Week 8 Reading Reflection

Chapter 8: Sources of Capital for Entrepreneurs

One thing that surprised me was the concept of intermediate loans given out by commercial banks.  I was surprised by this because these loans require repayment and often times a collateral, such as machinery, stock, real estate, and other assets.  One thing I was confused about was the Social Lending portion of the chapter.  What makes social lending more efficient than getting a loan from a bank?  There are still interest rates and an allotted time-frame to repayment of the loan. 

The first question I would ask the author is "what is your recommended 'balance' between debts and equity for an entrepreneur?"  I would expect a ratio of around 35-40% equity, and 60-65% debts.
My second question would be "exactly how complicated, lengthy, and expensive can the process of raising equity capital be? And is going through this process worth the possible loss of money if the stock offerings are not as successful as originally thought?"

I honestly could not find anything that I thought the author was wrong about.  Probably due to the fact that I am not all that familiar with this subject.  I sure hope he wasn't wrong about anything, because I believe all of this information from the chapter.

We are Half Way There Guys (Half-way reflection)

So, you've decided to take entrepreneurship?  Good for you.  This is an excellent class that teaches some crucial skills for entrepreneurship and beyond, but you have to be willing to put in the work and make the most of each assignment.  Behind each assignment is an aspect of entrepreneurship, it is your job to find it and put it to use.  Sure, it is so much easier to do the bare minimum, doing just enough to be able to click the declare button and get your point, but if you do that then you are missing the point of this class.

Don't think of each assignment as a chore, but as an opportunity to put your skills to the test.  There is no better chance to learn the fundamentals of entrepreneurship than through a class specifically geared towards teaching you.  My advice to you would be to not think of this class as several small assignments, but as one big process of building your own business.  Each assignment is a step, and with each one you check off, you are that much closer to making your idea a reality.  Be sure that you decide to create something that you are passionate about.  Don't simply think of some BS idea so you can have something to turn in, make it count and make it great!

I know that you have been told in the past that "what you get out of each class is what you put into it."  I also know that you probably just disregarded that comment (I'm speaking from experience here).  But nothing is more true, and its even more true for this class.  There are going to be times when you keep pushing an assignment til the last possible minute, and there also going to be times when you just don't feel like doing the assignment at all.  This class pushes you out off your comfort zone, a lot, and yes I am referring to those interviews.  But it is at these times of pure cowardice, laziness, and weakness, that you must choose to rise up and not take the easy route.  If you really want it that badly, if you really want to be successful in anything, then you have got to give it your all.  That is my advice to you, I truly hope that you choose to conquer this course, not just pass it.

Also, the teacher is pretty cool (extra credit?)
 

Elevator pitch No. 2

Reflection on past comments.  First off I'd like to thank Marissa and Michelle for leaving some awesome and helpful comments on my last elevator pitch.  Both of my commenters liked the idea of a restaurant that serves food made with locally grown ingredients.  Marissa pointed out something that was pretty helpful.  In my original pitch, I stated that my company would be working with Chipotle's supply chain management to set up an effective supply chain.  Her point was that maybe at this current point in time, Chipotle might not be the best company to work with supply chain-wise, for obvious reasons.  Michelle mentioned that affordable healthy food would do very well, especially in a college town, where college kids are ballers on a budget.  Michelle also liked my catch phrase, "Eat comfortably", since my restaurant would be called Comfort Food, haha.  It's a work in progress.

Here is the link to the video, since for some strange reason, I am unable to just upload it straight to the post:  https://www.youtube.com/watch?v=fXrQr1HRftY

Customer Interviews No. 3

First off, please excuse the fact that I do not have my interview videos posted.  I have no clue what happened to them, but when I went to upload them to YouTube, all of them were just gone.  It may be due to the fact that my phone is just flat out stupid.  So instead I will use excellent descriptive language to show you how the interviews went down.  Here we go...

First off, I will go over my interviewing strategy.  As for the questions that I asked, I pretty much slightly modified the questions I asked before.  The main one being "Would you be willing to pay slightly more for food made with 100% locally grown ingredients, making the meal healthy and nutritious?" My target demographic is young adults (so basically college students).

Before each interview, I had each interviewee read an index card with a summary of what my company would be doing.  After they read the card, I recorded their reaction and comments.  Four of the five loved the idea, the other one had sort of an "ehh" attitude; he stated that he doesn't really care how fresh the ingredients were in his food, and he also said that he would prefer to pay less than five dollars for a burger over spending more on "healthier" food.  Just as there was someone who didn't really go for the idea, there was another person who seemed super excited for the idea (it was a little overwhelming actually).  She said she has actually been wanting a restaurant like this and that she would be more than willing to spend more on a healthy meal.  She also proceeded to say that I have her full support and unlimited access to her broke college-kid bank account (it's the thought that counts).

