Elevator Pitch

Testing the Hypothesis (Part 2)

Who: I have found that people who vape underage could potentially fall outside the boundary if their parents are unaware that they vape. If this is so, then the underage people have no motivation to give up vaping because they are not paying their health insurance. However, if the parents are aware, they fall within the boundary because the parents can have the final say in what happens to the vape. The only business that would need to be worked with for my idea are health insurance companies. They fall within the boundary because it is in their interest to give people a discount who turn in their vapes. If their clients aren’t vaping, their clients will incur less health problems throughout the course of the year, meaning the insurance company has to spend less money to cover their doctor’s visits, medicine, etc. 

What: The need I’ve identified (giving up vaping) is about as straight forward as they come. However, I’ve found that it goes hand in hand with another need, making money. The selling point that I have found convinces people is receiving compensation for kicking their bad habit. People know they need to give up vaping, but the motivation comes from the health insurance discount. Without one need, the other fails to be sustainable. 

Why: The underlying cause of the outsider’s need is different than those inside the boundary. The insider has the need because they can benefit from a win-win situation – getting rid of their vaping habit and saving money on health insurance. The outsider, one who is underage or uninsured, doesn’t pay for their health insurance so they are not motivated by a reduction in their health insurance. It simply doesn’t apply to them. However, they still may be motivated enough by the vaping bans and side effects to want to take action without a financial compensation.

Inside the Boundary                                        Outside the Boundary

Known Vapers (i.e kids who vape with their parent’s knowledge, legal age vape purchasers, etc.)	Underage Vapers who are not purchasing their vapes/their parents don’t know they vape, Uninsured vapers
To give up vaping for a health insurance discount	To give up vaping for no reason substantial to the person
The need exists because as more and more cases appear showing the deadly effects of vaping (and more bans are placed on vapes), the more motivation people have to get rid of their vapes. We can boost this need by offering an incentive like healthcare discounts.	While the vaping bans and side effects are motivation for most people, some people still choose to not kick their old habit as the motivation of health insurance benefits doesn’t apply to them.

Solving the Problem

            I am looking to capitalize off the opportunity brought by flavored vapes being banned in the US. My idea is to start a business that works with Healthcare insurance companies to collect vapes from people in return for a discount on their plan (similar to how driver’s ed gets people a discount on their car insurance). While doing so, I will database who turns in a vape and keep this information handy if it is ever needed again, possibly to sell to vape companies if the ban is ever lifted. Once I have collected vapes, I will redistribute them only to people who need them, like cigarette smokers. As of right now, I am also exploring the idea of repurposing the vape into an entirely new product, but have not thought of something useful yet. I am open to all suggestions on this matter. 

Testing the Hypothesis, Part 1

1.    Opportunity – Flavored vapes being banned in the US

2.    “Health insurance companies in the United States are unable to easily identify who vapes and if someone owns a vape, making it difficult for them to adjust their policies accordingly. 

The Who: Health Insurance Companies

The What: They are unable to easily identify who vapes and if someone owns a vape

The Why: No existing registry that identifies people when they buy a vape

3.    “We help young Americans stop vaping so they can receive a discount on their health insurance policy.”

·     Testing the who:Aside from those who vape, parents of children who vape also have the need. If they can receive a cost reduction and get rid of their kid’s vaping addiction all at once, I have little doubt they’d be on board.

·     Testing the what:Identifying who vapes is a challenge because vapes are not tracked when they are sold to someone. Also, even if they were, the reselling of vapes from older to younger people is what has caused this epidemic in the first place. By getting people to turn them in, you would have a good understanding of who vapes and be able to keep that information handy if the ban is ever lifted.

·     Testing the why:The why I have identified is beneficial for the health insurance companies. However, a new why is available if I take the vapes and sell them to people who need them, the cigarette users. Also, another why is involved if the vapes can be repurposed.  

4.    Based on the feedback I received, many college-aged kids who Juul would be open to turning in their vape if it meant they were given a discount on their health insurance. Of course, there are still the people who do not want to give up their vape and will continue to do so, regardless of benefits. I couldn’t find any ideas on how to convert these people when I spoke with one, however I believe an answer is out there. With the ban already in place, some kids have begun throwing away their Juuls and vapes. Some liked the idea that they could receive something in return for kicking their bad habit to the curb. An idea that was brought up that I did not think of is, once I collect the Juuls from people, sell them to the cigarette smokers that actually need them. Or, as another person brought up that I mentioned earlier, find a way to repurpose the Juul or vape and sell a brand new product. This would open up an entirely new market for me, all while getting my parts for free from those who want to give up vaping. People seem to be more willing to get rid of their vapes due to the ban on flavored vapes that was just imposed, so as of right now the timing seems right. 

