UF Students Love the Waffle Taco

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Our most viral post ever went out last week. This is it:

CEITacoWaffle

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Great job students! Taco Bell’s Waffle Taco is the most shared and viewed thing we’ve ever posted.

What’s really interesting though is a complete by-product of this event. When we went back to look at the number of views we had, formerly known as “reach”, Facebook changed the text to “This post was served to…”

The post was served. Interesting…What does it mean to serve? Let’s ask the google.

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We all know that Facebook is squashing the organic reach of pages like the one we run for the CEI (like us on facebook!) but now the conversation is turning from reach to service. See how the tone changes. We used to see this as happenstance, that “my post only reached a small percentage of my likes.” But now the discourse is completely altered to a deliberate sharing of your posts. Facebook will be happy to serve your posts to users. And if you want them to serve more users, you have to pay up. This new positioning has a great effect on the perceived relationship you have with your page, and the one your page has with Facebook. Don’t forget who’s in charge…
The social media marketer in me weeps at this new paradigm.
The entrepreneur in me applauds Facebook for enhancing it’s business model. For us it means the free rides are just about over. For them it means more money in the bank.

The greatest auto-reply ever

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Laura and I are planning the first ever Gainesville StartUp Games. Follow us @GNVStartUpGames. While looking for help and guidance we emailed the folks from the Original Austin games.

Then I got this auto-reply:

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“Your email was delivered, but it may not be read. I’m in the SXSW Vortex and only occasionally can come up for air. If your message is something I can answer with a “yes” or “no” it is much more likely to get a reply. If you don’t hear from me by March 13, you should try resending your message.

If you’re going to be at SXSW…

Then I went to his website, Capital Factory is an incubator and Joshua’s bio is: “Joshua Baer helps people quit their jobs and become entrepreneurs.”

So I’m totes jelly. Austin sounds like an entrepreneurial dream, and that’s the direction we are going! Kudos to Josh and the Austinpreneurs. Keep up with us as we develop the Gainesville StartUp Games!

Staff Spotlight: Laura Johnson

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I’m here with Laura Johnson, the Director of Entrepreneurship Degree Programs. Laura joined us just last semester in September. So let’s see how she’s doing.

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I’m here with Laura Johnson, the Director of Entrepreneurship Degree Programs. Laura joined us just last semester in September. So let’s see how she’s doing.

CEI: Hi Laura, Thanks for taking time to chat with me.

LAURA: Sure! Glad to do it.

CEI: So tell us your path to this directorship.

LAURA: I came to UF for undergrad, and after quite a few degree changes I graduated with a degree in event management.  After an internship in non-prifit event management, I realized that I liked the entrepreneurial aspects of it –the ambiguity, the creativity, the value creation, but that was about it. From there I went to work for the Chamber of Commerce in Gainesville in a sales position, which was great experience.  Everyone should have a sales job at some point.  My next job was at RTI Biologics in event management; I got to attend lots of trade shows and work with some great people.  RTI is a spin-off of UF, by the way.  About 5 years ago I did the MSE program when it was offered on the weekend. I loved it and got so much out it. It completely changed the way my brain works. I said to my husband about the person in my position now, “I would love to do that job!” So when it opened up, I applied, and now here I am! I like that we have the start-up feel in CEI even though we are part of a massive university.

CEI: What are some of differences in the program from when you completed it, to today and to where it’s going?

LAURA: I can’t really judge the traditional program, because I did the professional weekend program. …Now it’s been more tailored to start-up mentality, not just a business degree. So we have courses centered on entrepreneurship, like guerrilla marketing. Our experiential learning element has grown exponentially. The opportunities students have now on campus and in the start-up community is drastically different, there is a great scene for our students to take advantage of. The addition of Dr. Morris to the CEI is taking the center leaps and bounds beyond how awesome it already was into a world-class center.

CEI: What do you look for in students who participate in entrepreneurship programs?

LAURA: When students come into the office, from every different background, they all have a passionate streak in common. While they might not have a business in mind, they know they want something different than a traditional degree program.  We teach an entrepreneurial mindset and help students channel that energy. Anyone can be the right fit, we want people who work well in groups and can bring new ideas to the table. So if a team has a marketing major, a fine arts major, and a finance major, they could put together an incredible plan. It seems like most of the people interested in the program have entrepreneurs as parents or family members. That’s not a requirement but an interesting observation.

