Halfway Relflection

1) The main skill I have learned and developed throughout this course is thinking like an entrepreneur. Since beginning this course and in the process of completing the assignments, I have gained a new world view and see things very differently. This new skill will hopefully help me start my business one day. I am constantly looking at things differently, thinking differently and coming up with more and more ideas and thinks that need to be changed or updated.
2) This summer, I began studying for the LSAT. This is a standardized test that is required to apply to law school. When I took my first practice test before studying, the score I got was extremely discouraging. I saw what I was starting with and what the scores to get into top law schools are, and I knew it would be unlikely to increase my score the amount it would take to get a satisfactory score. However, with hard work and dedication, I was able to achieve the score I wanted and now am accepted to the law school of my choice. This class has helped me develop a tenacious attitude significantly. Reading the book, "Grinding it Out, The Making of McDonalds" taught me how important hard work is and why you should always stay motivated. These are things I will carry with me for the rest of my life.
3) The three tips I would offer to students taking this course next semester are:
-Be confident in yourself: You can do anything you set your mind to.
-If you work hard, your goals will be achieved
-Do not stress too hard about anything; Life always works itself out and happens for a reason.

Reading Reflection No. 1

Grinding It Out: The Making of McDonald’s

1) You read about an entrepreneur:

·       What surprised you the most?

What surprised me most in Ray Kroc’s professional history. I have always thought the most successful entrepreneurs are born to be successful and start exhibiting that at a young age. Because of this I always feel pressure to begin my entrepreneurial endeavors. However, Ray Kroc was a basic salesman transitioning from selling product to product up until age 52. It was not until he was middle aged that he became the historic businessman he is known as today. This was shocking and eye opening to me.

·       What about the entrepreneur did you most admire?

What I respect most about Ray Kroc is his work ethic and motivation. Kroc worked long hours for years, with 19-hour days frequently to make ends meet as a salesman and pianist. These hours didn’t discourage him. He kept working. When he found McDonald’s, he used his vision and understanding of consumers to grow his business. He was capable of putting in the hours to create what he did and it shows. Hard work pays off in the long run. At 52, after working hard for so long, he was ready for his opportunity and prepared to continue working for it.

·       What about the entrepreneur did you least admire?

When Kroc met the McDonald’s brothers and signed a contract with them, he made many promises to ensure their dreams would remain a reality. What was their entire livelihood and more important to them than anyone could understand became distilled into a business designed for consumer satisfaction and maximized profit. While Kroc promised them this would not happen, more and more kept changing from what their dream was until it was ultimately completely different. While I understand that Kroc had to do this in order to make the company as successful as it is today, it is sad to see brothers with a dream lose out on it the way they did caused by Kroc.

·       Did the entrepreneur encounter adversity and failure? If so, what did they do about it?

Kroc encountered major adversity when he was working for a paper cup company. He had found a new business, milkshake machines, and wanted to begin working selling them. His cup company did not like the idea nor did they want to work with him on it. When he left the cup company to sell the milkshake machines and the cup company saw how popular they were, they immediately demanded 60% of his profit because he technically still worked for them. Even with their tremendous success, Kroc struggled greatly only making 40% of his own income. He described this time as a time he had to “grind it out”. He responded to his adversity by putting his head down, digging his feet in and working as hard as he could. This taught him how to do it again in the future as well.

2) What competencies did you notice that the entrepreneur exhibited? 

The main competency I noticed was his ability to understand consumers and trends. He knew paper cups were going to become tremendously popular. He could tell disposable dish wear and things of that nature would be the future. He immediately identified the importance of the fast milkshake machine and fast food in general. He knew when to stop talking when pitching a product to someone. He understood consumers and their environment more than nearly anyone ever has.

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

I did not fully understand how the paper cup company was able to demand 60% of his earnings from the milkshake machine when he left the company to sell them.

4) If you were able to ask two questions to the entrepreneur, what would you ask? Why?

            -How did you stay motivated through all those years?

