all, a great way to spend the afternoon!

Drew King Interview (Negotiation and Deal Making)

Drew King is a Professional Surfer, BMX, and Motocross rider from Ewa Beach, Hawaii. Besides being a multi-faceted athlete, Drew is a businessman and a philanthropist. He has used his athletic talents, charisma, and popularity to raise thousands of dollars for charities. Recently, he rode a BMX bike over 150 miles to raise money for autism awareness. 


"I really want to help other people’s lives in the best way I can and if I have the means to do so why not help someone else. I’ve been really fortunate in my life and I want others to feel the same thing when I wake up,” -Drew King


Due to his achievements and talents, Drew has gained many sponsorships over the years. I interviewed Drew about how he and his agent negotiated his contracts.


"When getting a sponsorship my agent and I set up what contests I go to and how much money I get per contest. I get paid based on where I place in the contest." 


Drew negotiates how many contests he will participate in, how much he gets paid for travel, and which contests he will participate in. With his latest contract, his sponsor LOST wanted him to participate in twelve contests this year. Drew only wanted to participate in the three biggest events that year. Through negotiation they worked towards a mutual benefit:


"It came down to the fact that there are so many contests a year. I'm a full time college student. I'm not going to participate in a small contest that won't give me enough exposure. I will even turn down some events that will pay me more, in exchange for ones that will give more media exposure." -Drew King

Drew agreed to surf at 5 events that year and only events that were hand picked by himself.

When he was negotiating with the shoe company DC, they wanted him to ride certain contests and relocate to California. Drew wanted to be able to stay in school and ride any contest he wanted. While DC was one of the biggest shoe sponsorships available, he knew that he had LOST and Rockstar in his back pocket, so he turned down their offer. The other sponsorship offers Drew had were his BATNA in the negotiation.

Instead of DC, Drew with with OSRIS for his shoe sponsor. They were willing to let him surf any event he wanted and we'rent pressuring him to relocate. Their offer gave Drew less money and exposure, but it gave him the autonomy he was looking for. Drew's sponsors also allow him to branch out and participate in any sport he wishes. Whether it be surfing, BMX, MX, rally cars, or skateboarding, Drew is always participating in something. He loves the freedom to participate in what he wants which is why he chose the sponsors he did.

In conclusion, I received an immense amount of insight from interviewing Drew. I learned first hand how negotiation and deal making is used in professional sports. When Drew is negotiating his deals with his sponsors he practices many of the tools we have talked about in our class discussions. 

http://www.lostenterprises.com/

http://www.dcshoes.com/

http://www.osirisshoes.com/

http://www.hercampus.com/school/umaine/campus-celebrity-drew-king

http://www.fatbmx.com/modules/news/article.php?storyid=8338

Success in the Night Club Industry

I have been working on a business plan for starting my own live entertainment venue. The location will serve as a full bar and host a variety of national musical acts. When working on this project I have discovered just how profitable this industry is. I discovered that the average drink at a bar is based off a 300% price mark-up, and according to the Distilled Spirits Council: "The distilled spirits industry generates around $100 billion in U.S. economic activity annually,"


According to Entrepreneur.com: "Successful new bars can be in the black within the first six months, and they can go on to recover their initial investment within three to five years."


However, like any new business, many bars fail. There are many reasons a nightclub can fail including, poor location, lack of capital to keep business going, and the owner having lack of knowledge about the business. Entrepreneur.com says that "you have to look at yourself in the mirror and decide if your the type of person who can run a bar."


Both of my grandfathers owned restaurants when I was growing up. Ever since us grandchildren could walk, we were busing tables, washing dishes, serving water, and greeting guests. This industry is in my blood. Another thing that will help is the fact that I am a night-owl. I am the most productive after midnight and have no problem working late hours. I am young, single, and don't plan on starting a family any time soon. This lends itself to being able to commit long and late hours to my business. 


I have been a musician my whole life. I have played live concerts and attended shows for the past 10 years. I know how to run a concert and I know what types of concerts are profitable. I feel that with this business I am combining my passion for nightlife, music, and money. After thinking hard and long, I believe that I am the type of person that can succeed in this industry. 

While my youth could be a huge advantage, it could also become a disadvantage. I am not nieve enough to think I know everything about the nightclub industry. When seeking an investor for my business, I plan to seek out someone who has succeeded in the hospitality industry, more specifically the restaurant or bar industry. They will not only be able to provide me with capital, but hopefully act as a business partner and mentor. 




http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article41460.html

Small Business Finance

When starting a new business financing is key. As a young entrepreneur, I lack much of the capital to start my own business. I have begun to research some of the ways to obtain start-up capital for a small business. The first step is to decide how much money your business requires. This can be done using multiple financial worksheets. During this phase you should determine the costs of: 


1. Administrative and General expenses (Salaries, benefits, taxes, rent, insurance, ect.)
2. Your gross and net income. 
3. Required startup capital.
4. Your assets. 


