Jet Blue Airways Case Study

Eric Porter Jet Blue Airways Case Study B283 Case Analysis Introduction: David was once a partner for Southwest Airline. He was even the runner up to be the president of the company. But due to his aggressive nature in his desire for innovation he was voted out of the company. He decided to take what he had learned from Southwest Airlines and merge it with his ideas to create his own airline. It would take lots of capital, but he knew that he wanted to use technology to drastically increase customer convenience and safety. “Based on his earlier industry experience, Neeleman had several ideas about how to start a new airline that would capitalize on technology and make the customer experience better than existing offerings.” Problem Analysis: -Major problems and challenges facing employees and organization: David knew all to well the hurdles in starting an airline business; under capitalization being the mother of them all. With all his plans and ideas for new technology it would take even more capital to start than ever. What does help with some of his new ideas are his innovation to require fewer employees. One of his ideas that lead to him being fired from South West was that he wanted to replace sales ticket booths with sole online purchasing. This would eliminate the need for people to sell tickets while simultaneously increasing efficiency. In the war on financing, David also encounters the issue with food. Customers tend to complain about airplane food, so he simply decided to scrap it all together. This concept showed a lot of focus on David’s part. He decided that if he couldn’t make it a strength for his business then he wouldn’t bother with it at all. Almost every business has this sort of problem and it can be a make or brake their business. It shows whether their management team, be it one guy or dozens, realizes what is the real goal of their business. An airline is not a restaurant, so why focus on food. An automotive shop could offer to furnish customer’s vehicles with fancy doo-dads, but if their main goal is to make cars safe and reliable, they need to focus on the big picture. -What do “I” think the business is doing right and what do “I” think they need to change: David Neeleman had a vision for his company: “We believe that all travelers should have access to high quality airline service at affordable fares.” The next step with this vision is trying to share it. A company can’t run smoothly if there is ambiguity. David needed to define what “high quality” meant to him, as well as “affordable fares”. Regarding “high quality”, David made it very clear that their first step was to buy all their planes brand new, NO exceptions. Being well rounded in the business world is crucial for survival. After spending time working in a plane leasing business David knew all to well the strings attached with that business and also knew he didn’t want to be at their mercy. By purchasing their own, brand new, planes they could design them and fit them with top of the line things, from TV’s, increased leg room, to leather seats. Recommendations: As one of the most successful airline businesses to arise it is hard to really point out any recommendations. I totally understand why David doesn’t like flying. Waiting in lines are never enjoyable for anyone. However, I would recommend that more than just peanuts and sodas be available. Conclusion: David was a great planner. He used his five year non-competitive time to refine his ideas and to sort out his problems instead of vacationing. Innovation was huge and what made Jet Blue so successful so quickly was the foresight in steps to take. From capitalizing, to purchasing, to building, etc. etc. Everything was done in a process that allowed for minimal waste of finances.

Start Up Nation: step #8

Start Up Nation: step #8 Finding Great People Look for people with potential and proven skill, but they need to work well as a team. A great idea won't go anywhere with mediocre people. But if you have super starts, even with a mediocre idea, they will find a way to make it big. Create a "Super Star List" Keep track of these super stars through offering stock options, bonuses, whatever it takes. The best way is to offer some type of recognition for their work. In time they can serve a helpful part in your company. They must feel like they are included! Three types of people for your superstar list: -People with potential -People with proven skills -People who are what we call “power brokers" MENTORS! Having a mentor is almost essential to training YOURSELF in how to operate your business.

$100 Challenge Update #3

This week end got rained out. No one wants a car detailing with it pouring rain. We have raised a total of $55 and with just two more cars we will easily break $100. Blake knows a guy who owns a car business and needs multiple vehicles well detailed. I went to the library Friday and designed a flyer that we can pass out. It contains all the information regarding our services and prices. Hopefully when people can visualize and see in front of them what we all do it will be much more effective than just trying to explain it to them. This next weekend is our golden weekend. We are planning for a bunch of cars.

The E-Myth Revisited ch. 16-18

There is a wonderful start to this reading when he says "If you want it done you're going to have to create an environment in which doing it is more important to your people than not doing it."(p. 197) The problem is how to go about it. You could choose to fire those who don't, give better wages to those who do, and more. People respond better to rewards than punishment. Another strategy to help employees work harder is to simply be a respectable employer. "...I have so much respect for this place. It's because I have so much respect for the boss." The man's boss took him aside the first day of work and explained to him his work ethic. He told him his expectations and treated the new employee with respect. Not as a greeny who didn't know anything, but as an adult who understands. I hope that one day I could be such a boss, but to start I think I would need to take the boss's top 3 principles (on page 201) to heart. 1. "the customer is not always right, but whether he is or not, it is our job to make him feel that way." 2. "Everyone who works here is expected to work toward being the best he can possibly be at the tasks he's accountable for." 3. The business is a place where everything we know how to do is tested by what we don't know how to do, and the conflict between the two is what creates growth, what creates meaning. If I could I would frame this and post in in a place where every employee could be reminded of it daily...maybe right above the employee bathroom mirrors or something. The Final thought was page 204. Invent a game that every one in the business can play. One that is continuous, but still has little victories here and there. Establish the rules of the game and give everyone their position. And since games can get boring over time, it is important to change a few things to make it still interesting, but don't change the strategy. My brother works at RC Willys furniture ware house in Utah and every week or so they have a drawing for the employes to have a change to win something. An I-Pod, X-Box, TV's, etc. This "game" they have invented allows all to play, and has rewards for those who work harder than others. There are two pillars of a successful marketing strategy. 1. Demographics 2. Phychographics These allow/help you to know what your customer wants, even when they don't. (p. 222) -"After all, the purpose of any system is to free you to do the things you want to do." Organization creates order and once I can get everybody doing their specific jobs with rewards for their efforts, show them respect, and create a place that gives the employee a vested interest in the company. These will help me to have a successful business.

