Biz Idea: Asian-Influenced Craft Beer

Mug of Beer A buddy of mine just started home-brewing his own beer. “It’s easy!” he said. “And tastes great!”

His love for this hobby got me thinking. And thirsty. So after a few beers myself, an article from Entrepreneur Magazine bubbled to my mind: “The 2008 Hot List“. It lists their picks for the hottest industries in 2008. One of the picks is craft beer.

Ask industry experts what’s brewing and you’ll get a stout response: craft beer. The volume of craft beer sold in the first half of 2007 rose 11 percent compared to the same period in 2006, and dollar growth increased 14 percent, according to the Brewers Association. “People like the taste of hand-crafted beers that deliver unexpected flavors,” says Keith Villa, a brewmaster at Coors.

Ah, unexpected flavors, eh? That got me thinking some more, and drinking some more. Both go hand-in-hand wonderfully. *burp* This also warmed up my appetite and led me to California cuisine, also known as pan-Asian or fusion cuisine. It’s the eclectic yet sublime art of fusing dishes, ingredients, and cooking styles from around the world. According to Wikipedia, such a restaurant may include items such as: sake cocktails, salads with crisp nori toppings & a miso-cilantro vinaigrette dressing, and rock shrimp dumplings. Yum!

To top off a meal like that, my mind then wandered to chocolates (naturally). And more specifically, to fusion gourmet chocolates. As another Entrepreneur Magazine article showed, chocolates can be just as expressive as food. Take Vosges-Haut Chocolat, for instance. Founder Katrina Markoff, a student of the Parisian culinary institute Le Cordon Bleu, studied street food in Southeast Asia and Australia for nine months and came up with decadent concoctions such as chocolate with coconut milk and curry. And just recently, a friend introduced me to the Oakland, CA-based Cosmic Chocolate, another gourmet chocolatier with an eclectic range of ingredients such as chai spices, green tea, ginger syrup, basil, and chili. While some of these may sound like you’d definitely need a beer afterwards, I’ve tried some and they were surprisingly delicious!

So why not do the same with craft beer? Why not start a microbrewery specializing in a fusion of Asian-influenced flavors? Like a spicy wasabi beer? Or one with hints of chai and lychee? There are already beers brewed with chocolate, cherries, oranges, and lemons flavors. Why not mango, kiwi, coconut, or even curry? There’s a whole palette to choose from. Miso, soy sauce, ginger, garlic, black bean, red bean… Heck, you could just raid the kitchen Chez Panisse for a long list of ideas!

Okay, maybe this idea will turn some of your stomachs. But hey, if Jones Soda can make a Turkey & Gravy Soda, why couldn’t some innovative new microbrewery create a Teriyaki Beer?

Biz Idea: Board Game Cafe

Board Game My friends and I love board games. My friends and I love cafes. So I thought, why not combine them both into a board game cafe!

The Business Model of Current Cafes

The current cafe business model is basically to sell you coffee and snacks (and occasionally, other things too). The more in-and-out customer traffic they get, the more sales they make. Although many cafes go out of their way to create a cozy, homey environment to attract lounging customers, this can actually hurt their bottom line.

For instance, cafes with free wifi will undoubtedly attract cafe wifi moochers. That’s good and all, if the moochers make occasional purchases. But as one Seattle coffee shop discovered, removing free wifi decreased lounging customers (more specifically: cafe wifi moochers) and increased sales.

So how about this as an alternate cafe business model: make money from customers who lounge around in your cafe. How? By offering board games!

Game Night at Yahoo!

Here’s another way to look at it. Randy Farmer, a Community Strategic Analyst for Yahoo! (YHOO) started a casual Game Night at Yahoo! last year. It’s free to anyone in the California Silicon Valley area. New members can join through their mailing list, South Bay Boardgamers, then play a large variety of board games at Yahoo!’s offices in Sunnyvale, CA.

Back when I was a Yahoo! employee, I’d occasionally see several dozen boardgamers happily socializing and playing in the Yahoo! cafeteria. The energy was enticing and exciting.

This is proof of an audience for board games. Now say they could also play on weekends in a nice, cozy, homey cafe, complete with coffee and snacks. Not only would it be a good wholesome family-friendly evening, but it would be a great way to meet new people too. There are lots of singles and new residents in the area, many of whom may be, or could grow to be, board game enthusiasts.

