Week 11 Reading Reflection

This week's reading is about innovation strategy and why it is necessary it aligns with a business strategy that the firm has communicated.

I would have to say it would seem common sense that your innovation strategy match up to the firm's business strategy, so when I read the author's research reflected the opposite, that was surprising. It clearly can be detrimental to a firm, so not sure I grasp the concept of why it is not unilaterally enforced in the organization.

The reading was easy to understand with the exception of I don't have a clear understanding of exactly what are "phase-gate" models. I understood the positions of the proponents and opponents, but I did not understand what exactly it entailed.

Two questions that arise from the reading for me are:
Am I to understand that most reasons why business and innovative strategies do not align is because the senior leadership is not involved in asking questions directly of the progress of each division regarding what is the progress in innovation alignment with the business?

So it is recommended that there be at least a disruptive innovation in order to stay competitive. I wonder if there should always be R&D to look for those disruptive innovations while maintaining routine innovation?

There was not anything in this week's reading that I disagreed with the author and/or thought he was wrong.

Venture Concept No. 1

My concept includes the unmet housing need for the lower income and middle income working family. The ideal customer is that customer who does not see owning a home as a reality and struggles to find a home that fits their family within their budgeted needs. These families barely make it from paycheck to paycheck, but continuously work because they were brought up to believe that their hard work will eventually pay off.

Ever since the Great Recession, families were qualified for homes they could not afford. In fact, housing prices were well above what they actually should have reflected. The bubble burst and either one or more working individuals within the household experienced job loss due to the trickle effect of the housing market blowing up.

According to the Pew Research Center and their analysis of government data available in order to be considered middle income class in the state of Florida, your median income needs to be at least $46,036 and lower income is from $30,691 to $92,072. The unfortunate result of this research is that it does not take into account the living expenses needed to, well, live. There is the cost of utility, food, clothing, and taxes to name a few.

These working families are living with families, finding homes further from their jobs because they cannot afford the housing in the county in which they work. Some get subsidized housing assistance and believe this is their only option. As news articles report, many of these subsidized housing options are below standards for anyone’s life.

As long as there are income disparities, there will be an opportunity for this business to be successful. These working families raise their children to do better than their parents are doing. These families struggle in the hopes their children will not. This business concept will actually reward these hard working families with a home and A.P.R they can afford for a real home.

The innovative thinking behind this concept is that my business will be service offering that has required courses in the home buying opportunity. Our classes will be offered at differing times to fit the lifestyle of the working family. There must be full participation of the family so there is a clear understanding of what is required of each member of the household to ensure successful long term ownership.

We will have individuals in the organization familiar with credit reporting and the steps needed to correct or remove negative reporting. We will walk the family through this tedious process and ensure they are not just left with a “to do” list, but the assistance in writing necessary statements or making necessary payments to improve their overall credit score. We will work with other programs such as Head Start to Home Ownership that offer financial assistance as well as Federal Housing Administration that will guarantee a portion of the home loan. This is a lot of work and time that goes into completing forms and requirements. A lot of time a two income family (or one income) does not have. We will be that helping hand. We will require the participation as far as the classes offered, but as far as the forms needing to be completed, we will assist in completing the forms and ensuring the checklist of items that we are very much familiar with required for our customer base to meet and qualify are met in its entirety. Time is money and in most businesses, they would not want to spend much time. In my business Trans-It-Home, time is how we ensure we make money. We give the time for each of our clients and get them to understand yes it is time consuming, but the cost of owning a home should be known in advance of making such a purchase, so time is needed to gain a complete understanding of this undertaking.

Structure of the business will have to include individuals with customer service experience as well as a financial background of some sort. Not necessarily a degree, but experience in the banking industry, or mortgage industry will be preferred. Individuals well versed and articulate in verbal and writing communication. The staff has to be patient and celebrates the successes of each of their working families when the key is handed over for their home.

The one element that will be my venture’s “unfair advantage” will be my ability to always look outside the box, step back and look for opportunity to overcome and obstacle. I have the mindset that everyone has value and this mindset will part of our company mission statement. There is no judging of any individual families that walk through our doors. If they can show they have a working history and steady income from those singular or multiple jobs, then we can assist those families in qualifying and getting a home. Our business model will be “Trans-It-Home is working for those working for their families well-being”. There are a lot of steps involved in owning a home and this business will already know those steps and I will have a creative staff that will find ways in effectively completing these steps in the most cost-effective manner.