The E-Myth Revisited ch. 13-15

In reading chapter 13 I found a comment that I had to stop and think about. He says "In fact, there is ultimately only one reason to create a business of your own, and that is to sell it." I though about the automotive shop that I would like to own one day. With all the effort that it will require, if it does prove to be a successful business I would like to stay in it as long as possible. And even possible I would love to make it as a family business. If you've found something that is profitable why sell it if it could also work for your children as well. But I could see the other side of the coin, that after running a business for lengthy periods of time, eventually a desire for change is inevitable. On page 154-5 he gives an example of a commercial, it had nothing to do about perfume, only that if they purchased this product...the fantasy they portrayed could be yours. Well, I must admit that those commercial drive me insane. They always appear as an over dramatization and give me no information about the product. And perhaps it is only because I do not fit in their demographics. I always imagined that it was a great idea for everyone to do everything. Everybody understands what the other guy does. But as the story continued I could see how things could easily fall apart. Specializing allows them to focus and do one job very well instead a bunch of jobs just ok. Assigning specific jobs also makes specific people accountable. I have had plenty of experience at Erickson's GMC dealership with this. There are two positions, working on the hood, and working under the car. With me and Ryan there was always confusion when a problem was made on a car a few days back. He'd look at him and he'd look at me. It was so frustrating that the manager redesigned the service sheet so now we have to sign for who did what. Now that they know who did what on every car, we are more responsible and the mistakes have been reduced.

Stew Leonard's Rock

"How Stew Leonard's Customer Service Rock of CommitmentCame to Be" After an angery lady accused him of selling sour eggnog, Leanard told her she was wrong and she stormed out saying she'd never come back again. His wife agreed with the woman and so the next morning, realizing he couldn't afford to lose any customers, he bought a 6000 lb granite slab and placed it infront of his store. It read: Rule #1: The Customer is Always Right Rule #2: If the customer is ever wrong, Reread Rule #1 He learned that most customers are not trying to cheat him. And if he treated them all as such he would lose the 99% honest customers because of the 1% dishonest ones. "Customer Service cannot be a sometimes thing" I do agree that it is important to make the customer happy, but after working in an automotive shop I do believe that there are ways to teach the customer in an appropriate way so they will not be mad at you when you show them they are wrong. Many customers try to diagnose their own vehicle and then bring it into a dealership to be fixed. This is fine, except when they are wrong. So sometimes they don't tell us the real problem, but just tell us what they want done. After we do it they will quickly come back and complain that we didn't fix it. Then the issue comes up that we did a bad job. We are then at fault. This is a small example why it is very important to teach the customer who just wants a tune up that it may not solve the problem at hand. The customer may be right that there is a problem, but don't underestimate your business and why they came to you...TO FIX IT. It is your job to instruct the customer what is wrong in a constructive manner. That way they can see your honesty and care for their service.

Gen Y makes a mark

[Generation] Y Makes a Mark There are rising numbers of those in their mid-20's and even younger who are realizing they don't want to have to fit into corperate America. They want their career to fit into them. So they are becoming entrepreneurs. Most of these are children of the baby boomer generation, AKA: Gen Y. They desire to have the work-life balance that their parents didn't have. But going into business just to get away from the fact that what employers are offering and employees are wanting don't usually mix, it often takes lots of help which is why is it very common for entreprenuers to start a business with friends. Though there is a great risk in getting started, there is less of a risk today than there was many decades ago. And if successful the results show that "self cmployed are considerably more satisfied with their jobs than are other workers.

Culture the #1 Priority

Culture the #1 Priority -Hiring for Culture If you get the “culture” of the company right, then company quality and services will just fall into place. -5 Weeks of training First week send everybody to call center to help everybody learn about customer service -$2000 Offer They offer $2000 to quit and leave the business right after training. This gets rid of those employees who are only there for the money. They keep all the quality workers. By turning down the money they become more passionate about the work. -Culture Book Two sets of interviews, one from the managerial team and the other from the overall business. They need to meet cultural requirements as well as the working/ skills requirements. -Twitter helps build culture Introduce employees to twitter at the beginning of their training so that in time, at the employees discretion, they can build unity through finding out what they have in common.