            -What did you use to determine what you thought would be popular in the future and what wouldn’t?

Kroc clearly had a skill for motivation and foresight. I would love to hear more about it than even the book has to offer.

5) For fun: what do you think the entrepreneur's opinion was of hard work? Do you share that opinion?

I think Kroc’s opinion of hard work is harder than nearly everyone else’s. It is not easy to work a 19-hour day. Nor is it easy to create the most well-known and popular fast food chain in the world. Kroc likely worked harder than anyone I’ve ever met, and his opinion of hard work is probably significantly more than anyone’s that I know.

Figuring Out Buyer Behavior No. 1

Market Segment- There are several market segments with regard to this business. Primarily these segments are based on the specific lives of different college and graduate school students in Gainesville. The specific one I have selected to interview in this exercise is students who will be spending a significant amount of time away from Gainesville within a given year and do not want to be responsible to pay rent while they are gone. While this is not a demographic group, it is a psychographic group and distinctly different than other potential consumers of this product who are interested in it for a different reason.

Need Awareness-  While the three people I interviewed are in the same segment, college students that plan on spending a significant amount of time away from school, their need awareness differs significantly. For two of them, their need awareness occurred as early as September of the year before an August lease was starting. Leasing companies in Gainesville begin offering their best lease deals early on, and students begin franticly searching for the best deal they can find before they all sell out. As desperate students wanting to live in specific locations, they will sign a one-year lease fully aware that they may be responsible to pay rent for when they do not intend on living there. The other person I interviewed recognized her problem when she decided she wanted to spend a spring semester completing an internship. She was unsure of where she wanted to be but was open to her options. Initially planning to live in Gainesville while interning, she signed a lease six months before it started. Two months later she was offered the opportunity of her lifetime 1,000 miles away from Gainesville. At this moment, she recognized her need awareness. While she knew she could get out of her lease that did not start for four months, she also knew she needed a place to live for the fall. Income the need awareness and desire for an option like what we are offering.

Information Search- The people I interviewed all seem to primarily trust their older friends suggestions over all else. Since most students have friends of different ages who have experienced different things, their advice evidently is useful and helpful to people struggling with this problem. In addition to this, the people I interviewed use the internet. One odd thing that I have discovered is that the real estate market in Gainesville is very different than most other cities. There are not many real estate agents, nor are there many students seeking agents. Word of mouth and marketing primarily seem to be how these apartment complexes sell their units. Based on this, when students are looking to solve their problems, they will use word of mouth from their friends and the internet. Both searching for what they are looking for and using forums are helpful. They also frequently read reviews on different places to determine the overall sentiment for it.

Findings- The most interesting findings I discovered through these interviews was learning how this market segment conducts their information search. While creating a useful and needed product is definitely very important, marketing your product to the public to insure they are aware of it is definitely important as well. If I were to offer these leases but nobody knew about them, they would not know they existed and would continue to have the need. It is also interesting that this need can happen at different times for different individuals and is extremely related to the external environment, rather than the segments of people being targeted.

Conclusions- This market segment has extremely unique need awareness sequencing for each of its individuals. There is no telling when someone in this group will determine when exactly they need a short-term lease, however it is always before the lease begins. Everyone in this segment signs leases early and knows before it has begun that they will need to pay for time they are not there. In addition, almost none of this segment uses traditional real estate agents, and while many people trust the advice of their parents over their friends, this group seeks help from them. Finally, the internet and social media are extremely important in this segments information search. Overall, If it is popular amongst students and talked about highly, relevant on social media and available on the internet, it will seem significantly more credible and enticing.

