Venture Concept No. 1

Venture Concept Write Up Guide: Amico

Opportunity

The people who have the need for my app are mainly college students or young professionals in new cities who are looking to make new friends. However, this app could be used by literally anyone who is looking to make new connections with others in their area. Some of the forces in the environment creating this opportunity are that people are busier than ever, and also more reliant on technology. It seems harder than ever to meet new people in-person in daily life. Amico allows them to meet new people, and due to profiles, they know can tell if they have things in common or not. Currently, customers are satisfying this need by going to bars or large event and trying to strike up conversations with those around them. Some also use apps like Tinder to try to find friends instead of merely hookups. Some also use the BumbleBFF app, but it has yet to gain widespread popularity. This window of opportunity will not last much longer, as more apps like this are created. Eventually, one of them will gain enough momentum to dominate the market.

Innovation

            The app I am creating is called Amico, the Italian word for friend. It will allow users to find other people with similar interests in their area with the goal of creating new friendships. Users will create a simple profile that lists a few of their interests and a small paragraph about themselves with a picture. Users can view each other’s profiles, and if they mutually agree they’d like to meet, users can message back and forth. The app will make money through targeted advertisements. For instance, if both users list sports as an interest, a local sports bar ad could show. Not only does this ad provide a talking point for users, but it also allows advertisers to very specifically target their market. Advertisers will pay to advertise in the app, but the app would be free for users to download.

Venture Concept

            This app will solve the problem of trying to meet people in a fast-paced and technologically reliant world because users will be able to use the app on the go. The app will be designed with an easy to use interface. Customers will download the app because it will be free. Advertisers will want to buy ad space because of how well if will allow them to target their markets. It won’t be hard to get customers to switch because the app will be quite different than anything that is popular or prominent in the market. Competitors include Tinder and BubmbleBFF. The weakness of Tinder is that it is mainly used for hookups instead of making new friends. BumbleBFF has a similar weakness in that it is a subset of Bumble, a dating app. The interface and design of the logo will be very important. It needs to be appealing and easy to use so that customers will want to take the time to download and use it. The business would initially start out small with about 10-20 people to maintain the app and place advertisements in it.

Minor Elements

            My most important resource will be my connections to college campuses. Once something becomes popular and successful on one campus, it becomes easy to transfer the same model to other campuses and eventually larger cities.

            The next part of this venture will be expanding to large cities and focusing beyond the initial target groups of college students and young professionals.

            Within five years, I’d like for the app to be a household name. Additionally, I’d like to figure out a way to make the app as safe as possible for users, so that users can feel comfortable with any of the people they meet on the app. 

My Unfair Advantage

Knowledge of the target market- I have first-hand experience with both of the main target markets, college students and young professionals, which gives me insight into what they want from an app like this.

            Valuable- yes

            Rare- no

            Inimitable- no

            Non-substitutable- no

Connections to IT workers (for app development)- I have many friends who are currently working in coding or designing apps, which would be valuable when conducting app development.

            Valuable- yes

            Rare- no

            Inimitable- no

            Non-substitutable- no

Experience in marketing to millennials- my current job of director of campus operations for Study Edge gives me valuable experience in how an established company markets to millennials.

            Valuable- yes

            Rare- yes

            Inimitable- no

            Non-substitutable- yes

Organization- I am very organized, which allows me to juggle a wide range of responsibilities without compromising quality in them.

            Valuable- yes

            Rare- no

            Inimitable- no

            Non-substitutable- no

Time Management- This trait allows me to accomplish a long list of obligations in a short period of time.

            Valuable- yes

            Rare- no

            Inimitable- no

            Non-substitutable- no

Energetic- I am often energetic and positive, which allows those around me to associate energy and positivity with me, and therefore, my brand.

            Valuable- yes

            Rare- yes

            Inimitable- yes

            Non-substitutable- no

Knowledgeable about banking and financial statements- My past internship, as well as the business classes I have taken, have made me knowledgeable about things like how banks operate and how to read financial statements, which will give me an advantage when planning financials and applying for loans.

            Valuable- yes

            Rare- no

            Inimitable- no

            Non-substitutable- no

Approachable- I’m very easy to talk to and I tend to smile easily, which helps make other people more comfortable. I get asked for directions by strangers pretty often (even though I’m not very good at giving them) or to take pictures because I seem friendly and helpful. This will make it easier for employees to ask me questions without feeling intimidated or to form business relationships with others.

            Valuable- yes

            Rare-yes

            Inimitable- yes

            Non-substitutable- yes

Strong writing skills- Writing is naturally my stronger suit (as opposed to math) and I have a good amount of experience in writing business correspondence.

            Valuable- yes

            Rare- no

            Inimitable- no

            Non-substitutable- no

Connections to bankers- Due to my Mom working in banking, as well as my internship, I have many connections to those currently working in banking, which will give me an advantage when applying for loans or completing financial statements.

            Valuable- yes

            Rare- yes

            Inimitable- yes

            Non-substitutable- no

Conclusion:

My top resource is being approachable. This resource is extremely important when making new business relationships, either with those in other companies or with employees. It’s also something that’s hard to copy or imitate if you don’t naturally have it. 

Week 10 Reading Reflection

The biggest surprise for me in this reading was how many different items go into a balance sheet and how specific many of them are. After reading each of the terms I understand the need for how specific they are, but I never would have guessed this was how complicated it is to create a balance sheet.

One part of the reading that was confusing to me was the capital budgeting. I don’t really understand the reasoning behind the formula or why this isn’t include in the regular budget as its own category.

