What's Next?

Existing Market

As described in SmartStrength’s venture concept, the market that has been targeted up to this point has mainly consisted of those with prior training experience that are unhappy with the misleading information the supplement industry has gotten away with about the contents of their products. It was easy to target this market because I myself am a part of it as someone who has spent ample time searching for the optimal training performance supplement. A science-based preworkout supplement will satisfy the need for more transparency in the market and be a solution for those who want to maximize the value of their investments in performance supplementation. One thing that SmartStrength has not focused on as much as targeting the existing market is reaching those who have little to no training experience and knowledge of the benefits of a preworkout supplement. This market is by no means out of reach for SmartStrength, and there are steps that can be taken to ensure that this untapped market is exposed to the potential benefits that SmartStrength will provide them.

New Market

SmartStrength’s goal is to not only appeal to those who are looking to take their training performance to the next level, but also those who are wary about supplements in general and who have little to no training experience. One of the already existing ways the venture concept satisfied this is by having SmartStrength performance, which is the beginner level supplement that contains 150mg of caffeine, a relatively lower dose compared to most preworkouts on the market. Our approach will also be different in that we will aim to have SmartStrength sold at supermarkets and not just major supplement stores. Having SmartStrength as widely available as possible conveys a message of inclusivity, implying that one does not have to be a “gym bro” in order to supplement their training. The beauty of venturing in the supplement market is that physical training is relevant to mostly everybody, allowing for SmartStrength to always have room to expand its market.

Venture Concept No.1

A huge opportunity exists in the supplement market in the lack of science-based workout supplements. Many of the most prominent supplement companies that dominate the market often mislead the consumer and do this in a variety of ways, one of which is by significantly over or under-dosing certain ingredients. For example, many preworkouts contain citrulline malate, which helps the body produce nitric oxide, a vasodilator that increases training performance by allowing for greater bloodflow to the active muscles. The clinically effective dose for citrulline malate is around 8 grams, yet many of the preworkouts with citrulline malate only contain 4-6 grams in a serving. Some products even contain ingredients that have no scientific evidence supporting any improvement in training at all! Another way in which many major supplement companies mislead the consumer is through the “proprietary blend” loophole. Since the supplement industry isn’t subject to as many FDA-mandated regulations as food and beverage manufacturers. Therefore, supplement companies can lump a large quantity of ingredients together and present them as one “proprietary blend” of a given quantity. This allows them to get away with over or underdosing ingredients that are present in the proprietary blend as they do not have to present their quantity on the nutrition label. At its core, my opportunity stems from a need for transparency in the supplement industry. Based on both my interviews and other interactions with customers, it seems that the public awareness for the intentional misleading going on in the supplement industry is increasing, which further validates the need. My market is a broad one, as I intend for SmartStrength to appeal to anybody with an interest in fitness, but the core of my market is based in those with a keen interest and understanding of training performance. The window of opportunity for this need to be met will remain open as long as the supplement industry continues to find ways to effectively market suboptimal preworkouts.

SmartStrength is meeting the need defined by this opportunity in the market by providing customers with a science-based preworkout in which every performance-enhancing ingredient is clinically dosed and proprietary blend-free. SmartStrength’s key ingredients are citrulline malate, beta alanine, creatine monohydrate, N-acetyl-L-tyrosine, and caffeine anhydrous. Citrulline malate enhances the body’s ability to synthesize nitrous oxide, beta alanine works synergistically with creatine monohydrate to improve energy output, and N-acetyl-L-tyrosine and caffeine enhance focus and energy output. Each one of these ingredients will be present in each serving at the clinical dose, providing maximum benefit for increasing training performance. Caffeine, however, is the one ingredient that SmartStrength is going even further with. Since caffeine consumption varies so greatly among individuals, especially in those that train, SmartStrength has developed three distinct products that contain varying levels of caffeine to fit each consumer’s individual needs. Smartstrength performance contains 150mg per serving, an effective dose for those who consume little to no caffeine on a daily basis. Smartstrength peak contains 250mg per serving, and will appeal to those who use caffeine regularly and want an additional boost in training performance. Smartstrength max is the most heavily-caffeinated of the three, containing 350mg per serving and created for those who train with the utmost intensity. I believe that between the clinically-dosed blend in combination with the caffeine level most suited to the customer, SmartStrength is truly an innovative change that is much needed in an industry saturated with misinformation. As far as pricing is concerned, one of SmartStrength’s goals in addition to providing the highest quality is to provide it at an affordable price. Most preworkouts on the market run between $30 and $50 per container. SmartStrength preworkout will cost approximately $40 per unit. A median price point is optimal because pricing too low would minimize profit margins and overpricing would convey elitism. SmartStrength’s core value is to show the consumer that the highest quality preworkout doesn’t have to break the bank.

