Venture Concept No. 1

Venture Concept No. 1: Specialized Financial Advising

My innovation is one that is scaled to a national level by big name financial advising firms but it has not yet been scaled down to local subsidiaries of bigger companies. This is exactly my opportunity. My idea is that to bring the robotic financial advisers into a business that highlights more personal interaction than that of a bigger chain advising firm such as Charles Schwab.

 These Robotic advisers are the new age of adviser. They are bringing in many tech-savvy millennials into the business and this greatly increases market potential. My market will be that of the Orlando area in which I believe the market for financial services is large and ever-growing with the rise of new sports teams in the area as well as the potential for more. Demographically this area is very diverse and my business would appeal to mostly younger but some older who could use financial advice in regards to loans, mortgages, investments, etc.

Customers are currently satisfying this need through standardized local firms or national chains in which the level of service is not nearly as personal or effective. With my company, you can enter the investment world into a very safe environment guided by the robo-adviser for the short term to get your feet wet and then ultimately once you feel comfortable, riskier, but more profitable investments can be pursued if one’s liking chooses to. The customers will only be loyal to their current advisers if the current adviser has a leg up in investment advice and services offered and I believe that our services offered will well exceed customers’ expectations to the extent that they will migrate to my services.

The opportunity is really unlimited as the Florida marketplace, in general, is very fast-growing and so could my business seeing it does well in the Orlando area. The window of opportunity is within the next 5-6 year as a lot of millennials will be graduating and looking for sound investment advice in order to repay student loans and start saving their money which they worked so hard to earn in the first place.

My business plan will be that of taking .5-1% fee cut of total assets managed under both the robo-advisers and our personal services. This .5-1%, in most cases, will be much less than that of the returns which our clients will hopefully see through the sound advice of our hard-working staff and robots. The percentage cut we take will depend on the size of the individual assets under our services on an individual client basis.

This new breed of adviser, the Robo adviser, works very simply and functionally. The ones that exist among national chains have that of two preferences for each client to fill out; risk tolerance and financial goals. It will then factor these things into your current investment and diversify you into a diversified platform of electronically traded funds(ETF’s). It will then use such strategies as tax-harvesting to make your returns as efficient as possible hopefully yielding at least a small return each day.

The only competitors are not at a local scale and lack the personal touch that my company will have. I hope to gain a good hold on the local market before I can start expanding, ultimately with the goal of one day becoming one of these national chains, but yet still preserving the same personal and caring nature that we will work so hard to maintain.

Hopefully my business venture is able to more effectively provide services through consistency and with help from the robo-advisers in significant if enough of a fashion in order to gain a competitive advantage over the competition itself. I am confident that with the right application of the 2 types of advisers in tandem that we can achieve our goal and then expand into new markets and spread our knowledge of the financial world with them and help them grow into retirement easily and comfortably.

Well that's about all the time I have for today,

Mitch

Amazon Whisperer

• Describe the revenue drivers you currently include in your business concept for this class. Revenue drivers are the different ways you make money.

-The current drivers which I currently include in my business concept are that of my financial services themselves. These services which i would provide to all my clients are all based on a flat percentage fee of total assets managed per client.

• Describe what kind of product offering you believe should be next. What's the next thing your customers want?

-The next thing the customers want in this market is robo-advisers. These robo-advisers utilize tax-harvesting analysis among other complex algorithms to help younger, more tech-savvy individuals enter the realm of financial management. 

• Describe how this "next" thing will enhance your existing product/service offering. Does it improve the user experience, does it increase customer switching costs, does it foster customer loyalty, etc.?

-It will lure many new clients into the realm of financial advising and show them the true benefit that a real adviser(myself) could do for them in tandem with the robo-adviser.

• Go to Amazon and try to find a product that is similar to the one you want to offer next. Describe the product. Include a picture of the product.

-Amazon does not offer a variation of this product. On the other hand, Charles Schwab, Betterment.com and other sites like these are in the forefront of offering robo-advisers to their customers with ease.

• What are the customer reviews for the product? What, exactly, do customers not like about the product? What do they like about it?

-The reviews are overwhelmingly positive. Most people make a little money due to low risk tolerance but steady growth. This is the mindset in which most younger, new to the investment world users take upon the start of their investing career.

