Final Reflection

My elevator pitches were the most formative experience from this class.  I enjoyed getting to express my business idea aloud, seeing myself improve with each iteration, and polishing-up my public speaking skills.  I found that performing the pitch helped me become more passionate about my idea.  The "What's Your Secret Sauce" assignment was both the experience I'll remember years later and my most joyous experience.  It was initially uncomfortable asking my closest friends and family members to describe what makes me unique.  But after hearing what all of them had to say, it filled me with joy and made my heart very full because they had such thoughtful and nice things to say about me.  Recording it with my best friend was also really funny because he kept laughing and having to restart.  I'm most proud of myself for completing the assignment, "Growing Your Social Capital," because it was nerve-wracking to reach out to people I'd never meant via email and LinkedIn.  Though I didn't hear back from any of them, I was really proud of myself for summoning the courage to contact them.

I don't yet see myself as an entrepreneur, mainly because I have not yet put any resources into a venture that I sincerely want to pursue.  My venture for the class was an idea I had, but as I completed assignments and research, I decided that it wasn't an opportunity I'd actually want to pursue.  However, I definitely think that I've developed more of an entrepreneurial mindset.  I'm now constantly noticing unsolved problems in the world around me, and thinking of how to solve them.  Last month, my hair stylist was talking about how many clippers had broken when the cord catches and they fall off the table.  I immediately started thinking that maybe someone like me could design a shock-absorbing case to protect hair clippers.

I would recommend that any student taking this class in the future should get comfortable interviewing people and contacting people they don't know well.  To perform best in this course, I think they must set aside time to work on it every week, since the workload is consistent and substantial.  To foster this mindset, I recommend that they set a goal for how they want to perform in the class, and do their best each week to make sure it's still attainable.

I'm not sure what sort of photo I should use, so here is a picture of the Apollo IE "Golden Dragon," which I took at the 2020 Amelia Island Cars and Coffee.  This event was the last fun thing I got to do before everything got cancelled, and it was an awesome day.

Venture Concept Number 2

For those who do not own a luxury vehicle, their car seats may provide inadequate comfort on long journeys.  Indeed, the people I interviewed who did not own a luxury car almost all affirmed my belief that this opportunity exists.  Since the majority of road users do not own luxury vehicles that offer more comfort on long drives, I think that the size of the potential market is large.  The only question is, out of all the people whose vehicles lack comfort, how many of them are dissatisfied enough to seek out a solution to the problem?  Out of the customers I interviewed, many of them did say they would be interested in my product, but none of them were currently using a competitor’s product to solve the problem.  With this in mind, I think my opportunity is medium-sized; I would not call it big or small.  My potential market consists of middle-class Americans throughout the country who travel long distances regularly and own a non-luxurious vehicle.  This opportunity has been around for a long time, and the “window of opportunity” likely won’t be closing within the next ten years.  Eventually though, if car ownership declines and autonomous ride-sharing services become popular, the size of my market would decline, so I would want to exploit the opportunity before then.  People who are currently satisfying this need are using cushions and padded seat covers to improve comfort, and unless their current solution breaks or they get a new car, I don’t think they would be likely to replace it with my product.

            My padded seat covers that I am offering to solve this problem are incrementally innovative.  There are plenty of padded cushions and seat covers on the market already, but the majority of them are not very good-looking.  My padded seat covers will be designed to look as great as they feel and offer a level of customizability unmatched by competitors.  Each seat cover will have its bottom stuffed with plush memory foam to provide the extra comfort and support needed to make long trips enjoyable.  Customers can choose one or two different materials for the outer layer, and options include vegan imitation leather, durable cloth, alcantara, and premium full-grain leather.  Customers can choose from four standard colors which are saddle brown, black, grey, and white.  At an added cost, customers can choose a premium or custom color, specify contrast stitching, choose stitching patterns, or select bi-color layouts for their seat covers.  The seat covers are sold for a vehicle’s two front seats as standard, but the back seats can also be done for an additional cost, which varies depending on the amount and size of back seats to cover.  Each customer submits their vehicle’s make, model, and year so that we can obtain the correct dimensions to make their seat covers fit the vehicle.  The standard price of two front-seat covers is $100 for either imitation leather or cloth material.  Choosing alcantara adds $40, and premium full-grain leather adds $400.  Having a combination of alcantara and full-grain leather is $300 extra, while a combination of alcantara and imitation leather is $30 extra, and a combination of imitation leather and cloth adds no extra cost.  Choosing a premium color adds $20, a custom color adds $50, and choosing a two-color layout adds $50.  A stitching pattern adds $25-$150 depending on its complexity while getting the stitching in a contrasting color adds $25.

