Venture Concept No.1

Opportunity 

A business without a sign is a sign of no business. Every business needs signage of one form or another. All existing businesses are potential customers.

Businesses need signage and the options to satisfy that need certainly aren't few in number. There are two other sign shops less than a quarter mile away from the shop I currently work at and at least six or seven in a five mile radius. Online options have sprung up in the past decade as well to help meet these needs. The problem arises out the duality in this industry: Want it cheap? Get it online. Want it done right? Get it from a local shop. Now of course this doesn't always hold true as there are plenty of brick and mortar shops that cut corners, but in the majority of cases this is what can be expected.

Most web-based sign offerings I have seen so far have been produced using cheap substrates and the print is hard to read and overall ineffective at it's intended use. Most of these companies allow little flexibility in the layout of the sign; they provide a set of templates with a choice of a few fonts and colors, then allow you to upload a small .jpeg and off you go. Going to a local sign shop is of course a viable alternative and in most cases a step up on the quality ladder, however most business persons tend to be very busy running their respective businesses. Few have time to take out of the working day to go to a shop and sit with someone and hash out the details for their signage. In my experience signage is a low ranking concern for most business people, usually not thought of at all until it is needed.

In summary, this is my customer:

• Business person of almost any type in any industry. Near universal demand for signage
• Understands that quality is more important than price when it comes to promoting their business, yet still value conscious.
• Has little time to deal with this unmet need, requires a user friendly system to place orders and make revisions

 Innovation

 To meet the above needs my business is formed around the simple idea that with today's technological and logistic infrastructure, a quality sign can be produced and sold at a fair price to a customer any where in the country. Our website will be our storefront and will be designed around ease of used and especially ease of communication with the designer. It will feature a locally hosted file server to allow both the client to provide artwork files without any size limitation and to view high quality layouts without the worry of errors in transmission over fax or email. Once the customer has approved their layout with an electronic signature the production process will begin immediately.

Venture Concept

By matching a simple and easy to use web interface with a production process focused on efficiency with out sacrificing quality we will be able to meet the needs of our customer. Our customers will come to us for their signage solutions because we provide the middle way, quality and convenience. Our competition is numerous, and fall into the two categories named above: Web based discount signage and local store fronts. The web based discount signage provider's primary weakness is their quality. You get what you pay for and most business owners I have met are wiling to pay for more than what they receive from these vendors. For the local store front the weakness is fundamental to their nature: they are immobile and inflexible, and often inconvenient.

Distribution and customer service are our primary concerns and vital to our success. Shipping costs for signage can be quite high simply because they are so oddly shaped. A normal package is relatively uniform, a sign on the other hand is usually two dimensional and can be quite large. To offset this we must negotiate reasonable rates with a preferred vendor to enable us to ship at a reasonable cost to the customer, otherwise our main selling point of convenience is overshadowed.

To make this business work most efficiently we would need at minimum three designers, and six production workers. This staff would be divided into three 8-hour shifts; a designer too handle both their own work as well as make any needed changes to the artwork during production, and two production workers to run the machines and assemble the product. With three shifts we will be able to run production around the clock which will enable the product to be finished and shipped as efficiently as possible.With appropriate investment in equipment such as flatbed printers, routers, plotters, and laminators we would be able to produce a wide variety of signage. The lack of overhead from a storefront we will be able to keep our prices down without needing to skimp on material.

Secret Sauce and the Future

My secret sauce is my understanding of this industry while also not having come into it by normal means. I had no interest in signage or graphic design before I took my current job. I took it because I was out of work. Being always somewhat of an outsider has allowed me to see things from a different perspective.

I would like to expand my venture into monumental signage. These sort of large and complicated projects have always interested me in my current job but I rarely have the opportunity to participate. I could incorporate this type of work into my current production process with an additional investment in equipment. I can wholesale the finished components to a local sign shop for final assembly and installation, allowing a healthy profit for the both of us.

 Should my business be blessed with success I would hope to use it as a springboard to pursue my longtime goals of operating my own flight school. In five years I hope to have established the business to a degree that it becomes a go-to for signage and I am able to grow and expand. In ten years I hope to be able to leave the day to day operations to an experienced manager while I am able to pursue other projects.

