In this reading the author gives an overview of the four types of a starts-ups.
When I think of how much money Apple is profiting off of me alone, I think that a product business is not that bad of an idea. However, a product business has its pros and cons. Many of the major successful Product businesses were started with an original thought or invention. An entrepreneur has to really believe in the product and the value it will bring to a market. There is an opportunity for substantial capital to be used in getting a product off the ground.
I relate to service businesses the most having worked in insurance for the majority of my career. In a service business you are not giving your customers something they can necessarily put their hands on so the value events look much different. My father previously owned a photography business. I vividly remember him planning his concept and what kind of photo sittings he would offer. He ultimately decided to focus on weddings and events. He had to raise funds for his equipment and marketing before starting operations. Once he started operations, he was able to build a management team with site managers to coordinate the event photography.
I worked in retail for JCPenney for over 8 years through high school and college. I even participated in a management program where I was able to learn the behind the scenes supply chain management and buying. However, the JCPenney I worked for was located in a shopping mall and although I saw many different retail concepts at work the most interesting retail concept I found was in another shop in the mall. The shop only sold shoes however many of the shoes were used. It was limited edition premium sneakers. These were tennis shoes that were only released for a limited time and only thought to be released again in another decade if at all. The majority of the shoes were Nike and Jordan brands. I was skeptical but then I saw the customers come in in droves. The owner later opened another shop also located in a mall.
When this book was first written I don’t think it was fathomable how much E-Business would grow. It seems that the key components of the model such as building the site, raise market capital, attain critical mass and repel competition are still valid and vital but I would love to hear the author’s thought about the model in current day where online shopping and applications are king. In addition I think that E-Business has now bled into all the other 3 start-up types and in order for success there has to be some type of online presence.
Hawker, Christopher. “3 Things You Need to Know About Launching a Product Business.” Entrepreneur, 22 Nov. 2013, http://www.entrepreneur.com/article/230068
3 Replies to “Supporting”
I appreciate how you do not just regurgitate the information of the book each time, but really apply it to yourself. The four types of businesses are all very interesting how they each function in so many different ways. To your point on the shoes, it is awesome to see how they just fly off the rack because of the novelty of them as opposed to just being another shoe. People just want to have something that no one else does and things like that can even create a business. Its cool to see business all around us, just like you wrote about, and how they can all be different. Great work!
Good morning Caitlin,
Along with Turner, I also enjoyed reading about your personal experiences. When I think of starting new businesses, my mind first goes to a product-type business or a service-type business, being that there are prices to compare to other businesses, most likely. I would have trouble valuating the product I am selling, but your father sitting down and thinking of what he was going to charge and why is great. I know a photographer in our area who is very good and everyone wants to use her for birth photos. Well, obviously her availability for that is decreasing, so she raised her price from $800 to $1,400! Good for her, and people are still willing to pay the $1,400 for the product/service she offers! People even compliment her for helping the mother during birth. It seems like she is offering much more than photography, included with the price apparently.
I thought it wonderful and exciting that you brought up the apple model in your post this week. It was on my mind while reading this section. How important personal experiences are in supporting roles during investing.
Your post this week left me thinking how I would support an entrepreneur and how as an investor I would want to support my investment.