There are some common items missing today in hotel rooms that I really wish they provided, and if you travel and work on the road often like myself, you've probably thought of the same things.
I've got a company issued laptop which I like for its compact size but dislike for its small screen. Unfortunately I can't bring my docking station or my 21" monitor with me on the trip. Why couldn't hotels have 21" monitors already provided in each of the rooms so people like myself that travel with compact laptops can plug in; throw a keyboard and a mouse while you're at it.
Who watches the pay-per-view movies from the hotel television system? It's $8 a pop at some hotels. I rather rent a movie from the $1 RedBox or Blockbuster machines outside of supermarkets; however, there are no DVD players in most hotel rooms. Why not? For people with Apple products, you can store or stream movies on them, but wouldn't it be nice to plug your device right into the big flat screen TV they have in these hotel rooms?
With the rising number of consumers traveling with high tech devices that needs to stay in touch with people on the internet and wants to use their devices to keep themselves entertained, it makes logical sense for hotel rooms to adapt to the traveler's needs.
HereTryThis: Get a team of product designers together and generate a list of potential products that can be integrated into a hotel room. Gain feedback from frequent travelers and the hotel chains and derive a benefit and cost model which satisfies both parties. Sign a LTA with suppliers of potential products and hire contracting firms to install and train the hotel staff on how to use, maintain, and troubleshoot devices.
The ultimate goal is to successfully negotiate a contract with each existing hotel chains. Imagine the volume and the size of this business opportunity.
Name your hotels: Hilton, Marriott, Hyatt, Doubletree, Vegas hotels, etc.,
Friday, June 3, 2011
Wednesday, June 1, 2011
So many ideas, where to start?
If you're like me, you've got plenty of great ideas that you want to work on, but with schedule restraint and other responsibilities, it's hard to work on all of them at the same time. The attempt of working on all of them simultaneously creates often times a wasteful environment where very little effective work gets done; not good.
What I've tried in the past is to spread out the work by hiring college interns who work for relatively inexpensively or volunteer time to learn. Doing so help me get "more" done, but a few things I learned from that experience is most (but not all) college students need to be provided direction. In other words, it's hard to give an intern a project with a broad scope and have the project be driven the same way you would if you were running it. On the flip side of the coin, I've had some stellar intern that can take an idea and run with it, and in those situation I learned to let go of the need for total control and let the creativity flow. The bottom line is, however, that even with a team of interns, I had to spend most of my time managing the business and neglected my other great ideas. I was ok with this at the time because this business idea was further ahead than the other ideas which were in its infancy.
Now that I'm back to the role of developing new ideas, I often ask myself "which of the seven (7) great ideas should I work on?" and "if I don't spend time on this idea I'm going to miss a big opportunity."
HereTryThis: First start out by sitting down with a blank piece of paper and figuring out when and how many hours in a week you can devote to idea development. Keep in mind your other responsibilities, scheduled activities, and time for relaxation. Once you've determined your availability, figure out the activities that can maximize your impact at those given hours. For example, free times during the evening hours are better suited for research and emailing key contacts. Free times during the weekend may be best suited for on-the-road market research, reaching out to your potential customers, and speaking with your potential competitors/partners.
If you break down your schedule somewhat coherently, you would realize that you've only got so much time in a week to work on a few things (that is unless your full time commitment is to develop new ideas - I want to join that team). Prioritize your idea development by plugging in your planned activities ahead of time into these available time slots. When you're out of time slots, you're out of capacity. Good luck!
What I've tried in the past is to spread out the work by hiring college interns who work for relatively inexpensively or volunteer time to learn. Doing so help me get "more" done, but a few things I learned from that experience is most (but not all) college students need to be provided direction. In other words, it's hard to give an intern a project with a broad scope and have the project be driven the same way you would if you were running it. On the flip side of the coin, I've had some stellar intern that can take an idea and run with it, and in those situation I learned to let go of the need for total control and let the creativity flow. The bottom line is, however, that even with a team of interns, I had to spend most of my time managing the business and neglected my other great ideas. I was ok with this at the time because this business idea was further ahead than the other ideas which were in its infancy.
Now that I'm back to the role of developing new ideas, I often ask myself "which of the seven (7) great ideas should I work on?" and "if I don't spend time on this idea I'm going to miss a big opportunity."
HereTryThis: First start out by sitting down with a blank piece of paper and figuring out when and how many hours in a week you can devote to idea development. Keep in mind your other responsibilities, scheduled activities, and time for relaxation. Once you've determined your availability, figure out the activities that can maximize your impact at those given hours. For example, free times during the evening hours are better suited for research and emailing key contacts. Free times during the weekend may be best suited for on-the-road market research, reaching out to your potential customers, and speaking with your potential competitors/partners.
If you break down your schedule somewhat coherently, you would realize that you've only got so much time in a week to work on a few things (that is unless your full time commitment is to develop new ideas - I want to join that team). Prioritize your idea development by plugging in your planned activities ahead of time into these available time slots. When you're out of time slots, you're out of capacity. Good luck!
Thursday, May 26, 2011
What LCC Manufacturers Want Most
In my last blog post here, I speak about the challenge in working with a LCC. Today I'm going to talk about the challenge in running a business in LCC and a golden opportunity for coaching and education.