Idea Napkin No. 1

1) My name is Benjamin Sherry and I am an advertising student with a minor in real estate at the University of Florida. I will be beginning law school in the fall where I intend on pursuing a career in Real Estate law. I have also spent the last three and a half years living in and out of different apartments in Gainesville, Florida while receiving my undergraduate degree. My ultimate goal is to own and manage multi-family residential real estate, specifically apartment complexes and town homes. College towns are one of the best places to invest in real estate, Gainesville being one of the best in Florida. My business idea, a residential rental property with quarterly leases aligning with college schedules would be a perfect way for me to begin my real estate investment portfolio and begin managing properties. My hope is to grow this business idea into a popular model in Gainesville and ultimately take over the real estate market in this city similar to what companies like Trimark and Collier company have.

2) The product in this business concept is intangible. However, it is nonetheless extremely valuable to Gainesville renters. This rental property would offer customers the opportunity to avoid being stuck in a year long lease that causes countless potential problems and inconveniences. The leases offered at this residential property would be different than the standard one-year leases found in a vast majority of the residential rental properties in Gainesville. They would be four-month leases aligned with the typical operating schedule of the University of Florida. They would be easily and immediately renewable, meaning if somebody wants a one-year, two-year, one month or any type of lease time-frame they can receive it. This is extremely unique and different than most apartments in Gainesville where your only option is a one-year lease.

3) The product will be offered to all individuals receiving a higher education in Gainesville, Florida. A majority of people who are in Gainesville for their higher education came here specifically for this. This means nearly all of them are in need of a place to live. Additionally, when getting an education in a city that you do not permanently reside, it is likely you will not be there during breaks from school or during periods of internships/residencies and so on. This creates an inconvenient situation for people trying to save money and not pay for a lease when they are not living in Gainesville. This product will also be offered to students who do not have people to live with but do not want to live alone. Living with random roommates is a tremendous risk. People who are scared of who their random roommates may be are usually hesitant to sign an entire year long lease. However, with this product, they can sign a four month lease and wait to see how they get along with their roommates before continuing to live with them.

4) Customers will care about this for multiple reasons. The number one reason why people will want to pay for this product over others is one of the most compelling college student opportunities that exists. The opportunity to save money. By paying for shorter term leases, students are not risking paying additional wasteful rent while they are not there. College students also care significantly about alleviating stress. As a college student, there are tons of stressors that come from difficult classes, living on your own for the first time, trying to find a job after graduation, finances and so on. Having to stress about roommates you do not like, wasting money on rent at an apartment you will not be living in for several months, or having your lease end before the summer semester is over are all stressors that students do not want to add to their already thick list of stressors. If they knew that this opportunity was available, they would care significantly about having somewhere to live that they will never have to worry about these things.

5) While there are many apartment complexes in Gainesville that lease primarily to students, none of the owners are students. By having the experiences I have had, it is easier for me to know what students want and need than any disconnected real estate company that owns properties in the area. Additionally, the product we will be providing is completely new and unique and already separates us from an already tremendously saturated market.

My faith in this business is only strengthened by this exercise. The more I think about it, the more reasons I come up with as to why it is such a great idea. All 5 elements fit perfectly together which proves the idea as strong and plausible. The only weak point in this entire business opportunity is that the rent will have to be more expensive than most other rival properties. However, when considering the value proposition and everything that is offered by this product, the additional price seems like something customers can overlook based on the additional benefits they would be receiving.

Testing the Hypothesis Part 2

I set out looking to interview five more people. These people would be people who should have the unmet need that I have identified, but for some reason, do not. I was hoping this would be difficult to do, and it was, but once I realized what I was looking for, it became easier. As it turns out, there are people who have found a way to solve this problem. However, thankfully, they are specific, small groups of people that are lucky enough to be in a position that it was made possible.

Who:

            After conducting my interviews, I found several different specific types of people that should share the unmet need I identified but for some reason, do not. The first type of person I identified in this category are people who by chance have a network of friends large enough that it is not a concern attempting to find a sublease for their rent. Frequently, it seems as though members of Greek life at universities have an easier time finding people to sublease their apartment for any time period they will not be living in it. Based on my interviews, this is because there is a vast network of over 100 people in these communities who all know each other. With that being said, it is better for them to sublease from each other, because they are comfortable and confident with each other’s reliability. Additionally, it is preferable for them to sublease into a place where they know the others living there, and when they are all in the same Greek organization that is almost always the case.

