Entrepreneurship

Banks have always lent their support to traditional businesses and entrepreneurs. However, with the emergence of new-age startups today, it’s important that banks and government agencies tweak their services and policies to facilitate the new breed of entrepreneurs.

The New Economy Group was set up at Axis Bank to specifically focus on companies using technology to build rapidly scalable businesses. The objective of setting up this group was to have a single point of contact for these entrepreneurs to meet all their banking and financial requirements. The group aims to foster relationships with emerging e-commerce companies through a comprehensive model based on technology and innovation.

Entrepreneur India spoke to Tanu Bhargava, Senior Vice President and Head of the New Economy Group to understand the initiatives offered by the bank under this profile.

“The profile of the customers in this segment is very different. They are very young, tech savvy; hence the solution from our end also had to be very tech oriented. We really needed to make banking simple for them and we decided that instead of having a product approach. We decided to have a separate group to give startups tailor made products, customize technology to enable easier usage of banking services,” Tanu said.

In a typical scenario, one would see startups open a bank account at one of the regular branches where the services are limited to the basic needs. But in the case of startups, once they begin to evolve, they will require more tailor-made services to suit their requirements to run businesses.

Tanu also briefed us about another strategic initiative, wherein the bank is engaging with fintech companies which it believes has ideas that can help Axis Bank innovate any of its products, processes or services.

Banks warming up to startups

Several banks in India are gradually getting comfortable with the idea of collaborating and working with the new-age startups. , State Bank of India and private banks have invested their time and money and backed technology startups.

Tanu said that some of the major things entrepreneurs should keep in mind before approaching Axis Bank for its tailor-made solutions is complete understanding of their business models, technology and how Axis Bank can help scale their business.

Thought Factory, Axis Bank Innovation Lab at Bangalore intends to constantly innovate & introduce Banking 2.0 solutions that can radically change consumers’ life in Banking and beyond. Thought Factory encompasses an in-house Incubator team, an Accelerator and a start-up hub ‘Social’ powered by Amazon Internet Services Private Ltd (AISPL), the India affiliate of Seattle-headquartered Amazon Web Services Inc.

What are the key factors for the success of this business? Answer No 1: Heather Evans, a Harvard Business School graduate, had major interest in the fashion industry; as she had some background in the same industry, where she worked as a financial analyst at “Morgan Stanley’ and as an assistant to a designer clothing firm. Because of the experience gained, she was sure and truly convinced that she could run a dress company.

The main aim of heather Evans was to create a company that design clothing line for professional women who better fits their life-style, Its focus was to ell high-priced, high-quality dress-and- Jacket combinations for women, ages 27 to 45. Heather Evans has accomplished what she dreamt of, heather Evans label Is now serving accessories, leisure clothing, and office-wear for a different, wider customer group, and all at low-price. Few factors were very Important that lead Heather towards accomplishment. When she started her business It was an unmet and fast growing market. He recognized the need for a new look for professional women. She knew very well, the needs of those business women which she was targeting. She had an understanding of the appropriate limits in the formal office environments. She used her experience to encourage her customers. Another eve important factor was the increasing number of professional women who contributed to both, their own growth and to the growth of the market. She gave her customer choices depending upon their requirements in clothing. Social trends had also changed; more women had inclined towards working in offices.

She conceived a style of clothing, based primarily on dresses, which better fitted the life style of professional women. Heather Evans collection contained clothes appropriate for the conservative workplace, unlike other designers. She also gained confidence of the target market through identifying her own background with their lives. She also worked as a model at fords, so she had the experience to project herself through the media. Last but not the least competition was also considerably beneficial to Heather Evans.

Question No 2: What are the possible risks that you can foresee for Heather Evans? Answer No 2: The possible risks that I can foresee for Heather Even are: 1. Design risk: The risk associated with the design process was that, the design process took 9 months, which was a long period. Which might delay the production process and it might also stuck all the further stages required for the manufacturing of other lines 2. Financial risk: To start a business, it is very necessary to get loans, and getting loans Isn’t an easy lob.

Arranging loan for a new business Is quite a tough Job. 3. Sales risk: Ms. Evans cannot accurately predict future sales growth further than the Introductory period because people might not Like the design or the quality of the outfit. 4. Inflation risk: With the Increase in inflation, the prices of all the other things associated with her business will also rise. Inflation risk Is a major risk for her business that can affect her pricing strategy. 5. Liquidity Risk: The risk of ululation of the company Is also present, where she can lose more than what she has Invested. 6.

Environment uncertainty risk: Changes In the general trend and reduction In the number of business women can affect the company’s revenue. 7. Seasonal risk: Because of the season collection, seen NAS nylon rills escalated Walt near Dustless, Owe to ten season hang, she has less time to sell her clothes and when the season is about to end she would have to start the clearance sale which will reduce her profit. 8. Market risk: Any change in trend cab cause problems for the business of heather Evans, as her business is based on fashion industry, and she designs clothes keeping in mind the current trends.

And the presence of competitors following the same strategy can also cause trouble for her. Strengths. W. O. T. Passion – a prerequisite for any successful entrepreneur. Education – strong Harvard education as well as experience in industry. Successful first year – nothing better for an investor than a product that is already successful and already has orders for the next season. Investors have reinvested the profits, showing support of the company S. Weaknesses. O. T. Business plan – simply doubling the numbers is not sufficient. Bank financing and personally guaranteeing loans may cause desperate situation.

Rushing the design process may cause quality of clothes to deteriorate. By not sharing work load, causes doubt as to whether company is scalable. S. W. Opportunities. T. Much market attention and future sales. High demand offers possibility of expansion With all the cash flow from sales/reinvestment, opportunity to grow. Investors pushing for new hires, opportunity to ask for more investment. S. W. O. Threat. Fashion industry is fickle, what is “in” one year may not be the next. Low entry barriers to enter the fashion industry. Would you be on her board and what advice would you give her?

Team Platy would choose not to be on Heather Evans’ board. Before accepting her offer, we would ask her to please let go some control of the company. Her micromanagement may make ere comfortable with the quality of the product but would hinder the scalability of it. If she feels is comfortable with delegating some work, she can focus on growing the company. Will the second line be as successful or more successful than the first? It is impossible to tell with certainty whether the second line will be as/more/less successful than the first because the nature of the fashion industry.