For those that are familiar with running a factory in China, you've probably noticed the sharp increase in cost of resources (energy, material, labor) in the past 4 years especially around the cities near the Pacific Ocean: Shanghai, Guangzhou, Chaozhou, Shantou, etc. Government's mandate on increase in labor cost, inflation, and many other reasons add to the fact that more and more companies can't survive where they are today when the cost of production had tripled while the consumers are still paying the same prices. The phenomenon we are seeing today is that more and more companies (large or small) are moving inland where cost of resources are still low enough to run a profitable operation. Some companies have even packed up and moved to other LCC where the situation was more desirable.
There is still an advantage in staying near the ocean; the ease of access to exporting services and seaports helps them get their products to the customers faster, it's easier for your customers to visit you (don't have to take multiple bus rides, fly in a should-have-been-retired turbo-prop, etc), amongst other great reasons. The question becomes how does a company effectively reduce cost of production, enough to gain an advantage over its competition without having to move?
HereTryThis: For those of you that are knowledgeable about lean manufacturing, 5S, and Six Sigma approach to problem solving, this is your golden opportunity to take what you know and teach it to those who really need it. In my own experience, factories in China are rarely setup with a good foundation of Design for Six Sigma. Waste (in the form of T.I.M.W.O.O.D.) can be picked up in all aspects of the operation. The problem solving technique often used to speed up production is to throw more people at it; with the last labor rates it made sense but not with today's labor standards.
To start off, put together a team of experts (willing to travelling and residing in LCC) and hire a group of educated young intellectuals from the LCC to 1) help locate companies that need this service, 2) translate the material, and 3) become the liaison to negotiate contract. As this matures, automate this process and become a service that offers training that certifies local experts that can be contracted out to many different cities to work with more clients.
For those that are familiar with running a factory in China, you've probably noticed the sharp increase in cost of resources (energy, material, labor) in the past 4 years especially around the cities near the Pacific Ocean: Shanghai, Guangzhou, Chaozhou, Shantou, etc. Government's mandate on increase in labor cost, inflation, and many other reasons add to the fact that more and more companies can't survive where they are today when the cost of production had tripled while the consumers are still paying the same prices. The phenomenon we are seeing today is that more and more companies (large or small) are moving inland where cost of resources are still low enough to run a profitable operation. Some companies have even packed up and moved to other LCC where the situation was more desirable.
There is still an advantage in staying near the ocean; the ease of access to exporting services and seaports helps them get their products to the customers faster, it's easier for your customers to visit you (don't have to take multiple bus rides, fly in a should-have-been-retired turbo-prop, etc), amongst other great reasons. The question becomes how does a company effectively reduce cost of production, enough to gain an advantage over its competition without having to move?
HereTryThis: For those of you that are knowledgeable about lean manufacturing, 5S, and Six Sigma approach to problem solving, this is your golden opportunity to take what you know and teach it to those who really need it. In my own experience, factories in China are rarely setup with a good foundation of Design for Six Sigma. Waste (in the form of T.I.M.W.O.O.D.) can be picked up in all aspects of the operation. The problem solving technique often used to speed up production is to throw more people at it; with the last labor rates it made sense but not with today's labor standards.
To start off, put together a team of experts (willing to travelling and residing in LCC) and hire a group of educated young intellectuals from the LCC to 1) help locate companies that need this service, 2) translate the material, and 3) become the liaison to negotiate contract. As this matures, automate this process and become a service that offers training that certifies local experts that can be contracted out to many different cities to work with more clients.
Tuesday, May 24, 2011
Low Cost Country - First Thoughts
One of my function at work is being the suggestion box (or the punching bag) for those people who would like to vent about something, anything. Something I hear over and over again, not only in my current position but in all of my previous occupations including the experience of operating an international trading business is the rumor that outsourcing to Low Cost Countries (LCC) do not work well.
LCC makes a whole lot of sense for its "obviously" lower cost in labor, the time difference so work can get done in LCC while people are sleeping here, and companies can concentrate on developing and keeping its core competencies in-house. The pool of talent isn't terrible at the LCC either: there are plenty of people with an American education (Masters and/or PhD). I truly believe that (majority) people don't goto work each day thinking of how to sabotage the companies they work at, so why does LCC earn such a bad name?
The complaint I hear often from people are: "yes they're cheaper, but they take twice as long to do the work," or "they did the work wrong the first time, the second time, and they still didn't get it right the third time," or "I can't talk to them, they don't understand what I want." These complaints almost always has to do with the break down in communication or an expectation not satisfied (a gap), and not the fact that the work is being done outside of the company. This is not so different from the "just throw it over the wall" mentality existing inside a company. Ever point to an engineer and say "this design is all wrong" and have him reply in return "you're just not building it right." Ever point to a buyer and say "you bought the wrong parts" and have him reply in return "then you must have given me bad info."
To me, improving the working relationship with LCC's is a golden opportunity because if you're able to figure out how to work with LCC's efficiently, you'll be ahead of your competition. Another way of saying it is, if your competition figures out how to provide an end product faster and cheaper to the customer than you, you're going to be in deep trouble.
To me, improving the working relationship with LCC's is a golden opportunity because if you're able to figure out how to work with LCC's efficiently, you'll be ahead of your competition. Another way of saying it is, if your competition figures out how to provide an end product faster and cheaper to the customer than you, you're going to be in deep trouble.
HereTryThis: The next time you hear a complaint about working with a LCC, first understand if the complaint is objective or subjective. There is nothing you can do about subjective feedback. Objectively if a gap does actually exist, use your favorite problem solving techniques (Six Sigma DMAIC or 8-Step Practical Problem Solving) to find the rootcause and put together a plan to eliminate the gap.
