Founder, My Venture

https://drive.google.com/file/d/0B2lgqXv0BaRTWVYyeVU3MUhWR1U/view

My Exit Strategy

1.) Identify the exit strategy you plan to make. Do you intend to sell your business in the next 5 years for a large return? Do you intend to stay with the business for several decades and retire? Do you intend to protect the venture as a family business, and pass it down to your children?

If my business concept becomes successful the decision to keep or sell would prove to be a difficult decision. However, if my business were succeeding my plan would be to sell and try to harvest what the business has evolved into.

2.) Why have you selected this particular exit strategy?

I choose to sell my business because I believe that the app is a way to make the learn management systems, colleges and universities, use better. I feel that if I were to sell the business it would be to help these companies develop into better resources for online students.   I created the app so colleges and universities better the online students experience and therefore would be better if they had my concept then if I kept the app.

3.) How do you think your exit strategy has influenced the other decisions you've made in your concept? For instance, has it influenced how you have identified an opportunity? Has it influenced your growth intentions or how you plan to acquire and use resources?

My exit strategy influenced everything in my concept. The concept itself was created with the thought that learn management systems would take notice of how beneficial this application is and would purchase to better their product.

Venture Concept No. 1

The venture concept that I am proposing is an application for learning management systems, online universities and students that will create a better communication environment.  The majority of colleges are going digital and online colleges are becoming more of an option for many people.  Therefore, opportunities are appearing and there is a prime opportunity to correct the communication abilities because they are currently coming up short.

The colleges and schools alike that have implemented online education into their programs need to better their communication methods.  The typical online students needs better communication throughout their experience. Communication is key in education and the ability to pass knowledge onto the younger and up and coming generations is vital.  Taking a class online has become a very difficult way of learning. Whereas, on a campus environment the students have a much better chance of discussing in further detail with professors, classmates and other professionals found on the campus. The on campus student has a better experience because their abilities to communicate are enhanced. In addition, the on campus student has the freedom to create study groups or they have the opportunity to have lengthy and meaningful class participation with their professors. On the other hand, an online student does not always have the benefit of having these opportunities. Furthermore, the average online student is faced with courses that are typically video-based, which are prerecorded of the readings and assignments. So in turn, most of the learning is completely up to the students to understand the topic at hand. Additionally, with limited interaction with other students, professors, TA’s and other professionals this can become a concern for the overall online experience. Therefore, there is a geared up opportunity to create a better environment for the online student that will better meet this unmet need.

The online demographics of this market are very diverse since obtaining a higher education is appealing to all. However, though some research, according to Malcolm Forbes of Onlineeducation.com:

“The average age of online learners is 34 years old. The gender make-up is 53% female and 47% male. The racial identification of students is: 46.6% white, 24.8% black, 29.8% Hispanic, 3.2% Asian, and 4.6% others. 74.3% make less than $40,000, 32% receive financial aid, 38% receive employer aid, and 79% take out student loans. The majority are employed (81%) and undergraduates (82%); 14% are graduate students, and 4% are "other" [e.g., courses only, one-year certificates, etc.]. Only 16% are traditional students (predominately white, female, ages 15-23, full-time, with reported incomes of $40,000+); 84% are non-traditional students. The growth rate for online learning (21%) versus that of traditional education (1.8%) indicates that online education is rapidly more accepted and embraced by students”.

As for customer satisfaction of current online systems like blackboard and canvas you will see that there is mixed reviews.  The overall outlook of customer satisfaction shows that there are different types of students. Some students prefer to learn on their own and there are students that like interaction between their associates.  In addition, costumer loyalty is difficult to judge because the colleges and universities choose the programs to use. Therefore, the loyalty resides with colleges and universities.

The opportunity level of this venture concept is exceptional because correcting the communication issue will allow for more colleges and universities understand the demand for better interaction. Thereby, creating a premier opportunity for a business.

The concept I am proposing is an application made available to all students, professors, TA’s and alike. The application would create a classroom environment where class discussion could be held, study groups could be created, and one on one face time with students TA’s and professors. It would operate in a similar fashion to canvas and blackboard, however, it would have the ability for students to create their own study groups, the ability to create classroom conferences, and have one on one time with peers or professors.

The ability to create profit would be solely on the application sold to universities for use. The universities and colleges then would have server costs and ability cost. According to CSU Channel Islands, Blackboard costs a university or college around $7,000 per year for their mobile application. Therefore, I would charge roughly the same maybe a little more because of the implementation of a better communication network.

            By developing this application would correct the communication issue for online students. The student that wants more options will be provided that with this application. They will have the opportunity to create online study group but also have the ability to communicate with their professors and TA’s as well.  