            People will buy this product because it is priced competitively relative to other premium padded seat covers on the market, but it offers a level of personalization that my competitors do not.  In America especially, many individuals crave the ability to be unique and express themselves, hence why products like custom t-shirts and phone cases have enjoyed so much success.  I think it will be hard to get people who already have padded seat covers to switch to my product, as long as they are satisfied with the ones they own.  I would mainly focus my marketing efforts on getting people who don’t already have padded seat covers to buy mine since they are high-quality, comfortable, stylish, and customizable.  My primary competitor is Rixxu, who also makes very nice-looking, high quality, padded seat covers.  Their weaknesses include poor installation instructions, lack of social media presence, and the use of “universal fit,” which means that for some cars, the covers do not fit well.  Packaging, distribution, and business location will play a minor role because my business will sell all my products online.  My price point is very important because it keeps my business competitive with rivals.  Customer support and customer experience are vital and will be my venture’s “secret sauce,” along with the customizability that I am offering.    I noticed reviews of competitors complain about the lack of post-purchase support.  Each customer will have access to live chat where a real person can rapidly respond to their concerns.  Additionally, customers will receive email notifications regarding the status of their order, including photos of their covers once they are produced.  Customers will also be able to interact directly with the company via our social media pages.  Another big advantage that I have, compared to other startups, is that I have a very good relationship with my former boss, Peter, who is a very successful entrepreneur.  He's very good and growing businesses as well as buying, selling, and merging them.  His guidance and support would be extremely helpful to successfully launching and growing my business.  Once my company has grown, I would probably have around 50-100 employees including accountants, human resources, customer service, equipment operators, operations managers, stockers, quality control, designers, information technology, marketing, and salespeople.  The next thing for my venture would be to produce other custom interior components, like steering wheels, carpets, floor mats, and headliners.  After launching successfully, I would like to have grown this venture to the point where I am profiting at least $200K per year and selling nationwide after 5 years.  It would be nice to eventually sell the company for at least $10 million, and then I would like to invest that money and live off some of that passive income while working a fun job like being an instructor at the Porsche Experience Center.  I would like to make my first million within the next ten years, and if this venture is successful, it could help me achieve that.

2) The feedback from my first venture concept emphasized the importance of pricing my product right.  They said that my estimates look good, but if I use more of my resources from my previous assignment (My Venture's Unfair Advantage), then I could make even more.  They also liked that I had goals and that they seemed realistic.  From my What's Next assignment, the feedback I got was very positive.  They liked that I had goals for the future, and they thought it could be very successful if my first product succeeds and my company continues to grow.  They also thought that good companies would invest with me because of the problems my product solves.

3) The main thing I changed from my first venture concept is that I placed greater emphasis on my Venture's Unfair Advantage.  The feedback on my post referred to that assignment, and I realized that I should have emphasized my unfair advantage as part of my "secret sauce" in my venture concept.  So in my final paragraph, I added my relationship with my former boss as part of what gives my company a competitive advantage, and I explained how it'll help me succeed.  I also just re-read the whole thing and changed the wording of a few sentences to make it nicer to read.

Here is a picture of a nice set of padded seat covers made by Rixxu, my primary competitor.

My Exit Strategy

The exit strategy that I would like to use is selling my business for a large return after 5-10 years of profitable operation and growth.  I would like to get at least $10 million for my business, which I would then invest in a restaurant franchise, collector cars, and real estate so I have enough passive income to support the lifestyle that I want.