However, it can be inferred that because of the hastened design planning, the product may not be as fashionable as the first line. Even with a successful first line in the department store, he clothes will not sell as well if they are not fashionable. What is section 1244 stock and why have it? Section 1244 stock allows losses from the sale of shares of small domestic corporations to be deducted as ordinary losses instead of as capital losses to a maximum of 50,000 for individual tax returns and 100,000 for Joint returns. This would be useful as it could reduce the tax liabilities of the company.

How important is networking and why? In business, networking is infinitely important. Nothing is out of your reach if you nave developed a strong network AT Eternal, colleagues, Ana Dustless partners. Everyone has their own network they have built up over the years that you cannot even imagine. Then by what many call “chance” or “luck” you get connected to someone you have been looking for or a Job offer or recommendation you have been trying to get. In this case specifically, it would benefit Heather because she does not have any of the top As.

Networking will give her a support system of allies as well as grow her knowledge of the industry. She will soon find out that fashion is about headlines and if you don’t have the capital to buy the headlines, you have to know somebody who does. How important was the business plan? The business plan is important when used in appropriate situations, such as fleshing out the idea. More important is the feasible study done in order to complete a high quality business plan. In Heather’s case, it is important she not feel tied down to her original business plan.

Was Heather successful? Depending on how “successful” is defined, Team Platy would say that Heather was not yet successful. Although she proved she can handle the industry with a profitable year, it depends on what she does with her accomplishment before she can be defined as successful Ninny Eyeless ) Heather Evans is a smart, hard-working individual with a great business sense, and she has a keen understanding of the fashion industry from working as a model and as an assistant to the president of a woman’s clothing company.

Combining these talents, Heather Evans was able to spot an undeserved market estimated at $5 billion annually with significant growth prospects. Subsequently, Heather Evans is hoping to raise enough capital to launch a line of clothing to serve the 4. 3 million women in a professional environments who would be primes candidates for a fashion label that is both functional and stylish. While Heather Evans has a great idea, there is a significant amount of work to be done before she can get her company off the ground.

Heather Evans has been bootstrapping the business so far but desperately wants to take the company to the next level. In order to get the first collection out of the door, she needs to find investors to finance her operations. Subsequently the most important task she is faced with is reviewing the various financing options that are available and deciding on an option that is suitable for her specific company at its current stage. Concurrently, Heather Evans needs to assemble he key members of the management team to assist in guiding the company through its infancy.

Fortunately, Heather Evans has a strong network from business school and colleagues from the investment banking and fashion industry which should serve to provide a pool of individuals whom she can select from that share the same vision and passion for her business. The overall concept of the business is straight forward. Heather Evans’ company plans to offer a “designer” line to fit the life-style of professional women. However, accomplishing a successful launch of this type of venture Is dependent upon several Key Doctors. Hrs an

As Sara D. Scratchy states: “Causation processes take a reticular effect as given and focus on selecting between means to create that effect. ” The underlying assumption in this theory is that if one can predict the future, it can be controlled. Causation focuses on using different means In order to achieve an agreed upon goal. Lets look at a simple example to clarify the notion. A chef In a kitchen wants to prepare a meal. HIS first step Is to contact the clients, and ask them what they want to eat.

From there, he goes to the shop and buys the necessary Ingredients to complete his menu. This qualifies as causation, as the chef begins with the final dish in mind, ND later decides which ingredients are necessary to make the desired meal. The example simplifies the causation theory. Indeed, under this notion, entrepreneurs envision a clear notion of the outcome they want to achieve, and from there, take necessary measures to achieve this goal. Thus, causation involves a great amount of time and research in order to come out with realistic outcomes and expectations for the project.

Entrepreneurs start with the big picture of the project, and then take their decisions progressively on all the details of their venture, In order to attain their ultimate goal. The theory of causation requires some detail in order to be applied. Along with having set a specific goal, alternative means need to be established. The means of this process may be applied within three different levels: on a personal level, at the organization’s level, or at the economy’s level.

On a personal level, managers are knowledgeable of their own traits, characteristics, as well as the social networks that they can access and use. At the organization’s level, the means represent the physical resources one has at his disposal. These encompass human, technological, and uncial resources. Lastly, at the economic level, the means of the causation theory include, among others, demographic and sociopolitical institutions. Another detail needing to be considered when applying the causation theory Is the constraints facing the means being applied.

These Involve any limitations one can encounter while trying to apply the means to get to the goal. Limitations might Include Atlanta constraints, sun as Educate, or unman resources constraints, sun as a lack of personnel. The last detail needing to be considered is the criteria used to hose a set of means over another. This last detail is influenced by how good the outcome will actually be. Indeed, every entrepreneur and manager tries to maximize revenues and profits at all times and thus, at every stage of the causation theory. Causation deals with both pros and cons.

First, the theory analyzes into detail every possibility to a venture, and requires the decision-maker to focus on every aspect of it. This analysis proves to be excellent in exploiting knowledge and reaching the best decision according to the acquired understanding. Moreover, causation implies that he future is controlled, given the goal is to achieve an already set and agreed-upon objective. Therefore, the theory of causation is very effective in terms of static, linear and rather stable environments. The fixed goal leaves is little room for adaptation and changes.

Thus, the causation theory is more applicable for existing markets. Indeed, entrepreneurs wishing to enter a business have the sources, along with the necessary information that is required to analyze and assess the desired goal, as well as the means necessary to acquire that goal. Indeed, when the entrepreneur knows receives what firm he or she wants to create, rather than Just having a general idea of what he or she wishes to achieve, such as making a lot of money, the entrepreneur can look at these existing markets to determine the outcome that is likely to be attained, and come out with a realistic objective.

In a nutshell, causation rests on the logic of prediction, expected returns, a competitive analysis, the exploitation of preexisting knowledge, and the prediction of an uncertain future. Effectuation is another process through which firms are created. The word effectuate symbolizes the action of putting into force or operation. The word effectuation reminds us of the process of causing something to happen. In Economics, the effectuation process is the alternative to the causation process. Contrarily to causation, effectuation is actor dependent.

It focuses on the aspect of controlling the future rather than predicting it. The underlying assumption under the effectuation theory is that, if one can control the future, it does not need to be predicted. Thus, this theory focuses on how to exploit the available contingencies in order to control an unpredictable future. Rather moving inwards like the causation theory does, the effectuation theory moves outward. Indeed, entrepreneurs and managers exploit the contingencies they have available at hand, and try to create an outcome within these available means.

Instead of looking at the result wanted and then choosing the means to achieve them, they focus on what is available at the moment and concentrate on how to exploit these channels. Looking Deck at our cent example, IT en were to De slung ten effectuation process, ten chef would first look at what is available in the kitchen cupboard. From what is deadly available, he would create a menu that he would then present to his customers. Thus, the contingencies are the ingredients and instruments available in the kitchen, and the possible outcomes are any dishes that are able to be prepared with these available contingencies.

