This article discusses how some businesses are opting to forgo a traditional business plan and instead take their idea straight to the masses, adjusting their strategy or product based on feedback from users. The article highlights the pros and cons to such an approach, positing that it may work more successfully for tech start-ups than more traditional small businesses. This article reminded me of the discussion we had last week regarding the importance of focusing on what the customer actually wants and the need to incorporate that into your business plan.

http://www.nytimes.com/2014/12/04/business/smallbusiness/business-plans-for-start-ups.html?_r=0

This reminded me of our discussions from the last 2 classes. It’s crazy to think that people couldn’t see the genius of the internet, because now, it would be very hard to go even a day without using it.

Yes, entrepreneurs need to test their ideas to see how the market will respond. But on the flip side of the coin, it’s important to remember that with novel ideas such as the internet, it’s hard to do that; it’s hard for people to see the utility in something that they simply can’t conceptualize. It’s a good thing Bill Gates didn’t take the criticism too hard and give up on his idea!

http://www.nytimes.com/2012/07/20/education/edlife/campus-incubators-are-on-the-rise-as-colleges-encourage-student-start-ups.html?_r=0

 

This New York Times article discusses the emergence of university startup incubators and the role they play in guiding eager undergraduates in the early stages of their business ideas. As of 2012, about 1/3 of the 1,250 incubators in the United States were at universities, up 1/5 from 2006.  These incubators, often competitive to gain access to, offer the tools and direction necessary to turn business ideas into reality. However, the article discusses a potential drawback of using university incubators: if a student receives a university grant, is paid by the university for their work, or if their idea is developed with faculty, they may not be sole owners of their inventions in terms of I.P.  At the University of Michigan, this possibility had a chilling effect until the university agreed to give students sole ownership of their inventions, even if they worked on them using university equipment or in a course. The article also makes an interesting point about the value of incubators to universities. Although it is clear that most startups run by undergraduates are not profitable and never will be, there is great incentive for universities to encourage student businesses. The success of alumni reflects positively on the school. Successful alumni also provide donations and job opportunities for future students. All of this ties into my last post which noted that universities excessively promoting entrepreneurial coursework, pitch competitions, and incubators may dissuade some students from pursuing other viable career paths.

These articles reminded me of our discussion about the airline industry.

While US airlines could save as much as $50 billion on jet fuel this year, consumers are unlikely to see those savings. Fuel constitutes at least a third of an airline’s operating expenses, however airlines are not basing ticket prices on their own costs, but rather on what travelers are willing to pay.

http://mashable.com/2015/01/20/cheap-jet-fuel/

This article discusses the growth of the “slim-line” seats in major airlines. Apparently seats that used to have a pitch of 32 to 34 inches now typically has 31 inches. In a survey, 42 percent of consumers said they would be inclined to purchase a seat with less legroom if its cheaper.

http://mashable.com/2015/01/23/united-planes-legroom/

How can the airline industry “innovate” to better address consumer preferences? Is the industry too heavily regulated and entrenched by bigger players making it difficult for new market entrants? Could some sort of policy entrepreneurship in airline regulations catalyze new options for consumers?

Interesting article

http://www.usatoday.com/story/money/personalfinance/2015/01/21/retirement-start-business-entrepreneur/21490345/

Just because I love this story so much. Great video.

http://www.huffingtonpost.com/2013/08/14/empowerment-plan_n_3749958.html

Here’s a link to a Detroit Free Press story about Veronika Scott and her EMPWR coats that she’s making in Detroit. As I mentioned in class on Tuesday, the coats/sleeping bags themselves are not only helping the homeless, but her factory is employing and training women who previously lacked job skills. (I was particularly thrilled to read about her partnerships with General Motors and Carhartt.)

We can be cynical (and it’s usually wise to be skeptical), but if we ask more of people – whether in business or outside of it – they often amaze us with what they’re willing and able to do!

http://www.freep.com/article/20121105/NEWS05/311050126/

Yesterday in class we discussed reasons why entrepreneurs may dislike or like the law. One of the primary reasons entrepreneurs will dislike the law is if they feel that their growth is restricted because of a particular policy. Across the country and especially in Indiana and Michigan, the craft beer industry is rapidly growing and entrepreneurs across the states are opening their own breweries. Three Floyds and Sun King (two Indiana breweries), are currently teaming up to gain support against the Indiana law that currently limits brewers in Indiana to producing 30,000 barrels a year.

https://www.insideindianabusiness.com/newsitem.asp?ID=68827

This article takes a unique approach to the overuse of “entrepreneur” as a buzzword. This article is the interview of Daniel Isenberg on his book,  Worthless, Impossible, and Stupid. In his book, Isenberg “argues that anything entrepreneurial–truly entrepreneurial–shouldn’t be perceived as valuable, feasible, or smart.” Rather, he claims entrepreneurism is about “seeing value where nobody else does” and that it is “contrarian”. Isenberg believes that society has confused entrepreneurism to mean startups – “that every entrepreneur is a startup and every startup is an entrepreneur”; “that every entrepreneur is innovative and most innovations are entrepreneurial”. In fact, as Isenberg notes, being an entrepreneur is more. It is “doing something that is out of the ordinary in terms of value creation. Entrepreneurs are creating extraordinary value by, in the most general sense, buying low and selling high. They’re beating the market by taking something that looks less valuable to everybody else.”

 

http://www.inc.com/adam-vaccaro/reclaiming-entrepreneurship.html

http://www.forbes.com/sites/krisztinaholly/2014/01/15/why-great-entrepreneurs-are-older-than-you-think/2/

This Forbes article highlights one of the common myths discussed last class: youth superiority in entrepreneurship. According to the article, a study funded by the Kauffmann Foundation in which 500 successful high growth founders were surveyed indicated that the typical successful founder was 40 years old. The author explains that entrepreneurs often identify different opportunities based on their unique prior knowledge. For example, managers may recognize the need for new software in their line of business, while a recent college graduate may not have the business exposure necessary to recognize that same opportunity. Valuable business ideas are often not something obvious or trendy like those pursued by recent college graduates. Another thing noted by this article is the growing trend among universities to provide entrepreneurial coursework and pitch competitions, and how that trend may be misleading millennials out of viable careers. As professor mentioned last class, it will be interesting to track the average age of entrepreneurs in the next decade as the baby boomers move into retirement age but continue to pursue business opportunities.