The next venture will be actually having an apartment complex that accepts housing subsidies and the families renting these apartments will have had to go through our program and are still uneasy and want the option to really test their knowledge in “real” life scenarios. This is a community of like-minded individuals lifting each other up and sharing their best practices with each other. Every success is celebrated, but the terms of the lease will not exceed two years. If our family is qualified and buys a home, there is no penalty for getting out of the lease early. We just want to ensure they are ready for the next step. It will be an opportunity for our families to save money for Energy Star appliances and other items necessary to keep their home in order such as a lawn mower if applicable. We will assist them in getting the best deals for the top of the line appliances they desire.

It would be my hope this business will grow from state to state. I have not decided the best offering of expanding this offering, but I believe it can be a service that would be easily attainable. I would like to think this venture will help us get families off the street and into a home they cherish and are proud to call their own. The lower and middle income families work hard and find it hard to see any option to invest. I believe owning a home will open their eyes to the possibility investing in their own and their family’s future.

Amazon Whisperer

My revenue driver for my business currently will only include a service fee from the partner lenders that work with my customer base. A non-profit is also something that has been bounced around by members of the class and is an optional direction.

We will also have main expected classes for our families that go through the expected classes of all that is involved (including costs) associated in owning a home, cost saving measures that our families will need to implement in their new home, and others.

The next product offering will be our own communities of apartments for those renting (up to two years) as they go through the process of making their reality of owning a home. 

Everything associated with this apartment community is catered around building behaviors for future owning. Including what fixtures and appliances should be purchased for best cost savings measures. We will help these families make the major purchases as they move toward correcting their credit and improving their lives overall. They earn dollars as they show savings on electricity and care of their dwellings. This next thing will certainly guarantee success for the home owner and our partner lenders will pay premium for those families that have gone through this more tedious offering.

Since my next offering of owning an apartment complex that is for a service of getting working families used to the requirements of owning their home and will only be for term up to two years of renting, I really could not find anything on Amazon. The only thing I found was a book by Laura Cochran called “The New Investor’s Guide to Owning A Mobile Home Park: Why Mobile Home Park Ownership is the Best Investment in This Economy and Step by Step Instructions How to Acquire and Manage a Profitable Park”.

This made me think of why my customer base would rather choose a mobile home during the transition via our program versus our apartment community. First of all, our families will most qualify for housing assistance and those payments will be directed to us. Most of the families that qualify for housing assistance will not pay much more than what they receive in assistance. This gives them an opportunity to really save with our program because our development will be HUD approved. The money they save in rent, will be put aside for all Energy Star appliances. There will be a savings account set up just for their essentials for their home that must be increasing in a set balance every month. 

This offering will be great addition because we will have community events driving the skills they have learned individually and encouraging each of them as they travel the road together to home ownership. This will be a community of like-minded individuals in which no one is judged or embarrassed about the income they earn because they all work very hard for their money and each will catapult the other to reach their goal of owning a home. This community will be of possibility.

My Unfair Advantage

In my youth, my sister and I spent half our summers working on our grandparents farms in Fort Wayne, IN and the other half experiencing culture at my Nana's home in Washington, D.C. Though both diverse environments, I learned to adapt to each environment.

In Ft. Wayne, I learned that although it would seem the slowness of the farm country would not offer much, there was plenty to do before the end of the day. Most everything that was cooked and placed on our plate was from the farms. I felt like they were gaining free labor half the summer from my twin sister and me, but now that I am an adult, I see the invaluable lessons and abilities gained. I learned money is not free. You earn your keep by doing your part. If you want to eat, then you tend to the farm and the animals. Weekends are for fun, weekdays are to work.

Washington, D.C. was an outlook of social learning, culture opportunities, not just because of the Smithsonian but the individuals my Nana interacted. These individuals worked at the State Department, Professors, and had a vast majority of experiences. This interaction with these well established social individuals allowed us opportunities to refine our world. I learned that we dress for dinner, we listen to others completely prior to providing our difference of opinion (which was permitted but respectfully). I learned debate is not a bad thing and that my opinion counts.

