28A

1.) Identify the exit strategy you plan to make. Do you intend to sell your business in the next 5 years for a large return? Do you intend to stay with the business for several decades and retire? Do you intend to protect the venture as a family business, and pass it down to your children?

-      I intend to keep Hydro Market for approximately a decade. I would love for the business to be a well-established facility that can generate a profit before moving on to the next phase. After I have successfully run the business for this period of time I would sell the store front property to an individual who has the same passion of sustainable clean farming. Then, I would really love to begin selling the technology and business concept that Hydro Market was founded on to other companies. This would allow Hydro Markets to have a much further reach and a much greater impact on the environmental conservation efforts I had originally set out to accomplish while also generating revenue for the Hydro Market brand. Keeping this business in the family would be ideal but I would never force my children to take on this endeavor so it would ultimately be up to them and what their aspirations for the future were. 

2) Why have you selected this particular exit strategy?

-      I have selected to not exit the business per say but to focus more on selling the technology and business concept because my ultimate goal in creating Hydro Market was to have a positive impact on the environment on a large scale. To truly accomplish this, I must be willing to sell my knowledge to other companies so that they can create their own version of these self-sufficient hydro farming stores.  

3) How do you think your exit strategy has influenced the other decisions you've made in your concept? For instance, has it influenced how you have identified an opportunity? Has it influenced your growth intentions or how you plan to acquire and use resources?

-      This exit strategy has influenced many decisions pertaining to Hydro Market. It has forced me to focus on quality over quantity. I want one really high functioning Hydro Market to be running not a chain of subpar markets. This gives me the opportunity to focus on the technology and business model so that I can sell this knowledge to other businesses in the future. It also ensures that this concept will have a much grander reach and impact on the environment. 

27A

1) You read about an entrepreneur:

·      What surprised you the most?

·      What about the entrepreneur did you most admire?

·      What about the entrepreneur did you least admire?

·      Did the entrepreneur encounter adversity and failure? If so, what did they do about it?

-      I read the autobiography Shoe Dog by Phil Knight, the story of how Nike was founded. I think what surprised me the most was that he began his business idea of partnering with Japanese shoe makers in college due to the trends he saw in foreign cars. It blows my mind that someone with so little real-world experience was able to see a potential new market before all the business savvy shoe makers out there. What I most admired about Phil was that while he worked extremely hard to become a success he remembered to mention and give credit to all of the different people that helped him to achieve this. The autobiography I read before was about Ray Croc and he was far less cordial about his business partners. It was difficult to think of something that I least admired about him but I suppose something that I personally don’t admire is taking blind risk. Obviously, that is what a lot of entrepreneurs have to do to have a high gain but it just scares me I guess. He encountered a lot of adversity and failure such as missed bank loan payments and law suits but he had a way of rallying his business associates together and coming out on top. I believe the way he treated his employees and coworkers had a lot to do with all of the hard work they poured into the company especially in the early stages. He always put a lot of trust in his associates. 

2.)   What competencies did you notice that the entrepreneur exhibited? Phil seemed to have a strong sense of intuition when it came to business opportunities and partners. He was able to see a market for running shoes that was previously untapped as well as successfully recruit Bill Bowerman, his former running coach and shoe enthusiast as well. He was also highly determined to succeed.There were many times that he could have easily given up on his dream due to the communication issues with the Japanese foreign suppliers but he kept on perusing his dreams. 

3.)   Identify at least one part of the reading that was confusing to you. I think what was confusing to me was his seemingly conflicting personalities. He was shy, introverted, and critical of himself but was still able to get past all that and take on extremely big risks.

4.)    If you were able to ask two questions to the entrepreneur, what would you ask? Why? The first question I would ask Phil is if he thinks Nike would have tanked if he was unable to recruit Bill Bowerman? Phil seemed to be floundering a bit and didn’t really seem to have a grasp on the market until his former coach joined his team. The second question I would ask him would be what he would have done if his shoe endeavors had failed? He was very passionate about running shoes as a former athlete and surrounded himself with people who were like minded, he called them shoe dogs, but if it had all gone belly up would he still stay in the market for shoes or move on to another idea?

5.)   For fun: what do you think the entrepreneur's opinion was of hard work? Do you share that opinion?  He was an extremely hard worker and I believe his opinion would be to work hard but to do what you love. He chose to work in a field that inspired him and while a lot of things I have read say to stay away from your passions and solely base your decisions on financial feasibility and gain potential, I too believe passion can be a strong advantage to have over your competition. Passion is inspiring and creates an environment for people to want to work hard in. 