Indeed, as Sara Scratchy would explain, ;effectuation processes take a set of means as given and focus on selecting between possible effects that can be created with that set of means” (Scratchy, 2001). Effectuation process rejects the rational and goal oriented thinking which follows the causation process. Indeed, the effectuation theory leaves room for flexibility and creativity. When using this process, entrepreneurs are required to come up with solutions according to the available means, which can prove to be a very difficult process, as it requires a great deal of creativity.

The set of means used within the effectuation theory are the same used in the causation theory; personal means(who the person is), organizational means(human resources, financial resources), and economic means(demographic). The effectuation process starts with a course, possible effects conceivable through he various resources of these means, constraints on these possible effects, and ultimately the criteria for selecting between the various potential outcomes.

Under the effectuation theory, given the future is highly unpredictable, entrepreneurs and managers look at the most affordable loss that the chosen effect will lead to. This opens up the notion of risk, which is essential to the effectuation theory. To be sure, while the causation theory focuses on maximizing profits, the effectuation theory chooses to concentrate on the effects that will lead to the most affordable loss. Effectual thinkers emphasize worst-case situations.

The effectuation theory is most efficient when used in highly unstable environments and nonexistent markets. In such uncertain environments, the effectual thinkers have the ability of adapting and creating the best venture for the given environment. It is also better to use this process when the entrepreneur only has a general idea of where he wants to go. Thus, effectuation processes focus on affordable loss, strategic alliances, exploitation of contingencies and controlling an unpredictable future.

One wall Is covered entirely by a mirror, Glenn the appearance that the addling room is a lot larger than it actually Is. There are photographs hanging on the other walls of celebrities like Bob Hope, Being Crosby, and Danny Okay, and other famous people like President George Bush, and President Ronald Reagan all of which have dined there. Although there is a tie requirement, the other dcord is not so much as to make someone feel uncomfortable. It is rather ranch style, with Bull horn, and Mason Jar chandeliers, and rustic wood furniture.

The menu has a diverse selection from pasta, chicken, lamb, pork, and of course what they are known for, the steaks and seafood. We decided to get two totally different options so that we could sample more of the menu. Sara decided on the Grilled Swordfish with braised Swiss chard. The Swordfish steak was a 1402. Steak, which is a large piece offish, and it was undoubtedly flavors. The Swiss chard, a green leafy vegetable, which was cooked in the oils of the Swordfish, Sara said was also delightfully tasteful. I am not one for vegetable of that nature so I did not try it myself.

I ordered the Dry Aged Bone-Len Rib Eye, served with fresh steamed Asparagus. The Steak itself I can see why it has gotten such great ratings from food critics, it was cooked perfectly, and was pull apart with a fork tender. It had tons of natural flavors, along with the spices that they had rubbed on it before its final preparation. Although the prices may be a little rich, I believe that it is well worth it considering the flavor, the quantity, and quality of the food that you do receive. This brings me to the people at Bone’s Restaurant.

As said before, as soon as you walk wrought the doors, you are greeted by smelling faces, and friendly attitudes. A reservation is a must so wait time is almost nothing. And the quality of Dana, the server that we had this wonderful evening was absolutely fantastic. Dana was friendly, helpful, and her knowledge of the menu was impeccable. But not only was she great, everyone that walked by inquired and made sure that we were doing okay. The General Manager Emilee also came by to make sure everything was great. Both Male Ana Dana were very personable, Ana easy to talk to.

Male even suggested places to go, and see after she found out that we were new to Atlanta. Our overall experience with Bone’s Restaurant is something that could be called awesome. It was definitely worth the three week wait list for reservations that we had to wait, and we even already have our name down for a future visit in September. Sara and I would recommend this establishment to anyone, and everyone that is planning to go to Atlanta. Bone’s Restaurant is one of the greatest dining establishments that we have ever been to.

How did the Johnny Cupcakes brand originate? Johnny worked at a record store when he was around 18. When he worked at the record store he was given a number of different nicknames one being Johnny cupcake. Johnny was also in a rock band and was making t-shirts for the band. At this time he started making t-shirts that had cupcakes on them. He sold the shirts from his car at first. His brand was becoming more and more popular he was able to open a store front.

Now his company has many store fronts from Boston to LA with a verse product line. His stores have a fake bakery theme that helps draw in people’s interest. You can also say it’s a family run business his mom is the SCOFF. She allows him to think freely this allows him to keep coming up with new Ideas. 2. According to the information In the video, what does Earl say Is an essential part of being an entrepreneur? The most essential part of being an entrepreneur Is taking risks.

This Is what make you an entrepreneur make something on your own. Starting you own company and aging Jobs for others. Another Important thing that was said was “everything has been done before”. This makes It a little harder for you to come up with a competitive idea. Your goal Is to figure out how to draw people’s attention to your product. Then make them want to buy your product. For an example Johnny spent almost kick to set up his LA store. He went above and beyond to make Is store stand out In a city were that very hard.

Johnny understood that his store would have to make a tenement for It to make It In such a competitive make place Like LA. The cupcake t- shirt store was very detailed Like an exhibit. They are stores that people want to Just go and experience and buy something to remember that experience. Week 3 assignment By Jessica him to think freely this allows him to keep coming up with new ideas. 2. According to the information in the video, what does Earl say is an essential part The most essential part of being an entrepreneur is taking risks.

This is what make aging Jobs for others. Another important thing that was said was “everything has been done before”. This makes it a little harder for you to come up with a competitive idea. Your goal is to figure out how to draw people’s attention to your product. Then set up his LA store. He went above and beyond to make is store stand out in a city statement for it to make it in such a competitive make place like LA. The cupcake t- shirt store was very detailed like an exhibit. They are stores that people want to Just

Can a for-profit enterprise succeed if its main innovation is valuing social consciousness as much as shareholder returns? The question is particularly relevant in a time of high gas prices and a growing sense that our current consumption of natural resources is simply unsustainable. The founders of Ana, a fledgling retail outerwear company, believed the answer to this question to be a resounding mimes. Built with an unprecedented level of environmental, social, and human-rights unconsciousness, by April 2008 Ana was an underground success on the West Coast, opening five stores and a website selling critically acclaimed clothing collections. Then, at the beginning of May, Nan’s board of directors voted to shut down the company. Viewed through Insight’s lenses, Nan’s promise becomes clear-?along with the perils that led to its downfall. Ana had a reasonable business model built around a well-defined Job-to-be-done. But as will become clear, Ana didn’t follow an emergent strategy.