Monday, May 23, 2011
Trust: The Key to Customer Satisfaction
People often ask me, "why isn't my marketing campaign working? I've spent lots of money creating advertisement material and hiring people to get the word out there, but my returns are not great." My first response to them is: "are you conducting an advertisement campaign or marketing campaign? Because it sounds more like advertising you're trying to do." What's the difference?
Seasoned marketing managers would tell you that that advertisement is an element of a successful marketing campaign, amongst other elements such as marketing feedback, research and development, consumer outreach. Traditionally, most companies (especially small businesses) would focus most of the marketing budget on advertisement via flyers, direct mailing, cold calling, door to door sales, etc. The communication only goes one-way, where content is pushed to the consumers without any means for consumer to provide feedback. It's almost like saying "I know what's best for you, just buy it." This bypasses a critical element of marketing which is consumer engagement.
People give credit to the uprising of "Web 2.0" and social networking websites/apps for bringing focus to consumer/user engagement where feedback adds valuable content to the web experience for other consumers/users (think yelp, youtube, tirerack, FB). I would argue that the emergence of these websites and apps only helps make accessing (communicating) users or potential consumers easier.
I believe firmly that the purpose of any marketing campaign (no matter how large or small, product or services) is to gain trust from your targeted consumers. Through trust comes customer loyalty, engagement, and in the end satisfaction. The basic way of gaining trust, although it may not be intuitive for most people, is to start by listening.
Ever get in an heating discussion with a sibling or family member where you know you're right and only care about getting what you want to say 'out?' Does this help you gain trust from the other party? It sounds very much like what I stated about traditional marketing campaign above where: "The communication only goes one-way, where content is pushed to the consumers without any means for consumer to provide feedback."
HereTryThis: The next time you're planning for a successful marketing campaign, start by asking the question "how do I gain trust from my targeted customer?" Whether you choose to marketing yourself on the internet or not, the internet and its available tools enables you to reach out to and interact with thousands of people in a short amount of time. Good luck.
Friday, May 20, 2011
Converting the desire to spend to fuel for innovation
There are so many materialistic things in the world I would like to have; nice cars, theater style home entertainment center, the latest technology and gadgets in my hands, and the desire to have them can sometimes be overwhelming. Ever spend countless hours searching online for things that you know you shouldn't buy but really really want to? Ever hear that two contradictory voices in your head going back and forth, one telling you "yes buy it you only live once," and the other saying "no, don't waste your money." It probably doesn't help much when your friends are nodding their heads saying "do it!"
I've learned that every time I get stuck in this situation, I would always ask myself these following questions:
HereTryThis: The next time you find yourself beginning to surf on the internet to look for things that you wish you could have, spend that time instead on coming up with innovative ways to become able to afford them. The next time you find yourself starting a conversation with your friends on how you would "love to have one of those," instead spend the time thinking of how to turn that dream into reality.
I've learned that every time I get stuck in this situation, I would always ask myself these following questions:
- "Do I really need it or do I just want it?"
- "Can I comfortably afford this under my current budget or am I eating into other funds (food, mortgage, bills)?"
Now if it's something I can justify meaning I actually need it (ex: a replacement computer for my aging machine) and that I have enough money in the banks to afford it (note: not credit cards), I would buy it; no heart burns. On the flip side it's different.
Let's just say you really want to be able to own a Ferrari F430 (MSRP $190K). If you're an average person in the US, there is no chance you would be able to afford it with your current income situation; so what do you do? Simple: take that desire for the F430 and turn it into fuel for rising above being an average person.
HereTryThis: The next time you find yourself beginning to surf on the internet to look for things that you wish you could have, spend that time instead on coming up with innovative ways to become able to afford them. The next time you find yourself starting a conversation with your friends on how you would "love to have one of those," instead spend the time thinking of how to turn that dream into reality.
Thursday, May 19, 2011
The paranoid parents with sleeping babies - First Thoughts
Have you ever been to someone's house and were asked to be very quiet because a baby is sleeping? You don't understand why it's such a big deal; the baby is in a room behind closed doors; how much noise is too much noise? You end up awkwardly in a room full of people staring at each other paranoid that you would be accused for waking the baby up.
The truth is there's nothing more desirable for a parent than when a child has a good nap/sleep. Without enough sleep, babies are cranky, fussy (not fuzzy), and throws tantrum fits. Baby nap time is also a time when parents can relax. How do parents relax when they can't make noise in the house themselves? How do parents host others in this situation?
HereTryThis: Sound "loudness" can be picked up by a common device called a decibel (DB) meter. It's typically known to be used by traffic police to measure noise of illegal automotive exhaust systems. Imagine having sensors placed inside a baby's room and a remote reader/indicator that parents can carry with them (or displayed on the screens of their smart phone, laptop, Apple products, or computer). When babies are woken up by loudness of noise, the program can record the point of occurrence or the DB level that lead up to the baby's awakening. Once that threshold is set, the reader/indicator will warn people when their DB level is reaching the levels that may "potentially" wake up the sleeping babies.
Go ahead and watch your favorite TV show, listen to that music, or chat away with your friends. Just keep an eye on that meter to not go over your DB limit!
Tuesday, May 17, 2011
The passion of sharing and mentoring
I get up each and every morning, motivated by the fact that today I have another opportunity to share with others the lessons I've learned throughout my life experiences. My current goal in life is to be the catalyst to help those with great ideas blossom and achieve their own personal goals.