            The next group I identified was people who know before signing a lease that they plan to be away from campus for a certain time period, and are capable of finding a sublease. If someone is fortunate enough to know confidently their schedule for the next year, for example, the person I interviewed knew she wanted to study abroad last fall for over a year, she was able to choose a living arrangement that worked for that. Instead of signing a full year lease, she chose to sublease from someone for the spring semester alone so that she would not have to be responsible for a lease when she was not there.

            The third group I found was people who are able to find residences that offer monthly rent rather than annual leases. While this is risky because you can be kicked out or have prices changed on you at any moment, the person I interviewed far prefers this method to signing a lease. By paying monthly rent, he does not have to ever worry about finding someone to sublease his place if he is gone. Additionally, it is never a concern of his whether or not he will have a place to live during the summer weeks when many students leases end while they are still taking classes. By not signing a concrete lease but having a strong relationship with their landlord, they are able to have a more flexible living arrangement than many other renters in the area.

What:

            The need here differs at the problem solution step. While these people have the exact same issue as many others, they happen to be in lucky arrangements where the solution is easier for them. A vast majority of people will not have a network of over 100 close friends that are all looking for a sublease and interested to live together, or the ability to find a sublease because they know exactly what they will be doing over a year from now, or a close relationship with a landlord that allows you to pay monthly rent with no actual lease period. The need is actually exactly the same, yet the solution is vastly different. These individuals prove that there are solutions to the issue identified, but also solidify the fact that there is no easy solution for the masses. It increases my confidence in this idea knowing that these people’s solutions is not one possible for the masses.

Why:

            The underlying cause here is exactly the same. Both groups are in need of a solution to annual leases that do not align with a majority of resident’s schedules. Both groups are looking for a solution to this problem, yet one is in a convenient position that they have an easy answer. Additionally while the ultimate goal is to not pay rent when it is unnecessary and these groups have seemingly found the solution, it is not feasible for everyone to use their solutions. Greek organizations are often costly and many people are simply not interested in them. Additionally, while some people know when they plan to go abroad, what semesters they plan to be on campus and so on, many people do not know these things or when they will, making planning ahead of time to account for it impossible. Finally, having a personal relationship with a landlord like the one described in one of my interviews is near impossible to find, making that extremely unlikely as a solution for most people as well.

Inside the boundary	Outside the boundary
Who is in? People who are stuck in annual leases that do not intend on living in the place they are paying for throughout their entire lease.	Who is out? People who also do not plan on being somewhere for an entire year but have found a way to pay rent while not being responsible for an entire year of rent.
What is the need? The need is to find a way to have a place to live when they need it and not be responsible for paying for it when they do not. While annual leases provide them with a place to live when they need it, people very rarely spend an entire year living in a college town and ultimately end up paying for rent while they are not living there.	What the Need Is Not? The need is not to create a solution for everyone. Many people prefer to sublease from someone or find someone to sublease from them when they are gone. If someone has the ability to pay month-to-month without a lease that is probably preferred by them as well. The need is more focused on helping people who are looking for a specific type of lease, one that centers around the school schedule without too long term of commitment.
Why the Need Exists? The need exists because rental properties refuse to create leases that align with student schedules. A vast majority of Gainesville rental property clientele is college students. These students are rarely here for an entire year. Why should they be subject to full year leases? This is a scheme by rental companies in attempt to get more money from more students by having rent accounted for in places where nobody lives. As soon as there is an option that satisfies the needs of students who do not spend 12 months of the year in their college town the need will no longer exist.	Alternative Explanations? There are many niche cases where this issue does not exist for people. They may be spending a full year here, they may have someone lined up to sublease from them, they may be subleasing themselves because they already had plans of leaving at some point during the year. While many people have specific situations which gives them an alternative solution, there are no mainstream ways of solving this problem faced by so many students yet.