And Nan’s management discovered that a business model that looks good on paper doesn’t always translate into immediate profits. Ultimately, a lack of careful execution and a push for quick expansion doomed Nan’s first incarnation. But the story of Ana is still unfolding. Ana 2. 0 is currently underway, and that venture appears to have a better chance of success. The Launch Ana (Maori for “welcome”) began with the dream of Eric Reynolds, an outdoor enthusiast entrepreneur, co-founder (in 1974) of outerwear brand Marmot, and subscriber to the belief that a single individual can have an impact on the world.

In the summer of 2003, Reynolds conceived of Ana, a sustainable clothing company that would donate a significant portion of its revenue to nonprofit organizations. Specifically, Reynolds envisioned customers presented with a unique question at point-of-sale: “To which organization should ‘my five percent’ go? ” By giving five percent of its revenue to nonprofits, Ana would break new ground. (For comparison, the most generous corporations give away one percent of revenue, with the average corporation giving less than . 05 percent. ) In the summer of 2004, Reynolds began recruiting a management team.

In 2005, he hired a number of individuals away from Patagonia, a firm commonly considered a leader in outerwear, social consciousness, ND charitable giving. Chris Van Dyke (son of actor Dick Van Dyke), an ex-Nikkei employee 1 and ex-Patagonia vice president of branding and marketing, was hired as CEO. Mark Calibrating, a successful Patagonia designer, Joined Ana as lead designer. Patagonians director of marketing, Ian Yells, Joined as vice president of marketing. Nan’s commitment to sustainability framed the constraints within which Calibrating worked as he designed Nan’s clothing collection.

Calibrating avoided any materials that weren’t renewable or recyclable while seeking a balance between performance, sustainability, and style. As a result, nearly all of the 30 fabrics utilized in Nan’s clothing collection were custom materials developed specifically for Ana. The fabrics -?made from corn, recycled plastic bottles, 100 percent organic wool, and recycled synthetics-?set a new standard for sustainability. Nan’s clothing creation process led to a number of innovations, including the elimination of solvent-based adhesives.

The efforts of Calibrating and his team were rewarded-?Nan’s first collection received critical praise from such disparate sources as Men’s Vogue and Rock and Ice magazines. One downside: The fabric choices greatly constrained the range of colors possible, resulting in mostly drab hues. Nan’s custom fabrics also required that customers pay a substantial premium for their clothing, but Nan’s management team did not see this as a problem for its target customer segments: the affluent “multidimensional outdoor athlete,” the “new activist,” and “creative. The Ana team expected that their customers’ passion for sustainability would overcome any price resistance. Nan’s commitment to sustainability was enforced as carefully in its stores as in its clothing. The company eschewed traditional 4,000-square-foot retail stores for a 2,000-square-foot “Webfoot” concept. The store spaces were long and narrow, designed purposefully with limited space for inventory that would be restocked twice weekly. Ana also offered customers a 10 percent discount and free shipping if they were willing to try clothing in the store, and then purchase it online.

Assembled from a modular, prefabricated design, each store featured energy-saving lighting and leveraged materials such as reclaimed timber, toxin-free fiberboard, and recycled resin (for mannequins). Customers were offered a choice of 12 carefully selected environmental, social, and humanitarian nonprofit organizations, and five percent of the purchase price was donated to the chosen group. Nan’s values extended to its real estate leasing strategy as well-?Ana only leased store space that was LED-certified (LED certification indicates environmental- and health-consciousness standards).

The company also set a minimum age limit for the workers at its overseas material suppliers. Nan’s principles included the constraint that the highest-paid worker within the company could only earn a maximum of 12 mimes the lowest-paid employee’s salary. Finally, Ana did not invest in marketing or public relations beyond a series of websites, choosing instead to rely on word-of- mouth, a more “sustainable” form of marketing in the eyes of Yells and his team.

While Ana managed to be remarkably consistent in the infusion of its values into its processes, one of the key factors in its eventual downfall was that the company had a difficult time securing financing. At least one investor’s legal counsel balked at a contract clause that placed the “needs of society’ equal to the “needs of shareholders,” but Ana held firm. 2 Nan’s business plan called for it to earn more than $250 million in revenue in 2010 and to achieve profitability in 2009 or 2010, figures based on opening four stores in 2007, 20 stores in 2008, and 150 stores by 2010.

To build the necessary momentum toward these goals, Ana needed at least $51 million in funding. By the end of 2006, Ana had raised $24 million, largely from “super angels,” individual investors who included the chairman of Seagate Technology, Steve Lucid, and Stephen Gomez, Nan’s chairman and a former Nikkei corporate vice president. Despite the fact that Ana had only reached half of its funding goal, the first Ana store penned in Boulder, Colorado, in January 2007, with three more successful store openings following during the year in Adulating, Oregon; Chicago; and Bellevue, Washington.

Ana completed its first year of operation in 2007 with 92 employees, four clothing collections, and four stores. In March 2008, Ana donated $223,000 to its 12 nonprofit organizations, implying 2007 sales of around $4. 5 million. In mid-April, Ana opened its fifth store in Los Angels. In late April 2008, despite raising an additional $10 million in funding, Ana announced that it would scale back its store- peeing plans to a total of five in 2008, down from an already-reduced projection of 10.

Finally, on May 1, Nan’s board of directors voted to “wind down its business operations,” citing “insurmountable financial obstacles. ” All inventory was liquidated at 50 percent off and the stores were closed. Post-mortem interviews with Nan’s executives suggest that the company was approximately $5 million to $10 million short of the funds needed to sustain its operations and open additional stores towards its goal of profitability.

In the days following the decision, many customers commented on Nan’s blob, expressing sadness, frustration, and anger and questioning why Ana had failed. Ana: The Post-Mortem Looking at Ana through Insight’s business model innovation framework and a number of Insight lenses offers insight into how Ana developed such a devoted following as well as how the management team might have been able to ensure a brighter future for their company. Insight believes that business model innovation is one of the most powerful ways for organizations to achieve new growth.

By carefully adjusting business model components-?the customer value proposition (the offering itself), the profit system (how the company creates value for itself), key resources (the critical things required to deliver on the value proposition), and key processes (how the company organizes and acts to deliver on the value proposition) -?organizations can build the type of competitive advantage necessary to create truly transformation growth. Nan’s business model looked good-?on paper, at least.