Having taught a college class on "how to start your own small business," I've had the pleasure of interacting with many young and bright individuals that just can't wait to tell the rest of the world their "master plan." I can see the passion in the eyes and hear in their speech of those who really want to make a difference. I truly believed that every one of my students could be successful in achieving their set goals, but without proper guidance and mentoring, it is easy to get lost or even worse give up.
The key in being successful in anything, I've always advocated, is to understand and continually evaluate the driving force behind your desire to achieving your end goal. Many times people confuse the driver with the end goal. An example of such would be "I want to be famous and rich." That is an example of an end goal, but is not the true driving factor behind what you do. People, especially young individuals, focus on the big money, becoming the next google or facebook buy-out, and they forget the true reason behind what they do. Unknowingly the carriage gets put in front of the horse, and all of a sudden everything comes to a halt. This is not saying people should not think backwards, rather once a going forward plan is established, the motivation for keeping the wheels turning is the "why" behind what you do. The planning can and will always change (this is called life), but the driving factor shall not change.
When friends, family, peers, past students, and acquaintances would approach me with "great ideas" they want to discuss with me privately, I've always entertained every request and have kept my promise for confidentiality. We would do a simple exercise on how to evaluate your ideas first to screen out any low potentials followed by asking the individual "why do you want to do this?" Responses that are derivatives of "benefit-to-self" or worse yet lack of response typically means trouble down the road.
People should constantly remind themselves of "why" they do what they do, and sometimes it takes an outsiders or mentors to do the actual reminding.
Here Try This: Help a friend who may be stuck or struggling with achieving his/her goal by asking the question "what is the driving factor behind what you want to achieve?" Do not probe, agree, or disagree with the responses; simply listen. A simple question like this one can help rejuvenate the individual and help him/her refocus on the motive behind the action.
Having taught a college class on "how to start your own small business," I've had the pleasure of interacting with many young and bright individuals that just can't wait to tell the rest of the world their "master plan." I can see the passion in the eyes and hear in their speech of those who really want to make a difference. I truly believed that every one of my students could be successful in achieving their set goals, but without proper guidance and mentoring, it is easy to get lost or even worse give up.
The key in being successful in anything, I've always advocated, is to understand and continually evaluate the driving force behind your desire to achieving your end goal. Many times people confuse the driver with the end goal. An example of such would be "I want to be famous and rich." That is an example of an end goal, but is not the true driving factor behind what you do. People, especially young individuals, focus on the big money, becoming the next google or facebook buy-out, and they forget the true reason behind what they do. Unknowingly the carriage gets put in front of the horse, and all of a sudden everything comes to a halt. This is not saying people should not think backwards, rather once a going forward plan is established, the motivation for keeping the wheels turning is the "why" behind what you do. The planning can and will always change (this is called life), but the driving factor shall not change.
When friends, family, peers, past students, and acquaintances would approach me with "great ideas" they want to discuss with me privately, I've always entertained every request and have kept my promise for confidentiality. We would do a simple exercise on how to evaluate your ideas first to screen out any low potentials followed by asking the individual "why do you want to do this?" Responses that are derivatives of "benefit-to-self" or worse yet lack of response typically means trouble down the road.
People should constantly remind themselves of "why" they do what they do, and sometimes it takes an outsiders or mentors to do the actual reminding.
Here Try This: Help a friend who may be stuck or struggling with achieving his/her goal by asking the question "what is the driving factor behind what you want to achieve?" Do not probe, agree, or disagree with the responses; simply listen. A simple question like this one can help rejuvenate the individual and help him/her refocus on the motive behind the action.
Backwards Thinking or Thinking Backwards
Ever get stuck on how to figure out something? Ever feel lost in mid-pursuit? Whether you're thinking of the next big business idea, planning an event, or trying to find new ways to grow your career, try thinking backwards.
Here Try This: Feelings of aimlessness or lost typically comes from not having a well defined goal. Let's take a lesson from "Alice's Adventures in Wonderland" by Dodgson:
Alice: Would you tell me, please, which way I ought to go from here?
The Cheshire Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cheshire Cat: Then it doesn't much matter which way you go.
Everything starts with knowing where you want to be or what you want to achieve in the end. If you're stuck on something, ask yourself "what is the ideal end result of what I'm doing?" You would then follow-up with repeatedly asking yourself "in order to get to my ideal end result, what do I have to do to achieve it?"
Let's say, for example, you have your heart set on becoming a concert pianist. The next question would be, in order to become a concert pianist, what do I have to do to achieve it? Your response may be "I'll need to understand how to book my own concert, I'll need to be competent in public performance, etc." Then you'll ask, in order to book my own concert, "I'll need to find an agent who understands availability of venues and can get a big crowd to attend," and to perform competently in public "I'll need to find out how much time other concert pianist commit to practicing each day and with what aids (tutors, mentors, equipments)." Your repeated questioning will eventually leave you with a shopping list of things which can be represented by a tree-diagram.
Laying out your thoughts backwards from the end goal allows you to have a sturdy going-forward plan to walk on. It may be overwhelming to realize there's actually a lot of things you now have to do that you didn't think you had before. Next comes prioritization, organization, and execution; topics for another day.
Here Try This: Feelings of aimlessness or lost typically comes from not having a well defined goal. Let's take a lesson from "Alice's Adventures in Wonderland" by Dodgson:
Alice: Would you tell me, please, which way I ought to go from here?
The Cheshire Cat: That depends a good deal on where you want to get to
Alice: I don't much care where.