My venture concept applies my innovation of SmartStrength preowrkout to the opportunity present in the supplement market, which is a need for greater transparency about the content of its products. From my experience as both a consumer and someone who has studies this segment of the market, I believe that customers will eagerly switch to SmartStrength when it is presented to them. Additionally, consumers of preworkout for the most part are not loyal to the current preworkout they use and would switch products as soon as they are given a reason to believe that another one is superior. Many of the competitors in this market are large, multimillion dollar supplement manufacturers, which on the surface seems like a disadvantage, but while many of these corporations have to focus on pumping out dozens of other products, SmartStrength’s focus on providing only the highest quality preworkout sends a message of dedication to the comsumer. The culture that we aim to create will embrace the consumer, making them feel like they made the right choice in switching to a product that does not mislead and aims to maximize performamce. Another way in which the SmartStrength venture is unique is in the advantage I possess in having a background in scientific research. Many of the major supplement manufacturers aren’t based in scientific evidence at their core, so my ability to take findings from research and apply them to the product further legitimize the message of scientific accuracy that SmartStrength will convey. As far as what’s next for this venture, SmartStrength will continue to embrace science-based supplementation and pursue the creation of more clinically-dosed products based on the level of success its cornerstone preworkout.

Your Venture's Unfair Advantage

1.       Connection to the supplement manufacturing industry through my father’s company.

a.       Valuable: Connections to manufacturing is vital for my businesses’ success when the scaling up of production is needed.

b.       Rare: not everyone who enters the supplement industry has immediate connections.

c.       Inimitable: this resource is imitable because many others have similar connections.

d.       Non-substitutable: this resource is also substitutable in the form of other connections.

2.       Connections to some internet fitness personalities through a bodybuilder friend.

a.       V: individuals with large followings can serve as an effective marketing medium.

b.       R: many of these connections happened through chance.

c.       I: This is imitable because others have connections to internet personalities.

d.       N: this resource is substitutable through connections to other marketing mediums.

3.       Skilled in interpreting scientific research.

a.       V: my research experience in college made me skilled at analyzing studies.

b.       R: not many individuals in this industry have prior research experience.

c.       I: my own personal research experience is non-imitable.

d.       N: research experience is non-substitutable as well.

4.       Connections to exercise/physiology labs.

a.       V: these connections give me access to labs that produce research relevant to my product.

b.       R: these connections are often only found through universities.

c.       I and N: others in the industry may have similar connections.

5.       Deep knowledge of certain marketing tactics supplement companies use.

a.       V: my own experience as a customer of the supplement industry for years has made me more aware of certain marketing tactics.

b.       R: knowledge of these tactics isn’t necessarily rare among those who have been using preworkout supplements for a long time.

c.       I and N: similar knowledge is imitable and substitutable.

6.       Knowledge of the composition of effective and ineffective preworkouts.

a.       V: this resource comes from a combination of my ability to read research and knowledge of marketing tactics.

b.       R: most people are unaware of the over or underdosing of certain components of preworkouts.

c.       I and N: see #5

7.       Credibility through obtaining a degree in the sciences.

a.       V: any degree in the sciences provides value and credibility when marketing scientifically effective products.

b.       R: few people in this industry have formal education in the sciences.

c.       I and N: a degree is simply one area of credibility and can be substituted.

8.       Good interpersonal skills.

a.       V: I have always been a good communicator which has helped tremendously in my elevator pitches.

b.       R: interpersonal skills are common.

c.       I and N: N/A

9.       Connections to a desired market.

a.       V: many of my friends and people I associate with would take interest in my product.

b.       R: most people pursue business in an area they’re familiar with.

c.       I and N: N/A

10.   Aim to create an organizational culture based on counteracting the scamming nature of the supplement industry.

a.       V: many supplement companies bank on misleading their audiences, and a culture to counteract this will stand out in the industry.

b.       R: not many supplement companies take this approach.

c.       I: this type of culture is replicable, although not replicated by many.

d.       N: every organizational culture is unique.

