From December 2009 – April 2010, Kyle and I set forth with big plans to jump-start our business. We had a product, manufacturing contacts, a marketing plan, and enough enthusiasm to keep us up for a week straight – so we got to work. At 8:00AM nearly every Saturday morning we met for three-hour workshops on Marquette University campus in the Business Administration building. Tim Keane was the facilitator of the competition, and is Director of The Kohler Center for Entrepreneurship and the Golden Angels Network at Marquette University.
In Tim’s first lecture he discussed some of the bigger mistakes that businesses make in the early stages of starting up. He went into great detail about the growing pains of a business and how important direct customer feedback is. The key is solving a big serious problem (where most entrepreneurs succeed), by answering the question, “Is my product/service solving something, or is it simply nice to have?” Tim also emphasized the value of bootstrapping the business early on. Bootstrapping early allows the opportunity to build a solid business, it’s relatively low risk, and the founders keep the ownership. Plus, having a lot of capital (up front) only delays the ability to sell, not to mention a lot of money can make you stupid. Tim lectured about how to understand business objectives, finding the ideal customer, and defining a value proposition. The value proposition is the description of the enterprise and the value it provides - “Why would a customer purchase my product vs. other alternatives?”
Innoboo Value Proposition:
Innoboo Living Solutions was founded in the spring of 2009 to create a modular home furnishing system that provides low-cost, customizable, long-lasting home furnishing solutions. Unlike other expensive, unsustainable furniture, our products are environmentally, socially, and economically sustainable, multi-functional, and individually customizable.
During our second lecture we learned about market segmentation and channel segmentation. Market segmentation is to divide customers and prospects into common groups distinguished by whether they are actionable vs. interesting. When Kyle and I were targeting our segments we discussed where our products would be most disruptive and what markets we wanted to enter. Our business plan covers four major markets segments: Sustainable products, specialty/designer furniture, new homeowners, and interior architecture/display. We defined our goals and realized that the American furniture market has nearly doubled since 2000, and represents an incredible opportunity for our growth. Our mission is to create products that compliment nearly any living space can be used continuously for many different needs.
During week three of the competition all participants, both social and business ventures, were assigned local business mentors from the Golden Angels Network. Kyle and I met with our mentor, Leon Janssen (former EVP and GM of Global Funding Operations at General Electric), on creating and revising our plan for several weeks. Leon was highly professional, personable, and a huge asset during the competition. He gave us great advice in defining our customer and reviewed our business model throughout the competition. Talking through our business helped us establish short and long term goals, and strategize the business to have as large an impact as possible. We created a strategy to develop relationships with retailers and grow our customer base through local community events like the Historic Third Ward’s Gallery Night, as well as utilizing existing relationships with local business owners, the Milwaukee Institute of Art & Design, and Marquette University.
At the time we were revising our business plan, Kyle and I were also revising the design of our product. Needless to say, we were staying busy. On March 31st, 2010 Kyle and I we were selected to move on at the semi-finals, we presented our business plan for fifteen minutes followed by a fifteen minute Q&A. This was a great learning experience for us because we got excellent feedback and reassurance. About a week after the semi-final presentation we were chosen to present again at the poster session/final banquet at Marquette University Alumni Memorial Union on April 12th, 2010. At this event we were asked to design a poster to describe the details of our business, answer questions, do product demonstrations, and present for five minutes. Attending the banquet were Marquette University alumni, members of the Golden Angels Network, local entrepreneurs, and active angel investors. Coming from a design background, I’m so glad that we were able to participate in this competition. This opportunity offered us a lot of valuable information and opened several new doors. I would encourage anyone interested in business, or starting a business, to participate in the future.
Next step.... Innoboo in stores!!