The reason that I chose this exit strategy is that the primary goal for my career and business ventures is to be able to afford the lifestyle I want as quickly as possible.  This is because I want to be able to travel and drive exotic cars before I get too old to enjoy it as much as I can.  Also, I anticipate that vehicle ownership will become less common in the future, which results in a shrinking market for my product.  Therefore, I would like to sell the company before autonomous, ride-sharing services begin to take precedence over owning your own vehicle.

This exit strategy has influenced the growth strategy for my venture.  I intend to grow brand and product awareness rapidly by using social media influencers to promote my product.  Each influencer will offer their followers a promotional code which will encourage those interested in my product to buy it.  By growing my venture quickly, I can hopefully make my company valuable and attractive enough to sell it when I want for the price that I want.

Celebrating Failure

One time that I failed this semester was when I went skiing over spring break.  I went to Jackson Hole with my best friend, Bryce, and his family, and it was my first time skiing.  I was excited but definitely a bit nervous since it's apparently one of the most advanced ski resorts in America.  I started with a full day of lessons, which went well for the most part, but I couldn't turn sharply or hockey-stop (which is when you quickly rotate your ski's 90 degrees to slow down rapidly).  Even at the end of my six-hour lesson, I still struggled with these aspects, which meant that I wasn't ready to tackle any blue runs or even the steeper green runs.  It also meant that I couldn't allow myself to get going too fast because I lacked high-speed control, which was frustrating because I wanted to keep up with Bryce who is very good at skiing.  Thankfully though, he helped me work on my technique for the entire second day of skiing.  There were times where I didn't feel like I was improving, or I would do a decent hockey-stop but then I could not replicate it.  We practiced on Eagle's Rest, which is one of the steeper green runs where I fell many times and even plowed into a snowdrift at one point.  But slowly I improved and became more confident.  By the end of that day, I felt much more confident and was able to tackle my first blue run on the third day, and by the fourth day, I was shredding and having the best time of my life!

This experience taught me that when trying something new or learning a new skill, you're almost destined to fail at it many times before you become competent enough to actually enjoy it.  If you stick with it, keep practicing, and stay positive, however, the feeling of finally succeeding is immensely rewarding.  I am very proud of how I learned to ski well despite the difficulties I encountered, and it allowed me to enjoy the best experience of my life so far.

Failure is definitely hard, and after falling in the snow many times, much to Bryce's amusement, it can be quite embarrassing too.  Most of all though, I think that failure is scary.  I am scared to fail exams, I was scared to fail at my first internship, and I was scared to fail on my first blue run.  The fear of failure for me comes from the consequences I imagine in my head, and I often envision the worst-case scenario.  For instance, on my first blue run, I was afraid of running into someone and hurting us both if I still wasn't good enough to stay under control.  To try and handle failure, I have been trying to get myself to focus on the potential rewards, rather than the consequences, of taking a risk or facing a challenge head-on.  This class has made failure less frightening to me, and I am more likely to take a risk now than a few months ago.

What's Next?

Provided my padded custom seat covers are successful, I would like to expand my company's offerings to include other interior components.  I'd like to offer customizable steering wheels that can be upholstered and styled with options much like those I offer for the seat covers.  I would also like to offer customizable carpeting and headlining made from quality materials.

Since the interview requirement is suspended for this assignment, I would simply like to discuss my ideas for the future of my company further.  Offering new interior components is a great way to grow in my existing market.  Many of my existing customers would likely be interested in the new products I am offering.  This is especially true for those who chose to customize their seat covers, as many of them are probably interested in further customizing their car's interior.  One possibility is that instead of investing in the knowledge, staff, and equipment to make the new products myself, my company could merge with an existing one, like Carbontastic, which makes beautiful custom steering wheels.