26A

This semester I failed multiple time at running a mile in under 10 minutes. Usually I run around an 8-minute mile but I am pregnant so I gave myself a two-minute leeway window with a goal to keep it under 10 minutes but kept failing at achieving this. I was extremely frustrated at myself because I take health and fitness very seriously and could just not understand why it was taking me 12-14 minutes to run a mile. I was really hard on myself and honestly got a little depressed over it but then realized that there was probably something I could adjust to reach my goal. After looking over my food intake, hydration, and workout routine I realized that my issue wasn’t that I wasn’t trying hard enough it was that I wasn’t consuming enough calories for my parasite and I to sustain a fast-enough pace on the run. I was short on energy and it was such a simple fix but it had bothered me for a couple of weeks until I stopped feeling sorry for myself and decided to do something about it. From this situation I have learned that there is always a way to succeed after multiple failures you just have to be willing to take a moment to reflect on the situation you are in and correct any mistakes that may have led to the failure. 

            Before this class my perception of failure was that it was unacceptable. I do not handle failure very well and tend to shut down when faced with it. This class has taught me to adapt and overcome failure by viewing it as a teaching moment rather than as something I was unable to accomplish. If I simply take the time to analyze and correct the mistakes I had originally made that led me to the failure, I could grow from the experience and gain knowledge in how to never fail in that particular area again. I do not think that I am any more likely to take risks after taking this class. Even though I now see that failure can be a positive thing to experience, risk taking is still something that is not in my nature. I will usually only take a risk after extensive research and weighing all my pros and cons. 

25A

·     What’s Next: 

-      Existing Market My Opinion:

The next step Hydro Market would take to expand in our current market would be to begin to utilize aquaponics in our production process. This means we would need duplicate tanks for each produce tank in which fish are grown. There waste is filtered into the plants to utilize as fertilizer. This process would enable us to skip the middle man for fertilizer supply thereby allowing us to be self-sufficient and save money. 

-      Existing Market Interviews:

            After my three interviews it has become apparent that many individuals feel as though I should expand my variety of inventory by making plant-based products out of our existing hydroponic produce. There ideas ranged from vegan protein powders to cosmetic skin care products. This was eye opening because it really enabled me to see the need for product variation while still being able to stay in the market of the high-end grocery stores. 

-      Reflection:

My approach was geared more towards becoming an entirely self-sufficient business while my interviewees approach was geared more towards the utilization of other businesses resources to expand the variety of our products. 

I think that with a harmonious balance between both new ventures in the existing market we could implement both. The addition of aquaponics would save us money which we could in turn invest into developing new products for our stores. The trick is to no spread ourselves to thin in either venture. 

-      New Market My Opinion: 

While it would still be in the realm of agricultural production I believe the growth of marijuana would enable us to reach an entirely different market. It has been legalized for recreational use in MI, where I currently reside, and I only foresee it getting legalized in more and more states in the future. Marijuana thrives in hydroponic tanks so we would already have the resources to grow it we would just need to receive a license from the state in order to legally produce it. 

-      New Market Interviews: 

Both interviewees said that they think the growth of marijuana would be a great new market to enter. They would like to see hemp cloth/paper products, food, and cosmetic products being sold on our shelves but think that we should sell THC based products at a different location because it may deter some non-supporters away from shopping at our store. They also came up with the idea to take more of a philanthropic approach and dedicate some of our resources to environmental cleanup. They want Hydro Market to show that they truly care about the community by giving back. This is a great idea because while it would help the environment it is also a way to promote our business and really get our name out there. 

-      Reflection:

After a little research I have realized that entering this new market of marijuana growth, though legal, is extremely difficult and risky. Michigan only allows a certain number of individuals to hold a license in a given area. The way they choose who receives them is through a lottery. You have to pay a $5,000 nonrefundable application fee just to get your name in the drawing. Though this is extremely risky the benefit out ways the cost in my opinion. The amount of revenue Hydro Market could generate from the sale of marijuana-based products would be surpass what our produce would bring in. For this reason, this market is even more appealing than our current market and if we should succeed in getting a license we could experience growth at a much faster rate than previously anticipated. 

24A

·     Opportunity:

-      Massive flooding along the Missouri river has affected the states of Missouri, Iowa, Kansas, Nebraska, and Mississippi. Texas alone has been hit with 140 tornados thus far in 2019. Tropical storm Barry has flooded crops in the southern region of the U.S. These are just a few of the natural disasters that have occurred in 2019. With the effects of global warming extreme weather is becoming a more common phenomenon. One of the largest industries these disasters are affecting is farming. Farmers are having a difficult time producing enough yields to sell at market. This is causing the price of produce to gradually increase and many farmers to go out of business.

-      This shortage of crops has created on opportunity for an alternative method to farming in order to meet the needs of fresh produce to individuals all around the United States. 

-      The targeted market for Hydro Market is environmentally conscientious individuals in their early thirties and up who live in suburban or metropolitan areas. 