Week 11 Reading Reflection

What I found most interesting in this weeks reading was the section about Corning. I was not aware that any companies still followed the centralized research lab set up that was so common a half century or more ago.  It appears that success can still be had with this type of innovation strategy.
The section I found confusing was on Routine Innovation. And for the questions that I would have for the author would be at what point of change would an innovation be disruptive or radical instead of  simply routine? Also due to the high cost of innovation in general, would it be a good trade off to try and tackle a radical innovation as the market leader?
There is nothing that i disagreed with in this article, it was well written and gave me further insight into the efforts companies must put into growth in improvement to stay alive.

The Amazon Whisperer

The main revenue driver I have for my business is signage, as that is the product I am selling and the only way I can make money. This can be broken down among customer segments. As I see it I will be offering services on a B2C, B2B, and Wholesale level. This third revenue driver will be the focus on "Whats Next" for me.

This new service will allow me to enter a new segment of the sign market in the form of monumental signage. While my current experience as well as the current plans for my business primarily focus on the "Vinyl on a Rectangle" type of signage, I want to expand into the market for large, permanent signage. Entry into this market will allow sign shops around the country, similar to the one I currently work at, to sub-out the manufacture of these larger more complicated signs and ship the ready to install components to the company for an on-site install. This benefits both my self and my customer, regulations regarding sign installations vary from county to county and getting the required permitting is better left to the local shop doing the install. In exchange for not having to deal with this headache I am able to supply the components of a finished monument sign to the customer at a wholesale price, allowing both of us to make a good profit.

Amazon.com does not offer any sort of monument signage, nor would I expect them too. Instead I found a product relating to the services I intend to offer from the start:

http://www.amazon.com/Custom-Magnetic-Signs--Quality-Magnets/dp/B00ATH42DA/ref=sr_1_7?ie=UTF8&qid=1459096054&sr=8-7&keywords=magnetic+sign

This is a pair of 12"x24" vehicle magnetic offered for $39.99. The listing makes no mention of the thickness of the mag material nor of the process used to apply the copy (Cut vinyl, digital print, thermal print, etc.) so I cannot comment on the quality. This product has three reviews, all of them five stars. The listing for the product give a choice of sixteen colors and ten fonts. This is the primary thing I would change as I will not limit my customers in such a way. I have found that allowing a designer to use their creativity in addition to suggestions from the customer leads to the best signage. This product can be aligned to my business as it is very similar to what I will be offering but with the changes mentioned above.

My Venture's Unfair Advantage

3+ years experience in this field.

• Experience is the most valuable resource there is, in my opinion. It's value is high as it cannot be bought, only earned. It is not necessarily rare as there are plenty of sign shops and signage workers out there who have been around longer than I have. It can be imitated but only after three years. It cannot be substituted.

Technical knowledge of how to operate the necessary equipment.

• Technical skills have value no matter what industry you are in. It is somewhat rare I would say due to it being a specialized skill set that has no calling outside of this industry. It is difficult to imitate as the day to day skills needed to operate and troubleshoot the machines can't be learned from the manual (Mostly because it is written in VERY poorly translated English.) It can be substituted if someone has experience running different yet similar equipment and can adapt.

Technical knowledge of design work (What actually works on a sign, what doesn't)

• High value as it is something that will make or break a sign (not physically of course). It is rare as most people do not see the finer details that really tie a sign together. It is not difficult to imitate at my own skill level as I will freely admit I am not the greatest designer in the world. 

Experience with clients, knowing what they need.

• Understanding the customer's needs is very valuable especially when it leads to an up-sell. It is somewhat rare as it takes time and experience. It is difficult to imitate for the same reason as it is rare. There are no substitutions for this skill as without it you are relying entirely on the customers judgement, and when it comes to signage the customer is usually wrong simply due to ignorance.

Human Capital, a network of suppliers established in the industry who have been dealing with me for years.

• High value, having a relationship with all of the cogs that make the machine move is very beneficial, especially at start up. It is not rare as many people have good relationships with their suppliers. It can be imitated with enough time and money spent with a supplier. It can be substituted as all the suppliers I have networked with are more than happy to take on new business, but the sort of technical expertise I rely on them for would be hard to substitute with out the relationship we have.

Approximately $1000 to my name. (Will need financing)

• Its value is approximately $1000. This is only rare due to the fact that most people have more to their name. It can be easily imitated by working full time for low pay and having an apartment and utilities to pay for. It can be easily substituted for more money.

