29A - Venture Concept No. 2

Assignment 29A – Venture Concept No. 2

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 certainly required some 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. It took innovation to recognize this entrepreneurial opportunity and to develop how I would capitalize on it. 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.

I will provide haircuts tailored to the request of my clients. The haircuts will be given in an informal but professional environment, where I show the client that he is my priority throughout the duration of me cutting his hair. I will also ask the client if he would like me to play any music and if so, what type of music would he like to listen to.

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. Utilizing the VRIN evaluation helped me to identify that my work ethic is my number one resource in this venture.

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.

Feedback

Unfortunately, I have not yet received any feedback on my first venture concept. Through self-critiquing and other methods of refinement, I worked to improve my first venture concept. My improved work is this assignment, my second venture concept. During the “What’s Next” exercise, affluent businessmen pointed out to me that if myself or other barbers were to cut their hair, the quality of the haircut is very important to them. One of the two businessmen also pointed out that the environment of the barbershop is important to him.

How I changed my venture concept
My “self-feedback” was very important in the development of my second/revised venture concept. I realized that during my first venture concept, I failed to recognize the innovation involved in the identification and development of how to exploit this opportunity. Although a ton of innovation may not have been required, it still took innovation to recognize the idea. It also took innovation to develop the best course of action possible to exploit the opportunity.

Through feedback, I also recognized the importance of tailoring my haircuts to the requests of clients. I will provide an informal but still a professional environment. I will ensure that they client knows he is my priority, while I cut his hair. I will offer to play the clients’ music of choice while I cut hair.