#29 – Venture Concept No. 2

My 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. I would also consider targeting a radically different target such as personal trainers and gyms who are looking for new technology. My product will create value for these people because they come in contact with my original target market and could increase the trainer-athlete relationships. There are so many variables when it comes to running and pacing is a difficult one to control. There are many pacing problems that occur very commonly outside, which can 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 some will be unhappy with their current running applications. They will all have the mindset to get better and achieve their target pace goal. Initially, I will launch my product in Boston because of the large running community of upper-middle class individuals. It will then be offered in cities, such as Portland, Chicago, and Boulder, that also 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 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 slightly messing up their run more. 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 if 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 would 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 $129.99 and have no recurring monthly fees. 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 $149.99.

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 used yet. 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 my human capital 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.

Summary of Feedback:
I was provided with a lot of valuable feedback. I received support of my product and the need for a device to help runners and athletes. It was mentioned that pacing is an extremely difficult thing yet such a rewarding exercise, that making it easier for people will ensure an easier run and further help us as a generation to get in shape. I was told that my greatest resource is my personal knowledge of the issues and possible solutions for those who like to jog. A lot was mentioned about the pricing of my product – whether I keep my app subscription-based to bring in more revenue in the long run, or to increase the price and have no recurring monthly fees. I was also advised that if I want to do a recurring monthly plan, then I should include a better version of the app so that I look more reputable compared to other competitors and it won’t scare customers away. From my What’s Next post, I was told that I should consider my new market to be equally as attractive as my current market. My product can benefit personal trainers by initiating better client trainer relationships and creating a fitness change for all who need it.

Change:
I made a few changes based on the feedback I received above. The first change I made is by selecting a specific city (Boston) to initially launch my product. The second change I made was my pricing. I decided to do a one-time payment instead of a smaller initial payment with recurring monthly fees. The last change I made was adding in how I would also target a radically different market of personal trainers and gyms.