But Nan’s impatient push for profits made it hard to really validate whether the business model would in fact work, and shut all opportunities for learning. Ana pulled the customer value proposition lever expertly. The company created potently positive solutions to a number of emotional, social, and functional Jobs-to- be-done. The sustainability of Nan’s operations and products set a new standard of satisfaction for the emotional Job “Feel good about 3 the environmental and social consciousness of my clothing. Nan’s clothing also satisfied the social Job “Convey to others that I prioritize the sustainability of my clothing over its color and flash. ” And, as lauded by Rock and Ice magazine, Nan’s clothing also satisfied myriad functional Jobs related to comfort and technical performance. Since its sustainable materials carried up to a 20-percent price premium over more commercially available materials, Ana had to pass the premium along to customers.

But Nan’s management team was correct in assuming that the high quality and the redeeming social and environmental value of its clothing Justified that premium in the eyes of customers -?as long as the economy was robust enough that sufficient customers could afford it. And Ana broke new ground with its “Webfoot” stores by implementing a retail business model that required lower capital and operational expenditures than a traditional retail store model. But there was a significant downside to Nan’s profit-system choices.

Insight recommends that new ventures “be patient for growth, impatient for profit. ” Nan’s management expected the company to have 150 stores in operation by 2010, but did not expect profitability until 2009 at the earliest. Growth was thus essential to profitability, creating a significant risk of failure if the company could not reach its early-stage funding goals. Insight also recommends that new ventures pursue an emergent strategy, to take small steps by conducting inexpensive tests of its key assumptions about the new racket.

When the test results are in, the venture can analyze the results, adjust its strategy accordingly, and then conduct additional tests. This careful approach helps new ventures optimize for success while avoiding huge, potentially fatal resource commitments. In Nan’s case, an emergent strategy might have enabled the firm to consume its funding more slowly while developing an optimal strategy. Instead, the team decided to go straight to launching full Webfoot’s rather than testing the clothing line in a department store or opening a single, test-store concept.

The root cause for the failure of Ana 1. 0 seems to have been that Nan’s business strategy and some of its business model decisions proved questionable. By following a more careful, emergent strategy and by focusing on profitability before growth, Nan’s executives might have been able to strike a better balance between vision and execution. Ana 2. 0: On June 24, 2008, Nan’s fortunes turned around. Horny Toad Activities, a Santa Barbara-based lifestyle clothing company, stepped in to buy Nan’s assets with the goal of re-launching a modified version of Ana by late summer. While “Ana 2. ” Is gust beginning to emerge, early signs suggest that the re-launch will follow a strategy more closely aligned to that which Insight would recommend for success. Horny Toad creates and sells men’s and women’s lifestyle and outerwear clothing. Horny Toad’s tagging, “every day is an adventure,” introduces a humorous, irreverent, socially-conscious approach that lies at the core of everything the company does. Indeed, Horny Toad and Ana have much in common. Horny Toad’s stated commitment to “lightening its environmental footprint” and to 4 supporting both the community and organizations that improve the world immediately suggest synergies.

Much as Ana showcased the organizations chosen for customer contributions, the Horny Toad website highlights its support for causes ranging from helping adults with developmental disabilities to supporting clean energy, with a wide range of other environmental and community-activist organizations in between. However, in contrast to Nan’s commitment to sell its clothing solely through a growing number of its own stores, Horny Toad has only two stores and sells its clothing in a wide variety of online and brick-and-mortar retailers. In addition to a store in

Freeport, Maine, Horny Toad runs the “Lizard Lounge” in Portland, Oregon, complete with music, wireless access, coffee, and ping-pong. Horny Toad clothing has been lauded for its hip funkiness by print publications and blobs alike. Recognizing the similarities between Ana and Horny Toad, Horny Toad felt that it would support its motto “do well by doing good” by purchasing Nan’s assets and hiring its leadership to help re-launch the clothing line. In addition to providing financial support, Horny Toad will sell Ana clothing in the Lizard Lounge and, in a break from Nan’s original treated, through other retailers as well.

And, with Horny Toad’s support, a percentage of Ana sales will continue to go to worthy non-profits. According to Nan’s “Thought Kitchen” blob, shortly after the relationship was finalized Ana leadership began working to resurrect relationships with company partners and to put together a Fall/Holiday clothing collection in time for October availability. While the Ana clothing line will continue to deliver on the “Beauty, Performance, and Sustainability’ commitment through the use of environmentally friendly and socially conscious trials and methods, a quote from Nan’s website gets to the heart of why Ana 2. May very well succeed while 1. 0 failed: “As we move forward with the re-launch of Ana, you’ll definitely recognize us, but we intend to do some things differently… We’re going to start small and grow the business organically in relationship to the demand for our product. We’ll continue to sell our product at Ana. Com, but we’re also going to partner with select retailers who share our common goals. We will not be operating our own retail stores, at least not in the near term… So stay tuned. We’re coming back. Smaller and a little wiser, our ambitions tempered a bit by the experience, but our passions most definitely intact. Ana 2. G’s strategy will most likely enable the brand to focus more closely on identifying the product, marketing, and channel mix that appeals most to customers, without worrying about the pressures of rapid expansion. Particularly in a new venture, vision and passion tempered by patience and pragmatism is the way to go. This approach is also particularly appropriate in these tough economic times. Satisfying social and emotional Jobs-to-be-done around environmental friendliness ND social consciousness may be enough to earn significant premiums for clothing in a strong economy.

However, during an economic downturn, financial reality frequently wins out as consumers prioritize value over the satisfaction of some social and emotional Jobs. 5 For example, since the economy began to sour, Whole Foods Market has seen some of its consumers move their food spending to more budget-friendly alternatives. Whole Foods has responded by shifting its marketing strategy from a focus on quality and environmental friendliness to an emphasis on discounts, store brands, and reduce value as it attempts to keep its customers.

Even if Ana 1. 0 had received enough funding earlier in 2008 to continue operations, economic conditions would likely have pushed the enterprise to the breaking point, as has happened with many other fledgling clothing boutiques. When Ana 1. 0 launched, its management team made an impressive commitment to the company’s values, taking steps such as tracing the wool used in its clothing back to the sheep to ensure that they were well-treated and implementing a “sustainable” word-of-mouth marketing strategy.