The Cheshire Cat: Then it doesn't much matter which way you go.
Everything starts with knowing where you want to be or what you want to achieve in the end. If you're stuck on something, ask yourself "what is the ideal end result of what I'm doing?" You would then follow-up with repeatedly asking yourself "in order to get to my ideal end result, what do I have to do to achieve it?"
Let's say, for example, you have your heart set on becoming a concert pianist. The next question would be, in order to become a concert pianist, what do I have to do to achieve it? Your response may be "I'll need to understand how to book my own concert, I'll need to be competent in public performance, etc." Then you'll ask, in order to book my own concert, "I'll need to find an agent who understands availability of venues and can get a big crowd to attend," and to perform competently in public "I'll need to find out how much time other concert pianist commit to practicing each day and with what aids (tutors, mentors, equipments)." Your repeated questioning will eventually leave you with a shopping list of things which can be represented by a tree-diagram.
Laying out your thoughts backwards from the end goal allows you to have a sturdy going-forward plan to walk on. It may be overwhelming to realize there's actually a lot of things you now have to do that you didn't think you had before. Next comes prioritization, organization, and execution; topics for another day.
Monday, May 16, 2011
How to evaluate your ideas
It is exciting to think of ideas for a new business opportunity; that's the beginning of a journey for any entrepreneurs. When you discover a niche or a new way of doing things, something's telling you that you're on the right track. Ideas alone, however, isn't enough to get you where you want. There are several key questions you need to answer prior to taking your ideas to investors.
Here Try This:
1) Does this idea already exist
Sometimes it is hard to believe that just because you've never seen or heard of your new idea elsewhere before, it must not exist. Thanks to technologies today, the first thing you can do is go on the internet with your favorite browser and do a simple query. Two major information repositories that I find useful but often neglected during research are enthusiast forums and conventions websites. People talk and share online, and many good ideas are often discussed inside enthusiast forums. Depending on your idea, search around for enthusiast forums that target your audience, and sometimes you don't have to register in order to use the forum's search function. Conventions websites are based on industries and topics. If your idea is related to the automotive industry, you may be looking at the SEMA website or if your idea is related to social networking there's Web 2.0 Expo, etc. Many times pioneering ideas are being discussed at these conventions, and subject of interests would most often be posted in the form of an agenda on these websites. Physically attending these conventions (if possible) and meeting people with similar interest may help you evaluate your idea(s).
2) Who are your existing competitors / partners
If your idea doesn't exist yet, good for you; it doesn't mean somebody else isn't cooking up the same idea as you at this moment in time. On the flip side don't be heart broken just because your idea(s) is already out there. Do further analysis to see where your idea stands in the market space. Something that's hard to understand for most people is that the existence of competition may actually be good for you. In a sense the competition already cracked open the market, and data about price point, customer feedback, and marketing campaign can all be analyzed to help you address question 3 (below). A good example is fast food restaurants. When you see a fast food restaurant (ex: McD), what is almost always guaranteed to be across the street from it? Another fast food restaurant. In some cases competition may actually turn into partnership. An example of this is FB and Google allowing anybody to use their API to build web content, apps, etc. Plan ahead and figure out who may be your potential allies in the near future.
3) What is your value proposition / market differentiators
Now that you know what's out there, bring yourself back and ask: "how is your idea(s) any different?" Another way of asking this questions is "why would someone pay for your product/service over the other guy?" In order to win over your customer, you must provide one or several of the following benefits: Saves time, saves effort, prestigious or boost ego, makes them happy, reduce risk or increase safety, and lastly saves money.
4) Target audience and market potential
Knowing your target audience is important because it determines your market potential. What demographics are you targeting (children, adults, retired, male/female, etc) and what geographic location(s)? Is your audience going to purchase your product/service physically or over the internet? Calculating your market potential allows you to visualize and understand how to structure price point, provide customer support, and best advertise yourself.
If you've made it this far, you're doing pretty well. There are other topics such as resource planning, expansion model, financial structure, etc that will require additional brain power.
Hopefully you've documented all of the above in neat and organized manner because you would have written a majority of a business plan (which you will need to entice your investors). Good luck.
Here Try This:
1) Does this idea already exist
Sometimes it is hard to believe that just because you've never seen or heard of your new idea elsewhere before, it must not exist. Thanks to technologies today, the first thing you can do is go on the internet with your favorite browser and do a simple query. Two major information repositories that I find useful but often neglected during research are enthusiast forums and conventions websites. People talk and share online, and many good ideas are often discussed inside enthusiast forums. Depending on your idea, search around for enthusiast forums that target your audience, and sometimes you don't have to register in order to use the forum's search function. Conventions websites are based on industries and topics. If your idea is related to the automotive industry, you may be looking at the SEMA website or if your idea is related to social networking there's Web 2.0 Expo, etc. Many times pioneering ideas are being discussed at these conventions, and subject of interests would most often be posted in the form of an agenda on these websites. Physically attending these conventions (if possible) and meeting people with similar interest may help you evaluate your idea(s).
2) Who are your existing competitors / partners
If your idea doesn't exist yet, good for you; it doesn't mean somebody else isn't cooking up the same idea as you at this moment in time. On the flip side don't be heart broken just because your idea(s) is already out there. Do further analysis to see where your idea stands in the market space. Something that's hard to understand for most people is that the existence of competition may actually be good for you. In a sense the competition already cracked open the market, and data about price point, customer feedback, and marketing campaign can all be analyzed to help you address question 3 (below). A good example is fast food restaurants. When you see a fast food restaurant (ex: McD), what is almost always guaranteed to be across the street from it? Another fast food restaurant. In some cases competition may actually turn into partnership. An example of this is FB and Google allowing anybody to use their API to build web content, apps, etc. Plan ahead and figure out who may be your potential allies in the near future.
