#24 – Venture Concept No. 1
Embrace Your Pace App
Opportunity:
The opportunity that I identified was the need for a new app that could aid runners in sustaining a consistent pace when they participate in outdoor runs. My product would only apply to a select group of individuals, as not everyone is a runner or is concerned with their pace. I am specifically focusing on athletes, competitive runners, and true beginners. There are so many variables when it comes to running, with pacing being a difficult one to control. For example, some pacing problems that occur very commonly consist of over-striding, gassing out too early, or losing control on hills. Current devices on apple watches and smart phones provide split times, but not your real time pace. My business venture is to change that. My customers will all have a pacing problem when they run outdoors, and many will be unhappy with their current running applications. They will all have the mindset to get better and achieve their target pace goal. My product will first be offered in cities, such as Portland, Chicago, Boulder or Boston, that contain a lot of runners, offer spirited running communities, and host many organized races. Individuals in these areas are more likely to have a higher income, meaning they are more likely to pay for my product. Eventually I will hope to expand my target market to customers all over the U.S. I discovered through my intended markets buyer behavior patterns that my segment is aware of their need, but they are not doing much to help it or are just accepting that they can’t maintain a consistent pace. Some solutions my customers are using to satisfy this need include checking split times after every mile or constantly checking their pace every 30 seconds on an Apple or Garmin watch. Customers are loyal to their watches since it’s all they have right now, but are finding that these tactics are continuously messing up their run. I think this opportunity is relatively big, especially because it can be used anywhere and is not location based. My product can easily expand to all different parts of the nation after becoming an established brand name. The window of opportunity will be open until someone discovers a simpler or cheaper way to do the same technology.
Innovation:
My product would be defined as incrementally innovative, as I am introducing a new type of technology compared to other substitutes out there. The product that I am offering is an app with an accessory ankle bracelet for runners. The applications will work together where a user will enter their intended target pace into the app and once the user starts to move, the ankle bracelet will track the speed of their steps. The app, which is linked to the anklet, will calculate the runner’s real time pace based on the average of the last 5 seconds. If a runner deviates from their target pace, the anklet will give off a slight vibration signaling to either speed up or slow down. This device is not any different from putting a chip timer on your shoelace during a marathon, and will be light and unnoticeable to the runner. The experience will overall feel like the individual is running with a coach alongside them. To gain revenue, the app and standard accessory ankle bracelet will cost $49.99 with a recurring payment of $2.99 a month. The standard ankle bracelets come in neutral colors such as black, white, and silver. I will also offer other colors and designs for a price of $59.99 with a recurring payment of $2.99 a month. The $2.99 will cover the costs of any changes to the app and will hopefully encourage the individual to use the app more frequently. If the app and anklet are used more frequently, it is more likely to market itself through word of mouth.
Venture Concept:
I believe customers would buy in to my product because it’s a new way to establish a target pace. Individuals in my target market are those who want to improve their running habits or are trying to achieve goals in the most efficient way possible. In addition, my product is compliant to be used on current devices such as Apple watches and smartphones. Many runners are currently using these applications, so the switch would be very easy and cause minimal hassle for the user. Competitors of my venture concept include companies such as Apple, Garmin and Suunto. These companies all offer different features, which is a weakness that I can exploit. My venture concept focuses on providing a runner’s real time pace instead of split times after X amount of distance, which is a technology that these companies have not yet developed. I plan to start out with just a few employees to help start and develop the business, and then once we are established, I will hire more to cover the extra roles and responsibilities. I will allow interns to also work for us throughout this process in order to receive new feedback from fresh minds.
Three Minor Elements:
1. I discovered that one of my top resources consists of being detail-oriented. This is super important as an entrepreneur to make sure everything is running smoothly, and detecting problems before they actually become problems. In order to be successful, I have to know every little detail about my company so that no one can question my credibility. Social capital will also be an important resource of mine. Having individuals on your team that know and understand the product, as well as providing extra research and development tactics, will be very beneficial.
2. Well in terms of launching the business, I would have to develop the app and ankle bracelet, while performing trial and error runs before putting it on the market. After a prototype is established and a successful market entry, I will expand my product to be compatible with all devices and maybe even add more features that are desired by customers. I will not only stay within the big running cities, but I will continue to grow outwards to the suburbs and other regions.
3. In five years, I hope to have grown this business to a national scale and to have become one of the leading running apps in the market. I hope we are well established and financially stable so I can pass down the business to someone else, or sell it to one of my competitors for more money.
Opportunity:
The opportunity that I identified was the need for a new app that could aid runners in sustaining a consistent pace when they participate in outdoor runs. My product would only apply to a select group of individuals, as not everyone is a runner or is concerned with their pace. I am specifically focusing on athletes, competitive runners, and true beginners. There are so many variables when it comes to running, with pacing being a difficult one to control. For example, some pacing problems that occur very commonly consist of over-striding, gassing out too early, or losing control on hills. Current devices on apple watches and smart phones provide split times, but not your real time pace. My business venture is to change that. My customers will all have a pacing problem when they run outdoors, and many will be unhappy with their current running applications. They will all have the mindset to get better and achieve their target pace goal. My product will first be offered in cities, such as Portland, Chicago, Boulder or Boston, that contain a lot of runners, offer spirited running communities, and host many organized races. Individuals in these areas are more likely to have a higher income, meaning they are more likely to pay for my product. Eventually I will hope to expand my target market to customers all over the U.S. I discovered through my intended markets buyer behavior patterns that my segment is aware of their need, but they are not doing much to help it or are just accepting that they can’t maintain a consistent pace. Some solutions my customers are using to satisfy this need include checking split times after every mile or constantly checking their pace every 30 seconds on an Apple or Garmin watch. Customers are loyal to their watches since it’s all they have right now, but are finding that these tactics are continuously messing up their run. I think this opportunity is relatively big, especially because it can be used anywhere and is not location based. My product can easily expand to all different parts of the nation after becoming an established brand name. The window of opportunity will be open until someone discovers a simpler or cheaper way to do the same technology.