Premier Solutions Case Study

Eric Porter “Premier Solutions Case Study” B283 Case Analysis Introduction: Jake and Matt run a business called Premier Solutions which they would one day like to turn into a franchise. They are currently working on the business model which would give them the layout that would be the blue print for the franchise. But the problem at hand is that Greg is part of another company which wants to combine forces as an IT outsource for Premier Solutions. Problem Analysis: -Major problems and challenges facing employees and organization: Balancing the books can be quite an ordeal. After taking an accounting class I can totally understand why because those ones were complicated and they weren’t even for a real business. It is impossible to know the true financial state of your business without having a complete balance sheet. I remember the teacher telling the class how his dad ran his business back in the day. He didn’t care about specifics, money that came in was revenue and money that left was an expense. If he came up with a deficit one month than he just had more expenses. Knowing where your money is going can exponentially increase your efficiency. As this big deal with Memorial IT is going down I think it was extremely wise to wait to completely straighten out the books before attempting to expand. Now it is common for start up businesses to take risks from time to time, but every angle should be examined to know what the flip sides of each risk. For example, Greg was asking for a lump sum for his services all up front. The first risk is the fact that Greg is short on patients when it comes to teaching others how to do what he does. If he was to work for them for a full two years, with the business growing and gaining more and more clients, when his two years or work are up he could leave Premier Solutions with tons of work and not enough workers to handle it. Or realizing the tight situation they could be in, he could easily find himself able to place high demands for further work. Another problem with paying upfront is that suddenly there would be a big draw on the liquid funds. Businesses love having money readily available for rainy days. By paying the lump sum it takes a hard hit to the account which also closes doors that may open in the future and potentially be even more of an opportunity. -What do “I” think the business is doing right and what do “I” think they need to change: A great move for the business was using the available resources, college students, to search for the “right stuff”. They went to the University Career Fair for two main reasons. The first being to get more exposure for the company, advertising to students who could potentially play a part in growing the franchise. They were also able to find two new, experienced printer technicians which would relieve a big burden from them allowing the technicians to do the dirty work while they could finish up the business model and minor financing details. The final smooth move I noticed was handling the change in Memorial management. They could have put everything on hold to see what would change, but instead they just kept rolling, improving on the things they knew they had control over and not getting distracted by the things they can’t. Conclusion: I think that it would be wiser to focus on finishing their managed print services business. I myself am a pretty single minded guy. I do my best to take care of one thing at a time, and not move on till what I’m working on is done. As far as bringing Greg on, I think that it would be easier over all to bring Greg on, but under a different deal where he still provides the work, but not for a lump sum up front. Some things are just not worth the risk, and giving some one money before their services are preformed is not a good one.

Our first Car Detailing

Our first car gave us much to learn from. Olivia's car was for sure in need of us, but we learned of some materials that would have made the job much easier. It started with the cup holders. A soda bottle had exploded in the car a while back and so they were very sticky and grody. A metal scrub brush would have made the job go much faster. We also could not procure a shop-vacuum, but we managed to get a hold of a regular vacuum which just bearly managed to finish the car. The outside cleaning was the simple part...(washing, waxing, etc.) Inside it was filled with trash which would have been more organized if we had an actual garbage can instead of a few plastic bags. Overall though Olivia was extremely pleased with our results. Inspite of our lacking we managed without and the car was looking nearly brand new. We told her the price would be $45 and she paid us $55. Now she is refering us to everyone she knows that needs a cleaning. Just goes to show that your customers can be your best sales people.

$100 Challange Product Update #2

So the group has picked up all the materials that we each assigned to each other. Now the time comes to actually begin detailing cars. This is to be quite the project as we have picked so little of a consumer market compared to what is available. Our only advertising will be facebook and people we know. I have found one friend who is schendueled for May 19 @6pm. But other than that we had no prospects. Hopefuly we can find some more customers or we'll be really short on hours and money.

Purple Cow

In Praise of the Purple Cow by Seth Godin The P's of marketing Product Pricing Promotion Positioning Puplicity Packaging Pass Along Permission Most importantly...Purple Cow! Brown cows are ordinary and boring. No one is excited to see one, but a purple cow is new and every one wants one. As an entrepreneur I won't get anywhere with brown cows, (or ordinary ideas). I need purple cows (fresh, exciting, original ideas). Its what "makes your product worth talking about and paying attention to." -If I want to be successful I need to be a leader...No one remembers the great follower. *Old Rule of Marketing: Create safe products and combine them with great marketing= An average product for average people....No more *New Rule of Marketing: Create remarkable products that the right people seek out! "If you're remarkable, then it's likely that some people won't like you...Criticism camoes to those who stand out". I am a believer in that since I have mentioned my PB&J sandwich maker to many people and almost everybody has laughed in my face. "All great companies are marketers at the very core" "If a company is failing, it's the fault of the most senior management who are probably just running a business instead of marketing a product. They lost their vision. 10 WAYS TO RAISE A PURPLE COW 1. Differentiate your customers 2. Pick one underserved niche to target 3. Create 2 teams: inventors and the milkers 4. Get e-mail addresses of 20% of your customer base...figure what you could give them that would be super special. 5. Remember that a remarkable idea doesn't have to be life changing or big at all. 6. Explor the limits of the product, market, etc. 7. Think small and build up for your market. 8. Find things that are "just not done" 9. Ask "why not?" when you decide no for something 10. What would happen if you simply told the truth inside your company and to your customers?

Five Affordable Consumer Research Tools

Five Affordable Consumer Research Tools by Susan Gunelius 1. AYTM (Ask your target market) -You create your own survey and sent it out to your own list of people, or the AYTM sents it to a panel of more than 4.5 million. But is costs roughly 95 cents per completed survey. 2. Gut Check -Allows 30 min. one-on-one video interviews with people within your consumer panel who meet your criteria And if you are short on time: 3. uSamp -Use their Survey Builder tool to really narrow down your target consumer. 4. Survey Monkey -Send out survey, but the results can arrive back in 7 days, except its $3 per completed survey. $5 in 3 days or less. 5. Zoomerang -Survey online...they give you a price quote based on criteria.

