Venture Concept No. 1

Venture Concept: Comfort Food Inc.

Opportunity: There is an opportunity that is under-met, especially in Gainesville.  There is a lack of restaurants that serve healthy, natural food for an affordable price.  As far as who has this need, everybody does.  A healthy diet doesn’t just appeal to one demographic, everyone can benefit from this.  However, since the first Comfort Food Inc. restaurant will be based in Gainesville—which is a college town— and also because it is the younger generation that have taken to the recent health craze, my primary potential customers are college students and young adults. 

In recent years, there has been a growing trend in health and fitness.  People, especially us young adults, have been caring more about what they are putting into their bodies.  I am not entirely sure why or how this craze came into existence, but it has definitely influenced the way many people live their lives.  This opportunity is not just in Gainesville or even Florida, but across the entire nation.  The focal points of the healthy-eating population are primarily located in:

• college towns
• along the coast lines
• “big city” type places (i.e. New York, L.A., etc.)

This leaves many open doors for me to start pretty much anywhere, but in the end, a college town would be my best bet (unless I can somehow score a place in Beverly Hills).  So how are my customers currently satisfying their need to eat healthy?  Well I never said that there were not any healthy eating establishments already, there just are not many, and they are not cheap either.  The rarity and expensiveness of these restaurants can make it hard for customers to maintain their loyalty.  It is not clear how long this opportunity will last, but being that this health trend has just recently started (relatively speaking), I am confident that this trend will continue for several more years.

Innovation:  The main innovation and inspiration behind Comfort Food Inc. is the implementation of locally grown ingredients (produce, meats, and dairy) in the dishes that we serve.  The mission of Comfort Food Inc. is to stay loyal to the 100% locally grown promise we make to our customers, so they can rest assured knowing that the food they are eating is as fresh as can be.  The idea to use locally grown ingredients came to me once I had learned the steps in the shipping process that most restaurants use.  For most (primarily chain restaurants), the ingredients are frozen and shipped across long distances.  On average, the time it takes the produce to reach your plate after being harvested is about 2 and a half weeks. 

I know what you are thinking, “what’s so bad about that?” well I’ll tell you.  Produce, especially most vegetables, starts losing most of their nutrients within the first 24 to 48 hours of being harvested.  Even after being frozen, they just aren’t as fresh as they were within those first two days.  If they aren’t at their freshest, then in turn, they aren’t as healthy or tasty.  Comfort Food Inc. will strive to serve food made only with locally grown food.  This is what will set us apart from every other restaurant out there.  Our food will taste better, and be healthier, and I am sure that people will notice the difference.  Not only will we be helping people eat healthier, but we will also be strengthening and stimulating the local economy by buying from local farms, which is a dying industry.  This can lead to the community being more self-sufficient and self-dependent. 

You’ve probably noticed several burger joints around Gainesville (or anywhere really) where their burgers cost as much as a full dinner at Olive Garden; an example being Burgerfi.  If you were to get a burger, some fries, and a drink at Burgerfi, you are already looking at spending anywhere from 12-15 dollars, which is friggin’ outrageous.  We are college students, we can’t be spending money like that on something as niche as a hamburger (this restaurant is not a burger place, but I’m sure burgers will be a menu option).  At Comfort Food Inc., we understand that our loyal customers are not going to want to spend a good portion of their paycheck on food, so we will aim to keep our prices below the $12 line (and that would be considered high for us).

Venture Concept:  One specific opportunity I have been pondering is the implementation of health and fitness products, such as protein powders/bars, all natural snacks, energy boosters, etc.  I feel that this would be a good investment farther down the road once my business has made a name for itself, since this is a growing market.  I could sell brand name products, but then later develop my own brand of health products.  One example would be my own brand of all natural, official Comfort Food Inc. protein powder—although I will probably create a separate branch of my business specifically geared towards health and fitness products, with a cooler name.  This aspect of the business will be a completely new and independent department from Comfort Food Inc., but I would still plan on selling the products in the restaurant, as well as in other retail, health and fitness, and online stores.  The competition will be heavy since this is a relatively saturated market already, but I can gain the competitive edge over others if I can create for example, an all-natural protein powder mix that actually tastes good and is not grainy or awkward to ingest (too clumpy).  But again, this will all come after Comfort Food Inc. has made a lasting impression on the community that it is in.