Almost 50% of new businesses fail due to lack of planning. If you plan your financials for the first few years of operation, you are more likely to get the startup capital you need and profit. When researching how to obtain startup capital for my business I came across a few different options. The first option is applying for a bank loan. A bank loan is entirely based on your credit, so as a young entrepreneur it can be tough to get approved for enough capital. I have decided that in addition to a bank loan, I will seek out further funding through capital investors such as the Winter Park Angels. 


From their website: "Winter Park Angels is a group of accredited investors who provide equity capital to early-stage entrepreneurial companies located in Florida. Our members are entrepreneurs and successful business leaders who have founded and built some of the nation's best companies. We have a burning desire to help others succeed. We accomplish this by mentoring and coaching those entrepreneurs in whose businesses we invest; we serve on their boards, provide contacts and assist with strategic planning." 


I discovered that the Angel's normally invest $25,000 to $250,000 individually, or up to $2 million as a group. They offer their capital seeking a return 10 times their investment. On they're site they offer online submission for business plans, however I will seek a one-on-one meeting for my proposal. Having the Winter Park Angels invest in my dreams will not only provide the capital I need for my startup, but it will also obtain a business partner. This relationship will help obtain further capital if needed and I will have a successful lender on my side. 

NETWORK NIGHT CLUB BSB BLOG 2

When looking to start a new business it is important to find your niche. Once you've realized what your going to do, who is going to use it, and how you are going to deliver it, you can beging to build a professional network. The main way to do this is by finding a trade or professional association based around your industry. 


I am looking into opening up a nightclub in downtown Orlando called NETWORK. I began to research possible suitors for a professional network. I stumbled upon the Florida Restaurant and Lodging association.

From their website:

"The Florida Restaurant & Lodging Association is among the most influential trade associations in Florida. The association was established in 1946 to represent the restaurant industry. Since that time, the scope of FRLA’s representation has expanded to include the entire hospitality industry including lodging establishments, restaurants and thousands of suppliers to the industry. The association counts among its members some of the largest businesses in each of these categories."

You can read the full article here

The organization has a division dealing with nightclubs, including those who don't serve food. From researching their site I discovered that the FRLA represents:

• A 57 Billion dollar industry.
• 20% of Florida's entire economy
• 3.4 Billion dollars in sales tax revenue
• More than 900,000 employees (Florida's Largest)

It goes on to say that members of the FRLA average 2-4 times higher profit margins than non-members. From those statistics it is easy to see why I would want to align myself with the FRLA Orlando chapter. Luckily they have a Join Now section of their website. It has a printable application that you can mail to their home office.

I Checked the Central Florida Chapter's site and found that:

"The Central Florida Chapter of the FRLA hosts a monthly networking dinner on the 2^nd Wednesday of each month. Registration opens at 6:30 p.m. with dinner starting at 7:30 p.m. The monthly dinners are an excellent networking opportunity to meet and greet the area’s top hospitality professionals. "

Once a member I will attend the monthly dinners to begin networking and building my professional circle. This will help me build my brand, team with successful venues, promote events, and meet possible business partners.

Business Storytelling with J.J. Abrams

I recently discovered the website for TED. TED is a conference where the biggest and brightest thinkers in Technology, Entertainment, and Design come together. They have their own opportunity to give an 18-minute presentation about anything they want to share. Many of the speakers use this time to tell the audience what is their main inspiration for success. They hope to share their stories and inspire others to explore, create, and believe. The main tagline for TED's brand is "Ideas Worth Spreading."

I took some time to watch some of the TED videos and got a great chance to listen to the message of some of the people who inspire me. The first video I watched was the presentation by J.J. Abrams. Abrams is a television and film producer, director, and writer. His claims to fame include LOST, Fringe, Cloverfield, Star Trek (2010), and Mission:Impossible 3.

Abrams was an amazing public speaker. He has mastered the art of storytelling and selling himself. He uses humor at the right times while also being sincere. This talent helps the audience connect with him and helps build trust. After the first few moments of the video I was hooked in. The main concept of his story was the "Mystery Box." He brought out a a big box with a question mark on it and shared the story of how he came to possess it. The box represents not only his grandfathers positive influence, but the power of mystery. Abrams is the modern-master of mystery and science-fiction. The box is a metaphor for how he creates content. He feels that what is witheld from the audience is more interesting that what is right in front of their faces.

As a long-time fan of Abrams and an amateur film maker, I was strongly inspired by watching his TED presentation. Abrams not only shares the same ideas as far as storytelling, but he displays the public speaking talents I wish to learn. He uses a free-flowing strategy in telling his story. He makes it seem like we are having a one-on-one conversation, even though he is giving a formal presentation.

When starting a business or trying to get a job, selling yourself is as important as selling your product. Abrams sold himself to the audience and showed us that he is genuine. By the end of the conference I felt like Abrams' goal was make films specifically for me. My hope is to someday be able to convey myself is the same manner as a businessman as Abrams. I hope that by telling my personal brand story, I will gain peoples trust and strong business relationships.

If you want to see the Abrams TED speech you can access it from clicking here.



http://www.ted.com/talks/lang/eng/j_j_abrams_mystery_box.html

http://www.imdb.com/name/nm0009190/bio