Lessons Learned 3 (June 17th)

1. How should we calculate the cost of the service? This is complicated!
- monthly flat rate or a lesser monthly flat rate plus a fee per item
- how do we figure out how long the clothing will last
       - need to calculate an average of how long the clothing will last in order to estimate how much              
         revenue an item can bring in (clothing lasts ____3___ months on average)
Our options:
- monthly

2. Different customer segments need different types of marketing
- we are not only marketing to new parents, but the people that might give gifts to new parents such as grandparents, friends etc

3. Perception of price is important. If we charge $60 per month, WE know that parents spend more than that on clothing ($82 per month), but if they think our service is too expensive they won't buy it.

4. Based on the answers we received, we have determined that our survey questions were too vague, need to make them more specific.

5. MVPs must show the "fun factor". Especially at the beginning.

6. Customer Relationship Management: Get-Keep- Grow
- what types of clothing should go in each step?
- get customers, keep customers, grow customers
- basic items (get), more expensive items (keep), specialty items (grow)

7. We need to consider how we will KEEP customers.
- this might be difficult for us, since we can't stop kids from growing up...

8. Distribution Channels: how does what WE do get to the customer?
- a channel play can be more decisive than a product play (ie Netflix vs Blockbuster)

9. What is the best way to price for the customer? Valuation of customer's willingness to pay is critical so getting the right number is important to the business. Customer segmentation is also important because different customers will have different elasticity of demand.

10. The value proposition of a company should be able to help solve an existing problem.

11. Consider the difference between who is making the buying decision and who will eventually be using the product.

Lessons Learned 2.

[Joanna]
With respect to user types:
- we need to understand the needs of the user versus the needs of the buyer

Lessons Learned Blog Post 

[Joanna]

BUS 714 Entrepreneurship - Baby Clothing Subscription Service Business Model Generation

1. Do you agree that purchasing clothing for your infant/young child and then getting rid of it a short time later when it no longer fits is a problem?

2. How do you encounter this program in your life?

3. If you had a magic wand, what would you do about this problem?

4. How do you get around this problem now?

5. Do you know of others for whom it's a problem?

6. Why do you think this problem exists?

Lessons Learned June 6th
1. You shouldn't be afraid of an idea just because it's a logistical and operational nightmare. (From p 136 of the text: "One challenge we face when trying to create new business model options is ignoring the status quo and suspending concerns over operational issues so that we can truly generate new ideas.")
2. Customers should be included from the start of the idea and not after prototyping.
3. Entrepreneurship is about improving the user experience by creating a product or services that fit their needs.
4. There are many mundane problems in life that can be made easier if we reframe them and come up with novel solutions.
5. Having a good pitch can make all the difference in what ideas go forward.
6. Focus on how your product or service can solve a problem and focus pitch on that.