• Describe what design/usability changes you'd make to the product. -

-I would make the product simpler and stress the benefits it could have in tandem with a real adviser looking over everything the robo-adviser does. 

• Describe why you think this product would make a good addition to your current product/service offering.

-I think this would make a good addition due to the synergy of the two types of advisers, and how, combined, can make financial goals more reachable in shorter amounts of time. 

Week 11 Reading Reflection

Gary Pisano: You Need an Innovation Strategy (Harvard Business Review, June 2015)

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? 

- The biggest surprise to me in thus reading was that of the criteria of what truly makes a company innovative. The part where it talks about complementary assets and how the synergy can give a company a real competitive advantage and allow it to enhance its market share. 

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

-One part of the reading that was confusing to me was that of disruptive innovation. I didn't understand exactly what they meant when they were referring to the android phones. Perhaps I will do more research into this topic upon the creation of my own business strategy in the future. 

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

-I would ask the author "Do you think a company could not innovate whatsoever and still be successful?" and "Do you think a company could try to be too innovative and ruin its market share?" I ask these because these are the two ends of the spectrum and most companies fall in between but I would be curious to see what he would weigh in here. 

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

-I don't believe the author was wrong about anything in this except besides maybe over simplifying some of the topics. That would be the only thing I would have changed personally. 

My Unfair Advantage

My Venture's Top 10 Resources:

(VRIN analysis= valuable, rare, inimitable, and non-substitutable)

1. Work Ethic

V- Very much so
R- Surprisingly, it is rare these days
I- Can be done but not many are willing to do the work
N- There is no substitute besides maybe luck

2. Father in Business

V- Invaluable
R- Opportunity and mentors like this are rare
I- Not applicable/ no one is my father
N- Maybe a mentor in the business could be a less valuable substitute

3. High EQ(social intelligence)

V- Highly
R- Yes not many have this
I- Its pretty hard to copy this. you have it or you dont.
N- Work Ethic and luck could lead you to success without this skill

4. Knowledge of Finance

V- Necessary for business
R- no, most advisers are knowledgeable
I- Yes
N- no substitutes

5. Large network

V- Yes, for this business your network and client base are everything
R- No, plenty of applicants have large networks coming out of college
I- No
N- There is no substitute

6. Degree from UF

V- Yes, shows i care about my education
R- No, most applicants have good degrees
I- Yes with any other respected degree
N- No substitutes

7. CFP designation

V- Yes shows I am knowledgeable and respected within my field.
R- Yes, most do not have this designation
I- Yes, others could imitate and get this if they desired.
N- No substitutes

8. Respect from Peers

V- Yes, gives me a large target market to begin my business with
R- No, others have respect often.
I- Not imitable
N- No substitutes

9. Leadership Skills

V- Yes, gives me the vision and strength I need to lead a team to success.
R- Yes few have these skills i believe
I- Yes it can be imitated
N- No substitutes

10. Respect for Authority

V- Yes, allows those more senior than I to respect me more due to mutuality.
R- Moderately, most of my friends have such a respect.
I- Yes it can be imitated
N- No substitutes.

Top Resource: Work Ethic
-I stand by my earlier blog posts when I say my work ethic is my biggest resource. I have always been willing to do whatever is necessary to succeed and i will always hold such a mindset. I feel as if this is more important because, if one is willing to work hard no matter where, then they will always find success in all that they do. Not in one of my life's lessons have i ever truly thought "I shouldnt have worked that hard." I have only thought the opposite.

-Mitch

Week 10 Reading Reflection

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? 
-I was most surprised about how much this chapter reminded me of the accounting classes I had taken thus far at UF. I saw a fair amount of overlap in the subject matter and this was interesting to me seeing as this is an entrepreneurship class.

2) Identify at least one part of the reading that was confusing to you.
-No part of the reading was surprising to me honestly as I had read most of the subject matter in my previous classwork here at UF.

3) If you were able to ask two questions to the author, what would you ask? Why?
-I would ask the author "Why did you include the quote 'just 2 percent of patents ever turn a profit'?" as this, in the context of an entrepreneurship book is counter-productive to get people to want to go out on a limb and be an entrepreneur. I would also ask the author "did you ever have a patent that did not turn a profit that would lead you to write such a statement?"