Innovation:
My product would be defined as incrementally innovative, as I am introducing a new type of technology compared to other substitutes out there. The product that I am offering is an app with an accessory ankle bracelet for runners. The applications will work together where a user will enter their intended target pace into the app and once the user starts to move, the ankle bracelet will track the speed of their steps. The app, which is linked to the anklet, will calculate the runner’s real time pace based on the average of the last 5 seconds. If a runner deviates from their target pace, the anklet will give off a slight vibration signaling to either speed up or slow down. This device is not any different from putting a chip timer on your shoelace during a marathon, and will be light and unnoticeable to the runner. The experience will overall feel like the individual is running with a coach alongside them. To gain revenue, the app and standard accessory ankle bracelet will cost $49.99 with a recurring payment of $2.99 a month. The standard ankle bracelets come in neutral colors such as black, white, and silver. I will also offer other colors and designs for a price of $59.99 with a recurring payment of $2.99 a month. The $2.99 will cover the costs of any changes to the app and will hopefully encourage the individual to use the app more frequently. If the app and anklet are used more frequently, it is more likely to market itself through word of mouth.
Venture Concept:
I believe customers would buy in to my product because it’s a new way to establish a target pace. Individuals in my target market are those who want to improve their running habits or are trying to achieve goals in the most efficient way possible. In addition, my product is compliant to be used on current devices such as Apple watches and smartphones. Many runners are currently using these applications, so the switch would be very easy and cause minimal hassle for the user. Competitors of my venture concept include companies such as Apple, Garmin and Suunto. These companies all offer different features, which is a weakness that I can exploit. My venture concept focuses on providing a runner’s real time pace instead of split times after X amount of distance, which is a technology that these companies have not yet developed. I plan to start out with just a few employees to help start and develop the business, and then once we are established, I will hire more to cover the extra roles and responsibilities. I will allow interns to also work for us throughout this process in order to receive new feedback from fresh minds.
Three Minor Elements:
1. I discovered that one of my top resources consists of being detail-oriented. This is super important as an entrepreneur to make sure everything is running smoothly, and detecting problems before they actually become problems. In order to be successful, I have to know every little detail about my company so that no one can question my credibility. Social capital will also be an important resource of mine. Having individuals on your team that know and understand the product, as well as providing extra research and development tactics, will be very beneficial.
2. Well in terms of launching the business, I would have to develop the app and ankle bracelet, while performing trial and error runs before putting it on the market. After a prototype is established and a successful market entry, I will expand my product to be compatible with all devices and maybe even add more features that are desired by customers. I will not only stay within the big running cities, but I will continue to grow outwards to the suburbs and other regions.
3. In five years, I hope to have grown this business to a national scale and to have become one of the leading running apps in the market. I hope we are well established and financially stable so I can pass down the business to someone else, or sell it to one of my competitors for more money.
Hey Taylor!
ReplyDeleteI really believe that there exists a huge potential for your idea/product in the running community. You have personal knowledge of the issues and possible solutions for those who like to jog, and I truly believe that this is one of your greatest resources. While I love your idea, I do have a few constructive thoughts. I think that you should initially launch your product in one city (I personally recommend Boston) that has a large running community of people who are upper-middle class. I would also recommend that you increase the price of your product to $149.00 and have no recurring monthly fees. If you truly want to have a recurring monthly plan, then you can include a “pro” version of the app for $4.99 a month. Setting up your fees like this will accomplish two things: 1.) Make you look more reputable compared to Garmin and other competitors, 2.) It won’t scare those who are afraid of buying tech that only works if they pay monthly.
I hope you find this helpful!
Best regards,
Matthew Mrnacaj
Hello Taylor,
ReplyDeleteafter reading a detail plan of your business venture, I can see why you identify the need for a gadget to help runners and other athletes achieved their time goals. I remember that when I was playing soccer in high school the only way to maintain the pace was to run in groups. As for the price I think it is adequate, since the app subscription could bring you more revenue in the long run.
Hey Taylor!
ReplyDeleteI agree an app can help take this product to the next level! Running is an extremely difficult thing, making it easier can help us as a generation get more in shape. Running is such a rewarding exercise that, if you can get more people into it, can help us as a society. Also, I agree with you being detailed oriented can greatly help you in any business venture, because paying attention to the little things is what helps you thrive!
Great post!
Taylor,
ReplyDeleteI really enjoyed reading your post and found it interesting to create a pacing app. I agree with you when you said that being detail oriented is really important, especially with apps. A lot of times apps don’t function properly the first few times and need to be updated so that would definitely be an important factor for your pace app. I think it’s a good idea and it seems like you have a lot of knowledge on what you would like it to be like.