Human Capital
1. Strong work ethic

• This is valuable in that I learned early on that working brings value to the family (company). Nothing is given for free and you must do your part. 
• Not rare, but my clients and potential investors will see my work ethic as invaluable due to the experience I have had throughout the years. 
• I believe there are others that could have a strong work ethic, but the experiences I gained while growing up cannot be imitated. What  I have developed throughout my years no one else will be able to extract and duplicate. Each customer will know that my firm will work hard and expect them to work hard to  understand the requirements in owning a home.
• I think there are resources that advertise they work for their clients, but in most cases it is just marketing. There are those non-profits that truly want to help others succeed, but I don't think you will see the effort that we will provide in ensuring success for our clients. There really is not anything that can replace a strong work ethic.

2. Ability to adapt to an ever changing environment

• This is valuable in that times change and in order to be successful, you and your firm have to be willing to see the outlook and change with those times in order to meet the customer needs
• Not rare in that successful organizations and profitable ones have found ways to keep up with the times and keep their clients interest.
• I have the ability to change not just with environment but with individuals. Each of our families are different with different stages of work life and family life. We will be able to adapt our strategy with each of these families in order to reach the goal in gaining a "forever" home. There will be a lot of time, resource, and money spent to ensure we adapt our strategy to each individual family, therefore, not really inimitable.
• I don't see this human capital as one that another resource could provide the same benefit.

3. Ability to step back and see the big picture of an opportunity

• The value in taking a step back and breathing is priceless. Nothing is ever as straightforward as you may think from outset. Knee-jerk reactions (reactive) can kill a project, client's opportunity to get their home, and kill a firm.
• I believe in management this is a rarity. My work experience in managing from photography studio, fast food, retail, and call centers have allowed me to hone the ability and really see the profitability of stepping back and evaluating a situation. It does not have to take a large amount of time (could just be ten minutes) but that time to consider what is before you is really where the money is made.
• Don't believe this is hard to copy, I just do not believe there is a desire to do such. Most firms want to get their items checked off their list and not think about the repercussions of their decisions.
• I guess you could go to a psychic and they could foresee the future, but in reality nothing but another individual firm that has the same environment and willingness to step back and really evaluate the options available for their families looking for a home.

4. Management team with differing skills and ability

• As far as the value this will bring my firm is that I have a long history of managing people. In my current firm, I have individuals with differing backgrounds and opinions. I love the at times debates the staff brings when faced with a dilemma. There are not any "yes" individuals on my 17 members of the management team. These individuals have different goals and desires and even though their peers do not see the value of each other at times, I do. This diversity of managing skills continues to help make my part of the business I run successful. We run into obstacles, but how we overcome as a team is priceless.
• I believe this is a rare example of a managing today. I think the easy part in surrounding yourself with people is to pick individuals with similarity in background or experience. I think too much a something is "too much".
• Investors will value the diversity in experience with my team. I think organizations are trending to this end of the spectrum, so it will be a formula for success, but I don't believe it it mainstream today
• There is nothing that can replace the benefit that diverse management staff can bring a firm

5. Optimism

•  This is valuable in that with my business you have to be optimistic of the future for our families we are working to assist. They have been shut down or shut out of opportunities and our organization will show them there is hope to have the home they truly desire within a reasonable price.
• I think among sales this is a trait that has to be displayed, so I don't think this is rare. My business is not sales, it is assisting hard working families in getting the right home for them and knocking down those naysayers.
• This is another human capital component, therefore, I don't believe there this cannot be copied or substituted

6. If life gives me lemons, I find a way to make lemonade.

• This is different from optimism in that in this case I am talking about failure. I ran track in school and was not always the first across the finish line, but I congratulated the winner and figured out a way to ensure I did better the next time around. Failures are opportunities for success. The lessons gained from failure is invaluable from a personal perspective as well as a business perspective.
• I believe this is rare among those firms that are in the business of approving and denying credit. My firm will have such a strong relationship with the few lenders we work with on a daily basis to have a clear understanding of what is required to get approved for a home with a low interest rate, therefore, our families once they get to the stage of hitting reply, will be approved.
•  I do think there are a few organizations that offer services to lend a helping hand, but I don't believe they will be as prepared as we will be in ensuring our families do not lose hope.
• There are websites that give advice on how to improve your credit rating (Credit Karma is an example), but none that will actually walk each family through and follow up.