I believe that my top resource is my personal experience in research because it has provided me with valuable knowledge on how to tailor my product in the most scientifically effective manner. Not many people in this industry have experience in research which I believe also gives me an edge in terms of rarity.

Reading Reflection No.2

Book: Thinking Fast and Slow by Daniel Kahneman

Theme
The general theme of this book involves viewing the mind as an entity comprised of two different cognitive "systems". The first system thinks "fast". It is ususally unconscious, automatic, and guides most of our everyday decision making, but is very error prone. The other system thinks "slow" and is conscious, effortful, and is used to make complex decisions and solve tough problems. The book uses the model of these two systems to break down the minutia of decision-making and judgement, and offers ways to improve these often neglected skills.

How it relates to ENT 3003
Entrepreneurs are not often thought of as psychologists, but most of the great entrepreneurial figures were very in tune with their own decision-making and judgement, but also keen on how others are making their decisions and judgements. In order to be a successful entrepreneur, you not only have to become hyper-aware of your own thought processes but also the thought processes of others in order to improve your judgements. This book does a good job of taking complex psychological principles and reframing them so that they can be applied in all fields, including entrepreneurship.

Class Exercise
If I had to design an exercise for the class based of this book, it would probably involve becoming aware of the two psychological systems by having students record 5 decisions they made using each individual system over the course of the day, and evaluating those decisions within the scope of entrepreneurship by thinking of ways in which to be more aware of your judgements.

AHA!
I think the biggest "aha!" moment I had when reading this book was when it made me realize how easy it actually is to be introspective and evaluate the ways in which you are making decisions. Each chapter in this book highlighted a cognitive principle that I found can be easily applied to my life.

Elevator Pitch No.3

https://www.youtube.com/watch?v=1fWGMfs1Avg&feature=youtu.be

After re-watching my first two elevator pitches, I found that the most glaring issue with my presentation was my overall lack of animation and enthusiasm. I'm not much of an overly-animated person, so it was somewhat difficult to consciously attempt to be more lively in my presentation, but after watching my recording of this third elevator pitch, I feel like my change in tone really improved the quality of the delivery.

Growing Your Social Capital

The domain expert in my industry…I was able to get in contact with the owner of a local supplement shop back in my hometown. He said that my idea was unique and that the idea of backing your dosages with research and offering different caffeine levels was a good idea as well. Many of the customers at his store resemble the prototypical customer, an avid gym-goer who is extra conscious about buying effective supplements. He told me that he would give my product another look when the design is more clear and see if it would be a good item for the store.

An expert on the market…conveniently enough, I was able to talk to my dad about this one. He is the general manager of Living Fuel Inc., an online superfood nutrition platform. While they do not have a patented preworkout, they appeal to a prototypical customer similar to SmartStrength’s. He liked the idea of marketing a science-based product because of the increasing hyperawareness of fake or ineffective products that has arisen from the surge of fake news in recent years. He also told me that he would be able to get expert advice from the owner of the company and get me in contact with industry suppliers.

The important supplier in the industry…as previously mentioned, my dad was able to get me in contact with one of his suppliers to ask him a few questions about my chosen business idea. He liked the idea of SmartStrength, and gave me a few recommendations on what to look for in a high-quality supplier firm. He pointed me to some of the industry suppliers that ship preworkout supplements as well.

Creating a Customer Avatar

My product, SmartStrength is a pre-workout supplement that contains research-supported clinical doses of crucial ingredients that improve training performance. It also has three levels of caffeine content, 150mg, 250mg and 350mg. I believe that my product is unique in that it creates a very wide range of possible consumers, but if I had to create a customer avatar to represent my segment, they would likely be in their 20s-30s, male or female, and are frequent gym-goers. While SmartStrength is advertised to appeal to all levels of fitness experience, it is likely that the groups of consumers most interested in the product have already developed a keen interest in training. My avatar is also someone who is particular about how they spend their money and always to research into a supplement, or any other product for that matter, before making a purchase.

Essentially, my customer avatar is a lot like me. I decided to go with SmartStrength as my product because I have been an avid gym-goer for about 6 years and have tried so many preworkouts that disappointed me because they either didn't work or weren't dosed correctly. I don't think this is a coincidence because my product is a direct reflection of my entrepreneurial thinking about issued that have affected me directly.