FORMING AN INNOVATIVE BUSINESS

(1.) Describe the innovative idea.
The workplace is filled with employees that are powered by warm brews of coffee throughout the day in order to get their fix. They escape just for a couple of minutes to the nearest coffee shop around the corner or walk down the thin pathways between cubicles towards the break room. Once a cup has been poured, every sip is a hybrid of rejuvenation and relaxation so they can focus on the task ahead; however, getting a hot dose of caffeine is not always as easy as it seems. There are potentially long lines served by overwhelmed baristas or unclean burnt pots left in the office from the day before. This product is designed to alleviate the common daily office stresses of lack of a hot pot of caffeine. This product is the Pocket Espresso. This devices is small enough to place into a brief case or purse. This device requires a small cup of caffeine, similar to a K-cup and a cup such as a small coffee cup for pouring. This device is small in size and convenience. This device will fit back into the transportation carrier in which it was transported and does not require immediate cleaning. This device will prepare shots with the quality of a traditional coffee machine.
(2.) Determine the business structure that best fits your Innovative Idea.
The business structure that best fits this idea would be a limited liability company. Limited Liability is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
The "owners" of an LLC are referred to as "members." Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations or other LLCs.
Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are "passed through" the business to each member of the LLC.
LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership would. I feel this would be the best structure for the business due to the limited liability statues of members being protected from personal liability for business decisions or actions of the LLC. If the LLC incurs debt or is sued, member’s personal assets are exempt. With this being a new company or start-up it would be beneficial to structure as a LLC with the ease of Recordkeeping, less registration paperwork and the start-up cost required is usually minimal. If I have members, regarding profit sharing there are fewer restrictions within an LLC, members distribute profits as they see fit. Consequently, it's up to the members themselves to decide who has earned what percentage of the profits or losses. (3.) Create an outline of the stages of the entrepreneurial process, resources and tools you would need to be successful at each stage.
(1.) Discovery- the Pocket Espresso is born. The market is crawling with coffee/caffeine lovers that want and desire satisfying. Consumers are looking for a more efficient way to obtain a cup of Joe. The timing is perfect due to the lines at Starbucks are only growing longer and longer. There is currently opportunity for this innovation. With the way technology is evolving everything is moving and created to be smaller, less costly, and quicker. By tapping into this market of better efficiency with a renowned product this is a sure sell.
(2.) Concept Development- The objective is to get caffeine drinkers to buy into this product. The mission would be to capture the caffeine drinking nation. “If you want caffeine, you certainly want this machine.” Although this innovation would require a patent and a trademark. I would market this product to Starbucks, Dunkin Donuts and other privately owned coffee brands. Their coffee products could also be utilized in this machine. This product would be sold nationwide. This product would be marketed in local retailers everywhere, such as Wal-Mart, K-Mart, Wal-greens, Bed, Bath and Beyonds, Macy’s etc.
(3.) Resourcing- I would look for potential investors and possible partners. I would first look at a small business loan with a local bank. My next step would be large banks. SBA would be a potential source. A great possible investor would be Shark Tank. I would solicit for partners and/or angel investors. Start-up loans with e-commerce may be a possibility. Funding for this type of venture has to be confirmed before attempting this project. Once funding is obtained I would hire those required to make this a success.
(4.) Actualization- This is where I would have my Grand Opening. This Grand Opening would be where the product is tested by consumers. I would have employees or sales personnel/agents in place to push the product. I would invite retailers from all around in hopes of capturing their interest. This is where all resources would be effective and operational. Employees, investors, and partners would be needed in this stage.
(5.) Harvesting- This product is expected to last not less than 5-years. I realize that with this type of product; there will soon be something newer on the market. When the product first launches it will be a very public item; therefore, I would have to decide if an upgrade to the product is possible to stay current to keep the product relevant.
(4.) Determine the market for your innovative idea. Include details regarding your potential customers. The predicted size of the market, the competitors that already exist in the marketplace.
My target market would be the working class and retired individuals, as well retailers. The idea to target the group of people is because they are they caffeine drinkers. I would gather information on my organization’s ideal demographic, including income, ethnicity, languages, education level, profession, values and motivations for purchasing within the marketplace. I would look at what the consumer is looking to accomplish and connect my market positioning with the needs of those individuals. I want to tap into the market that is currently operating in this market and looking for a more efficient way to get the results they are looking for.
The predicted size of this market exceeds 1billion in sales, according to the US Bureau Economic Analysis. The scale of this industry is as eye-opening as a NoDoz. Americans plow through more than 15 million pounds of powdered caffeine annually—enough to fill a freight train 2 miles long, all 270 cars loaded to the brim.
Competitors such as Newco, Curtis, and Keurig are currently soaring in this industry. Keurig is the more current competitor with Keurig now making their own brand of coffee, as well as the Keurig machine.
(5.) Create an action plan that describes how you would overcome any unforeseen barriers to your ventures success.
The business will have a contingency plan that includes the death of a key executive or manager. Crisis events that threaten to shut down business operations for an extended period of time, and any other financial situation or unexpected event that threatens to destroy or injure the company. The Contingency plans will involve the insurance policies that provide for the cost of keeping the company in operation, and the cost and hiring of consultants that are specialists in solving the types of problems besetting the company. The contingency plan will also include a security plan. The security plan will include Theft or destruction of intellectual property, such as trade secrets or computer programs, key machinery or equipment, or any other valuable assets the company needs for its operations and maintenance of its market position. This will also include the security of the company's internal computer network and confidential files. The security plan attempts to block any negative contingencies that might occur, but when they do, the company's contingency plan prescribes backup of certain customer and corporate records, and intellectual assets. If the worst happens to happen, the business contingency plan covers how the company will re-establish normal operations and reorganize to limit any future contingencies.

References
Harvard Business Review
Aug202, Vol 80 Issue 8, p95-103 9p. 2 Colophotographs.Kim and Mauborgne’s 2004 article, 2
US. Bureau of Economic Analysis, https://www.usbureauofeconomics.gov/caffeinesales
“Value Innovation,” in Harvard Business Review, volume 82, issue 7/8 pages 17
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