To launch the new Ana, it is clear that the team as had to compromise on some of its values, such as the control provided by company-owned storefronts, a grassroots-only marketing effort, and potentially the level of contribution to nonprofits. In the end, however, the Ana 2. 0 strategy, with the help of Horny Toad, may be the key to enabling the company’s sustainable operation. Making their operations as sustainable as their values will help ensure that Ana is able to be a force for good in the world for a long time to come. For more information: http://www. Ana. Com/coming-this-fall. HTML (Accessed 8/29/08, 1 :41 pm) http:// www. Gibbousness. Com/CGI-bin/magma/article. Pl? Articled=30412; http:// gratifiers. Com/content/fullest/? Acid=50781 6 Innovator’s Insight In Need of an Innovation Fill-up By Stephen Hunker Recent news that Consulship’s will be selling all 600 of its U. S. Service stations for $800 million comes as little surprise. Oil companies are facing extraordinarily attractive investment opportunities in exploration and production, and the service station business has been tightly squeezed between rising wholesale costs, inability to pass along those cost increases, and falling demand as driving declines.

Clearly the station’s buyer-?closely held Peterson Fuel-?sees it differently. We do too. In our view, Peterson Fuel is buying cheap assets with lots of innovation headroom. While “stick to your knitting” is a popular business maxim, it is of course common to find diversified businesses. There are several reasons diversification can make sense: ; If the new business can share costs and customers with the core business-? in this case, owning both enterprises can provide scale economies, improve distribution, create a better buying experience, and other advantages.

This is why many European parameters have service stations outside their doors, for example. ; If the new business provides a useful hedge against a core with volatile returns but a need for consistent investment. This explains why many pharmaceutical firms own over-the-counter consumer healthcare brands. ; By diversifying, a firm can hold on to a seemingly unrelated business because it sees substantial headroom for growth and a right to triumph in that arena. This is one reason News Corporation bought Namespace. Historically, oil companies owned service stations for each of these reasons.

The end nonuser drove demand, and having direct access to that consumer allowed firms to exercise some control over demand levels while also gaining precise information about what products were demanded where. Profits from service stations could offset volatility in exploration and production. Also, the advent of convenience stores at service stations created a new high-margin business. Each of these Justifications for integration now seems threatened by changes such as improved information technology, more efficient capital markets, and communication of the service station experience.

With supermarket-owned service stations now coming to the United States, oil companies face new competitors who may even sell gasoline at a loss in order to drive traffic into their stores. In the I-J, pressure from supermarkets is a factor leading to the net closure of 600 service stations per year. The service station business is looking much less attractive than it used to. So, what might Peterson Fuel be thinking? We imagine two major Justifications for the investment. First, if oil prices decline, the profit margins on service stations may rise, and Peterson will have bought valuable assets for a song.

Second, there may be much more innovation headroom in this business than oil companies have traditionally assumed. For instance, Fullness Media International offers local news, weather, and sports on screens at pumps at a few hundred stations. Fullness pays the retailer and shows ads to this highly captive audience. Shell is experimenting with fuel pumps that are activated simply by a swipe of a fingerprint. Dutch inventors have created a robotic arm that finds a car’s fuel cap, unscrews it, and automatically pumps gas. Regional fuel retailer Sheets differentiates itself through premium coffee and made- o-order sandwiches.

Another retailer, Valier, is piloting 5,000-square-foot convenience stores with fully nonwhite of the space dedicated to fresh food and other perishables. Oil companies would be well-served by thinking through how well the jobs of their customers are getting done, and whether they can De-commoditized the service station business through new propositions or re-definition of the competitive set. Looking through this lens, we can imagine how a mother could prefer a certain service station because it offers very fast, targeted entertainment for bored children n the back seat, or how a senior might prefer one with very brightly lit displays.

The advent of electric- and fuel-cell-powered vehicles opens further possibilities for using service station real estate in new ways. Look at how Best Buy reconciled what an electronics retailer could be, and how it escaped industry communication in the process. While Wall-Mart and others cut prices ruthlessly, Best Buy rolled out Geek Squad-?a service tightly integrated with its retailing business that addressed a wide swath of unsatisfied Jobs its customers faced post-sale. It also became a place to try new videotapes. The store is even trying to become a hub for musicians buying electric guitars and other gear.

In the process, the company increased revenue 92 percent over five years, almost entirely through internally generated growth. It turned out that electronics retailing wasn’t a commodity business at all. Sometimes a dog business is Just a dog business. MM spun off its floppy disk and magnetic tape business in 1996, and that turned out to be a smart move. But we find it hard to believe that there is little room for profitable innovation in a retail business that hundreds of millions consumers have to visit on a regular basis.

When the finance people come knocking, looking to sell downtrodden assets and invest the proceeds in high-flying businesses, lock the doors for a bit. The business may indeed have few prospects. On the other hand, it may support the core business in many oblique but important ways, and it may have far more innovation headroom left to exploit. – “Consulship’s Will Sell Its Company-owned Service Stations”, by Brett Clayton, Houston Chronicle, August 27, 2008 (http://www. Chronic. Com/disk/story. Ml/business/energy/5969574. HTML) 8 “Finding the Right Job for your Product”, by Clayton Christensen, Scott Anthony, Gerald Brewster and Denies Meetinghouse, Sloan Management Review, Spring 2007 (http://www. Insight. Com/innovation_resources/research. HTML? Id=167) 9 Innovators’ Update A Good Start for Amazon AMP Amazon’s digital music store keeps sailing on the winds of industry changes Insight #98 from October 2007, “Handicapping Amazon’s Low-Cost Music Store,” suggested that Amazon might find the results of its then newly launched music download store disappointing. What has happened since?

By Renee Hopkins Callahan When Amazon launched its Amazon AMP online music download store in September 007, we were skeptical. At the time, Apple had sold more than 100 million pods and tunes had a lock on the online music market. Amazon AMP planned to sell music free of Digital Rights Management (DORM) protection-?a limited supply, since at the time only one of the four major music labels had agreed to make its music available without DORM protection. Amazon AMP seemed unlikely to succeed with a business model focused on undercutting tunes on price, selling songs for 89 cents instead of 99 cents.

We were right that the low-cost strategy would not put much of a dent in the popularity of Tunes. Yet circumstances in the year since its launch have helped Amazon refine its strategy and offer a preview of possible success. According to NYPD Group research released in late July, tunes remains on top of the music retail pack. It is the largest music retailer in the world and it sells at least 90 percent of digital downloads in the U. S. However, the same research showed that Amazon AMP has grown to be the fourth-largest retailer of music in the U. S. , behind tunes, Walter, and Best Buy.