3) What is your value proposition / market differentiators
Now that you know what's out there, bring yourself back and ask: "how is your idea(s) any different?" Another way of asking this questions is "why would someone pay for your product/service over the other guy?" In order to win over your customer, you must provide one or several of the following benefits: Saves time, saves effort, prestigious or boost ego, makes them happy, reduce risk or increase safety, and lastly saves money.
4) Target audience and market potential
Knowing your target audience is important because it determines your market potential. What demographics are you targeting (children, adults, retired, male/female, etc) and what geographic location(s)? Is your audience going to purchase your product/service physically or over the internet? Calculating your market potential allows you to visualize and understand how to structure price point, provide customer support, and best advertise yourself.
If you've made it this far, you're doing pretty well. There are other topics such as resource planning, expansion model, financial structure, etc that will require additional brain power.
Hopefully you've documented all of the above in neat and organized manner because you would have written a majority of a business plan (which you will need to entice your investors). Good luck.
Wednesday, May 11, 2011
Car Dealership Badging - First Thoughts
While driving this morning, I've noticed (like many times before) that many cars on the road wears dealership badging (POWER Ford, Jim Click Toyota, etc) in the form of license plate frame, vinyl stickers, or embossed plastic lettering. In my honest opinion they all look like crap (mis-matched fonts with OEM badging, odd colors, put on crooked), BUT it's free advertising for dealerships and most people keep them on anyways because of the trouble of taking them off.
Here Try This: Since most dealerships already have the practice of putting some sort of badging on every vehicle they sell, why not help them come up with badging that will provide a seamless integration with the rest of the OEM badging? They could even brand their logo/name and enhance the look of a vehicle! Put together a team of graphic designers, find a few small production proto-type houses in the US, negotiate some deals with a few dealerships to try out the idea, and if the wind picks up the sails, expand production to low-cost countries (keep design in-house), employ a nation wide sales team, and sell sell sell. We would push new items to our customers along with the schedule of when new car models are released in the market. Make a $1 profit each new car sold with 5.5M cars/trucks/SUV sold April '11 YTD, that's $5.5M in your wallet.
Here Try This: Since most dealerships already have the practice of putting some sort of badging on every vehicle they sell, why not help them come up with badging that will provide a seamless integration with the rest of the OEM badging? They could even brand their logo/name and enhance the look of a vehicle! Put together a team of graphic designers, find a few small production proto-type houses in the US, negotiate some deals with a few dealerships to try out the idea, and if the wind picks up the sails, expand production to low-cost countries (keep design in-house), employ a nation wide sales team, and sell sell sell. We would push new items to our customers along with the schedule of when new car models are released in the market. Make a $1 profit each new car sold with 5.5M cars/trucks/SUV sold April '11 YTD, that's $5.5M in your wallet.
Monday, May 9, 2011
Roaming Automotive Service Team - First Thoughts
Ever looked down at your odometer and been reminded you're way past due for an oil change? Ever try to tune out the squealing brake sound so you can postpone getting that brake pad changed? Ever turn on the wipers and been reminded how crappy your windshield wipers are in the rain and wish you had swapped them out before raining season?
For people that can't (or choose not to) do the work themselves and don't have time to bring the vehicle to a service station (dealership, jiffy-lube, midas, etc)....
Here Try This: A roaming (traveling) Automotive Service Team can be scheduled online, arrive at your doorstep, and take care of your vehicle as requested. This idea is not new. Think of construction workers, plumber, handy-man that you call to your home when something needs to be done. The roaming auto service is no different. The experts bring the tools, the material (or use your material), get the job done while you spend time doing other value added things.
For people that can't (or choose not to) do the work themselves and don't have time to bring the vehicle to a service station (dealership, jiffy-lube, midas, etc)....
Here Try This: A roaming (traveling) Automotive Service Team can be scheduled online, arrive at your doorstep, and take care of your vehicle as requested. This idea is not new. Think of construction workers, plumber, handy-man that you call to your home when something needs to be done. The roaming auto service is no different. The experts bring the tools, the material (or use your material), get the job done while you spend time doing other value added things.
Sunday, May 8, 2011
Lucrative Autoparts e-Commerce - First Thoughts
If you're like me, a gearhead, you probably change your own oil, check your tire pressure, top off your own fluids, change brake pads and rotors, and maybe even attempt to do your own timing belt. Let's face it, dealership now-a-days don't make much money off of selling brand new cars. In fact most of their profits come from selling used cars and servicing cars. There's so much money in the "servicing car" business, that's why you see Midas/JiffyLube/Autozone/Big-o-Tires/etc almost every other corner of the street. Even Costco, Sam's Club, and Sears participate in consuming this pie. From this observation I can argue that there is a niche; people like myself don't goto those places to get work done because of many reasons; I don't trust other people with my own car, I almost always prefer OEM parts and not aftermarket, and I hate to pay someone for something I can do competently. I would almost always purchase my parts online or thru a dealership's parts department; there's a lot of money spent in the market that serves people like me I'll bet.