The Reflection of Reading (for the 11th time)

1.  Surprise:  One thing that surprised me was how Corning was focusing on basic research, an aspect that many companies had given up on because of the lack of substance it most often produced.

2.  Confusing:  I was sort of confused about the Innovation Landscape Map in the article.  Is this map specified towards a certain type or types of industries?  Where would something that is related to the food industry go on there?  It seems to favor the more technological businesses.

3.  Questions:  One question I have would be, how does an existing company that is struggling in its innovative output better organize itself to create innovative products or services?  Second, I know you said that R&D and basic research are key parts of any company when it comes to innovation, but how would you distribute the responsibilities of conducting innovative research/thinking throughout your business?  Which departments would be responsible for what? or would it all just be up to the R&D team.

4.  Wrong:  I didn't necessarily find anything that I thought was wrong, but I did find something that kind of bugged me a bit.  When you were discussing the Innovation Landscape Map, you only brought up two factors that were to be considered, the degree in the change in technology and the the degree to which it involves a change in the business model.  I feel that there are far more factors to consider when innovating.  

The Amazon Whisperer

 Service:  Comfort Food Inc.

Current Revenue Drivers: 
1.  Food (made with locally grown ingredients)
2.  Drinks (i.e. iced tea, lemonade) 100% natural

Prospective Revenue Drivers:
I have several ideas that I would like to add down the line
1.  Incorporating a little market area where local farmers can sell their products
2.  Adding the sale of health and fitness diet items (i.e. protein powders/bars, all natural snacks, etc.)
3.  Healthy dessert options, smoothies and shakes

Enhancing my Service:
Giving customers a place where they can eat healthy food is good, but also providing a place where they can buy the ingredients to make their own healthy food is an opportunity that I believe many people will appreciate.  There are no other restaurants (at least that I know of) that do anything even remotely like this for their customers.
Once the business grows enough, I can begin incorporating the sale of protein powder mixes and protein bars, including our own brand of all natural options.  Also, we can sell all natural snacks, such as trail mix, assorted nuts, etc.
I know that healthy dessert options sounds like a fairy tale, but they do exist.  For example, it is possible to make a chocolate ice cream substitute, which has no chocolate, but instead is made with crushed ice, avocado, vanilla extract, and some other healthy ingredients.  I know that that sounds crazy, but it actually does taste like chocolate ice cream, minus everything that makes ice cream bad for you.  Also, we could make smoothies and shakes that can serve as meal replacements, for those people who are looking to do a cleanse.  Don't worry, we got you.

My Amazon Search:
I scoured through quite a few all-natural protein powders on amazon, and for the most part, everyone is pretty satisfied.  Most of the less enthusiastic reviews were regarding the taste, but unfortunately that is what you get when you purchase something that's not made with artificial sweeteners.  Other negative reviews were accusing some of these products of having heavy metals in them.  This caught my attention, until I realized that if it is all natural then yes there are going to be a few metals in there because plants naturally have some of these metals in them, just as tuna has a high amount of mercury in it.  So in the end, I didn't find anything to improve upon, at least not yet anyways.  There is always something that can be improved, I just need to find it.

Why this would be beneficial to add to my company:
If you have been to the gym (especially here at UF), then you have probably seen the guys and girls in there who are looking to bulk up or tone out.  The consumption of protein (whey, soy, etc.) greatly helps with this process.  Therefore, selling this product in my restaurant will appeal to a huge market here in Gainesville. 

My Unfair Advantage

My unfair advantage in my venture:  Comfort Food Inc.

 Human Capital:
1.  Determination
2.  Ability to develop connections with people (very useful for finding experts in my field)
3.  Knowledge of a healthy diet/lifestyle (to incorporate into our menu items)

Social Capital:
1.  My mother (I know, don't judge.  I'll explain)  

Financial Capital:
1.  I've got nothing

Capabilities:
1.  Expand to several restaurant locations around Florida, and even possibly going out of state
2.  Adding in the sale of other healthy products (ie. protein mix/bars, all natural snacks, smoothies and shakes, teas and coffee, etc.)
3.  Using 100% locally grown produce, meat, and dairy in our food  
4.  Involvement in community

VRIN responses...