Capability
7. Understanding of budgets, profits and loss statements

• Investors will want to know what experience I have from a financial standpoint and managing their money. I have experience in budgets, financial records, and looking for opportunities in lowering costs to ensure profitability. I bring this experience of understanding. Of course, I would have someone on my management team that has more experience in this area, but as the CEO, I understand the rules of Sarbanes Oxley and profits and loss, so not just operationally sound, but financially sound.
• This is not rare in organizations today 
• This is utilized with most companies today
• There are firms that can be hired to manage the financial side of the business.

8.Work experience of managing large workforce of diverse employees with diverse opinions that contribute to overall value and profitability of the company.

• As I mentioned previously, managing a diverse workforce has its values. I should note it also has it complications. My father was in the Air Force for over 20 years. In that time we have moved from location to location and in the process, changed schools many times. In that time I learned to adapt to my environment and meeting different kids from differing backgrounds. Learning about them and finding something of interest about them that made them attractive (more like a magnet). This and the summers I spent with my Nana, helped develop this skill young and I further developed as I moved along my career path.You have to find ways to motivate others to do the job that is being asked and I believe you have to ensure they know they are valued. This value will show in their work and the quality put forth in their success rates. 
• It is not rare to have companies with diverse workforce. I believe the value comes in how they manage the diversity of the workforce. There are firms that have begun to understand this value and offer training within their individual organizations to their respective staff that manages employees
•  My work experience is different from another work experience, therefore, my experience cannot be substituted, but as I mentioned above, there all many resources available to help in getting that training and understanding of how to manage a diverse workforce.

Social Capital
9. Network of professional women and men that either own their own businesses or are associated with businesses in which I would depend on their knowledge and/or their connections

•  I participate in organizations for women and have made many connections with individuals. I work with both men and women that own their own businesses. Their vast knowledge of the obstacles they have encountered while growing their business is invaluable from a personal perspective. They would be the individuals I go to for wisdom and knowledge. The individuals have connections and because I have build a relationship with these people, one that is reciprocal, I am confident I can count on them when needing assistance in getting my business off the ground.
• Social capital as a network of connections is not rare. My connections and my interactions with my network is rare. What I offer these individuals for what they can offer me is not the same that these individuals will have with others within their network.
• We all have connections that can benefit one another. It would not be hard to copy the individual contacts within my network

10. Associations with individuals in the banking field as well as CPA's

• My customers need lenders that will understand the need to middle and lower income working families and have a willingness to work with these families. My network of individuals in the banking industry that deal with mortgages will assist me in gaining the right partnerships
•  Associations with firms within the financial industry is not rare.
• It can be copied from others, in that anyone in the banking field within my network, does this for a living, therefore, other firms could utilize them. In my case, I would be utilizing for information and connections to help my specific customer base.
• I can go to banks or financial institutions outside of my network, but then I would not have any competitive advantage in securing a business relationship.

My top resource would have to be my human capital. I believe the sum of them make me invaluable from a business perspective and to my customer. My past and current experience has allowed me to develop these abilities and has assisted in reaching my goals within every firm I have worked. It shows the willingness I have in overcoming obstacles, willingness to work hard for myself and for others, and the willingness to see past the customer's "poor" credit rating and see the possibility to ultimately owning a home.

Week 10 Reading Reflection

Honestly, most of what this chapter entailed I am very familiar either through my work experience or education. I think the only part I was not familiar with is the technique designed specifically for entrepreneurial firms in relation to break-even points under alternative assumptions of either fixed or variable costs.

Nothing was confusing to me in regards to the reading because it was mostly familiar.

One question would be that wouldn't the expectation of expansion of a firm be included in the capital budget if the expansion includes property, building, and etc? So this expense would be included on both the Cash-Flow budget as well as the Capital budget?

Would the author believe that as entrepreneurs, it would be very difficult to just walk away from a customer because maybe they do not take the time to evaluate the profitability of the customer? I believe in a young business it would be hard to see any customer as a "bad" customer, so how would they overcome that obstacle?

I did not read anything in this chapter that I disagreed with the author. I am familiar with most of what was included in this week's reading.

Elevator Pitch No. 3

This is my third elevator pitch and the feedback on the previous pitch was very positive. I did think I needed to point out how my business would make a profit (who pays the fees for the services provided). I briefly mentioned that this time in my pitch.

I think overall, the pitch was a good one based on the previous feedback, therefore, minimal changes made. I believe I did a better job in minimizing the ummms.

In any case, here you go and please be honest in regards to what you think.