Use Suggestive Selling

Suggestive Selling is a method of getting higher revenues while maintaining the same number of transactions with customers you already have. It is typically harder to gain more customers than it is to increase your sales with current ones. With that said, there are two ways to accomplish this. The first principle is "Up selling Items". When a customer wants to purchase a product it is your responsibility to recommend a better quality product that will be more satisfying. With the better product will also follow an increased purchase price and hopefully an increase revenue. As an automotive technician I've had lots of experience talking with customers about replacing parts of their cars and it is indeed a skill that requires charisma. You also need to learn when you are pushing too much. A customer will not want to do business much longer if they feel they are being pushed into spending more money. The best way to approach it is by helping the customer feel that they are getting the better deal out of it. The second principle is "Bundling Items". So if they are purchasing a specific item you can combine that product with another product with similar purposes and then lower the price of the items individually, but still keep it high enough that you can still make a profit. This can greater satisfy the customer while increasing sales. For example if I am telling a customer that their brake pads are worn, I could offer them a tire rotation and rotor resurfacing for 10% discount...(assuming I can still make more of a profit that way). This offers more services, for less than the typical price allowing the buyer to feel better about getting it. Just remember not to push too hard on a sale!

Start Up Nation: step #9 Establishing a Brand

Start-up Nation #9 Establishing a Brand • Your brand purpose: a logical snapshot of what you provide the market. • Your brand points of difference: things that are truly distinct that your competitors can’t copy. While great customer service is important, it’s not a point of difference; many of your competitors will claim the same thing. A point of difference can include a visual symbol, story, color scheme, proprietary process or product, historic milestone, physical characteristic, or combination of several of these. • Your brand personality: a collection of human-like traits and adjectives that best describe your brand. • Your brand promise: the emotional side of your purpose. If you were a tailor, your purpose would be to make and alter clothes and your promise would be to give people confidence when their clothing fits just right. 1. Draft your brand DNA or essence 2. Define and relate to your target audience 3. Choose a brand name 4. Create a logo 5. Make a list of all your other touch points 6. Create a demand for your brand Great brand names: • Are emotional • Stick on the brain • Have personalities • Have depth to tell stories and communicate with -Avoid names that are hard to pronounce or spell

October Sky

Eric Porter May 14, 2012 B283 October Sky I love in the beginning Homer Hickam tries out for football. All entrepreneurs try out different ideas. Homer went with a popular idea that his brother was already successful at but unfortunately football was just not for him. The coach mentioned something that many entrepreneurs should learn, “You got to learn when to quit”. Some ideas can be pushed hard enough and eventually break through; however for most it is better to pivot and find another idea before all the resources are exhausted. I think what is impressive about the beginning of the movie is when everybody sees Sputnik they are scared of the new concept, but Homer sees it as inspiration. He was so inspired that he was willing to sacrifice his whole social life by hanging with Quintin, (the school nerd). When they are told they can’t fly rockets on company property Homer is the only one who still sees potential for their idea. He envisions Snake Root as a perfect place for his projects. They also run into some problems when they discover to move forward they need more funding. One of the guys brings up the idea of scrapping abandoned rail road tracks for cash. Just when things begin to go their way is when things take a turn for the worst. The police show up and prohibit all rocket activity believing that it was their rockets that started a forest fire. Every business has a refining period when they are met with adversity. Maybe they get sued for being accused for copying someone else’s idea. Or perhaps a cease and desist order is given till they get proper permits. Here is where they prove their determination. After a long time, Homer finally goes on a quest to find the rocket that supposedly started the fire. Once proven innocent they again begin their rocket projects and Homer goes back to school. When hard times hit our business people often need to make a choice between following a dream or staying afloat. Homer had to sacrifice his dream for a time to help his family. Eventually time became available to go back. The hardest part is recognizing when it is time to turn back. For Homer it was when his teacher shared her desires for him to follow his dreams. As they finally reached the science fair foul play arose. Someone had stolen their entire set up to keep them from winning. This may be compared to some markets as someone breaking in and vandalizing your business. Homer didn’t give up and proceeded against the odds. His father humbled himself enough to allow part of the boys rocket to be made again, and helping Homer to win the science fair.

The E-Myth Revisited ch. 10-12

I have always thought of myself as creative; however, after reading this I realized that I need to upgrade to innovative. "Professor Levitt said, 'Creativity thinks up new things. Innovation does new things". I typically do try to build many of the things I imagine, but I realized that I could do much much more. "Innovation is the mechanism through which your business identifies itself in the mind of your customer and establishes its individualism" When I start my business I also will need to quantify everything I do with my business How many customers do I see in person each day? (Mornings, Afternoons, Evenings) How many people call my business each day? How many call to ask for a price? How many want to purchase something? How many of product X are sold each day? At what time of the day are they sold? Which days are busiest? How busy? Etc. Etc. Etc. It recommends that I quantify everything so I can understand how the people work. Once I understand how they work, then I can fashion my business to them. A business can change a lot easier and faster than people.

