INE 2021

The COVID-19 Pandemic has affected nearly every business in the world. So many aspects of the industry have changed due to the state of our planet across this past year. International supply chains have been disrupted, operating procedures have been put to a halt, and factories have completely shut down. Despite all of the hardship, so many entrepreneurs have looked to take advantage this situation, modifying their business models and adapting to change in a positive light. 

Our venture was born during these unprecedented times, and as a result we’ve had to take unprecedented factors into account. Customers do not act the same way they have in the past; more people than ever are relying on virtual alternatives for all kinds of services. However, the structure of a business like ours would look nearly identical in a pre-COVID would. While it seemed like our whole country was put on pause, the obligations of students to complete their studies and prepare for dental school did not go away. If life in America was normal, our initial process of reaching prospective clients and aiding them in their dental school applications would look the same. In fact, digital marketing campaigns like social media advertisement would perhaps produce even better return, considering people are using technology and social media more than ever before. 

One other way in which we’ve potentially benefitted from the pandemic is through the American public’s new mentality regarding individual services. Because of the virus, many remain uncomfortable and/or hesitant meeting in larger groups. Prospective students may feel more comfortable in a 1 on 1 scenario with one of our counselors and/or a virtual meeting as opposed to physically going to an office. In contrast, our ability to hold larger group workshops would be impacted, at least for a smaller amount of time as we hopefully turn the corner on this pandemic. Taking a look at the application numbers across America for the past two academic years, there was little to no change between that of the 2019-20 and 2020-21 sessions. Thankfully, we can view this as a positive observation as so many industries and businesses alike saw a dramatic decrease in their potential customer base. As time passes, we believe that our market reach can only get better, as adapting to challenges such as these will equip us to run smoothly once our nation’s economy and day-to-day life of its people returns to normal.

Each day we make decisions about where our money goes – how we spend, how much we spend, and more. By doing so, everyone invests in something, even if not directly. By paying for a gym membership and routinely working out you’d be investing in your personal health and wellness. The primary question must answer when considering an investment of any kind is as follows: “How will I receive a valuable return on this investment?” 

Going off of our gym membership idea, your return on the money you spend is demonstrated by your improved physical fitness and health. In the business sector, by investing money directly into a company, you are banking on the fact that the value of your shares will one day be worth well more than your original investment.

For our venture, my partner Jack and I have done enough research to learn as much about the industry as we can. Our business model requires little to no outside help, besides that of counselors to work directly with applicants. Outside of variable costs for things like early legal fees, basic website upkeep and marketing campaigns, our costs are lower than that of the average business; no rent for a brick and mortar space, no cost of good sold, etc. Further, with my partner and I handling close to all of the work, no employees on payroll/salaries to manage.

Jack and I found we’d need about one month or so of running marketing campaigns to breakeven in the initial phase, given we extend a contract to our counselors. Our goal for the second phase would be to work with 100 out of the approximately 11,000 prospective dental students in America. Due to the success we’ve seen thus far reaching out to just one institution, we’re hopeful that the positive feedback we have received from our peers and other outside sources will continue as we contact more potential counselors, clients and partnering institutions in the future. We also have access to helpful marketing modules like the Student Doctor Network, specifically the designated sub-group for dental students. Tools such as this not only help us understand our competition within the market, but also aid in our understanding of our target customer base.

One specific facet of our future that Jack and I have discussed is our ability to secure our admissions counselors; If we were able to contract 3 experienced counselors, we believe the potential value of our company would grow significantly. Understanding the varying successes coming from our preceding labor, the opportunity we have to market and reach more students, our potential financial freedom, and the value that adding full-time counselors would bring, I would feel confident investing in our venture. 

Handling the distribution of Equity is perhaps the most important facet of forming a business as an entrepreneur. Many small businesses could end before they even begin due to the errors made by management in the issuance of equity. Additionally, the equity conversation is seldom comfortable; some would rather take themselves out of the picture before the conversation is initiated, simply to avoid making waves. 

