Tuesday, March 29, 2016

Venture Concept No. 1

Opportunity

My customers are crunched for time facing neglect of their cosmetology needs. They are busy professionals, over-worked mothers, and those that keep non traditional hours. They can’t seem to keep up with their hair and styling needs to make them feel put together.


* Within a busy schedule, they can’t find time to get an appointment during salon hours.

* These customers can be located anywhere and although it isn’t a rule – they tend to be      professional women and even mother’s who can’t find time for themselves.

* These customers are currently either ignoring their need all together or seeking over the counter remedies that don’t always come out right. There isn’t any loyalty because it isn’t well thought out. Basically, the customer is in a “whatever works” mentality.

* The opportunity can be huge and the window of opportunity seems to be open for now. However, with services like Uber – it is only a matter of time before someone tries to evolve their mobile cosmetology business into a wider platform.


Innovation

My product is service based. It is a web/app platform where a network of cosmetologist can be dispatched out to clients on their time. The web platform will include a social network of cosmetologist who can input their times available and services provided. On the consumer end, the client can search for someone who meets their needs and what hours they are available. From there, a match can be made and a cosmetologist can set up their service time. Traveling to the client gives personalized attention and fosters loyalty. It can also provide additional income by requiring the client to pay a premium for certain time frames. Style on the Run will charge cosmetologist a joining fee as well as commission based on the service total.  The cosmetologist can set their price as well as adopted a “premium” charge for twilight hour services.

Here is a scenario to consider:

Client: Jennifer – a CEO working a sixty-hour work week. She is exhausted and getting home at 11 o’clock in the evening has done nothing for her social life. She gets a rare chance to meet with an old friend on Friday only to realize she has three inches of new dark growth to her butter blonde hair. She feels she needs to look her best but with a full schedule she could never fit in a 2-hour session at the salon. Jennifer heard about this new service that could let her schedule the color she so desperately needs at the only time she is available.

Enter Style on the Run

Casey – a color specialist receives a request for touch up. She has plenty of evening availability and is a night owl anyhow. Scheduling an appointment at midnight the following day sounds great. Not only can she charge her rate of $100 – it is in the premium time frame which adds an additional $35 to the bill. Casey knows this would be a client that she wouldn’t normally have so she happily pay her percentage to Style on the Run of $27. Not only has she profited from a client she wouldn’t have normally reached, but now Jennifer is so happy with her experience she is completely loyal to Casey and has scheduled the next time.

            The alternative to this is Casey struggles to build a clientele during the hours of 10a – 6p and Jennifer tries to attempt to color on her own which ultimately could turn into a corrective color situation. That could be two times the cost and even more time consuming.

Venture Concept

Style on the Run can meet the need of those who just can’t find the time to schedule a salon appointment. Clients will pay for the convenience in itself.

* Customers would switch from regular salons because they could have their time needs met. The idea of scheduling on their terms is enough to gain interest.

* Salons may be competitors during their operational times, but after hours the only other options are stylist who independently run their services from their homes. They would benefit from joining Style on the Run and grow their clientele.

* I think initially it wouldn’t take a very large work force to get the app and website going. From there, it would need a large base of cosmetologist to meet the needs of those in different areas. I feel the biggest hurdle would be focusing on certain areas and seeing eventual growth.



I think the most important part of my service based business is convenience. After the initial idea is established, I feel it could grow to include product based sales and styling needs. Finally, in five years I could see this being a big success in larger cities. Hopefully it would even start spreading into the suburbs by that point.

Sunday, March 27, 2016

Week 11 Reading Reflection

Week 11 - Innovation


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 found it really interesting how the author explained the different types of innovation. Routine innovation and using a company's "go to" strengths not being preferable really surprised me.

2)  Identify at least one part of the reading that was confusing to you. I found the section on trade-offs a little hard to read. Determining which approach you should take is something I would have liked more information on.

3)  If you were able to ask two questions to the author, what would you ask? Why?  I’d ask the author whether or not he feels that there will be another shift in how businesses are run because of more “Google” type companies cropping up. Also, do you have any examples where the old school ways of research are more beneficial than taking a new school approach to innovation. I’m curious to know if there are exceptions when doing the tried and true way is better.

4)  Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How? I didn’t really disagree with the author, but I do look at leadership roles differently. I think success is reliant on a group effort, not just top management making decisions on strategy.  

Saturday, March 26, 2016

The Amazon Whisperer

Amazon Whisperer

My business, "Style on the Run", is an app/web based service that will link cosmetologist and clients to receive and provide services whenever is convenient for them.

My revenue drivers include a sign up fee for my providers, then there is a choice whether they want to pay a small percentage of earnings or a base fee per month. Those providers that do a lot of work can benefit from the base fee and those that are only servicing a few clients a month can choose the commission based plan. I think it is a win-win for all.

Since my business is service based rather than product based, I think the next thing I could do is provide a product relevant to the business. Just like in regular salons, you sell product to supplement your business and keep your clients on beneficial products to enhance the hair stylists work. When a stylist has made you happy and suggests products to recreate this new look, you take it.  When it works out well, you keep coming back because that stylist has not fooled you into wasting money on useless products just to give them more money.

Amazon sells all different kinds of hair products. I would choose to carry Pureology products. The shampoo that I currently use has 76% 5 star reviews. It is an excellent product. The problem on Amazon is the products are not guaranteed. Resale of hair products not through the correct vendors can be watered down or mislabeled. It is a huge problem. My company could go through the right avenues and sell these products in the correct manor where the customer can know they are getting the real thing. Those who did have good success only complained about the price. Perhaps, I could even offer this product with less of a markup.



I think adding a product line to my service based business is exactly how it would evolve into a well rounded business meeting all needs.