CEI: Do you think because of early exposure to the entrepreneurial mindset, it is hard for students to go into corporate?

LAURA: Yeah, I think when students see their parents go to work and they are the bosses or they run a company, you see the path as something different. You can define it yourself; you don’t need to fight your way up a ladder to get to the top.

CEI: Why are you drawn to entrepreneurship?

LAURA: I think I’m drawn to entrepreneurship because I naturally think differently. I like to solve problems and look at things from different angles. I like seeing the final product and figuring out how to work backwards to get there. That’s what entrepreneurship is all about – having a big goal and working towards that. Also, I think I have an authority problem. I have had jobs where I’ve had managers that I think I could do a better job than them and it made me crazy that I didn’t have the experience that corporate culture requires to move ahead.

CEI: So let’s say you were marooned on a deserted island and could only bring three things with you to survive. What would you bring?

LAURA:  A knife, a big one! I want a really big hat. That can also be used to collect water. It’s a really big hat. And some really sturdy twine to make nets. But how do I start a fire?  I rescind my hat answer and choose a Zippo lighter. Because yes it can start a fire, but it’s shiny so I can signal a plane. I’ll just make a hat out of palm fronds.

CEI: That’s a very entrepreneurial answer. You used resource leveraging, bootstrapping clearly, and opportunity assessment. Are these the kinds of things you all teach about in the entrepreneurship programs?

LAURA: Absolutely! So not only could you learn to start a business, but also how to survive on a deserted island! I’m telling you, it teaches you how to think differently.

CEI: That’s great, thanks so much for your time. How can someone contact you to learn about CEI programs?

LAURA: Email me at Laura.Johnson@warrington.ufl.edu to set up a time to tour the CEI and see if any of our programs are right for you. If you’re not in Gainesville we can Skype at UF_CEI.

CEI:  Thanks so much!

LAURA: Thanks, Jeff.

The Myth of “Low Hanging Fruit”

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I hear students throw this term around all the time. The term was actually used more when I worked in non-profits revolving around student recruitment. I would offer you a definition, but Urban Dictionary’s is better:

Urban Dictionary  low hanging fruit

“Targets or goals which are easily achievable and which do not require a lot of effort.”

The sentence in context is extremely appropriate. “We’re a small company with few assets, so to succeed in the short term, we need to go after the low-hanging fruit.” Low Hanging Fruit (LHF) is a construct of the lazy. It does not exist. If you seek LHF then your market orientation needs realignment. Your entrepreneurial orientation needs a readjustment if you seek the mythical LHF.

See? It's fake. Like Yoshi.

See? It’s fake. Like Yoshi.

It’s not that LHF don’t exist, but the idea that some customers are more easily attainable than others is flawed. If you don’t believe me then let me get into market segmentation. The more you can zero-in on your customers by behavior, buying motivation, psychographics, and benefits sought, the more clear it how to sell to them will become. Then you will see that with a little homework on buyer behavior, everyone can become LHF. And if everyone is a LHF, then the whole idea of LHF is out the window. And you can be incredibly effective in sales and marketing to boot.

You must be wondering how to see something like this in action. Well, today is your lucky day if you are creating “performance wear for chefs”, because that’s the example we will use. (editorial note: this is my group’s segmentation breakdown for the Big Idea Competition and that’s why it is our featured example). And if you are not in the “performance wear for chefs” industry, then hopefully you can see how this approach is applicable to your company.

So, who is going to buy our apparel? Chefs obviously. So what kinds of chefs are out there? Pastry Chefs? Sushi Chefs? Sandwich Artists? Grill masters? Iron Chefs? Celebrity Chefs? Executive Chefs? Line Cooks?

Iron Chef Cat Cora, please buy my performance wear for chefs. Or at least endorse it. I can't pay but I can tempt with minor equity.

Iron Chef Cat Cora, please buy my performance wear for chefs. Or at least endorse it. I can’t pay but I can tempt with minor equity.

Do you think each of these chefs has the same buying behavior? Does every Executive Chef have the same needs? Do Pastry Chefs and Line Cooks seek the same benefit? Who else has a say in the buying decision? After answering those questions, you will have a nice portrait of a market segment. Let’s start breaking it down.

We have a Business to Business market (B2B) and a Business to Customer market (B2C).  This is parsed by who makes the purchase.  The B2C is a bit more straightforward. Within this market there are two segments: Home Chefs and Competitive Chefs. Yes, they are quite different, so let’s dig into the buying cycle of each.