Human Capital:  I have a strong determination to make this business idea a reality.  Sure determination is something that others can have, but not everyone has the drive to push through when times get tough.  I am also becoming better in developing connections with other professionals--somewhat because of this class-- which is invaluable when it comes to starting up a business.  This skill isn't rare, many people can learn to do this, but there is no substitute for connecting with other experts.  My knowledge of a healthy lifestyle and diet is still growing.  I'm learning new things about this topic all the time, but this skill is something that anyone can pick up just by doing some research.  This skill is valuable and non-substitutable in a business like this, but with the change in views of diet and living, more and more people understand healthy living already.

Social Capital:  If there is one person on this planet that understands healthy living, it is my mother.  This woman is like the health guru, she has an infinitely bigger knowledge of a well-balanced diet than I do, and she is constantly teaching herself ways to improve it.  She is a massage therapist, so she is really into keeping the body "happy".  Right now, she is all I've got as far as expertise goes, but she is more than enough to help get me started.  She is valuable, and her level of understanding of this topic is pretty dang rare.  But as far as substitution goes, there is always someone out there that knows more than you, and in order to grow and become a renowned business, I am going to have to find that person (if that person even exists...)

Financial Capital:  Like I said, I've got nothing.  I'm going to have to rely on other sources such as crowdfunding/B2B funding, such as Kickstarter.  Also, I see a surmountable amounts of loans in my future.  I don't even know how to do a VRIN for something I don't even have yet.

Capabilities:  Okay, this is where the separation from other companies really comes into play.  For one thing, if we can become a place that serves food that is strictly made with 100% locally grown ingredients, then that alone sets us apart from any other eating establishment out there.  Once we grow in popularity, we can expand to other places in Florida (most likely other college towns like Orlando, Tampa, and Tallahassee).  We can even begin our own product line of all natural snacks/food, protein mix, shakes and smoothies, teas and coffee, etc.  With that Comfort Food Inc. can begin to spread to other, farther locations that we may not be fully established in yet.  Finally, I want this business to be heavily involved in the community.  We are already stimulating the local economy by buying from local farms, thus making the community more self-efficient, so why not go further, right?  Comfort Food Inc. will do its best to support local non-profits, such as UF Hopping 4 A Cure (check them out on Facebook), as well as host community events.  One idea for an event would be to host a farmers' market in one of our stores or something along those lines.

Top Resource: My top resource would have to be our promise of being 100% locally grown.  This is one aspect of the company that is extremely difficult to copy because it takes a ton of commitment to stick to a goal such as this.  This is what will set us apart from other restaurants, and this will be the company's primary marketing angle.
 

Week 10 Reading Reflection

1.  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? 
Strangely enough, I didn't find any of this information in this chapter surprising.  This is probably due to the fact that I had just taken financial accounting and this chapter was pretty much just about financial accounting.  So yeah, no surprises for me this time.  I guess the only thing that was weird was that there were some differently worded terms that threw me off for a sec.

2.  Identify at least one part of the reading that was confusing to you.
One thing that I found confusing was the linear regression portion of finding the operating budget.  This confused me just because math.  But I got it down after studying it a bit.

3.  If you were able to ask two questions to the author, what would you ask? Why?
 My first question would be, if a business has accounts receivable that are not being paid and they are decided to be noncollectable,  what are the consequences/repercussions of not paying these accounts off within the allotted time period?  If all that happens is that the accounts just get written off, what is to keep people from purchasing on account and then not paying?

My second question how a company determines how much common stock and how much preferred stock it can give out?  I know that common stock is more abundant than preferred stock, but what determines how much of each is put out for investors to buy in?

4.  Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
Once more, I do not disagree with anything the author wrote, nor did I find anything that I thought was a mistake.  This topic of finances is a pretty fact-based one, and it is very hard to get something that is this universal wrong or input any wrong information.  This author is a professional and is most likely not going to make any mistakes in a topic such as this.

Growing My Social Capital

I made contact with three people, one of which I already knew.  First, I made contact with my trainer, Ernest Wiggins II, who started and runs an athlete training business.  My second person is Joe Cirulli, who is the founder and CEO of his company Gainesville Health and Fitness (which has been listed as one of Forbes' Top 25 Small Businesses in America).  My third contact is the athletic director of UF, Jeremy Foley.  I should add that for this assignment, I am not using the same business idea that I have used in past assignments.  This business idea is my baby, and it has been since my senior year of high school.  Here it is: I want to start up and run my own athletic training business, where athletes of all ages and all skill levels can come to train and work with the best trainers, coaches, physical therapists, and sports agents that the world has to offer.  My business will provide the facilities, equipment, and any resources necessary for one to become the best at their game.  Until now, only professional and college athletes had access to these assets, but now this business will make all of these things accessible to any athlete who is has the dedication and the drive to push themselves past their limit.