The new market that I could target would be people who need durable, functional seat covers in vehicles like semi-trucks, tractors, and taxis.  This market consists of both consumers and other businesses.  I think that by offering a utility-focused product line - basic designs in gray or black with no excess frills and durable cloth construction - I could appeal to users in this market.  This is because the people in these markets would likely want a low-priced seat cover that can withstand frequent, heavy use.

The users in this market are more likely to need a seat cover due to the original seat being damaged/torn by how much use it sees.  This means that my product becomes appealing not just because it offers superior comfort, but also because it protects the seat beneath from further damage.  At the same time, these customers are not interested in the aesthetic appeal of my product, so I adapted the form of my product to sacrifice aesthetics for low-cost and durability.  This market is attractive because it has the potential to sell to a business, like a taxi company, which will make larger purchases and would buy more seat covers over time.  The individuals in this market also feel the need for my product stronger because covering a deteriorating seat is a more compelling need than making a normal seat more attractive.  One thing that makes this market less attractive is that the basic seat covers sold to these customers will have lower margins than customized seat covers sold to my existing market.

Venture Concept Number One - Elite Seats

            For anyone who does not own a luxury vehicle, the seats in their cars may provide inadequate comfort on long journeys.  Indeed, the people I interviewed who did not own a luxury car almost all affirmed my belief that this opportunity exists.  Since the majority of road users do not own luxury vehicles that offer more comfort on long drives, I think that the size of the potential market is large.  The only question is, out of all the people whose vehicles lack comfort, how many of them are dissatisfied enough to seek out a solution to the problem?  Out of the customers I interviewed, many of them did say they would be interested in my product, but none of them were currently using a competitor’s product to solve the problem.  With this in mind, I think my opportunity is medium-sized; I would not call it big or small.  My potential market consists of middle-class Americans throughout the country who travel long distances regularly and own a non-luxurious vehicle.  This opportunity has been around for a long time, and the “window of opportunity” likely won’t be closing within the next ten years.  Eventually though, if car ownership declines and autonomous ride-sharing services become popular, the size of my market would decline, so I would want to exploit the opportunity before then.  People who are currently satisfying this need are using cushions and padded seat covers to improve comfort, and unless their current solution breaks or they get a new car, I don’t think they would be likely to replace it with my product.

            My padded seat covers that I am offering to solve this problem are incrementally innovative.  There are plenty of padded cushions and seat covers on the market already, but the majority of them are not very good-looking.  My padded seat covers will be designed to look as great as they feel and offer a level of customizability unmatched by competitors.  Each seat cover will have its bottom stuffed with plush memory foam to provide the extra comfort and support needed to make long trips enjoyable.  Customers can choose one or two different materials for the outer layer, and options include vegan imitation leather, durable cloth, alcantara, and premium full-grain leather.  Customers can choose from four standard colors which are saddle brown, black, grey, and white.  At an added cost, customers can choose a premium or custom color, specify contrast stitching, choose stitching patterns, or select bicolor layouts for their seat covers.  The seat covers are sold for a vehicle’s two front seats as standard, but the back seats can also be done for an additional cost, which varies depending on the amount and size of back seats to cover.  Each customer submits their vehicle’s make, model, and year so that we can obtain the correct dimensions to make their seat covers fit the vehicle.  The standard price of two front-seat covers is $100 for either imitation leather or cloth material.  Choosing alcantara adds $40, and premium full-grain leather adds $400.  Having a combination of alcantara and full-grain leather is $300 extra, while a combination of alcantara and imitation leather is $30 extra, and a combination of imitation leather and cloth adds no extra cost.  Choosing a premium color adds $20, a custom color adds $50, and choosing a two-color layout adds $50.  A stitching pattern adds $25-$150 depending on its complexity and getting the stitching in a contrasting color adds $25.