One question I would ask the author is, how do you know when you should get an accountant for your venture? Is it based on how large the venture is?

Another question I would ask the author is, how do you adjust the budget when something impactful and unexpected happens to the business?

I didn’t really think the author was wrong about anything. I don’t know very much about accounting, so I am just assuming what is written in the chapter is correct.

Elevator Pitch No. 3

Reflect: On my second elevator pitch, the feedback included that they enjoyed my confidence and that I seemed relaxed. More specifically, they liked my changed beginning and that I used a full range of motion when talking.

Change: I decided to change the ending this time, so that I could mention that app name again. After watching my previous video I realized I only said the name once, and therefore an investor could easily forget what the app was called. Repeating it at the end allows for a quick reminder of the name. Additionally I tried to use more action words and better descriptors. I also practiced a few more times before recording.

Week 9 Reading Reflection

The most surprising thing about the reading was “The Guerilla Marketing Plan” section. I had always thought of guerrilla marketing as just coming up with a clever and innovative way to market your product, but it was interesting to see how much thought and effort goes into coming up with an effective plan.

One part of the reading that was confusing to me was the pricing strategies section. They explained the concept of the sections well, but there should have been more examples so that I could relate the concept to a concrete product or service.

One question I would ask to the author is how do you know if your product is unique enough to use the skimming strategy instead of the penetration strategy?

Another question I would ask to the author is, since the consumer-driven philosophy is the most effective, why do so few companies adopt it? Is it due to price? Time?  The author didn’t really explain this.

Something I thought the author was wrong about was the 4 Cs concept. Although it’s something to think about, you can’t disregard the original 4 Ps strategy- it encompasses the things you need to think about when starting a business.

Idea Napkin No. 2

Idea Napkin

I am currently a junior undergraduate at the University of Florida. My experience includes interning at Cornerstone Community Bank where I learned how to interact with clients as well as conduct industry research. Currently, I am a Director of Campus Operations for Study Edge where I am learning how to effectively market a product to millennials, specifically college students, and how to effectively position a product and company against a competitor. If I were to start this business, it would have to come second to my education because that is the most important thing in my life right now.

The product I am offering to customers is called Amico, the Italian word for friend. It would work as a “Tinder for friends,” in which users can see other user profiles in their area to meet new people. Users can swipe up if they’d like to talk to the profile, or down if they would not like to. If both users swipe up, they will be “matched” and can message each other to see if they’d like to meet. This product will make money through advertising through targeted ads based on shared user interests. For instance, it both matched users have an interest in shopping, an ad for a local boutique could show. This would provide a talking point for the users as well as advertising for businesses. The app would be free to download for users. Eventually, the app could be designed so that users could also have the option to pay for an ad-free app experience. The app will try to ensure the safety of its customers by requiring those using the app to sign up through a Facebook account or using a .edu email address.

The main demographic for this app would be 18-35 year olds. The app would be geared towards both genders. College students and young professionals in large cities are the main target audience. Within college towns, out of state students will especially be targeted. Additionally, local sports teams could use the app to find new players, so local sports leagues will be targeted. All the customers have a desire to connect with new people in their area and form new friendships.

Although customers would not be paying to download the app, companies would pay to advertise their business. Users would find this app valuable because it allows them to meet new people outside of their social circle that they know have similar interests and are in their area. Businesses will appreciate the targeted approach of the advertising and therefore will pay to advertise on the app.

Something that sets this app apart is that there is no other well-known and popular app that allows users to meet others with similar interests in their own area without any prior connections (such as mutual friends on Facebook). Examples of interests could be sports teams, types of food, travel, adventurous activities like rock climbing or skydiving, or more relaxed options like going to the mall or seeing a movie.  

I believe these elements fit well together. This app represents a new way of meeting and making friends, which is perfect for the demographic I am targeting. I think this app will be difficult to get off of the ground initially, because it will have to be spread mainly through word of mouth, since I won’t have money to put into advertising it extensively without the help of investors. The weakest aspect of my business would be that I would not be able to devote very much time to the app until I have graduated from graduate school. Additionally, I have little knowledge of creating and maintaining apps, so I would need to employ a team to create the app as well as continuously fix any bugs or glitches that may occur.

Feedback Memo

One point that came up multiple times in the comments was the safety aspect. While it’s extremely difficult to verify every member on an app such as this without asking for sensitive and private information, I tried to cut down on fake profiles by adding that users will have to sign up through either a Facebook account or using an .edu email address. This won’t solve the problem completely, but will hopefully cut down on the amount of fake profiles and increase user safety.

Another point was whether this was targeted specifically towards women or not. While initially that was my intention, after looking at more feedback and thinking it over, I’ve decided it will be geared towards both genders, in order for it to appeal to as many customers as possible.

Another point commonly brought up was the appeal of this app for out of state students in college. I’m not sure how many advertisers would be allowed to promote their product to incoming freshman at university events, but this would definitely be a great audience to specifically target. I have included this in my target market paragraph.

One interesting point from a commenter was that the app could be used to recruit for sports teams on campus or for local teams. I hadn’t thought about this at all, but it would be very useful since it can be hard to find people who play and enjoy a specific sport. This also helped me in my choice to promote this app to both genders, since there are so many males who enjoy watching or playing sports.

Finally, I included young professionals, especially in big cities in my target market. Several commenters mentioned how an app like this would have been useful for themselves or friends moving to big cities, so I made it more of a point to mention this in my idea napkin.