From The Professor: Hidden Innovators
Who doesn’t love the classic startup story? An entrepreneur working away on the next big thing, who against all odds, usually with a buddy or two, creates something new that transforms the world. The greatest stories always originate from a dorm room, a basement, a shed, or a garage.
My favorite is one I share every semester with my students. I like to think about Walt Disney. Not the genius who pioneered a new form of family entertainment with Snow White and the Seven Dwarfs (1937) or the grandfatherly Walt who appeared on ABC and built Disneyland (1954), but the 21-year-old Walt Disney with a dream.
The one who went bankrupt in Kansas City and then took a train to go live with family in California, where he set up a rudimentary animation studio in his uncle’s shed. Walt had only $40 to his name, but possessing tremendous talent, determination, amid western work ethic, and pretty good timing, created what we know today as the Walt Disney Studios.
That Walt was a small business entrepreneur trying to make a living doing what he loved. His family was urging him to get a job, any job, but Walt persevered. His product at that time was a weekly animated joke reel that would play in local theaters before the feature film. Walt had tested this idea with success while in Kansas City. The business model also worked in California, and this bought Walt time for his first animated cartoon (Alice’s Wonderland, created in KC) to be picked up nationally.
Had Walt found anyone (other than family) willing to help him, they surely would have asked to see his business plan, which would have been pure fantasy because what he dreamed had not yet been created.
Today, recommending one just write a traditional business plan is outdated advice. The modern view is that entrepreneurs should behave more like scientists, observing and interviewing customers to develop business models that can be tested well before starting the business.
STUDIO BLOOM
Entrepreneur: Shelley Jensen
When Shelley Jensen started Studio Bloom 13 years ago, she began as a typical photography studio, providing wedding, baby and high school senior photos. For 10 years Studio Bloom operated using the traditional business model in a highly competitive market.
That’s when Shelley decided to focus on doing what she loved most: senior photos. In addition, she did something creative with her business model. As part of her new channel strategy, she developed the Bloom Squad, which consisted of local high school students who promoted the new business focus across social media. By narrowing her customer segment and thinking strategically about channels, the new business took off.
This year Shelley tackled a new question. She wondered why the market was focused on photos of babies and high school seniors, but not the years in between. Her curiosity led to an amazing discovery.
She sought answers to her questions, and the response was eye opening. Parents shared stories about their kids being bullied, lacking self-confidence, not feeling good about themselves. Shelley had tapped into a pain her customers were experiencing, something she was not expecting.
Her answer to the problem was to design completely different value proposition. Shelley created the Junior Bloom Squad, an empowerment program for tween and teen girls and boys. The services include photography sessions at a great value, but more than this, mentoring aimed at helping kids succeed, break barriers and learn how to be their best self. By rethinking her customer relationships, she has now tapped into something truly innovative.
The impact on the business has been significant. Studio Bloom is already receiving inquiries for the senior class of ’24 and ’25.
Shelley is quick to point out that the new business model is about much more than increased sales, “I had this on my heart much more than taking photos.”
CASHMERE POPCORN
Entrepreneurs Bill and Angie Anderson
Anyone who has ever munched popcorn from Cashmere Popcorn knows that the local product is just better tasting than any of the national brands. The reason? The manufacturing process they have developed is focused first on producing a quality product. They do the little things the big guys don’t.
Cashmere Popcorn started small (sound familiar?), but their business model has evolved over time. Their first popcorn poppers were intended for home use, not a commercial operation. This approach allowed the Andersons to test their ideas at the lowest upfront cost possible. Angie admits that the small poppers made things a little crazy early on, “We were popping popcorn around the clock.”
Their original business model was based on providing high quality popcorn to organizations for their fundraising campaigns, but that customer segment didn’t pan out. However, by starting small, Cashmere Popcorn was able to pivot to focus on a retail channel where they found the most traction.
Over time, Cashmere Popcorn has invested in upgrades in equipment and even developed their own proprietary equipment. Investments in resources have helped Cashmere Popcorn improve its value proposition by providing different flavors of popcorn that others can’t do well.
At the same time, their business model has evolved in other ways. As the Cashmere brand has grown, more boutique retailers across the state are carrying their popcorn. Now Angie is focused on improving distribution to take advantage of Cashmere Popcorn’s expanding market.
BANKTASTIC
Entrepreneur Martha Bartlett Piland
Martha Bartlett Piland began her entrepreneurial journey in 1998, when she started MB Piland Advertising + Marketing.
Martha took a novel approach to her business model from the beginning. Her concept branded “fat-free marketing” utilized partners as key resources, which meant that MB Piland could offer a full-service value propositioned deeper bench than traditional models. To say this business model has worked well would be an understatement - MB Piland recently celebrated 23 years in business. Entrepreneurs are continually looking to grow or improve their business, and Martha is no exception.
Looking for new opportunities, her search began with a thought-provoking question, “What can we offer that no one else is offering, and how can we leverage our experience to solve problems we see over and over within a single vertical?” Her answer was Banktastic, an agency that works with banks, credit unions, accounting firms, fintechs and other financial brands who also want to grow and innovate in a commodity-minded environment.
Through many client conversations and industry observation, Martha discovered a pain point that local banks and credit unions are trying to overcome: attracting millennials in a digital world. By listening to her customers, she was able to enhance her value proposition. Banktastic created the National Millennial Advising Board, a group of 225 millennials nationwide that provide insight that is shared with Banktastic clients.
THE REST OF THE STORY
Alas, Walt Disney did not get off the train in Topeka, although I suspect if he had, he would have found any number of sheds available for him to use. No worries; we have entrepreneurs like Shelley, Angie and Martha (and others) doing some pretty cool stuff. Innovation is not relegated to novel products or technology. Designing, testing and building innovative business models—that is the job of the entrepreneur.
TK