Italia Factoria Case Study

Eric Porter Italia Factoria Case Study B283 Case Analysis Introduction: After many years in the limited franchise business of Chick-fil-A, Mr. Nygren and his co-investors sought out a business with more room to expand. After visiting many styles and cultures of restaurants the group decided to venture into the Italian restaurant business. One of the many places with helped inspire them was Tomato Café in Albuquerque NM. Seeing the obvious demand they began making plans for their own Italian restaurant in Farmington, NM. Problem Analysis: -Major problems and challenges facing employees and organization: The first problem encountered was the type of business they wanted to grow. Many of the franchises, such as Applebees required a bar for selling alcoholic beverages. As that was against their morals it narrowed many of the franchises they would be willing to start. With the many requirements and restrictions of a franchise it was apparent that it would be more beneficial, yet more risky, to start the business from scratch. The first several weeks of business were very successful, but as time drew on it began to slow down. It was good that new ideas and concepts were constantly being discussed to make it fresh and keep customers satisfied. Listening to the customer’s requests allowed the business to pivot and change multiple ideas that allowed for more customer satisfaction such as having bread brought to the tables. The next hurdle was from a place that they actually visited for inspiration. Tomato Café sent them multiple letters threatening them to either change their business so it wouldn’t resemble theirs or to accept a settlement of $25,000 to “allow” them to continue using the ideas which made up the entire restaurant. Here it was very wise that close attention was paid to detail concerning where each of the ideas for the restaurant came from. Making dozens of inquiries to various restaurants covered their bases, and in turn broadened their pot of ideas they could have possibly pulled from. A cautious and someone guilty feeling entrepreneur would most likely accept the offer to get the problem out of the way. But Mr. Nygren and his investors went the risky route by replying very frankly that there were too many assumptions about the origin of their restaurant ideas. In the last letter I feel it may have been a nice touch to show confidence in his argument, to have no need to seek out an attorney. But seeing the stubbornness of the others I do believe that it would have been wise to at least seek out legal advice from someone in that field to make sure all bases were covered if indeed things did escalate. -What do “I” think the business is doing right and what do “I” think they need to change: The first big saver was using the available resources of the land instead of buying more property. Designing, building, and accessorizing would already be more than enough. In spite of a less desirable location, the money saved could easily go to advertising, or simply to the restaurant to maintain quality. The drive thru was a good idea to help compete with other fast food companies, though for a business just starting it seems like a lot to take on all at once. It would seem busy enough just to keep up with the people inside, much less the people outside. I even liked the idea of keeping the authentic brick, fire baking pizza oven. It does show a step in quality, but some things are more work than others. For a fresh business things would have to be booming constantly to cover costs and extra work. Recommendations: I would at least go to an attorney and seek council to make sure that there was no case for Tomato Café. I would also try to dumb a few things down, make it simpler rather than adding more things which would most likely require much more capital. Conclusion: As far as legal issues it doesn’t appear to have much to fear. But the biggest concern would be whether the area would sustain a business of that stature for extensive period of time. It would be best to sell the business instead of pouring money in and hoping things pick up.

Earthly Debts, Heavenly Debts

Earthly Debts, Heavenly Debts by Elder Joseph B. Wirthlin I am a very cheap individual. I hate owing other money. This is particularly why most of the things I buy are rather junky. As an automotive technician it is very easy to spend thousands of dollars on tools. My tool box and tools included would not even be worth what many technicians keep in one drawer of their own boxes. But if only I was as much a stick towards my spiritual debt as I am to temporal debt. I know I have racked up quite the tab for my mistakes, but how can I pay it back. And how can I recognize when payments are due. Elder Wirthlin mentioned that debt is a form of bondage. In desiring to be an entrepreneur, I want to limit my bondage rather than being subject to others. This is all well and good except there is NOTHING I can do to releive me of my debt to my Heavenly Father. I can try to minimize my debt by doing my best to keep the commandments. I need to pay my tithing and just focus on spiritual blessings and spiritual treasures, because if I only focus on earthly treasures they will be very short lived.

$100 Challenge Project update

For the past couple weeks our group has been planning to run a home cleaning business directed at homes that have been forclosed and need cleaning to be presentable for resale. From the start, the whole group was sold. Blake had all the materials and supplies to start and we were more than happy to work. But as time drew on the vision became more fuzzy. the logistics were not as solid as we thought facing the fact that there wasn't enough business for all of us in that sector. Attempting to stay with the idea we visited real estate companies in hopes to gain more customers and homes to clean. The managers were nice and were willing to advertise for us if we were to leave brochers, but after noticing the 12 tall stacks of business cards we realized how unefficient that would be. Sarah and I had been trying to figure out this dilema but didn't want to make any changes till we could decide things as a group. With Blake constantly working and Trevor...just not showing up it seemed that our business wouldn't be functioning till the last week of the project. But after lots of coerssion by Sarah Jones and myself, we were all able to meet at the library and figure out a new path to trod. Realizing cleaning houses was not as profitable as originally discused due to issues with advertising and demand, we discussed a whole new concept of cleaning...cars. We pivoted into car detailing which allows us to still have the resources, but be much more flexible as more people have cars around here that need cleaning than homes. After discussing the fine details as a group it was late and time to split up. Sarah graciously offered to convert what we discussed into the plan. (I then suggested that when all was said and done with the project we should all take at least 1% of our grades and give it to her as she has been the hardest worker in the group.

My Personal Business Plan (version 1.0)

Eric Porter May 8th, 2012 B (283) Business Plan In the next five years I am planning to create an automotive business. One that will grow from a home based business into a multi-car servicing business. I will begin by offering low maintenance service to friends and fools who want their car fixed cheaply. Automotive businesses are typically expensive, much because of labor costs. Small businesses need an edge which is why they undercut prices to keep up with the larger businesses. I will start off as a single man business, which some may call merely owning a job instead of a business. But I know that in time, as the work load increases I will begin to hire employees. Some of the signs that it will be time to hire an employee(s) will the when the business has grown enough to purchase machines that will enable more work. Machines such as a lift, a rotor turner, a transmission flush and radiator flush machine, etc. With each machine comes more available jobs. More available jobs equals more available customers to help. And with more customers comes a need for more workers. The slogan that mirrors the quality and upmost respect my company will have is “Fix it like its Mothers”. I would never let my mother drive off in an unsafe vehicle just as I would never allow a customer. I plan to work between 45-50 hours per week on nearly 30 customers. I will bring in approximately $5000-$6000 with a profit of $2000 for labor costs. Technology is key in keeping track of money since purchasing parts makes for a huge influx of cash. So technology will be used to keep track of expenses, help with diagnosing problems using automotive diagnostic programs, and advertising.

