ZeeK the Geek

Developing a Business Model 6

University of Missouri-Kansas City

Project 2: Part 1

Developing a Business model

Group 8: Voyagers

Christine McMurtry

Remington Garvert

Yunsong Zhang

Hussein Garad

Libby Lawson

Luke Jowett

ENT 460

Sunny Li Sun

11/17/2015

Mission Statement of … : Comment by Libby Lawson: Remington!!! WTH? Where is your part. We had extra WEEK to do it.

Strategy and Implementation

…

Your hypotheses on business model. Include all 9 blocks (Weight 10%) Comment by Libby Lawson: Libby’s section. Done, but welcome any suggestions

Customer Segments

The job-to-be-done is to provide college students with one place where they can exchange their books for free, sell them to other colleges’ students, and expand their network. This will eliminate the “pain” of trying to easily sell books and equipment bought for classes (used technology or clickers), find fellow students for book exchange, and meet new people.

Value Proposition

The value is to provide a one spot for college students where they can save money by exchanging used books, equipment; gain some portion of return by selling used books, and finally, help expand the network. By doing it locally, Kansas City Metro Area, the business will help save money by eliminating freight costs, late fees that renting sites may impose on students, and possibility of exchanging books and used equipment for free.

Channels

1. Web page that can be created for free from Google or a small monthly fee from other popular providers

2. App that will provide a list of books for sale and a chat room for book exchange

3. Utilization of UMKC announcement tool and later other Universities’

4. Mass emails to fellow UMKC students, classmates

Customer Relationship

The first customer pool will come from UMKC campuses. The earlier evangelists will be ENT 460 classmates. Then, after performing surveys on what’s working with the Web site and what needs improvement (go outside), will expand to other KC area colleges. The goal is to connect students with each other to exchange the books and equipment and help save money.

Revenue Streams

Revenue will come from two pools:

1. A monthly fee of $5 for unlimited use of site’s resources: app, chat room for exchange, section for sell used books, and section for auction. This is the cheapest option compared to similar sites

2. If students would like to use an exchange option, they will not have to pay any additional fees. A monthly fee of $5 that will allow then to use chatrooms and view the books and equipment that listed for sale or auctioning

3. If the students will try to list their books for sale, then upon the sale, 5% will be deducted from earnings of sale toward the site maintenance

4. The subscription can be canceled at any time without refund

Key Resources

The key resources will come from our own book and used technology listings as well as customers’ listings. The site and app will be the base for the listings.

Key Activities

There are multiple key activities:

1. Chatrooms for used/new book exchange

2. Section of the Website for book, used equipment listing for sale

3. Section of the Website for books auctions

4. Provide drop off/pick up locations; meet up locations

Key Partners

Key partners are: UMKC administration, Website providers (Google), app platform

Cost Structure

The goal is to keep the cost as low as possible. Hence, the free Webpage and drop off/pick up locations as well as meet up arrangements that will eliminate freight fees. Credit and debit cards will be acceptable for secure payment through PayPal.

Is this business model solving a significant problem? Is the solution or value position novel and attracted? Use problem/solution canvas (Weight 10%) Comment by Libby Lawson: Hussein, It’s Ok. I heavily edited your part so it makes sense. Again, any suggestions are welcome

The problem is that the books provided by college bookstores are extremely expensive compared to other channels. Even though they advertise otherwise. The goal is to reduce the cost, or eliminate the expense for college books all together, that are available through the local universities and colleges school bookstores. The other problem is that currently available sites like Amazon and ValorBooks still sell used books for the prices higher than a college student would like pay for. Also, after renting a book, it may take up to two weeks (14 days) for the book to arrive.

The solution we proving to solve those problems:

1. Online website where local college and university students interact and network together. Through the site, students will be able to communicate, exchange books, bid on books at the auction section, and borrow books from each other through communicating in chat rooms.

2. If the students see the books they are looking for, students can contact the owners directly through the chat rooms and negotiate the exchanges and meet up or drop off places. They can meet up at UMKC for exchange.