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
-I do not believe the author was wrong about any of the subject matter in the chapter but I do still disagree with the subject matter which I talked about in question 3 above. The language just seemed unnecessary and very negative in general which is not very wise of the author of a book meant to encourage people to make new patents, ideas, etc.

-Mitch

Growing Your Social Capital

Three New People I Connected With:

1.) Domain expert in your industry- Keith Moure
2.) Market Expert- Frank Laglio
3.) Industry Supplier- David Anderson

1) Who they are and what their background is and 2.) how the person fills the spot.
-Keith-
He is an expert on financial services and office disputes. He handles HR at a firm I interviewed for in Orlando for a summer internship and I could stand to learn a lot about the office and how it functions through him. I hope to learn some more interpersonal skills through further correspondence with him.
-Frank-
He is a market expert in the Orlando financial services market at a company I previously interned with but did not make a significant connection until I emailed him last week. He is a seasoned veteran in the field and has had experience in many markets and not just the Orlando one. He is a good connection to have as he has so many after so many year of experience.
-David-
David works at a financial product provider to the firm in which I interned at. I sat in on a meeting where I got his card last summer but never contacted him until recently to inquire about his company and their dealings within the Orlando market.

3) A description of how you found the person and contacted the person.
-For all 3 people, I reached out via email then scheduled a phone call for further, and more personal correspondence so I could truly network with each individual beyond email. I kept it professional and acted as if I was doing research to gain knowledge on the job market within the financial sector itself.

4) The nature of the exchange you have with the person -- what favor did they do for you? What is the return expectation? 
-The nature of the exchange I had with all 3 was very similar; almost inquisitive. I probed the 3 for information about the industry while acting generally interested in what they were saying. I think this practice will bode a long way with the salesman tactics I will need to utilize later when I have to do 'cold calls'.

5) How will including this person in your network enhance your ability to exploit an opportunity?
-Including any of the 3 in my network will increase the credibility of my network by diversifying the type of people I have in my network as a whole. In general, my network consists of my peers who are just now starting to enter the business world. I need to start finding more and more people who are in the real world and can give me real world endorsements and opportunities.

Reflection:

1. How will this experience shape how you participate in any future networking events?
-This experience will shape the way I participate in future networking events as it will make me think about who I truly need to know and give me a guideline on how to approach such a situation. It took me a little bit to realize that being personal and acting interested in the individual is the best way to earn their trust and truly form a network connection.

2. Did this experience differ from your networking experiences in the past? How?
-This experience differed by, in the past, I generally didn't research anyone I connected with but, this time, I went out of my way to see why and how I was going to connect with them and then acted upon this strategy.

Elevator Pitch no. 3

1) The pitch.

2) A reflection on the feedback you received from your last pitch. 
-All the feedback I received was pretty valid. As my idea is an investment firm and does not actually exist yet, I really can not go into much detail further than what I have done and what my competitive edge will be. I will attempt to make it more detailed but at the same time maintain the same confident attitude that I have had in my previous videos.

3) What did you change, based on the feedback?
-Based on the feedback I received, I made my pitch longer, more full of definitive substance in regard to competition and also made sure my connection to the audience was more personal in my gestures. I think this will help make my pitch connect with the target market more than my previous attempts did.

What's your secret sauce?

1) Describe five ways in which you think you have human capital that is truly unique. What is it about you, exactly, that makes you different? Write this up in a detailed list. 

-Work Ethic
-Social Intelligence and understanding of my peers
-Leadership skills
-Ability to listen intently and not interrupt others when talking
-Efficiency and effectiveness of work

2) Interview the five people who know you the best. Ask them what they think makes you different -- remember, focus on your knowledge, skills, abilities, emotions -- in other words, your human capital. Try to stay away from discussing your other types of capital (such as who you know). Record each interview. In your blog post, please post each interview, as well as a two-three sentence summary of each interview, explaining what your key takeaways are.

Interviews: my 3 roommates, and phone interview with both my parents.

Roommates interviews video:

-My roommates'/friends' responses were about 1. my work ethic 2. me being a good guy and 3. my public speaking. I was not surprised as I thought these things at least related to something in my original 5. My parents interviews are to be discussed below.