Part of this sense of urgency surrounding equity distribution comes from our ability to see the big picture. No person can see into the future nor accurately predict every detail of a business’ growth; there are new unforeseen challenges for entrepreneurs every day. t’s not as simple as splitting equity 50-50 and deciding later – not only is equity set in stone from the beginning, but a 50-50 split leads to problems when the two equal owners disagree. For the owner, or the person who is responsible dividing up equity in the company, they know the most about the business and its potential, so decision on equity might seem easy. However, others may feel that they deserve a high stake as they have been there from the beginning. 

For me, I know I work best with those who have a similar mindset and skillset. Some of the things I consider my strengths – communication skills, time management, dedication, and more – are qualities I look for in a business partner. Further, I look at the manner in which a potential partner of mine approaches their responsibilities. If their goal is to complete a task as quickly as possible giving no thought to the quality of their work, I wouldn’t want them on my team. I work best with the individuals who are not concerned about the time factor, but are concerned with getting the best possible outcome despite the amount of time it takes to get there. I also Finally, I also look for people who have some level of background knowledge related to the industry surrounding our business. Time-efficiency is important to me; wasting time to bring teammates up to speed regarding a topic that they should have already known or studied is a huge pet peeve of mine. 

Listening to the podcast only validated my feelings about a potential business partner. The situation between Alex and Mike is a perfect example of how issues can arise from the division of equity. Differing opinions of just two individuals can make it hard to arrive at a compromise, let alone when there are more pieces of the pie to distribute. Alex’s feelings showed us that he valued keeping as much control of the company as he can. Considering he’s been there from the start, this is not unreasonable. However, his partner Mike (who also left his job to become part of Alex’s startup) felt his contributions garnered him a bigger stake than Alex felt comfortable agreeing to. Noting the interactions between the two made me consider how I would handle the situation myself –  coming to a compromise is much easier when you are working with someone who shares your own mindset and work habits. 

Despite reaching a point in his career where he was making a comfortable salary with great benefits, Alex felt that his potential warranted much more. Between himself and his wife, who found herself working late into the night, Alex was able to put food on the table and support his family in New York. However, he couldn’t shake the feeling that he wasn’t fulfilling his potential, and decided to fly to Los Angeles in hopes of further developing his business idea. Alex Blumberg’s experiences as a new entrepreneur are a textbook example of a mentality that breeds both entrepreneurial success and growth.

Upon going to LA, Blumberg met Chris Sacca, a brilliant and revered mind in the business world. Alex had the opportunity of presenting his business idea to Chris, which surrounded the transition that the American Public was making from radio to digital streaming services. Chris, who’s heard more pitches than the hairs on his head, was able to consolidate Alex’s hour-long pitch into a two-minute summary. Alex was surprised by Chris’s brilliance and his ability to repeat the idea back in such a simple manner. Chris described his concerns with the space being too saturated, the competition from big media, and the short attention span of the average American that is only growing shorter. Chris didn’t invest in Alex’s idea, but set up a meeting with his partner, Matt, where Alex was able to put together a more organized and cohesive presentation. After pitching, Alex notices that Matt likes the idea, but doesn’t stop there. Matt begins to lay out different avenues and ideas that would help Alex to take the business in a whole new direction. Alex listens and compliments the ideas as they are valuable suggestions, but has some reservations. He feels like he is starting to lose control of the business before it even begins, and struggles in his ability to remain true to his original ideas. Both Chris and Matt, two brilliant minds in business, basically discussed the changes that should be made if Alex had any hope of making it with his idea; and while there were certainly positives ramifications from these meetings, the idea of his original venture being drastically changed was discouraging to Alex. 

In the beginning, I said Alex’s mentality is that of one that breeds success. This is referring to his decision to leave his mundane career behind in hopes of becoming an entrepreneur. No individual will make it as an entrepreneur without the drive and dedication to make your journey your #1 priority. On the flip side, however, Alex wasn’t the greatest presenter and didn’t have a concrete or refined elevator pitch, which is undoubtedly essential. It’s not a crime to be unprepared or to have a sense of confidence elude you, however; This is just like so many entrepreneurs in the early stages of their ventures who are still feeling out their ideas for themselves. Alex was able to take the good with the bad, which is not something many of us can do. The ability to internalize constructive criticism is also a fundamental piece of being an entrepreneur. Overall, a lot was made clear regarding the potential real-world application of the ideas we learn in class. The industry knowledge and skills of the investors in this podcast were on clear display through their conversation and the advice they had to give.