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Home Chefs making this purchase might do so in a home goods store, department store, or kitchen gadget boutique. Anyway you slice it, they are pulling it off the shelf. Looking into their psychographics we would know that they probably have quite a few kitchen gadgets, have a disposable income, and enjoy entertaining and hosting guests. The home chefs read articles on cooking and watch cooking shows. They likely will buy these off a recommendation of a friend, celebrity endorsement, or feature in earned media. The purchase decision is most likely a solitary one, not needing to consult with any other individuals because they are the only ones needing approval and because the price point is so low they won’t need to ask a spouse or partner before diving in. They know that by wearing this performance wear they will cook better, stay cooler, and stay safer from burns or other kitchen hazards (these are the properties of our apparel).   Do you think their benefits sought are the same as the competitive chefs? Let’s take a closer look.

The competitive chef is one who tests their skill and recipes over barbecue, cake, chili, and more competitions for prizes. They seek an edge, something to keep them going, something to intimidate their rivals. They self finance this avocation so will likely be the sole decision maker in buying items and supplies. Their buying places may be at warehouses or through wholesalers; which has unique distribution opportunities that home chefs do not have. While they have some similar buying behaviors, they have distinct buying motivations and as such make up a different market segment.

We can do this on the B2B side, but I don’t want to bore you and I think by now you see how this process is replicable. More importantly, you can visualize how getting into the psyche of you customers creates evocative market segments, destroying any myths about Low Hanging Fruit that the “wantrepreneurs” want you to believe exist.

 

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On Consumer Value Surplus

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I was reading local entrepreneur Collin Austin’s blog this week wherein he discusses his new position at Gulejo Coffee. Gulejo by the way is founded by our Masters Degree in Entrepreneurship alumni.

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Collin is coming on board as the C$O. Read his blog for more explanation, but just know he has a knack for original titles.  Something he did really caught my attention for it’s “out-of-the-boxness” (if I can use that phrase that way). It’s about the consumer value surplus. I would wager, and I’m not a betting man, that Collin didn’t think of the theory regarding consumer value surplus when he and Gulejo created this new strategy. But they nailed it.

Impact_icon_blurConsumer value surplus is the increased value one product has over another as perceived by customer. It is created entirely by the seller by portraying perceived utility greater than the cost of production. #duh Here’s how Gulejo did it.

Gulejo, like most coffee sellers, sold coffee by the pound (16 oz.)and half-pound (8 oz). Collin bumped that up a bit. Now the Gulejo pound is 17 oz. and the half-pound is 9 oz. Price doesn’t change for the customer, that’s value add number 1. Cost to Gulejo should be minuscule, that’s value add 2. In a vacuum that’s all fine and dandy. But this is the real world and competition exists. As a consumer evaluates and compares bags of coffee, Gulejo will stand out. The consumer will perceive greater value for their dollar simply because of the extra ounce. Collin isn’t the first person to use this tactic.

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One of the main”American” breweries is now doing something with “tall-boys” bumping up the 24 oz can to 25 oz. However, I would argue this is rather ineffective. Tall-boys are a secondary revenue driver, they aren’t competitive enough for this to matter. It’s not the big money maker that competes for shelf space. That’s the 6-packs, the 12-ounce bottles or cans most commonly purchased. If I came out with a 13 ounce can, now I would be adding value in a competitive segment. That extra ounce wold now sway customers to my brand.

The same will happen with Gulejo coffee because they have added an ounce in the segment that plays by the pound and half pound. It creates a disruption where the incumbents are bound to the tyranny of the served market.

Good luck Collin, we’ll be watching to see what happens.

Veterans Entrepreneurship Program

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The Veterans Entrepreneurship Program (VEP) is designed for veterans who are interested in starting a business or who have an existing business. The program consists of three phases that provides practical training in venture creation and growth, and is accompanied by a support structure for participants as they pursue their ventures.

Dr. Michael Morris and the College's entrepreneurship faculty are launching a program to help disabled veterans in business.

Dr. Michael Morris and the College’s entrepreneurship faculty are launching a program to help disabled veterans in business.

“This rigorous, hands-on program is for veterans with a true passion to start something,” explains Professor Michael Morris, VEP founder. “It is about helping to empower those who have paid the price for our freedom to create their own futures, and to create ventures and jobs, hopefully for other vets.”