Parents interviews:

1.) Dad- In this interview, my fathers response to the question was "You are and have always been a leader in school and on sport's teams throughout your life. I think this will bode well into being an effective entrepreneur." This was not surprising as my dad was at all my sports games growing up and knows me as well as I do so it was no surprise his answer was one of my 5.

2.) Mom- In this interview, my mothers response to the question was "You are a very convincing person, in general, and this could really help you along the lines as a businessman." This was kind of surprising as that this was her answer. I figured it would be one of the 5 above.

I understand I was supposed to do a video but seeing as they are in a different city, I figured just the text of the answer to the question would suffice in addition to the 3 roommates videos.

3) Reflect on the differences. How do you see yourself, and how do others see you? Are there differences in how you assess yourself compared to others? What do you think causes these differences? Do you think your interviewees are correct about you? Finally, going back to your list from part 1, would you make any corrections to the list? How? 

-The difference to me was rather minimal and it didn't surprise me to see most of the things they said in my own lust because my roommates and family know me very well as I have known all of them for a long time. The differences came from mostly perspective issues mainly. Going back to my list, I would not make any changes.

-Mitch

Week 9 Reading Reflection

Reading Reflection- Chapter 8 of Entrepreneurship: Theory, Process, Practice

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? 
-I was most surprised about how black and white they present the product life cycle to be. They describe it very systematically and almost made it seem as if it were the same for each different product. I believe this is an over-simplification of the cycles themselves and maybe needs to be changed depending on the product type.

2) Identify at least one part of the reading that was confusing to you.
-No part of the reading was surprising to me as the majority of the info in it was about social media and other web-related items and I consider myself to be rather competent in this area due to my previous work and educational experiences.

3) If you were able to ask two questions to the author, what would you ask? Why?
-I would ask the author "Do you not agree the product life cycle is different for each individual product type?" and "Do you think in a further edition of this textbook the definition of the PLC will change due to the ever-changing landscape of today's markets?" because this was the one thing I did not agree with in the chapter itself.

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
-Yes, as I discussed above, I do not agree with the steps and over-simplification of the PLC. This is truly the only part of the reading I do not agree with as the rest is rather juvenile in nature.

-Mitch

Idea Napkin No. 2

1. Who I am -I am a very driven individual who is willing to work hard for what he wants. I am an individual who figures out what he wants and doesn't let a challenge stand in his way from attaining his goals. I often use challenge as a motivator to be the best I can be and I think this will bode well into becoming an entrepreneur.

2. What I am offering to customers

-The service I will offer to customers at Allen financial would be that of a quality financial planning service that would go above and beyond to tailor to the financial goals/needs and risk tolerance of the individual customer.

3. Who my customers are

-My customers are personable people who trust and are comfortable with a licensed professional handling their money to the extent that every market fluctuation will not cause a mental breakdown of sorts. Trust is the biggest component in this industry and I will use my hard work and social skills to prove to the customer that I am the right person to be handling their money.

4. Why my customers will spend money to use my product/service

-Because, simply, I will put in the work to help others grow their money and the small fee they pay for my services will be overshadowed by the financial gain I bring their financial portfolio. This is the goal of all financial advising firms but I will make it abundantly clear that my firm truly cares about the customer and their portfolio.

5. What my core competencies are.

-My core competencies are my ambition, social skills, networking, and intellectual ability relating to my industry. I hope that these things will bode well into my efforts as an entrepreneur. I also have had great success managing my own money in both the real world and numerous simulations throughout my educational career so I am confident in my financial analysis abilities.

Overall, I think these things all fit together very well in being a successful entrepreneur and financial advisor. Knowing all these things about yourself, and about your customers puts you in a good position to know what is necessary to succeed and to succeed on a grand scale. Additionally, if one knew the same info about one's competitors then it could be a very good competitive advantage and help focus on ones own shortcomings and work on them to help beat out the competition.

Feedback Memo:

-The main points in which I received mainly were centered upon questions about me as I was rather thorough on my first time through. I made some changes above based on the feedback I received and if I were to summarize them it would be truly the question "How are you better than other financial service providers?" My answer is in theory intangible as I simply respond to the claim with financial competence and a deep understanding of people and interpersonal skills. I think the feedback will actually help more hone in more in depth on these thing themselves.

-Mitch