5.    One thing I know about this opportunity that I didn’t know before is that, as more and more people are facing health-risks from vaping, the more scared the vaping community has become. People are frightened by what the long-term effects of vaping could be, giving me even more of a reason to find a way to make money off getting a vape out of their hands.

Identifying Opportunities in Economic and Regulatory Trends

1.    Trump bans flavored vapes

a.    Source – USA Today

b.    A lot of young kids are addicted to vapes, this ban will cause them to make a major lifestyle change that has the potential to be capitalized on.

c.    The most likely customer of this opportunity are people between the ages of 14 and 23 who are addicted to vaping.

d.    The opportunity will be relatively easy to exploit because of the vast amount of young people it involves and how quickly the ban went into effect.

e.    I see this opportunity because Juul’s are a popular item at any college town or high school. I’ve seen it first hand when I go out in Gainesville. Almost everyone has a Juul or vape with them. I am also strongly against vaping, so finding a way to help get vapes out of kids hands is a great opportunity for me with this ban now in place.

2.    Trump plans to kill California’s clean-air authority

a.    Source – New York Times

b.    California’s air quality is poor in the urban areas, and the state losing the ability to regulate car emissions opens the door for a new eco-friendly transportation service to step up and help fight back

c.    The most likely customer of this opportunity are people in urban California, particularly Los Angeles, that want to find another mode of transportation to and from their destination that is not a car.

d.    This opportunity is difficult to exploit because while it will help save the air quality, it will most likely cause the customer to settle for a longer commute/ride in order to do so. 

e.    I see this opportunity because when I visited California a couple weeks ago, I was taken aback by how bad the air quality/smog truly was. Many of the locals I talked to about it said it was bothersome and needed to be fixed. Finding a solution to California’s air problem is a tough ask, but would be lucrative to the one who does it.

3.    Opportunities abound in value stocks following yield curve inversion

a.    Source – The Syndey Morning Herald

b.    As worry of a recession spreads, savvy investors can buy stocks with low price-to-earnings ratios to outperform buying stocks with high price-to-earnings ratios. Starting a business that gives this financial advice and shows which stocks to invest in during this time could prove beneficial

c.    Anyone who invests their money in stocks

d.    Relatively easy, because it is not hard to find stocks with a low price-to-earnings ratio and make a list with them ranked from best to worst. The hard part would be selling this information to anyone who invests.

e.    I see this opportunity because, as an investor myself, I’ve noticed people are panicked about the market. Many people believe another recession is on the horizon. If I can find a group of stocks that perform well through the market’s recent ups and downs, and then report my earnings to people as a sell point, I could potentially sell my own financial advice.

4.    Climate change to slow global economic growth, new study finds

a.    Source -CNBC

b.    Climate change could be the end of life as we know it, so getting people to do their part is critical in the coming years. 

c.    The most likely customer is everyone on the planet who owns a smartphone

d.    It would be relatively hard to get so many people to make major lifestyle changes to help save the planet, so starting smaller might be the best bet to get this idea of the ground.

e.    I see this opportunity because more and more people I know are starting to become motivated to help save the Earth. If I can create a way for people to get rewarded for doing little things each day that help save our planet, I believe there are enough people with emotional motivation to save the Earth out there to buy into it.

Identifying Local Opportunities

1.    Father’s tip helps stop potential mass shooting

https://www.newseum.org/todaysfrontpages/?tfp_id=TX_FWST

After a 27-year-old man stopped taking his medication, his father was worried about what his next move might be. The man was well-known to police on the Fort Worth area. Once the father notified police of what was taking place, and off-duty officer who knew the man rushed to find him. The call came in around lunchtime on September 3^rd, according to Officer Landon Rollins. If it was not for the father or quick-to-act police, another mass shooting could have taken place.

The problem presented is this story is America’s mental health crisis. Some people who are unfit for society due to mental health issues are still living amongst the common folk. These people need help and can be too rash and violent to live in society. America needs to do a better job of helping these people get back on the right path with the proper healthcare and treatment, instead of just using prescription drugs to “solve” the problem. 

Who has this problem: Well, it is two-sided. There are the people who unfortunately have the mental health problems. And then there is the rest of the population, who might end up on the wrong side of a bullet at any time if said individual continues to live in society without proper treatment. 

