24A - Venture Concept No. 1 - Affordable Haircuts at Your Convenience

Assignment 24A – Venture Concept No. 1 - Affordable Haircuts at Your Convenience

1) Opportunity

While on deployment here in Australia, I identified an unmet need of my fellow Marines. We must get haircuts every week per our commanding officer’s orders. Here in Australia, haircuts are very costly and inconvenient to get. Marines must get together in groups of four or more and split taxi expenses to and back from the mall. They must also pay the outrageous price of about $35 for a haircut from the local barber. Overall, it costs Marines approximately $50 every week to get a haircut. In addition to that, it takes about three hours’ time to go to the mall, get a haircut, and then head back to base.

I identified the unmet need for cheap haircuts at a convenient location. I have the skills necessary to give in regulation fades and decided that I will begin to give fades to my fellow Marines for $20 per haircut. The interviews that I conducted confirmed my belief that this opportunity does exist. This window of opportunity will be available for the remainder of deployment. It will no longer be available after deployment when Marines can get top-quality fades for as cheap as $8.

2) Innovation

This entrepreneurial venture required little innovation. My idea of cutting hair is nothing new. Other Marines on base do cut hair also; however, they are unable to meet the overwhelming demand for haircuts. I will make money by charging $20 per haircut. My expenses to start and continue this venture will be minimal. I will purchase $60 clippers from the local Big W, a $10 cape, and a $5 spray bottle of clipper lubricant.

3) Venture Concept

My innovation to meet this unmet need provides a convenience to my customers. They no longer must spend several hours to go out in town to get a haircut. They can get a haircut at the convenient location of our own haircuts. In addition to this, they will save approximately $30 per week on haircuts. Customers will pay for my services because it is the rational thing to do. I have friendships with many of my future customers, and these friendships will help to increase the demand for my services.

My competitors, who are not Marines, cannot compete with the convenience that my services offer. This is due to their inability to get on base to cut hair. Fellow Marines can provide similar services to me; however, there are not enough other people exploiting this opportunity to take away from my opportunity.

4) Three Minor Elements

My most important resource in pursuing this venture will be my work ethic. I am willing to spend significant amounts of my free time cutting hair rather than doing other things. My work ethic is very valuable, rare, not easy to imitate, and there is no substitutability for my work ethic.

Cutting hair and charging $20 per haircut will be the extent of this venture. I will not pursue cutting hair after deployment due to the overwhelming competition back in California. Marines in California can get better haircuts than I can give for as cheap as $8.

This venture will allow me to increase my income and my savings per month. I will be able to use the money that I make from this entrepreneurial venture to pursue future entrepreneurial ventures. I will continue to identify unmet needs that are worthwhile to exploit and that I am capable of exploiting.