Becoming Provident Providers Temporally and Spiritually

Becoming Provident Providers Temporally and Spiritually By Elder Rober D. Hales This talk was very eye opening when I compared it to my 50 item bucket list. Much, or most, of the things in there were like a kids Christmas list of things I want rather than things I would like to give. And even when it comes to giving Elder Hales gives a terrific story about a very fancy coat he wanted to purchase for his wife's annaversary gift. When he suggested it she "sweetly" asked, "Are you buying this for me or for you?" She pointed out that even though they were financialy stable to afford it, there was possibly a deeper reason. That perhaps he was buying the coat to show that HE was a good provider or to show to the world that they could afford a really nice coat. This new insight, redirected at me, this made me compare to the gifts I would like to buy my fiance. I want to give her the best, but I need to check myself before buying things to make sure I am doing it, 1)because she actually may need it. Or 2) because I truly love her and want to show her...not others...how much I love her.

The E-Myth Revisited Ch. 7-9

In chapters 7-9 you read about one of the most successful business in the world...McDonald's! Starting from an ice cream machine salesman, Ray Kroc, stumbled upon a quick, efficient, thriving business and bought out the previous owners. He then took the efficiency and mass produced it to ALL the McDonald's. Order made this small business grown into a billion dollar franchise. He found that by breaking every part of the business down he could make it into a science that would allow nearly anyone, especially low payed high school students, to do it. The burgers would only be cooked for so many seconds, the buns only heated for so long before they get too moist, etc. He made a system and Ray thought that with this Franchise system it would be built on the belief that "the true product of a business is not what it sells but how it sells it."

How to Avoid Common Startup Mistakes

Richard Branson on How to Avoid Common Startup Mistakes: The most common mistake is understanding the relationship of failures to business owners. You cannot stop mistakes, but what is important for a business owner is fixing them quickly. Certain steps can be followed to help reduce mistakes such as 1) Formulate and innovative business plan. You need to nail down your elevator speech. Make it like you would a text that can only have 140 characters. Once you have that, expand it to no more than 500 characters. 2) Find funding -Keep expenses under control by not underestimating costs! 3) Hire the right people to carry out your plans -Make sure to hire the people you need, Not the people you like! 4) Step back from your role at the right time -Know when to say goodbye. Few entrepreneurs make good managers!

GEM by Stephen W. Gibson

The Simple Little GEM can help your business grow and grow GEM: Gathering, Enhancing, and Marketing. My ability to manage these three elementary, but very vital, process will determine my success as an entrepreneur. Gather: Collect all my raw materials/resources/equipment to run my business Enhancing: Add value to the resources I have gathered. Assemble my product, mix my ingredients, etc to make it worthy to sell for a profit. Market: Pick a location to sell the product. Methods may be different from area to area and culture to culture, but location is just as important as the product, maybe even more in many cases. Also purchase the amount of product that you think you can sell. Don't over stock, but try not to under stock either.

Action Hero: Phil Romano

Phil Romano: -Don’t be like everybody else…Action speaks louder than words. -Loves to make paintings on his “down time” -If it doesn’t feel good to him it wouldn’t feel good to the customer. -His first business experience was as a paper boy who decided to ask the customer what their value would be on a news paper placed right at the door instead of in the driveway. By asking what they thought the extra value was he managed to make extra money through his extra service. -Got cancer that fortunately was curable. But it still taught him that you only live once and so all the ideas he gets he wants to do. So he makes a business and once its going good he sells it and moves on to make his next idea come alive.

Heather Evans Case Study

Eric Porter Heather Evans Case Study B283 Case Analysis Introduction: Heather Evans grew up with a father who lived deep in the business world as an attorney in the Wall Street Firm. She desired to create and run her own clothing store. After doing very well in school she began to seek out investors who could fund her company, but the stakes were high indeed. Evans will need to hone her negotiating skills to a T if she is to still own any portion of the company in the end. Problem Analysis: -Major problems and challenges facing employees and organization: The biggest challenge that Evans faces is financing. Though it is commendable that she is attempting to start her business while still at school, it seems unwise due to the conflict of time. She must travel by plain from Boston to New York weekly which over time is very financially consuming. It would have been far easier to wait that last year to finish school and allow her the time required to meet with her desired investors and create an effective business plan. Evans also struggles with finding employees that can be as valuable to the company as she is. She did have connections with others from her Harvard days which helped her find some employees, but no one with her vision for her particular style of clothing. This causes Evans to take on two major rolls of the company both operating manager and chief designer. The location of a business is just as important, if not more important than the business itself. Evans has to choose between cheap building with mediocre location, or a very expensive building with superb location. This dilemma is a factor for all businesses -What do “I” think the business is doing right and what do “I” think they need to change: Something Evans is doing brilliantly is her education. She works to become very well rounded in her knowledge of how to run a business by first working with Morgan Stanly Investment Bank. This would surely help her understand banks positions on loaning money to businesses. Evans doesn’t stop there though. She realizes she needs more schooling and goes to Harvard Business School. Even if she could have learned the same things from an online school it would not have had the prestige to impress others to invest their money toward her. And finally she also obtains a summer job which gives her “in the field experience.” A secretary to the president of a company similar to one you want to run is ideal, allowing her to observe the decisions that must be made regarding marketing and design. Education, Financial experience, and business experience are critical in running a complex business; Evans has them all. Evans did well in seeking other opinions from different companies on who to hire. But she did further well in not just relying on a single source. Barbara unknowingly helped Heather learn that some people are just good liars. She also learned the value of second opinions. Recommendations: First of all, Evans had a guy doing the designing. If she wants someone to understand women’s business apparel, she should have found a woman designer who has to wear it from day to day and understands the changes that need to be made. Secondly, Evans needs to find a financial helper. Someone who could keep track of the investors, their terms, and seek out others at the same time. With Evans so enveloped by the minor details she is distracted from her biggest hurdle. Conclusion: Evans has done a remarkable job at putting her portfolio together. Her Marketing strategy is clean and to the point stating who she wants to focus sales on, how she will get the customer’s attention, and most importantly why they should invest their money into her company. There is great detail for the future including who she will hire. No investor likes the idea of a one manned, or “one womaned” clothing store. She not only tells them that she will be hiring others to help, but also details who they are and what they will be doing for the company. With the business portfolio complete, the only thing that is holding her back now is funding, and with the final touches she should be very successful in getting her business of the ground.