Colleges and universities will want to purchase this application because it will give themselves a competitive edge over the colleges and universities that don’t have this tool.  The switch to this application wouldn’t be extremely hard. However, it will cost and take work in implementing this application. The switch to this application depends on how willingly schools listen to their online students and other online students from different universities. There is a population of these students that feel like there is a lack in the communication while taking online classes. As a result, the schools should be easily convinced. 

The competitors in this market are your mainstream programs such as, blackboard and canvas. There weaknesses are that they don’t provide the best communication capabilities. These types of programs rely on professors and students communicating by email or phone. Additionally, the discussion boards provided by these programs are often left for professor and are mainly turned into assignments. And as a result, the discussion is not meaningful as it would be in a live classroom.

When implementing this venture concept into an organized business I would lean towards computer engineers for develop of the product and support for the product. The application itself would have to be designed and created and then maintained.  This would require a number of employees. I would employ 3 computer engineers for the development of the application and then outsource a cloud/server company.

Celebrating Failure

1)  Tell us about a time this past semester that you failed -- whether in this class, or outside of this class. Don't spare any details! It'd be even better if there was something you tried several times this semester, and failed each time. 

·    During the course of this semester I have encountered failure. This semester I decided to take 15 credit hours and at times it proved to be too much. For instance, during the beginning of the period I had 3 exams in a 3-day period: Business Law, Principles of Marketing, and Humanities. During this time I dedicated most of my time to marketing and humanities because I thought I had a decent grasp on my Business Law class. However, the day of my Business Law test arrived and I was proven wrong. I struggled mightily on the exam and ended up getting a 50% on it. Although, I received A’s on my marketing and humanities exam.

2)  Tell us what you learned from it.  

·    From failing this exam I learned how to better prepare and organize for the semester. I also learned to say no to my wife and kids some times when they were going to go out and have fun. I instead decided to stay home and study as much as possible. In turn, my next exam in Business Law still wasn’t the greatest but I passed with a 75%.

3)  Reflect, in general, on what you think about failure. Failure is hard, isn't it? It's embarrassing, sure, but it also means that we have to change something about ourselves. Talk about how you handle failure (emotionally, behaviorally). Finally, talk about how this class has changed your perspective on failure -- are you more likely to take a risk now than you were four months ago? 

My Boys

·    Failure is a part of life. I have failure many times in life and have always tried to learn from my failures. It is very difficult to failure, especially when you have people counting on you to succeed, e.g. wife and kids.  When failing I am lucky though to have a support system around me to help. My wife always tries to give me as much time as I need to study and complete work. For example, my wife took the kids to the beach today because she knew I had assignments to complete and finals to study for. It hurts that I can’t always go do the fun things my family is doing and definitely affects me emotionally. However, I think of our long-term goals and step back up to the plate. As for risks, I have always taken risks in my life. I joined the navy, left the navy, made public speeches while in the navy, raising 2 young boys, and marrying the love of my life. There will always be risks in my life and I will make the best decision for my family and myself.

"My Unfair Advantage"

1 Business Education

·        I would bring knowledge in creating a business that is very valuable. Business knowledge is easily obtainable. Business knowledge is not substitutable. 

2  Niche market

·        The market for online communication is focused on making communication better for online students. This technology is rather rare and not universally used. The product is able to be replicated, however could proved to be difficult. Additionally, there are no real similar substitutes for this product.

3   Limited competition

·        For the online communication market there isn’t much competition. Email is the dominant mode of communication and does not mold well with some students. The limited competition in the market is very valuable.

4   Accessibility

·        The accessibility of the overall product would be very valuable to the students, TA’s and professors using the application. The product would be easily replicable, however would take time and money to do so.

5   Financial Capital

·        Currently, my credit is extremely good and therefore very valuable. With my credit the ability to get loans would be proven to be easier.

6    Capabilities

·        The application has the capabilities to make learning easier for students. The applications capabilities allow for easier communication, therefore, helping the students learn.

7   Motivation

·        I have the motivation to create a better learning atmosphere for the online student. This is not easily duplicated and is also rare to find.

8  Leadership

·        I have experience many situation throughout my life where I have either expressed leadership or absorbed leadership. Leadership is extremely valuable. However, leadership is not easily duplicated or substitutable.

9.   Innovation

·        Online education needs some innovation. The addition to better communication would be a great addition. The innovation of this implementation would be able to be replicable.

10. Personal Experience

·        My personal experience from being an online student proves to be very valuable. I have witnessed the difficulties of communicating with students, TA’s and professors. This is not replicable or substitutable.