Here Try This: Create an e-commerce website that brands itself as the best and most popular store, stocked with regular maintenance parts for all major models. Focus the product range on wear and tear parts that are most frequently consumed (oil, filters, anti-freeze, brake pads, rotors, tires, spark plugs, in-cabin air filter) and maybe even venture into small items (wipers, bulbs, fuses, car care items "think wax on, wax off"). Setup consumer schedule unique to each car owner's car usage and offer to deliver items (such as oil and filter) quarterly or semi-annually. Forget about selling major items (alternators, clutchs, torque converter, transmission, exhaust, suspension, etc). Brand this company with a simple mission - your source for most common car maintenance products.
Here Try This: Create an e-commerce website that brands itself as the best and most popular store, stocked with regular maintenance parts for all major models. Focus the product range on wear and tear parts that are most frequently consumed (oil, filters, anti-freeze, brake pads, rotors, tires, spark plugs, in-cabin air filter) and maybe even venture into small items (wipers, bulbs, fuses, car care items "think wax on, wax off"). Setup consumer schedule unique to each car owner's car usage and offer to deliver items (such as oil and filter) quarterly or semi-annually. Forget about selling major items (alternators, clutchs, torque converter, transmission, exhaust, suspension, etc). Brand this company with a simple mission - your source for most common car maintenance products.
Saturday, May 7, 2011
Rental Property - MLS 21112686 - Deep Dive
I checked out the property with my agent on Friday after work and overall it was a good discovery trip.
Prior to the visit my agent already gathered information regarding this property's history, and we were able to confirm the facts as we walked through this Main House + Guest House rental property.
The Good: The exterior of the house is built of brick and overall the outside condition o the house looks solid. In the main house the living room has a nice solid wood floor, the kitchen cabinets have been remodeled, one of two bathroom looks renovated, and the two houses are completely detached with separate entrances. This place is zoned R3 so the guest house is permitted (awesome).
The Bad: Somehow my agent was able to obtain a copy of the inspection report from the prior buyer who eventually bailed from the deal (we are assuming the inspection report has something to do with it). Come to find out there are some major ticket items that needs to be fixed prior to closing: there's a mysterious leak in the gas line, water pressure running low in the bathroom facets, hack job electrical hook-up potential for major hazard, and the guest house needs major renovation before it is presentable to renters.
Bottom line: The original estimate of $8500 for rehab would not be enough which means the cash-in would be greater than estimate which inevitably pushes out the break-even point of the upfront investment. The rent potential is great; in fact I already have 3 people respond to my pseudo craigslist ad ready to pay $1550-1600 for both units together. A deal like this house may be hard to come by in the near future. Worth going for it? Your call!
Photos:
Prior to the visit my agent already gathered information regarding this property's history, and we were able to confirm the facts as we walked through this Main House + Guest House rental property.
The Good: The exterior of the house is built of brick and overall the outside condition o the house looks solid. In the main house the living room has a nice solid wood floor, the kitchen cabinets have been remodeled, one of two bathroom looks renovated, and the two houses are completely detached with separate entrances. This place is zoned R3 so the guest house is permitted (awesome).
The Bad: Somehow my agent was able to obtain a copy of the inspection report from the prior buyer who eventually bailed from the deal (we are assuming the inspection report has something to do with it). Come to find out there are some major ticket items that needs to be fixed prior to closing: there's a mysterious leak in the gas line, water pressure running low in the bathroom facets, hack job electrical hook-up potential for major hazard, and the guest house needs major renovation before it is presentable to renters.
Bottom line: The original estimate of $8500 for rehab would not be enough which means the cash-in would be greater than estimate which inevitably pushes out the break-even point of the upfront investment. The rent potential is great; in fact I already have 3 people respond to my pseudo craigslist ad ready to pay $1550-1600 for both units together. A deal like this house may be hard to come by in the near future. Worth going for it? Your call!
Photos:
Thursday, May 5, 2011
Advance Laser Pointer for Presentation - Concept
This is how I envision the Advance Laser Pointer
Concept: A combination of tiny gyros and accelerometers built into the body of the laser pointer with a microprocessor that can perform different function depending on user selection. The laser head would be motorized and can swivel (internal to the device) accordingly; think of eyeballs in your sockets. Several buttons on the body of the pen shaped laser pointer; when pressed, one would keep the laser horizontal as you swing the laser pointer left to right, another would keep the laser vertical as you swing the laser pointer up and down. The algorithm would take in account your motion and compensate for vibration and movement, adjusting the eyeball of the laser to keep steady pending selected function. This logic can expand to include diagonal lines, circles, and any other useful motion for a speaker doing a presentation.
Concept: A combination of tiny gyros and accelerometers built into the body of the laser pointer with a microprocessor that can perform different function depending on user selection. The laser head would be motorized and can swivel (internal to the device) accordingly; think of eyeballs in your sockets. Several buttons on the body of the pen shaped laser pointer; when pressed, one would keep the laser horizontal as you swing the laser pointer left to right, another would keep the laser vertical as you swing the laser pointer up and down. The algorithm would take in account your motion and compensate for vibration and movement, adjusting the eyeball of the laser to keep steady pending selected function. This logic can expand to include diagonal lines, circles, and any other useful motion for a speaker doing a presentation.
Advance Laser Pointer for Presentation - HearMeOut
Since every good idea should be heard, I've decided to look around to find companies that actually develop laser pointer technology (not just a retailer or distributor).