-      Customers are currently satisfying their need for fresh produce with local farmers markets and higher end grocery stores such as Whole Foods and Lucky’s. I believe they are fairly loyal to these businesses because there really are not many alternatives to them that offer equal quality to meet their produce needs. 

-      The opportunity is huge especially in states with shorter growing seasons. Currently on the shelves in these produce sections you see far less supply and a decline in the quality of the crops. There are currently no large-scale farming alternatives able to meet the needs of a changing environment. 

-      The window of opportunity will eventually be closing out of necessity to produce enough crops to feed the United States. As we face more and more natural disasters in our country and as farm after farm fails to bounce back from these effects, more farming businesses will need to switch to a more sustainable approach that will combat the effects of climate change.

·     Innovation:

-      Hydro Market will be selling fresh produce grown year-round on site. We will also be growing our crops in a much more sustainable environmentally friendly manor by eliminating the need for farming equipment and transportation of goods thereby reducing our CO2 emissions. Hydro Market will use ten percent less water at each of our facilities than traditional farming due to the fact that there is no wasteful runoff because our crops do not need to be watered daily sense they are grown in contained tanks of water. No soil is required which means none of our crops would be depleting the land of nutrients. We would also be a pesticide free farming facility sense our plants would be protected from insects by being grown in an in closed area. Hydro Market requires far less space by growing our crops vertically rather than horizontally like traditional farms. 

-      Price range will be above market value for each crop produced because we will be guaranteeing freshness. Market value does differ from season to season so we will have to pay close attention to price in order to make a profit. We will achieve freshness by only harvesting what is needed on a day to day basis. This means we will need to pay close attention to our sales per item on a monthly basis so we can account for any fluctuations thereby reducing our waste.  

·     Venture concept: 

-      We are selling a product of a higher caliber than your average produce store while also selling an experience and piece of mind. All of the benefits to the environment our business has to offer sell our customers the peace of mind that by supporting a company such as this they are helping contribute to a better future for our planet and our children’s children.  

-      The competitors in this market are obviously any type of traditional farmer. Farmers who grow genetically modified plants (GMO) are particularly a competitor to worry about because the plants require less water and fertilizer making them better for the environment. They are also drought resistant and require less use of pesticide. Due to the fact That Hydro Market is also a store we would have direct competition with high end grocery store chains such as Whole Food’s and Lucky’s.

-      Even though GMO farmers mirror much of what hydroponic farming has to offer there are still a few areas we would surpass them in such as a farm to table experience, reduction of CO2 emissions by the elimination of transportation and farming equipment. There weakness would be that they would still be susceptible to losing crops from flooding. The high-end grocery stores that I mentioned have a weakness with their supply of produce. The rely on importing either from foreign or domestic areas when the produce they are selling is out of season in the local area. This can cause there to be either a shortage in supply or a lack in quality depending on how long it takes the goods to arrive and be marketed for sale. 

-      Quality of produce and peace of mind would be the main reasons Hydro Market would cause shoppers to change their loyalties to the established grocery stores. 

-      The packaging of our products would be minimal if any. Our entire mission is to lower our environmental impact while creating a sustainable future for farming. With that being said we will sell reusable ecofriendly containers as well as reusable bags for transporting produce. Because our products will not have fancy wasteful packaging they way we will attract and catch the eye of our customers will be through our store design, picture modern industrial meets farm house, as well as our produce displays. The Hydroponic tanks themselves will be shown on one of our walls so customers can see the stages of production as well as the cleanliness of our facilities. This enables them to have an interactive experience when shopping with us as well as a way to create dialog between employees and customers which will only further our customers respect for what we are trying to accomplish. 

-      Employees will all be trained in the basic understanding of how hydroponic farming works as well as what our company has and is doing for the environment. They will all be able to answer customers questions pertaining to these matters in order to show that each and every person involved with our business cares about what they are doing. We will have 1 hydroponic agriculture specialists on staff, 2 store managers, 20 employees for harvesting/maintaining the tanks, 20 employees for cash registers and cleaning the store. These numbers would be per location and I would have the employees who are on the floor and in the back train together so that each understands what their roles are as well as allowing me to interchange positions if need be. 

23A

1.    Social Capital (USDA workers)- I know quite a few people who have worked and still work for the U.S Department of Agriculture. 

§ Valuable- This is extremely valuable especially during the early phases of the business startup because these individuals know how to manage a vast array of agricultural projects. 

§ Rare- Not very rare to have this knowledge 

§ Inimitable- no

§ Non-substitutable- I’m sure there are other companies that can provide the same type of knowledge as the USDA but I do not have any relationship built with them.

2.    Financial capital- I have a house that I own entirely and could use as collateral for a loan for startup costs. I also have a medical retirement check that is just extra income per month. 

§ Valuable- This is valuable because I will not have to worry about finding funds. It is highly risky though because could potentially lose my house if the business tanked. 