Boston Duck Case Study

Eric Porter

"Boston Duck Case Study"

B283

Case Analysis

Introduction:

     Andy Wilson was an ambitious man who felt that he wasn’t getting what he deserved after helping a savings bank, The Boston Company, grow so much.  He gained much experience from working with 65 clients, totaling nearly 6 billion dollars in assets.  So with this knowledge he felt confident that he could achieve much more on his own than with the Boston Company and left to start his own.  But Andy was still missing one key idea, what kind of business would he have?

            Andy began his search roaming the highways of America on the back of a Grey Hound bus, eventually spotting a WWII amphibious vehicle called a “DUCK”.  He quickly ended his journey to begin another one by “transplanting” this “DUCK” business into the east coast, particularly, Boston.

Problem Analysis:

-Major problems and challenges facing employees and organization:

            Andy faces the same problem that most companies do when the season changes.  Business slows down, and in some instances stops completely for a time.  Overcoming this hurdle every year is going to take constant planning.  Most employees can’t just take a 4-5 month vacation and come back; which would mean that Andy would have to let most of his employees go and try to hire them back once spring arrives.  With a constant change in employees, hopefully most would be previous employees, other-wise there would be an increase in confusion as new people need to be trained every year. 

            And there is a double edged sword with the seasons because with the summer heat also comes more congestion on the roads and on the water limiting his business to 65 DUCKS.  In “The E-Myth Revisited” by Michael Gerber he strongly states that every business hits this point and has to choose to either grow, remain, or shrink.  Every business that chooses not to grow eventually discovers that they have shot themselves in the foot and fail.  A business needs to grow, even if the pace is at a snail’s pace it needs to keep moving forward or open the door to failure. 

            With the vehicles only good in fresh water this drastically narrows his window of opportunity for expansion.  McDowell was in the process of growing a DUCK fleet to travel in both fresh and salt water, but to have access to those from him it would be extremely challenging without a company merger.  However, this simplification would come at the cost of Andy’s control over his side of the business.

            -What do “I” think the business is doing right and what do “I” think they need to change.

            I like that Andy went to Bob McDowell, one of the largest duck tour operators in the nation, and even flew him out to Boston to expound his vision.  Receiving information from an experienced individual over the phone is one thing, but seeing them in person “on the site” is completely different.  I think it creates an easier environment for Andy to sell his vision and inspire McDowell to his level.  Furthermore, he doesn’t just stop at getting advice he eventually makes a deal to receive the equipment necessary to run the business, very similar to a franchise.  Andy compromises his side by offering a slice of all revenue and to pay off the Ducks in 5 years.  This is a wise move for Andy because both Andy and McDowell have vested interest in this company.  Both want it to succeed which helps fan their fires of entrepreneurship.  

            There was a silver lining behind the dark clouds of Andy’s permit crisis.  All the fine details they required allowed Andy to see the direction his business needed to go.  It helped him see what he needed to do to be successful.  To overcome obstacles Andy studied other businesses and how they dealt with the problems he would be facing.  Like how to remove polluted soil from the boat ramp. 

Carrie McIndoe, of Strategic Capital Resources, arrived to help Andy raise the money needed to pick his business of the ground by changing a few things; his sales pitch, not approaching potential investors the right way, the deal structure was poor, and his memorandum cover needed revising.  Andy should have made the call sooner than later for her help.        

Recommendations:

Andy should have looked into what legality issues he would have confronted before jumping in so soon.  In looking towards the future he needs to continue in his entrepreneur’s spirit and spread to other cities.  This could be a very effective during winter with all his spare time while the business is hibernating, to seek out cities with which to expand. 

Andy also shouldn’t just think about doing the same think in other cities, but adding more to his business.  There are two ways to run a business: own a monopoly where everyone needs to come to you for a specific product, or own the resources yourself so you don’t depend on other businesses.  Andy needs to consider the possibility of either buying ducts from another business or even venturing to expand his business to make his own DUCKS.  Surely his own ducks will need repairs and if he could do it himself it could be more cost effective.  Yes, it would be a big step in a whole other direction, but it wouldn’t be the first time.