Extensive personal drive to be financially independent and to make my own way.

•  I consider this resource to have a high value because it is one of the main factors that sets entrepreneurs apart from the rest. It is a rare resource as most people I know are more than happy to draw a wage for the rest of their lives. It cannot be imitated because you either have this drive or you do not. It cannot be substituted because if independence isn't your motivation it is unlikely you will be able to see the enormous challenge of entrepreneurship through since drawing a wage is a lot less stressful in most circumstances.

Both of my parents were entrepreneurs at one point or another.

• I would say this is a valuable resource as it allowed me to grow up seeing the process of running a small business from the inside. It is rare because I don't know many other people with divorced parents who ran separate, independent businesses. This resource can't really be imitated as it's a situation you have to be born into. It can be substituted through other entrepreneurial experiences like internships, but even then it is doubtful to achieve the same level of immersion as a child growing up in this type of environment.

Extensive history of getting the needed results without adequate resources.

• Resourcefulness is very valuable, it has saved my bacon on many occasions. I don't think it is a rare trait although many people do not have it. It cannot be imitated as it requires thinking outside of the box, and some people are simply incapable of doing that. It can be substituted by always having the right tools and equipment for the job, but where is the fun in that?

Experience in web design and networking

• This is a valuable resource because my business is web based, and being able to do at least some of the work myself will save money. It is not a rare skill as most of my generation has at least some experience with computers. It can be imitated with a few courses in these subjects and some time spent practicing. It can be substituted by outsorcing the IT work to an appropriate firm, but that requires extra capital.

I would say the most important resource at my disposal is my experience. As I said before, experience cannot be bought, only earned. I suppose anyone could read up on the sign industry, buy themselves a printer and a plotter and go to town, but I doubt they will be successful. This industry, like any industry, requires experience to understand the ins and outs. You cannot afford to make rookie mistakes when you are running your own business.

Week 10 Reading Reflection

I can comfortably  that nothing surprised me in this chapter. I have taken both semesters of accounting as well as other managerial and entrepreneurship courses and all of the topics of this chapter have come up before.
Like the above I didn't find anything to be confusing in this week's chapter. All of this information about financial statements and so forth have been presented to me before. That being said I did have difficulty understanding the section on questionable costs but after rereading it I have a better understanding.
Two questions I would ask of the author would include: "In initial startup would it be abvisable to prepare statements yourself to save costs?" And "What is an acceptable ammount of time to plan for break even?"
There was nothing I disagreed with that the author started in this chapter as all of it was objective fact about the financial statements and processes .

Growing my social capital

For this exercise I contacted three people that I have had previously spoken to but only in a strictly professional context. What I mean by this is my communication with them in the past has been strictly to order supplies, schedule an install or some other type of day to day business operation. I have never used any of these three in an assignment before.

1. The first person I made contact with is the owner and proprietor of a company that largely focuses on manufacturing and installing electric signage.  I consider him to be my domain expert as he has been in business in this area for over 30 years. I contacted him via phone on my lunch break at work. Our conversation was brief as I didn't want to take up too much of his time. I explained the purpose of my call was to network for a school related business project. The favor he did for me was to open him self to advice should I need it. Having such an experienced person in my network I think will provide a great asset.
2. The second person I contacted is someone who has run an engraving shop in my town for over 20 years. For the purpose of this assignment I would say she fills the role of market expert. The markets that we are both in aren't exactly the same but there is a lot of overlap, which is why I was able to make contact in the first place. I spoke with her when I went to pick up an order for engraved name plates that we had subbed out to them. Our conversation lasted a few minutes as I explained my project. I know she will be a valued asset in my network as from my conversation she knows a lot about our semi-shared market.
3. The third individual I connected with is a valued supplier of ours. He is the manager of the local branch of a national signage supply company. Like my previous two contacts he has extensive experience in this industry as both a supplier and as a sign manufacturer himself. Of all three I would say he is perhaps the most valued contact in my network as his experience is very much focused in the same market as mine. I communicated with him via telephone on my lunch break and explained my project. He was interested in the online aspect of my business because the supplier he works for is trying to put much more focus on the web based aspect of their company as well. 