The program’s three phases are:

Phase I – Concept Development and Self Study (March 24 to April 26): Through online discussions moderated by the College’s entrepreneurship faculty, participants work on developing business concepts. Delegates with existing businesses work on understanding and shaping relevant business issues.

Phase II – Bootcamp (May 3-10): Delegates arrive in Gainesville for an intense eight day workshop on the University of Florida campus with faculty, guest entrepreneurs and business experts. This hands-on learning experience exposes participants to the “nuts and bolts” of business ownership.

Phase III – Mentoring and Venture Development (May 19 to January 2015): Delegates receive mentorship for eight months from entrepreneurs and business experts. Participants can rely on these successful business professionals to help provide solutions to existing problems.

To qualify for the program, veterans must meet three requirements:

1. Separated from active duty service (or currently in the administrative process of separating) with an honorable discharge.

2. Identified as disabled by the Veteran’s Administration or Department of Defense based on a “service connected” disability or “service distinguished” based on exemplary military conduct.

3. Demonstrates an intense interest in entrepreneurship and small business ownership/management.

Instruction, materials, travel expenses, lodging and meals for the Phase II Bootcamp will be provided at no cost to each delegate. The costs of the VEP are underwritten by sponsors and private donors, with operations and program development provided by CEI.

The deadline for applications is Feb. 20. For more information, contact Dr. Michael Morris, VEP Program Director, at vep@warrington.ufl.edu or 352-273-0329 or visithttp://warrington.ufl.edu/centers/cei/vep/.

 

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Repost from https://news.warrington.ufl.edu/2014/02/cei-launches-innovative-program-to-help-business-minded-disabled-veterans/

Big Idea Competition, Reflections of Day 3

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BeDifferentThe focus of tonight’s lab session was on the business model. Not the business plan, not the business concept, but something kind of in between.

As a refresher, the business plan is the full detailed document split up across about a dozen sections that is your “best guess” of how you will run every aspect of your business.  It’s pretty detailed. The business concept is not your tangible product or service, but the value you create. A lighting company’s product is lights and chandeliers, but their business concept is selling ambiance, mood, effecting the environment. You should be able to state your business concept in 6 words. And the first two are “We sell”.

So what is a business model? A business model asks 6 questions:

  • How do you create value?
  • Who do you create value for?
  • What is your internal advantage?
  • What is your external differentiation?
  • How will you make money?
  • What is your growth plan?

Let’s break those down, starting with “How do you create value?”

How do you create value? 

This might sound straightforward; you sell things. But the question doesn’t ask how do dollars get in your bank account, the questions is about creating value. Within your product/service mix you will find you have breadth and depth across your product lines.

The breadth refers to the kinds of products you have. So lets say you operate a simple dive shop and you have the following products:

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Each of these is a revenue driver, and independently contributes to the value you create.  The next concept is depth of your product mix, these are your unique offerings within the product lines. They can high-end or low-end variations, service contracts, rentals, etc… the more creative you get with the depth, the more opportunity you have to create value. Let’s put that into our breadth model and see how it looks.

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But what if you only have one product because you are a start-up based on a new gizmo? Add depth to that one product. Do so through a warranty or service contract, tech support, additional supplies or accessories to compliment it. Again, the more creative you can be, the more value you can create.

Who do you create value for?

The more you understand your customer and the buying cycle, then the better you can sell to them. Create a picture of the kinds of market segments you will be selling to, and you will knock this out of the park. Draw your ideal customer, take a picture of one, and get in their head. What steps to they take from becoming aware of your product, become interested, desiring the product, and lastly purchasing that product. Are your sales based on quick transactions or does your customer need a relationship with you or your sales force?

What is your internal advantage?

What are the capabilities your business has that are unique to you? If you had one extra dollar to spend on your company, where would you spend it? What makes you excellent? This is about you and your people. If everyone in your industry had the same resources, what internal capabilities are your strongest?

What is your external differentiation?

Differentiation compliments your internal advantage – externally. If your internal advantage is people skills, this might translate externally as a fantastic customer service department. If the internal advantage is marketing, then we should expect to see a pretty sophisticated marketing section.

How will the firm make money?

The basic question here is about volume and margins. The example in the lab was on college bars. A college bar can sell 25-cent beers all night by packing the bar to capacity and selling as many beers as they can as fast as they can. Whereas if you were to go to swanky hotel lounge, the same beer might be going for $7, and they expect you to order maybe one or two an hour. The key difference here is in high volume/ low margins vs. low volume/high margins. What are yours?