2.    Romney pushes for recall of e-smokes

https://www.newseum.org/todaysfrontpages/?tfp_id=UT_SLT

With more and more reports surfacing that tie e-smokes to lung disease and death, Senator Mitt Romney is pushing for the FDA to recall them. E-smokes have become particularly popular among the youth of America. However, they were designed as a better alternative to help smokers stop using cigarettes. Romney highlighted his concern for the youth in his statement. As cases linking e-smokes to lung disease a rise, a ban from the government is expected to happen soon. 

The problem presented in this story is America’s vaping epidemic. This generation of youth ages 14-24 are the first to have been introduced to vaping. Unfortunately, it has become a trend and is causing all sorts of health problems for otherwise healthy kids. 

Who has this problem: The youth of America, ages 14-24. These are the people who are addicted to vaping and need the most help before it is too late, as the long-term effects of vaping are unknown.

3.    Rare form of disease confirmed 

https://www.newseum.org/todaysfrontpages/?tfp_id=MI_TCRE

Five cases of a rare form of gonorrhea have been confirmed in Traverse City,    Michigan. 

The Grand Traverse County Health Department is aware of the issue and acting as fast 

as possible to fix the situation. The DGI (disseminated gonococcal infection) occurs when a common gonorrhea infection is untreated. These five cases are the only known cases in America at the time, although the Department of Health continues to monitor the situation cautiously. To contain the issue, safe sex practices are encouraged for all.

The problem presented in this story is people not practicing safe sex or going in for treatment when they have an STI. Why people aren’t practicing safe sex is up for debate, one reason being that condoms can be pricey. The other problem is people not getting tested regularly or if they feel something wrong. This again could be due to the price of the test. 

Who has this problem: The five people in Michigan do right now, however if the issue is not contained many more people could find themselves in a similar situation. Also, the outbreak is not strictly in Michigan, a case like this could pop up anywhere at any time if people don’t practice safe sex and get tested regularly. 

4.    Health Dept. tells public to stop vaping

https://www.newseum.org/todaysfrontpages/?tfp_id=WI_LT

Eau Claire County has sent out a warning to its constituents to stop vaping due to health risks. A nationwide problem of lung disease and death has arisen in the past few months as the ramifications of vaping are starting to be seen. This article goes more in depth than others on the topic, explaining that THC products are the reason for the problems and not the addictive nicotine in the vape devices. Over 450 cases have been reported and the number rises every single day.

The problem presented in this story is America’a vaping addiction. These are just the short-term consequences of vaping, so who knows what will happen to these people in twenty or thirty years. If they live that long, that is.

Who has this problem: While most articles focus on the youth of America, many adults and older people also have a vaping addiction. This is a widespread epidemic that knows no age or gender.

5.    Neighbors on alert as coyotes kill cats

https://www.newseum.org/todaysfrontpages/?tfp_id=FL_OS

Neighborhood cats in the College Park area of Orlando, Florida are being killed by coyotes. Residents of the area have been reporting countless sightings of coyotes recently and are fed up. As more and more cats are going missing, more people are becoming angry, including local cat owner Michelle Conklin, who’s feline Thomas is missing.  It is only a matter of time before action takes place in this town. As of right now, they are planning a sign campaign in the coming days to try and bring awareness to and solve the issue. 

The problem presented in this story is a rise in the number of coyote sightings in an urban area. Why this is occurring is unknown, but the reality of the situation is that as long as these coyotes are on the loose in packs, more cats will die, and potentially a person if this issue is not addressed soon. 

Who has this problem: The residents of College Park in Orlando. The issue could spread to nearby towns as well if not solved and the coyotes continue to run wild. 

Forming an Opportunity Belief

Step 1: I have a belief that people have a need for spending less time waiting in the gym.

Step 2: The unmet need is being able to get through a workout in the gym quickly while spending minimal time waiting on people to get off the equipment they want to use. Members of any busy gym will have this need, especially college students, professors and faculty at UF who go to SouthWest Rec or surrounding gyms. This need has always existed; however, no one has offered a solution for it to date. As of today, nothing is being done to combat this problem of waiting on equipment in the gym.

Step 3: Prototypical Customer 1: Manny Sanchez (attends SouthWest Rec regularly)

Step 4: How long have you had the need? – 5 years ago

Only has the need during prime hours, not early or at night. Is aware then.

First became aware when he waited too long and was late to class

How are you addressing the need – he goes when it is not busy

How satisfied? – very satisfied, scale of 1-10 he says 9, because no one is a 10

Step 3: Prototypical Customer 2: Spencer Hoagland (attends Student Rec regularly)

Step 4: how long have you had need – 3 years

            Has need every time he goes to student rec

            First became aware when he was in gym for 2 hours and didn’t finish workout

            How are you addressing need – going at different times, multiple times per day

            How satisfied – an 8 out of 10, or a Tallahassee 6.