I would say this was a valuable experience overall as it allowed me to form a closer relationship with people that I deal with on a somewhat regular basis. Understanding their own talents and experiences has allowed me to consider them to be more than just people I have to talk to do my current job, they are now people I can comfortably consider to be assets should I persue my business idea. 

Elevator Pitch No. 3

The feed back I received on my last elevator pitch was largely positive. The main point of criticism I found was that I did not differentiate my self from the many other sign companies out there. I tried to rectify that in this version of the pitch. The point I try to get across is that the examples that I have seen of products offered by online sign shops are something I would never let out of my shop. I don't believe quality has to be sacrificed in the name of price and convenience. I felt much more comfortable in this attempt and it took far fewer takes to get it right.

Week 9 Reading Reflection

What stood out to me the most in the reading was was the claim of the effectiveness of telemarketing. I worked as a telemarketer for a time when I couldn't find any other work, and it did not seem effective to me. I would also assume that telemarketing is on the decline due to many factors, especially due to ones pointed out by the author such as the DNC list and high turn over.

The only part I found confusing was the differences between a production-driven philosophy, a sales-driven philosophy, and a consumer driven philosophy. To me these are competing interests and must be balanced out rather than focusing solely on one.

Two questions I would ask the author would include: "What is the best way to balance out the three marketing philosophies?" and "Would, in your opinion, the negatives associated with telemarketing be worth the risk especially with internet marketing so well established?"

There is nothing I felt the author was wrong about in this section aside from my questions on the validity of telemarketing. This chapter was informative and helpful in an area which I am admittedly weak. Marketing is an area I need to improve on if I am going to make my business into a reality.

Idea Napkin No. 2

1. I have worked in the signage industry now for over three years. While that time period isn't long, especially compared to my co-workers, it has netted me valuable experience in understanding what the customers needs are in this field. I am fortunate in that I have experience in every task in our little shop. I have experience in production, design, sales and installation. As far as my aspirations go, had the question been asked a year or so ago I would have been able to give a clear and detailed answer, now however I am not so sure. This business concept is one I have thought about since before taking this class, and should it become a reality I believe it would be the primary focus of my life.
2. My company's purpose is to provide high quality signage to customers anywhere in the world. I have seen the current quality of online signage and I find it lacking. The unmet need of my customer is a reliable supplier of professional quality signage. In my time in this industry I have discovered that there is virtually no business that does not have a need for some form of signage. Even an entirely web based business still has a need for vehicle magnets and graphics to aid in promotion.
3. My customer is a business person. I have determined both from my experiences at work and from my interviews that the average private citizen has little use for signage in their personal lives. The only call I have for signage for people not connected with a business entity is generally a birthday or anniversary banner, or perhaps a small vinyl decal for the back window of their car. Entrepreneurs and managers are the main purchasers of signage, and they are my target. Businessmen also understand the importance of quality and are willing to pay for a higher quality product if they believe the product will be a good investment. In the case of signage it is also a necessary investment.
4. Customers will pay for my product because it will be of a higher quality than they can currently receive from an online sign company. While I may not beat the prices of places like Vista Print, I will beat their quality. In my current job I have many out of state customers whom I have never met face to face and likely never will. They communicate with us via email or phone and then we ship them their finished signage. My business will provide the same quality of product and service to the end user without the waste of a brick and mortar storefront. In addition, by providing an web based store front with an emphasis on user-friendliness, my company will be just as readily accessible and mass-marketable as my competitors.  
5. My core competency that sets me above my competition is a personal belief that if you deliver a quality product to the customer then they will come back. A sign isn't like most retail products. A sign is as unique as the person or company who has commissioned it. It is not mass produced (unless it's a bandit coroplast) and has to truly represent the identity of the company whose logo is on it. 

My list is largely the same as last time although i expanded on item two more. I believe that these five elements fit together well. In both this assignment and the last one I believe I have outlined my abilities and knowledge to allow me to be able to introduce this idea. As before I know my greatest challenge will be to show my difference from my competition. This will involve a great deal of time spent on marketing and promotion. 

The feedback I received was largely positive and didn't involve any suggestions for improvement. All of the commenters mentioned my focus on quality over price as a positive. I tried to further emphasize on this point in this post. Another benefit that was mentioned in the comments was that I am a business to business enterprise. I to believe this is a plus, and I expanded upon that point in item number three. Having taken the time to reread my last post and to reflect on the feedback I believe I have a better understanding of these five elements.