That puts Amazon AMP in second place for online music download sales. And while here’s still a huge gap in volume between tunes and Amazon AMP-?with Amazon’s share of the market in single digits-?Amazon is in the game. However, Amazon hasn’t accomplished that by stealing tunes customers. Russ Cropping, an entertainment industry analyst for NYPD, said in an April 2008 report that only about 10 percent of Amazon AMP customers used to be tunes users, with the other 90 percent likely to be people who had been using other services or were new to digital downloading.

Amazon AMP attracts young adults age 18 to 25, while tunes’ strongest demographic is teens age 13 to 17, another April 2008 study said. Amazon has likely benefited from winds of change blowing in the music industry. A number of analysts have speculated that the industry sees Amazon as an ally in an effort to break Apple’s dominance in digital music. It would seem counterintuitive that the music industry would want to bypass its richest retail channel. But some of Apple’s practices cut profits for the major labels.

In late August, the Wall Street Journal reported on a growing trend in the music business: labels deliberately withholding some of their music from tunes. The article cites several cases in which albums were either not made available on Tunes or were pulled. Why? While consumers strongly prefer purchasing music by song, music label executives, managers and even some artists dislike the tunes policy that requires that music be made available by the song as well 10 as by the album, because profit margins for single-song sales aren’t nearly as good as the margins for album sales.

Meanwhile, Amazon AMP lets labels sell music the way they want to. If a label wishes to make an artist’s work available only by the album, Amazon AMP allows it. Some of the music that the labels have been withholding from tunes is ending up on Amazon AMP. The DORM issue has worked to Amazon’s benefit as well. Apple’s tunes has historically sold Deteriorated downloads. Such encoding means that songs downloaded on tunes cannot be played on other AMP devices. Apple has worked to persuade the major labels to drop DORM, though it still seeks to keep tunes the only source of song downloads for the pod.

At the time that Amazon AMP launched, only MIME, one of the four major music labels, had announced it would drop DORM protection on its music. By early January 2008, a few months after Amazon AMP launched, the three other major labels-universal Music Group, Warner Music Group, and Sony BMW- dropped DORM. That meant their music could be made available on Amazon AMP, which does not use DORM, and which features free software that delivers a customer’s AMP file directly to their tunes library.

Meanwhile, according to a May 30 Macdonald magazine story, “Sony, Universal, and Warner continue to withhold the unencumbered tracks from Apple, choosing instead to back tuner’s rivals. ” Amazon may have more surprises up its virtual sleeve. In late July, Fortune magazine reported that Amazon was in talks with Namespace about becoming the social networking giant’s download store partner hen it rolls out its highly anticipated Joint venture with Universal, Warner Music and Sony BMW in September.

If the deal goes through, it puts Amazon in a good position to continue nipping at Apple’s heels. According to the Fortune report, Namespace plans to let its 120 million users stream entire songs before downloading them. That potentially changes the convenience trade-off for the Namespace customers in Amazon’s favor, because they would be able to buy a song and get it into their computer’s music manager, even tunes, with one click using Amazon’s software. Those who wanted to use tunes would have to leave Namespace and physically go to Tunes to accomplish the same end.

Clearly, we underestimated the desire of other companies to develop a reasonable Number Two to Apple, a position that Amazon AMP seems to have grown into in the last year. If Amazon can figure out more ways to capitalize on its toehold position in the digital music business,

Executive Summary Welcome to the future of music entertainment for your next event. Kari and the Keys, brings to the community of Cedar Rapids and surrounding areas, a breath of fresh air in music entertainment. By combining two gifted musicians, going the extra mile, and offering a wide variety of music styles to suit your needs, Kari and the Keys will lead the event entertainment market, providing a praise worthy performance every time.

Kari and the Keys is a small business aimed at the big time. In order to reach our giant goals, we must focus on the mission behind the vision. We offer a one-two punch by providing a singer and accompanist, provide a superior sound system, and ensure a worry and hassle-free event – all with one phone call. Keeping In tune with the needs of the market, consistently updating our music portfolio, all while ensuring the customer receives the individual attention they deserve, is the vision and daily mission of Kari and the Keys. 2.

Objective It is our objective to: Achieve name recognition labeled as the “best entertainment for your event” Provide the convenience of a one stop shop for music entertainment offering better talent ND prices than our competitors; delivering top notch customer satisfaction. Obtain 30% of the market share for event entertainers within 2 years 3. Mission Inspired by our passion for music, Kari and the Keys want to engage your audience In an Incredible music experience, through a praise-worthy performance, for your event. 4. Keys to success Our keys to success include: a.

Offering Talented Musicians: Professionally trained musicians who share a passion for music and performing; Eric Sternest – Organist/Plants, formally studied music and Plano at Amanita State university, 25 years of experience. Karl Burch – Singer (Soprano/Alto), formally studied music and vocal performance at university of Iowa, 20 years of experience b. Customer Satisfaction: We strive for exemplary focus on the customers satisfaction and his/her experience both with us and the outcome received by hiring for an event. 5.

Company Summary Kari and the Keys is comprised of a singer (Kari Burch) and an accompanist (Eric Sternest) – piano/organ, fully equipped to perform at your personal or corporate event. We are both formally trained musicians and offer a wide variety of music to choose from for your special event including: Recent pop songs, Music from the ass’s and ass’s, Traditional/non-traditional wedding and/or secular music, Popular/traditional Christmas music. Additionally, we own a professional sound system inclusive of two (2) main speakers, monitor, mixer, microphone and keyboard.

Our primary focus of business will be weddings and corporate events; however, we have the capability to provide music entertainment for most occasions. The geographic area we are focusing on for marketing and services is primarily locations within the Cedar Rapids Metro Area (inclusive of Cedar Rapids, Marion and Hiawatha). It is important that all business conducted will include an Event Contract, which is a legally binding agreement between Kari and the Keys and the Event Requester. A down payment of $150 is required to hold the date for each event.

This is a non- refundable payment and required at the time the event date is booked and Event Contract executed. Kari and the Keys is organized as a partnership encompassing two general partners who are Kari J. Burch and Eric Sternest; each owns 50% of the company. Kari conducts the accounting, marketing strategies and legal duties; Eric handles executing on social media, the company’s website design, and booking requests. Each partner shares daily business duties evenly. 6. Company History Eric and I have known of each other for 20 years. Even then we both recognized and appreciated each other for our respective musical talents.

About 2 years ago, I reached out to Eric to determine whether or not he would be interested in playing for me with the intention to record a few traditional and non-traditional wedding songs. I was looking for an outlet to be able to get back into the singing world. Time went by and schedules precluded things from formulating. In January 2014, we reconnected and decided that we no longer wanted to squander our musical talent. With the passion for music and the uncanny ability to perform seamlessly as a duo, we decided to form Kari and the Keys. The initial intention was Daniel Urethra’s, Parlor City, Java Creek, etc.