§ Rare- financial resources are never rare

§ Inimitable-no

§ Non-substitutable- No due to there being many ways to gather financial resources 

3.    No competitors- there are currently no competition where I live that farm hydroponically 

§ Valuable- Having no competition gives me an advantage so yes

§ Rare- I believe in today’s world it is rare to find an area without direct competition 

§ Inimitable- no, hydroponic farming is not a new technique and the technology is available to anyone wanting to start a farm. 

§ Non-substitutable- No, you can substitute hydroponic farm produce with traditionally farmed produce 

4.    Capabilities, Year-round local supply- I will be able to have fresh produce grown on site year-round

§ Valuable- It is an extremely valuable resources to be able to supply my own produce to my stores and not have to rely on imports 

§ Rare- It is rare to have this resource on a larger scale and what I mean by that is a lot of people grow plants in their home but mine would be able to provide for a whole town’s worth of people

§ Inimitable- No, again the technology for hydroponic is out there for anyone to use

§ Non-Substitutable- No, you can substitute my produce with imports during the winter months but they will be lacking in overall quality and freshness in comparison.

5.    Social Capital (environmental engineer)- I have a close friend in from high school that has a degree in environmental engineering who I spoke with recently and has agreed to help me with creating a Hydro Market with the least amount of environmental impact as possible

§ Valuable- Not only will her knowledge and skill help create an environmentally friendly produce store but it will also help to lower operational costs in the future by cutting back on utilities fees

§ Rare- It is still pretty rare to have businesses who are run off green energy 

§ Inimitable- No, anyone can pursue creating a green building or home

§ Non-substitutable- obviously you can run your business off of local power supplies but this would defeat the whole purpose of my environmentally friendly sustainable farming concept.

6.    Social Capital (graphic design)- I have a friend from when I worked in the Coast Guard who received a degree in graphic design and has incredible artistic skills

§ Valuable- Yes, brand recognition is key to a business’s success so to have an individual that could design a store logo that sands out is highly beneficial

§ Rare- No, there are plenty of graphic designers out there that I could higher but I know and trust this individual's work

§ Inimitable- potentially if I trademark whatever design they come up with

§ Non-Substitutable- No, again there are many individuals who could provide this service 

7.    Capabilities, pesticide free- I will be able to grow my produce without the use of pesticide due to the fact that these plants will be grown indoors and protected from bugs. 

§ Valuable- yes, many people are trying to stay away from produce grown with pesticides which makes pesticide free produce a hot commodity.

§ Rare- Somewhat, there are not many large scale indoor hydroponic farms growing produce pesticide free

§ Inimitable- No, anyone can grow plants indoors 

§ Non-Substitutable- No, there are alternatives that traditional farmers can use to go pesticide free such as mesh netting around the plants 

8.    Social Capital (interior designer)- My cousin does interior design work for a living

§ Valuable- yes, I want to be able to create a shopping destination that gives my customers an enjoyable experience. I want them to want to run errands at my Hydro Market.

§ Rare- No, I could hire anyone to do the job but my cousin would give me a great deal. I do however think it is rare for a grocery store type location to hire an interior design team. Most grocery stores are lacking on visual appeal both inside and out

§ Inimitable- No, anyone can use interior designers. 

§ Non-substitutable- No, there are many interior designers I could hire or I could do it on my own but I would much rather have a professional’s help.

9.    Previous experience in health code inspections- In the military, as a health services technician, I conducted inspections of the kitchen/dining/and restroom facilities to makes sure they were up to code.

§ Valuable- Yes, I plan on maintaining an extremely clean facility and my previous experience will help me accomplish this. I have seen many grocery stores that are filthy and I honestly don’t know they pass their inspections.

§ Rare- not particularly 

§ Inimitable- no

§ Non-substitutable- I could hire someone who has experience with inspections but with my knowledge I would be able to train my own employees and save money in the process.

10.  Financial Capital (Tax breaks and subsidies)- Hydro Market will be a Green business which means that it will be getting many tax breaks as well as potential subsides in order to aid in its construction to make this a possibility 

§ Valuable- Yes, any amount of money saved and put into the business during its delinquent stages can have a huge impact on its success. 

§ Rare- It’s becoming less rare but the majority of businesses have not gone green which is why these programs still exist to incentivize people to make the switch. 

§ Inimitable- Anyone can make the choice to go green with their business. 

§ Non-Substitutable- There are other ways in which one can receive tax breaks and subsidies but I can’t think of a way that would be more rewarding than helping out our environment.

¨   After conducting the VRIN analysis, determine what your top resource is. Explain why it's more important to your venture than all of the other resources.

-      I believe that year-round production of produce as well as a green building are my top resources. In Traverse City MI I would be pioneering the market for this concept as there has yet to be a business that could provide this service as well as one that operates as a green business. These two resources give me a competitive advantage.