Conclusion:

If they are to merge with McDowell’s company it is probably still going to flourish and expand to other cities and be a strong business.  Andy, however, will have little control over its future and will be demoted from employer to employee.  By attempting to expand on his own, it will require far more work, yet be far more satisfying.  He should start to cut the umbilical cord to McDowell and be more self-sufficient.  Expand his fleet, with salt and fresh water capabilities, to the coast and then  move on to Europe once reaching the point of “saturation” as Andy called it.         

Start Up Nation: Step 2- Choosing a business model

Choosing a business model

Step 2:

            -Home Based Business = more successful than ever before to run business at home.

            - Brick and mortar Business: go out and buy/ rent location

            -E-commerce: Sell and run your business, just on line 

-E-bay

            -Franchise: If your good at executing, just do what the franchise tells you to to make money.

            -License your product: Invent a product and sell the rights to use it.

            -Multi-level Marketing: Get in Early

     As I am very favorable to designing and building things my passion goes out to "licensing my product" form of business model.  I don't have the understanding, nor the patience and ambition to mass produce and sell a product.  I don't find any joy or excitement from it.  Since it wouldn't be very fulfilling I would follow the path that's more suitable to my desires. 

     But as an automotive technician I find the gambler in myself open to the idea of a Franchise.  Again I don't feel I have the ambition to open my own shop from scratch, but if someone could tell me what I needed to do and how to do it I could be successful.  I am good at following instructions, and the biggest job would be to find a good location to start the franchise.

Start Up Nation: Step 1 Creating a Life Plan

CREATING LIFE PLAN:

Take my current status:  Poor College student, living at home.  Also planning to get married which will only make me more broke.

Create vision of my ideal life: Owning my own home, able to comfortably support six children and my wife, being able to visit family frequently for holidays and just the occasional visit.   

Determine what my loves are: I enjoy seeing others having fun.  Myself included, but just as much fun watching others have fun.  Paint-balling, creating seemingly impractical inventions that still are useful but in a more entertaining way.  

List my skills (including knowledge and helpful experiences): thinking outside the box.  I can work with metal such as drilling, welding, etc which allows me to more easily see the things I imagine creating since I can see the process it would involve. 

Ideal work style (at home, part-time, on-line, ect.): I don't much like the idea of bring work, home with me.  I would like to work on location and see what needs to be done.  I don't mind working full time, but if I could make enough money to still support my family on part-time I could live with that.  In my early years I would prefer to work with my hands to gain experience, but as time draws on I would like to reduce my "wrenching" time and turn to a more suitable work for my age like manager of a shop.   

Manifesto or personal mission statement:  Focus everything I want to accomplish into a statement:

            Fulfillment, Freedom, Family...

Keep family as my primary focus for why I do what I do.  I don't want to support my family with dishonest work!  So make it good

Action Plan:

            Key Moves:

1) Attain my Automotive Business Bachelors degree

2) Find a decent shop to work in and gain experience

3) Grow a family and increase my need to support them, which in turn can also inspire me to greater lengths.

4) As my experience grows seek out jobs with higher responsibilities, that can also offer me a path out of the shop into a more managerial position.

The E-Myth Revisited 4-6

The story of Harry is the most intriguing business story I've heard. A man starting a business realizes he needs help with the business side of things while he does the labor. The man hires his first employee to maintain the books while you do the work that you would much rather do. After a while you see Harry has caught up with the books and you give him more responsibility like helping customers, then packing and shipping products, then hiring other employees. Harry seems just great, he is now doing the work and you don't have to. Then complaints come in. The work isn't being done to your satisfaction and you return to your business to find in a shambles. You fire everybody and start all over, but this time with the paranoia to hire anyone again. Now you are doing everything yourself again and its harder than ever. This story helped me see how important it is for an owner to be aware of what is going on in the business. As well it also reminded me, the quality I would want in my business, may not be the same as those I hire. As a automotive technician I take certain pride in having clean work place and working on a car like I would work on my mother's car. Many technicians don't have that mind set and so when searching for an employee it is vital that you look for hard workers that share your same passion. Not just a guy trying to get a pay check.

E-Myth Revisited ch. 1-3

In "The E-Myth Revisited", Michael E. Gerber explains the problems and possible solutions to business failure.  In the beginning one of the biggest myths that Michael begins to dissolve was much more close to home for me than I thought.  As I am learning to be and automotive "Technician" his word choice in his example was right on target to catch my attention.  On page 13 he says "That Fatal Assumption is: if you understand the technical work of a business, you understand a business that does technical work....The technical work of a business and a business that does that technical work are two totally different things!" 
     For the longest time I imagined one day owning my own auto-shop and figured that once I knew how to fix cars well enough that would be my turning point.  But this showed me that knowing how to fix things wasn't good enough.  I also needed to learn a whole other side of things.  The business side that has ever eluded me.
     In using the word Technical I was able to see myself in the circumstance he was describing right from the start.  If I intend to be successful as an automotive technician AND a business owner, I need to learn both sides of the job.   

Action Hero: Bruce Thompson

Bruce Thompson founder of Hyperion Energy was a great business man.  His company grew with billions in assets, but that isn't what Bruce's main focus was in the end.  After contracting Lugerig disease his perspective changed toward his family even more.  A great lesson that can be learned from work that constantly requires your attention is to set a boundary for work. Unless there is an extremely pressing thing that needs to be done remind yourself that it will be there tomorrow, it is time to go home!  This philosophy allowed Bruce to devote his time to both work AND family.