However, after investigating the local event entertainment market, we believed our team could offer an avenue of refinement and amazing live entertainment for both weddings and corporate events. Kari and the Keys are able to offer a one stop shop when a person or organization is looking to book music for an event. The customer isn’t burdened with finding and coordinating a singer and a piano player; we offer both. We are a talented team who has the ability to listen, understand and respond – uniquely and creatively – to the growing needs and constantly fluid expectations of our customers.

Additionally, based on our research, Kari and the Keys is the only singer/piano duos in the Cedar Rapids Metro Area. 7. Products and Service Kari and the Keys are “event entertainers”. We are comprised of a female singer and male piano player by trade and offer a variety of music genres to provide either focal r background entertainment at your special event. Additionally, we are not pretentious performers who demand or expect things from our customers. We believe our strength lies in working for and satisfying every customer.

In order to achieve the expectations of the customer, we believe in key service quality ideals, which will help us attain a high level of customer satisfaction. Such ideals include: I. Timeliness and convenience it. Personal attention to desirable needs and wants iii. Reliable and dependable ‘v. Responsiveness to requests v. Assurances and availability We also share a common drive for success. We don’t simply want to be a run of the mill performance act; we want to be the recognized leader if you are looking for music to be performed at your event.

Kari and the Keys have established the following fee structure, based on a specific event: Booking Fee to hold the date- $1 50 (non-refundable) Wedding Package – $500 which includes: Wedding rehearsal at location (30 min) Organ/Piano – Processional and Recessional, Pre and Post Wedding music (as background) – 15 min each Vocalist/Accompaniment – two (2) song chosen from selected list Songs are chosen from selected list Open bar and food shall be provided Set up/tear down 2 hours of music, 2 – ten minute breaks w/in 2 hours Approximately 10 songs per hour Songs are chosen from selected list Music outside of selected list – $75 per song 8.

Market Analysis Summary a. Size of Market: (State & County Kickbacks), (Marion, Iowa), (Hiawatha, Iowa), (Cedar Rapids, Iowa) I. Population Demographics: Estimated population of Cedar Rapids Metro Area (inclusive of Cedar Rapids, Marion and Hiawatha) is approve. KICK (Cedar Rapids – KICK, Marion ASK, Hiawatha K) Median income of males – $41 K/year Median income of females – $ASK/year 27% of the population is 25 to 44 t. Name Recognized Employers: Rockwell Collins (8,700) Transcends/AEGEAN (3,900) SST.

Lukewarmly point (3,200) Cedar Rapids Community School District (3,000) WHY-eve (2,600) Mercy Medical Center (2,300) Whirlpool (2,500) Kirkwood Community College (1 ,900) City of Cedar Rapids (1,400) Quaker toecaps (1 Other companies include: Archer Daniel Midland (DAM), Cargill, General Mills, Toyota Financial and Nordstrom b. Competitors: I. To research our competition we utilized both internet websites which advertise “for hire” for musicians (search Wedding, Corporate Events and music groups) and also utilized the SABA tool called “Size It Up” (searched Entertainment: Weddings, Party, and Corporate Events). T. In targeting the Cedar Rapids Metro Area (inclusive of Cedar Rapids, Marion and Hiawatha) our direct competition would include people from the following categories which represented a total of 31 “event entertainers”: 1. Vocalists 2. Accompanists (Piano/Organ/Guitar) 3. Comedy Acts 4. DC ill. We understand that this represents only a small segment of the true number of musicians located in the Metro Area. However, “word of mouth” would be the best “Word of mouth” is very important in this category of business and it is crucial to the success of any music ensemble.

However, we believe going after the market with a guerrilla marketing campaign, becoming visible in the music community and establishing a “following”; will help us to capture the “event entertainment” market. C. Market Growth/Trends There is a constant flux of new musicians within the Cedar Rapids Metro Area. People consistently believe that they will be the next American Idol pop sensation and will be discovered in this market. The reality of the situation is the saturation with UN-trained, low skill musicians, trying to make a buck. Because of this, Kari and the Keys are able to capitalize on our talent, skill and upscale performance.

We are organized, marketable and ready to succeed. 9. Target Market We define our initial target market as such: Females and males predominately between the ages of 25 – 45, non-married with a combined income of $ASK or more per year. Name recognized businesses Cedar Rapids Metro Area – (inclusive of Cedar Rapids, Marion and Hiawatha) 10. How do we attract our Target Market? A. Establish an on-line presence b. Establish a word of mouth campaign based on our stellar performances at local ensues such as open mice nights, restaurant/bars, and coffee houses c.

As performances are booked, people view Online Calendar Lists – “This week at Ramset’s” d. Direct mailing to local organizations: Churches Wedding Dress Boutiques Wedding Planners Country Clubs Restaurant/bars Coffee Shops West Music 11. Industry Analysis a. The threat of new entrants is in an amplified state of flux. Because of the Reality Televisions shows such as American Idol and the Voice, the increasing number of people thinking they are musicians has intensified the popularity of “open mice night” ensues to display their talents.

However, the thought and desire to be a star, does not mean they are talented enough to make it as an entertainer. The market at an alarming rate. However, this is not a substitute for musicians who have the talent, drive and the means to wage a successful campaign to gain the market share in a given location. C. The bargaining power of customers is extremely critical in a musician’s world. Since the market is saturated, everyone is fighting for a piece of the pie; to be recognized in a public venue as someone who is horrible.

Because of this saturation, musician’s ability to be paid for performance is directly correlated with the amount of “potential” business a musician can draw. If the musician is relatively unknown in the market, the establishment can hire you for cheap. This is why it is crucial to participate in any public venue to begin to establish a core group of followers – or people willing to spend money while watching you perform. Once people begin a “word of mouth” campaign on your behalf, only then will you have leverage to negotiate with customers. D. The bargaining power of suppliers is relatively low.

Anyone with a guitar, acrophobic and an amp can be a musician. Whether or not they are successful is not dependent on a supplier. E. Again, the competition for musician – event entertainment – is high. It is imperative to be able to set yourself a part of the competition. A musician must pay their dues by performing, be more talented than the next guy, offer something that no one else does, build a following, utilize guerrilla marketing techniques to keep your name at the front and be proactive in gaining market share. 12. Online Plan Summary a. Obtain a Website Domain – grandfathering. Com b. Design a professional website