From these interviews, I learned a little bit more than my passed interviews.  The one guy who wasn't all for spending more for healthy food opened my eyes to the fact that not all college students would be willing to spend more money on food just because it is fresher and healthier.  Of course I was aware that not everyone would be a fan, but hearing this helped spark ideas in my head that could tend to the needs of people who don't want to spend more.

Again, sorry for losing the interview videos.  I'll try to be better next time. 

Idea Napkin No. 1

1.  Who am I?  I am Dakotah Diaz.  My talents include being tall, making friends, and hacky sack.  My skills include running track, the ability to write an essay last minute, and the diligence to follow through on any task I set my mind to.  I have several aspirations, the biggest ones being to run the 800 and 400 meter race in the Olympics.  My other big aspiration is to start my own business, either the one I have been doing for these past assignments or an athletic training business.  If I were to start my own business, of course it is going to play a major role in my daily life.  I am going to need to make sure that everything is running smoothly, and that both my customers and employees are satisfied.

2.  Since I have been using Comfort Food Inc. as my business idea for the past assignments, I will use it again for this assignment as well.  Comfort Food Inc. serves food made only with locally grown produce, dairy, and meat.  The fast food industry has been slowly but surely declining in recent years, mainly due to the fact that many people (especially young adults) are becoming more conscious of what they are putting into their bodies.  Locally grown food is fresher, and in turn healthier, and not to mention tastier too.  This is especially true with produce, which begin to lose their nutrients after the first 24 hours of being harvested. The overall goal of Comfort Food Inc.  is to bring the food from the farm to the plate as quickly as possible to ensure that we provide the healthiest and tastiest food to our customers.

3.  Even though healthy food can be targeted towards any demographic, I would try to aim more towards college students, simply because, as I stated before, it is young adults who are leading the recent "eating healthy" trend.

4. People desire to eat at a place where they can feel calm and comfortable knowing that what they are eating is giving them good nutrients and helping them lead the healthy lifestyle that they want.  People buy fast food because it is convenient, and for college kids, convenience is everything.  They don't have time to prepare a healthy home-cooked meal.  But Comfort Food Inc. asks "why not have both?" 

5.  The main aspect that sets Comfort Food Inc. apart from other fast food chains is the supply chain.  We will get all of our ingredients from either local farms, or even have them grown on sight in compact greenhouses.  I know the idea of a greenhouse on sight sounds ridiculous, but it is actually completely feasible.  This restaurant would provide the freshest and healthiest ingredients out of any other fast food chain, since other fast food chains receive their ingredients from giant farms located several hundred miles away from their location.  The ingredients that most fast food chains use are on average, about two to three weeks old.  By that time, the produce has lost practically all of its nutrients and flavor, and being kept in a freezer the entire time doesn't help at all. 

Buying strictly from local farms and growing on sight can end up being very difficult.  Sometimes, there are shortages in a certain food, and the different seasons will result in different produce.  However, it does not make the goal of this business impossible.  First off, the mild changes in weather in Florida throughout the seasons allow for most of the same produce to be grown year-round, like guava and mushrooms.  Also, we could simply have seasonal menu items.  This could be beneficial because a changing menu provides customers with plenty of new dishes to try throughout the year.

Week 5 Reading Reflection

What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?

I was aware that there were going to be risks in starting a business, but it did not occur to me that there were so many.

Identify at least one part of the reading that was confusing to you.

I was intrigued by the fact that there are startups that do not necessarily have a clear objective or service that they will provide.

If you were able to ask two questions to the author, what would you ask? Why?

 How long does the post-startup phase last?  When does it end, does the entrepreneur stay with the company or move on to another project?

Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

I believe that the author did not bring up the fact that capital could also be an external problem instead of only an internal problem.

Elevator Pitch No. 1 (Comfort Food)

In today’s society, people are far more concerned with what they are eating.  Just a decade ago the name of the game was “how fast” and “how cheap” can you get your food, but times have changed.  The opportunity here is to provide a restaurant that serves food made only with locally grown produce, dairy, and meat.  Ladies and gentlemen, I present to you Comfort Food Inc.  Comfort Food is a restaurant that prepares food using 100% locally grown ingredients.  Why? Locally grown food is fresher, and, in turn, tastier and healthier.  In order to avoid any issues involved with local buying (such as shortages), we are partnering with Chipotle to create a viable and strong supply chain system.  You may be asking, won’t buying locally be a bit expensive?  Buying locally has earned a bad rep for being more expensive than fast food, but over the past few years, more and more people have become less reluctant to pay a bit more to eat more healthily.  Not only will Comfort Food Inc. be providing a place for people to get an affordable healthy meal, but by buying from local farms, we will also be strengthening the local economy.  Thank you, and eat comfortably (this catch phrase is a working progress, don't hate).  

If you can't watch the video above, here is the YouTube link: https://www.youtube.com/watch?v=CAmOd8X9gdY