1.  Domain expert:  For my domain expert, I chose my trainer, Ernest Wiggins II, mainly because his business is probably the closest I have seen so far to my idea.  His business is still quite young (still an LLC.) but it is growing.  I feel that the stages that his business is going through now are the same stages that mine must make as well.  He also was on the U.S.A Olympic Track Team and is a professional track athlete, which is also exactly what I want to do as well.  I communicated with him through text and a phone call.  His advice to me was to keep pushing forward even when the road ahead is tough (cliche motivational speak), but he also told me the importance of networking and meeting people.  "My company would not be where it is today if I did this all on my own."  He also told me to not try to rush into making the business too big too fast.  He has had this business for about five to six years, and he still doesn't have a gym or workout facility, and he only has a few employees under him.  Even though he has the resources to expand his company, he avoids any unnecessary and hasty growth.

2.  Market Expert:  My market expert is Joe Cirulli, who I contacted through email.  Joe Cirulli would make an excellent market expert because he is also doing something similar to my business idea.  He already has three branches of Gainesville Health and Fitness, so he is doing quite well for himself and his company.  He has extensive and profound knowledge of creating a successful business in the health and fitness industry, which, though not identical, is pretty dang similar to the industry that I would be starting up in.  I have a lot I can learn from him.  Unfortunately, he is out at a conference for the week, so I was not able to get much feedback from him regarding my business.  However, I did develop a solid connection with him, and he has offered me a chance to meet with him once he returns, and also possibly intern with the company so I can see how a business such as this functions.

3.  Supplier:  Finding a supplier was extremely difficult and downright confusing to find.  Who would I need as a supplier if I am providing training services?  But then I remembered that once my business grows to the massive facility that I want it to become, I am going to need trainers, coaches, therapists, and sports agents, and I am going to need good ones.  That is why I contacted Jeremy Foley, because from him,I can establish connections with these professionals.  I can even set up an exclusive link with UF through him, allowing students studying in these fields a chance to intern with us or shadow a professional, and even offer UF students a job after they graduate.  Also, through Jeremy, I could potentially gain access to some resources available on campus.  For example, if I do not currently have my own facility, I may be able to train my athletes in their athletic facilities.  There are a lot of opportunities that lie within this connection.  I sent Jeremy an email telling him about my idea and asking if these were viable options and if this connection would be equally beneficial for both my company and Florida Athletics.  He said he would have to learn and understand more about my company, but he does like the idea of the opportunities it could potentially offer UF students and athletes.

Reflection:  I have to be honest, when I first saw this assignment, I dreaded life.  I didn't like the idea of bothering a professional businessman or woman with my pesky little ideas.  They probably had something better to do anyways, right?  But I decided to man up, get my mind right, and remember why I am dong what I am doing.  My first contact was Joe Cirulli, and his enthusiastic reply was both relieving and encouraging.  I felt on top of the world.  This proved to me that even though these people are busy running a company, they still are willing to make the time to help others who are trying to build a business of their own.  Contacting Ernest Wiggins was easy since I already knew him and have a good friendship with him.  When it came time to contact Jeremy Foley, I wrote my email with more confidence, now knowing that I would possibly get a response.  In the end, I am extremely glad that we had this assignment, and I appreciate the fact that Pryor has consistently pushed me out of my comfort zone like this.  Now, not only have I gained another point in this class, but I have gained two new, great contacts to add to my professional network!  So Pryor, if you are reading this, thanks bro *cough* extra credit.

Elevator Pitch No. 3

Ok so the comments I received this time around didn't really have many constructive criticisms for me to go off of.  Just a few of the classic "great job" and "I really like your idea!", but there was a little somethin' somethin' for me to go off of.  First, I got a little more in depth on how I'm going to work with my supply chain to make sure it is efficient and can maintain our restaurants.  Second, this idea came from one of the comments I got saying how, back in high school, they were on a sports team and that is how they got their workout in.  But now that they are in college, there is no one to make a workout for them.  This was also a problem that I experienced when making the transition to college.  What if I implemented something that could cater to this need for students to not only eat healthily but get fit?  Please leave some constructive feedback that I could work with.

Here is the link to my video: https://www.youtube.com/watch?v=op0bnxBQjNk

Thanks guys! And don't forget the constructive criticisms!