            People will buy this product because it is priced competitively relative to other premium padded seat covers on the market, but it offers a level of personalization that my competitors do not.  In America especially, many individuals crave the ability to be unique and express themselves, hence why products like custom t-shirts and phone cases have enjoyed so much success.  I think it will be hard to get people who already have padded seat covers to switch to my product, as long as they are satisfied with the ones they own.  I would mainly focus my marketing efforts on getting people who don’t already have padded seat covers to buy mine since they are high-quality, comfortable, stylish, and customizable.  My primary competitor is Rixxu, who also makes very nice-looking, high quality, padded seat covers.  Their weaknesses include poor installation instructions, lack of social media presence, and the use of “universal fit,” which means that for some cars, the covers do not fit well.  Packaging, distribution, and business location will play a minor role.  My price point is very important because it keeps my business competitive with rivals.  Customer support and customer experience are vital and will be my venture’s “secret sauce,” along with the customizability that I am offering.  I noticed reviews of competitors complain about the lack of post-purchase support.  Each customer will have access to live chat where a real person can rapidly respond to their concerns.  Additionally, customers will receive email notifications regarding the status of their order, including photos of their covers once they are produced.  Customers will also be able to interact directly with the company via our social media pages.  Once my company has grown, I would probably have around 50-100 employees including accountants, human resources, customer service, equipment operators, operations managers, stockers, quality control, designers, information technology, marketing, and salespeople.  The next thing for my venture would be to produce other custom interior components, like steering wheels, carpets, and headliners.  After launching successfully, I would like to have grown this venture to the point where I am making at least $200K per year and selling nationwide after 5 years.  It would be nice to eventually sell the company for at least $10 million, and then I would like to invest that money and live off some of that passive income while working a fun job like being an instructor at the Porsche Experience Center.  I would like to make my first million within the next ten years, and if this venture is successful, it could help me achieve that.

My Venture's Unfair Advantage

1. I have in-depth knowledge of automobiles and their interior design.
- This resource is valuable in that it allows me and my designers to create seat covers that complement current and future trends in automotive interior design.  It is rare to have the depth of knowledge that I have, but it is not inimitable.  I do not believe there is a substitute for having this knowledge.

2. I have a very good relationship with my former boss, Peter, who is a very successful entrepreneur and executive.  He could help me start and grow my business.
- This resource is extremely valuable because he can help me avoid the mistakes that some people make when starting a new business, and he can help with the legal aspects of establishing the company.  I think it is rare to have someone as successful and knowledgable as he is to help your startup, especially when he wouldn't charge me for his assistance.  It is difficult to copy for competitors, just because mentorship is typically expensive, but it's not inimitable.  It is substitutable because established competitors have already started and grown their business.

3. I'm aware of many influencers in the automotive world who I can contact to promote my product.
- This is valuable knowledge because having someone like a popular YouTuber promote your product is a great way to generate awareness.  Offering viewers a discount with the promotion can also help boost sales from the promotion.  This resource is not rare or inimitable.  It is substitutable because there are other ways to promote a product.

4. I am savvy with social media, and would not necessarily need outside assistance to develop and grow my brand's social media presence.
- This is valuable because it will save me money on the costs of launching my business and running it early on.  As the company grows, I would eventually delegate this responsibility.  It is not rare or inimitable because there are many people who are good with social media, especially those who have grown up with it like I have.  It is non-substitutable because social media plays a key role in running a business and engaging customers in the modern world.

5. I am an empathetic person who can easily put themselves in the customer's shoes to understand what they desire and expect from a product.
- This resource is valuable because understanding the customer enhances your ability to satisfy their needs.  It's not especially rare, because a lot of people are empathetic (although I wouldn't say that the majority of people are).  It is inimitable for people who are not empathetic; it's one of those traits where you either have it or you don't.  It is substitutable because conducting enough customer research can also allow you to understand what customers want and expect from your product.

6. My company would prioritize outstanding customer service.  Any complaints would be handled promptly and would not be closed until the customer is satisfied.
- This is very valuable because providing excellent customer service gives your organization positive word-of-mouth and allows you to create longstanding relationships where customers make repeat purchases.  This resource is somewhat rare because many companies give poor customer service and neglect to adequately resolve customer complaints in a prompt manner.  It is not inimitable, but it is non-substitutable because customer service is a key aspect of running any business.