Who will be your early customer? Describe a customer profile or story to describe the problem/solution. How many potential customers have you been interviewed? What kind of information are useful when you develop your business model? What are your sale roadmap, including acquire plan and activation plan? Who will be your solution’s earlyvangelist? What make them tell (refer) your solution to others? How will you make the customer growth? (Weight 10%) Comment by Libby Lawson: Christine, I edit it a little to eliminate repeated “our”, “we”. And present/past tens agreement. Otherwise, it looks good

For our book rental website, the early customer or earlyvangelists would be students at the University of Missouri-Kansas City, specifically, classmates from ENT 460. The focus is on one school in the beginning to see how the students will react to the idea. If the idea is successful, the plan is to branch out to other universities around Kansas City Metro area. Our customer profile is: all students looking to save a little money on textbooks and other class equipment such as calculators, clickers, and other materials and to build a network within the University at the same time.

Today a college education has become extremely expensive, from the classes, to the parking passes, calculators, textbooks, online memberships, etc. Our website is designed to help students save money and get more out of the college experience. It is a good way to meet and network with fellow students and get a better idea of the classes you are about to take. By meeting with students who have already taken the class you can pick their brain on helpful ways to succeed in the class. We are a group of six students designing this business and for us this is a great idea. We wish that this site would have been in place when we started college. When developing our business model, it was important to understand what will bring the most value to our customers. For instance, if they would want their products delivered, picked up, or if they would like to meet with the seller, fellow classmate? We want to know what a good deal would be to them and whether or not they would recommend our website to their friends.

We would like to install lockers on campus specifically designed to help make the pickup and drop off easier for students involved. The feedback from the earlyvangelists will be implemented for ways to make the process easier and more effective for students. Earlyvangelists will start by being fellow students and friends that we, as members of the group, already know. And from there, they will attract more students from our classes and the university in general. The goal is to try and make the college experience more affordable for all. College is stressful enough without having to worry about skyrocketing textbook prices.

A root-cause analysis and Custer problem presentation (Weight 10%) Comment by Libby Lawson: Yunsong, For the tenth time: This is your section! Question 4 from Rubric. Not 5 and definitely not 6! Q 6 is for the next project.

Customer Problem Presentation

List of Problems	Today’s Solution	New Solution
1. 2. 3.	1. 2. 3.	1. 2. 3.

Did your team clearly state your assumptions/hypotheses? Did your team identify the most crucial assumptions to test first (the ones that will kill their business)? (Weight 10%) Comment by Libby Lawson: Luke, Non of this makes any sence: Which are the critical assumptions and which are the ones that “can kill” out business? We will not have any stores. Will be operating completely online. We will not provide any individually scanned pages.

Assumptions:

1. Students want to conveniently order and receive the books

a. Students can order books online through the dashboard, or they can order the books through the app

b. Students can have the books directly shipped to their house or apartment with the choice of needing a signature or not to leave the books. A “pre-determined” roommate or friend can even sign for the books. If the student does not want the books to be delivered, they can opt to have the books available for pick-up. The books can be picked up at our store, or we also have kiosks at campus where the students can pick up their books. Comment by Libby Lawson: What are you trying to say? What store?

2. Students want to have their books be more affordable.

a. We make sure to supply the perfect amount of books so that there isn’t too many or an excess in stock. With having this perfect equilibrium in stock, students can buy or rent the books at the best price. The students can also sell back their books without having the worry of the store having too many books, and quoting a very low price. Comment by Libby Lawson: “we” do not supply any books. Our books come solely from other students’ listings. We do not rent.

b. Students can use the traditional buy or rent choices, as well as using a deferment plan and an option to pay for only the select pages that they need. The deferment plan is great for those students that need the books as soon as possible, but financial aid isn’t always as quick. The students can put a small deposit down for the books, and then later pay their total once the financial aid comes in.

3. A wide variety of books and options

a. A wide choice of books of all subjects and classes are available

b. A great option is for students who only need to use a small section of a book for their class. They can pay for a scanned page of the book that is needed. Comment by Libby Lawson: Copy right law infringement!