            

Step 3: Prototypical Customer 3: Jenna Zaleski (works at Southwest Rec, exercises at her apartment gym)

Step 4:first aware of need – first day of classes, line to get in gym plus wait in gym

            How are you addressing the need – Try to go earlier or go elsewhere

            How long have you had the need – duration of semester

How satisfied are you with solution – not satisfied, gym she goes to is smaller and doesn’t have as much equipment.

Step 5: After conducting interviews with people who avidly go to the gyms in Gainesville, I’ve learned that my opportunity is still there, however only during peak hours at the gym. To me, the most surprising thing was that people have time to change their schedules and go to the gym during non-peak hours. It appears that people’s days are not as busy as I previously thought them to be. Everyone seems very satisfied with either going at a different time or attending a different gym.

Step 6: Repeat Interviews

Step 7: Almost none of my original opportunity is still there, and the demand for a solution is much lower than I originally thought. My new opportunity would be integrating a live counter of how many people are at a gym so customers would know if the gym is too busy to bother going to at any given time. This wouldn’t be too hard, since all gyms require you to scan in before entering. The people I interviewed expressed their frustrations about getting to the gym and seeing that it is insanely busy. This could solve that problem. My new opportunity is more accurate than when I started. I believe entrepreneurs should adapt their opportunities based on customer feedback. At the end of the day, if you have a product that customer’s are telling you they don’t need/like, you have to change in order to stay in business. Satisfying the customer’s needs is the highest priority, and entrepreneurs need to adapt when feedback is given. After listening to Pryor in lecture, this is not an opportunity I will be pursuing, as I now have my eyes on a much larger issue in America. 

My Entrepreneurship Story

My first experience with entrepreneurship was in middle school. Back in the late 2000's and early 2010's, every kid who played a sport had some sort of athletic accessory they would always wear, myself included. Whether it was a Phiten necklace, Nike Elites, or PowerBalance Bands, the majority of little athletes at my middle school could be seen wearing at least one of these on any given day. Austin Miller, my best friend at the time, and I were like our other friends in sports, wearing all the accessories common at the time. However, we weren't happy about spending $20 on PowerBalance Bands anymore, so we bought some replicas in different colors for a dollar a piece on some knock off Chinese Ebay website. Miraculously, the bands showed up to my house a week later.

After opening the box on a Friday and selecting five knock-off PowerBalance Bands each, we had an epiphany. We could sell these for ten, heck, even fifteen times the price we got them from China. And so, at the ages of eleven, we became the two youngest entrepreneurs the town of Oviedo had ever seen. We borrowed $100 from our parents, promising a 10% return on investment (we didn't use the term ROI at the time, but the idea was the same). We then ordered 100 PowerBalance Bands off the reliable Chinese dark web. In the time they took to deliver, Austin and I planned out our marketing strategy. Since we attended different middle schools, we could cover two markets between us, optimizing our chance for profits.

When the new school week began on Monday, we set out spreading the word about our new business endeavor. We hit the market at the right time, because PowerBalance Bands were a hot commodity amongst our peers. Halfway through my rigorous day of middle school classes, I had 50 people preorder a band. I whipped out my Xenon cellphone and texted Austin. "Bro I sold out already," I typed. He responded fifty minutes later because he didn't want to get his phone taken away in art class, "Me too bro." That day I walked onto the bus feeling pretty damn good.

A long three days later, the bands finally came in. Austin and I picked through the box, seperating our merchandise by color and then cross-referencing it with our lists to make sure we had the right bands for the right people. That Thursday night I stuffed my backpack with my Geometry homework, PowerBalance Bands, and a white envelope to hold tomorrow's profits.

Looking back on it, I probably shouldn't have texted anyone the shipment had arrived. In the courtyard before homeroom people were swarming me when I arrived. Now that I think about it, I'm pretty sure what I did was illegal. Is advertising/selling stuff on school campuses technically loitering? Eh, who cares, it was 2009 and people weren't as sensitive. Times have changed. Anyways, I exchanged the bands with the people who had preordered for $15. When Austin's Mom brought him over to my house that night, we had a total of $1480 (we each gave one of our friends a "family" discount for $5, for public relations purposes). After paying back our Moms, we had a grand total of $1360, $680 for each of us.

We planned on restocking and making more money, but we were blindsided. Our SWOT analysis did not account for the father of one of the kids on our Pop Warner football team, whom we sold a band to, noticing the opportunity and capitalizing on it. He began ordering and selling his own PowerBalance Bands. With a long school day occupying Austin and I's days, we just didn't have the time to keep up with his business. Screw you, Mr. Cruz. Screw you.