What is your growth plan?

Where is the company in 5 years? Are you expanding, selling, IPO? Sometimes this is called a speculation plan, because it is your hopes and dreams of your company’s future.

Good luck! To keep up with us live-tweeting the labs follow us on Twitter at www.twitter.com/ufcei.

Big Idea Business Plan Competition, Day One

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The common denominator between everyone competing in the Big Idea Competition is that we all have a dream. Not an idea, a dream. I know how that sounds given the title, but bare with me. We all have a dream to do great things, become successful, win first place, etc… The lab is designed to help you turn that dream into a reality by guiding you through the organizational process of our business. When Dr. Morris was lecturing I was reminded of a conversation I had at a place I used to work. An older and successful doctor asked me what my plans were. I told him I was going to start a Masters degree in Entrepreneurship. And he responded saying, “Why would you ever get a master’s in that? Aren’t you supposed to just go and try, and fail, and fail, and fail some more until you get it right?”

You can do that. You can go ahead and throw crud on the wall and see what sticks. You can make appointments with bankers to try to get financing relying solely on your wit and charm. You can put out a product and pray to whatever deity you prefer that people will buy it. You can do whatever you want because you live in the greatest time in history to start a business, where people are finding solutions to problems we didn’t know we had, and you can do business with almost anyone anywhere in the world! You can do all of those things, but here’s what you should do.

You should write a business plan. You should use that writing process to thoroughly vet your idea. You should evaluate the value of your ideas. You should figure out how to make money. You should formulate all the ways to make your ideas operational.

The business plan brings discipline, order, and logic to your thinking. The business plan can help you recruit talent. The business plan will help you get financing.  People who give you money expect to see some proof that you can deliver. The business plan is your best guess of how you will make a return on their investment.

I’ll leave with you with one story. I recently, no more than 4 months ago, had coffee with a local ‘entrepreneur’. He had just launched his website and was already getting orders for his product. He was telling me his ‘entrepreneurial story’ and said that he’d been writing his business plan for months until a friend told him to throw it out and start working.

He is no longer in business – crashed and burned in the span of 4 months.

A business plan will guide you through all of the decisions you are going to have to make. Being in a lab or having mentors or friends review your plan will punch holes in your plans where you didn’t know any existed. Professor Rossi says, “You need someone to tell you that your baby is ugly!” Dr. Morris says, “To be successful you will need to develop some thick skin.” It is a long and hard process, but it will be worth every edit and revision you make.

To see more on the Big Idea Business Plan Competition check out http://warrington.ufl.edu/centers/cei/bigidea/ and view our web series on the competition on our YouTube channel. And follow along on Twitter with the hashtag #UFBigIdea.

*Much of the content of this post is inspired by Dr. Morris’s lecture at the Big Idea Competition.

What is your Entrepre-New-Year’s-Resolution?

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January is here, again. And you are too. Like most folks, you have probably made some promises of self-improvement to yourself. The most common one every year is to exercise more. Many crowd favorites are to quit smoking, get a better job, save money, take a trip, and recycle more. The list goes on forever. We even have a board here in the CEI dedicated to them!

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What I have done, and as a result of this blog will recommend to you, is to segment your resolutions to make them more manageable and bite sized. So start with your life. Again, these include the above-mentioned resolutions. Then I broaden it to those around me, friends and family, co-workers, and classmates. Things like, “This year I resolve to make a donation the The Human Fund (http://festivusweb.com/festivus-the-human-fund.htm) for each of my co-worker’s birthdays”. But what about other aspects of your life? Hey – you’re a beautiful diamond with many facets, and each one deserves a chance to shine! Remember this is the UF Center of Entrepreneurship and Innovation blog, so you can probably guess where this is headed.
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How are you going to improve on your entrepreneurial skills this year? Read more books? Attend more live conferences? Network more? Network better? Is this the year you launch your app? Will you resolve to love Twitter? [www.twitter.com/ufcei plug] File your patent? Incorporate your business? Get acquired? Are you finally going to take the leap and quit your job and become the great entrepreneur you were meant to be?!
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Tell us what your Entrepre-New-Year’s-Resolution is below. And if you don’t have one, or need help completing yours, we are here to help.
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