7. My company would manufacture and ship directly to customers from one location via FedEx, saving money from having a middleman or using multiple distribution centers.
- This is valuable because it saves my organization money.  It is not rare, inimitable, or non-substituable, because there are effective alternative methods to distribute goods to customers.

8. The organizational culture that I intend to create would make every employee feel like a valued part of the company.  At the end of each month, every employee would have the opportunity to submit 1-3 suggestions directly to me to improve the business, and I will select at least one to implement.  Every week I would send a memo to all employees detailing how the company is performing, what our goals are, how we will achieve them, the goals we have achieved since the previous memo, and I would also like to recognize at least one outstanding employee.  Consistently outstanding employees would receive awesome gifts at the end of the year, like a vacation cruise, a high-end watch, or an exotic car driving experience.
- This resource is extremely valuable because retaining employees saves money on training new ones and allows you to have a more experienced and proficient team.  It is somewhat rare because many companies do not create an atmosphere where all employees feel valued and appreciated.  It is not really inimitable, but it is difficult to imitate because it requires inside knowledge of how my business is run.  I think it is non-substitutable because a positive work environment adds value to a job that can't be replaced by higher pay or other benefits.

9. I am a very hard-working person who is driven to succeed; once I decide to pursue something I do not give up until I've done everything I can to make it work.
- This is valuable because launching a business requires a lot of hard work and commitment over a long period of time, and you won't succeed if you are lazy.  It's not rare because my competitors also have this.  It is inimitable if you don't possess it, like empathy, and it is also non-substitutable.

10. My conflict resolution skills will help me ensure that internal relations between employees are kept civil, and any conflicts that do arise are dealt with quickly and effectively to keep things running smoothly.
- This is valuable because maintaining a civil work environment helps a business run more smoothly, and it will be most important in the early days of my business when conditions are less stable and change rapidly.  It is not rare or inimitable, as plenty of competitors will have dedicated human resource employees to mitigate conflicts.  It is non-substitutable, as there is no way to resolve a conflict without having people communicate about the issues.

My top resource is my relationship with my former boss, Peter, and therefore it is my venture's unfair advantage.  It is the most important because his mentorship is what would allow my business to start off strong and avoid many of the pitfalls that startups can run into.  If he sees enough promise in the company, he could also serve as a source of investment as he has done very well in his career of starting several companies, serving on multiple corporate boards, and orchestrating numerous mergers and acquisitions.  With his guidance, my business would have a much better chance of becoming profitable and competing with established competitors.

Reading Reflection Number Two

1. The general theme of this book is that success requires perseverance through failure after failure, as well as learning from those failures and improving yourself by focusing on the realistic changes you can make day-by-day to increase your odds of success.

2. I think that this book really connected with the entrepreneurial mindset that we learned about early in the course.  Scott's story of doing many different jobs before finally succeeding as a comic artist reminds me of the story of Colonel Sanders from the beginning of the semester.  I also think his advice on interacting with people, like when he talks about the power of giving honest praise, enhances what I learned about managing the employees in your startup and creating an attractive organizational culture.

3. The exercise I'd design would focus on helping students think about implementing systems instead of just having goals.  The exercise would be conducted early in the semester, and it would involve choosing one goal for your business idea, and a second goal that is something you wish to achieve personally in your life.  For each goal, write down at least one system that can be implemented on a daily basis to move you towards that goal.  Each student will implement the system they developed for their personal goal throughout the rest of the semester, and at the end of the semester, they will reflect on how that system moved them closer to their goal, as well as how it improved their state of being.

4. My biggest "aha" moment was when Scott Adams talks about how having systems is superior to having goals.  He says that doing something every day is a system while waiting to achieve something in the future is a goal.  I've always been told about the benefits of being goal-oriented, but after reading what Adams wrote, I realize that having a goal without using one or more systems to achieve it is useless and will ultimately lead to frustration.  One great example that he gave is that running a marathon in under 4 hours is a goal, but exercising daily is a system.  This has inspired me to start creating and implementing systems to achieve the goals that I have for myself.