HearMeOut :After some digging I found the Canadian based Laserglow Technologies company:
HearMeOut :After some digging I found the Canadian based Laserglow Technologies company:
Company History
In 2003, Laserglow Technologies began as a supplier of laser equipment to the hobbyist and educational market. Demand for Laserglow’s products and services quickly grew to encompass research and industrial applications, leading to incorporation in 2005. Our comprehensive product selection now features not only presentation green laser pointers and handheld lasers but also our Brightline Alignment Series, laser module systems for a wide scope of scientific, industrial and OEM applications and a complete selection of laser accessories including laser safety equipment.
Also found Wicked Lasers:
And CNI:
I wrote an email to all of them linking them to my first blog, waiting to see what they have to say.
Wicked Lasers is the Home of the World's Most Powerful Handheld Lasers You Can Legally Own. |
And CNI:
Changchun New Industries (CNI) founded in 1996, located in Changchun, CHINA, is a leading manufacturer of solid-state and diode laser systems. Our products include green laser,blue laser, yellow laser, red laser, RGB laser, infrared laser, UV laser, single longitudinal mode laser and Q-switched laser systems. CNI lasers are featured with high performance, low cost and excellent laser beam quality, which are specifically designed for OEM, scientific, industrial and instrumentation use. In addition, CNI lasers are ISO-9001, FDA, CE, RoHS and JQA certified.
I wrote an email to all of them linking them to my first blog, waiting to see what they have to say.
Deal of the Day - Rental Property - MLS 21112686
I've got an awesome real estate investment team that I'm building in Tucson AZ; apparently Tucson was ranked top 10 out of the nation for having the best property value growth potential 2011-2012 if you didn't know that from reading CNN Money.
Here Try This: Positive cash-flow ready investment property (short sale) that can be bought, rehabbed, and rented. CFBT (Cash flow before taxes) is at $6800/yr for the first year (which includes rehab costs) and gross operating income at $17,000/yr.
The Scope: This Tucson property has two units on the lot (3BR/2BA Main house and 1BR/1BA Guest house). Built in 1948 this mostly brick house is approx 1670 sq-ft on a 10,100 sq-ft lot. Cool thing is this property is adjacent to a shopping mall, off of the main street with bus service routes, and stone throw away from a beautiful park and the University of Arizona. It is as described by my real estate friend a near perfect location at the center of town that can attract families, grad/med students, and maybe even some junior/senior year undergrads. It is however a short sale property that apparently went on the market for $179k late last year and due to a discover of bad gas lines, the previous buyer backed out of escrow. Since then the price has dropped to $151k and apparently that's what the bank will accept (pre-approved). A little digging into the property shows that the house previously had occupants that were accused of running drug trafficking but the neighborhood seems to be rental friendly.
Check out the attached spreadsheet for more detail breakdown of assumptions of calculations:
What's Next: I scheduled a time to visit this property tomorrow afternoon. I'll take pictures and hopefully speak to a knowledgeable rehab contractor while I'm there.
Here Try This: Positive cash-flow ready investment property (short sale) that can be bought, rehabbed, and rented. CFBT (Cash flow before taxes) is at $6800/yr for the first year (which includes rehab costs) and gross operating income at $17,000/yr.
The Scope: This Tucson property has two units on the lot (3BR/2BA Main house and 1BR/1BA Guest house). Built in 1948 this mostly brick house is approx 1670 sq-ft on a 10,100 sq-ft lot. Cool thing is this property is adjacent to a shopping mall, off of the main street with bus service routes, and stone throw away from a beautiful park and the University of Arizona. It is as described by my real estate friend a near perfect location at the center of town that can attract families, grad/med students, and maybe even some junior/senior year undergrads. It is however a short sale property that apparently went on the market for $179k late last year and due to a discover of bad gas lines, the previous buyer backed out of escrow. Since then the price has dropped to $151k and apparently that's what the bank will accept (pre-approved). A little digging into the property shows that the house previously had occupants that were accused of running drug trafficking but the neighborhood seems to be rental friendly.
Check out the attached spreadsheet for more detail breakdown of assumptions of calculations:
What's Next: I scheduled a time to visit this property tomorrow afternoon. I'll take pictures and hopefully speak to a knowledgeable rehab contractor while I'm there.
Wednesday, May 4, 2011
Advance Laser Pointer for Presentation - First Thoughts
During a meeting at work the other day, one of the speakers started using his laser pointer to highlight some key points on the projector screen. I don't know about anybody else, but it bothers the heck out of me when people swing the laser dot on the screen back-and-forth, twirling it in circles, because it causes more of a distraction for me than help me follow the presentation.Then I thought to myself, someone needs to come up with a better tool for presenters!
Here Try This: invent a sophisticated laser pointer that can project a laser dot horizontally/vertically/and diagonally...maybe even in a various size of circles? Imagine how many presentations/talks/meetings occur each day at work, school, workshops, etc. If you can think of a way to get these advance laser pointers in each of these presenter's hands, we are talking about some significant $$$. I would imagine this to be a large volume/low profit type product with high risk of copycats and low cost countries undercutting your market share if they can replicate the same technology.
Here Try This: invent a sophisticated laser pointer that can project a laser dot horizontally/vertically/and diagonally...maybe even in a various size of circles? Imagine how many presentations/talks/meetings occur each day at work, school, workshops, etc. If you can think of a way to get these advance laser pointers in each of these presenter's hands, we are talking about some significant $$$. I would imagine this to be a large volume/low profit type product with high risk of copycats and low cost countries undercutting your market share if they can replicate the same technology.
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