Monetizing the Board Game Cafe

Aside from coffee and snacks, this cafe could offer:

Board game table rentals
A group of customers could select or reserve a table and a board game from the cafe’s library. The table would be rented at an hourly rate that varied depending on the day of the week. Perhaps it could follow a bowling lane rental model, or something similar. The group could specify that the table is “private” or “public,” where public tables would allow walk-ins to join at a pro-rated rate. Tables would vary in size and be expandable, from small one-on-ones to large groups.
Board game tournaments
Once the cafe was somewhat established, weekly or monthly tournaments could be held. These would allow singles the opportunity to band together and compete for prizes, such as gift certificates, additional time, or cash. Teams and guilds could be formed too. Some tournaments could take on themes, such as a AD&D Halloween, WWII Week, or Star Wars Wars. Companies can also reserve the cafe for team outings or team-building games.
Online Network
An online supporting network would allow customers to view their accounts and subscribe to various rental schedules (such as a flat fee for unlimited usage per month). They could also form guilds with other members and track their winnings and losses from tournaments or private games. Members could purchase time or subscriptions for other members as gifts. New members could also be randomly selected on occasion for a game together, based on their game preferences and experience.

The Business Challenges

There are many business challenges to this idea. They aren’t insurmountable, but are reason to approach this with some caution.

Video Games
There’s a growing trend of video & electronic game usage. It’s arguable that board games have social benefits over the faceless screen of a monitor, though the video game industry is booming. If this trend continues, board game demand may drop and kill the profitability of this business. And if a niche survives, would it be large enough to sustain such a cafe? Or could a retro revival take place to reintroduce board games to the public?
Price Point and Margins
The rental rate would be an important determinant of success. How much are people willing to pay for playing board games in public vs in their own homes? Game Night at Yahoo! shows some demand for playing in public, especially when it means expanding your circle of players. The price can’t be so low that it doesn’t cover the costs involved (board game sets, employees, rent, etc) and can’t be so high that it drives away customers. Research would be needed to determine the right price point.
Location
As with any retail business, the location is crucial for success. Great locations mean high rent, however. Are the profits of this business enough to cover the costs?

Since this business idea would require relatively high capital costs (rent, furniture, materials, employees, training, web site development, point-of-sale infrastructure, etc), the break-even point may not come for a while, perhaps years?

Could this business become one of those successful trends that grows into franchises across the country? Or is it a labor of love, a hobby business for someone who doesn’t need the money but has the time to do this? I don’t know, but I dig the idea. And so, perhaps, would some of my friends!

Brainstorming Business Ideas

Coming up with business ideas is easy. Relatively speaking, that is—relative to setting up a business and keeping it profitable.

Here are several brainstorming methods you can use to come up with business ideas.

The Problem & Solution Method

Examine your life and your everyday activities. Are there tedious chores that could be made easier? Are there complicated actions you can’t do, but wish you could do? Are there undesirable activities that could be done by someone or something else?

Carry a notebook with you everywhere for a week. Write down every painful problem you see. Ask your friends about problems they face too. Every problem is a potential opportunity, ripe for solutions that could be made into profitable products or services.

The Market-First Method

Choose a specific target market you want to serve before even thinking about a product or service. Understand that market’s demographics, psychographics, behaviors, beliefs, needs, wants, and problems.

Put yourself in their shoes. If you can, try to live and breath their lifestyle for a week. Immerse yourself in that target market. Watch them, study them, interview them. Take note of everything they say. How do they think? What problems do they need solved? What do they need, what do they want? Keep an open mind for potential opportunities.

The Personal Strengths Method

Analyze your innate talents, learned skills, and experiences. If you’re working with others, analyze your collective strengths. Take psychological tests (like those offered in Now, Discover Your Strengths and other similar sources) to help determine your core aptitudes.

What kinds of products can you build, or services can you offer, with this collection of strengths? What kinds of businesses play to your assets? Chances are, you will be much more successful with a business that utilizes your strengths, even if the idea already exists.

The Mix & Match Method

Take two seemingly unrelated concepts, products, or services and see if you can combine them. They can be across distribution channels, packaging styles, branding styles, ergonomic designs, target audiences, core features, core attributes, and even base materials. Make a list of existing concepts and mix & match them systematically, analyzing each pair for viability.

For example, mix the concept of fast food and package delivery and you have overnight shipping services. Match a photocopier and a telephone and you have a fax machine. Add friend networks and the internet and you have online social networks.

The Importation Method

Travel the world. Take note of all the products and services you see. Consider how each could be imported back to your country. You could create a whole new company doing the same thing. Or you could become the sole distributor/provider in your region for the original company.

The world is rich with ideas, especially in cultures very different than yours. Some imported ideas will need adjustments to adapt to the local market. Others will need experts from the original country to make it happen. Be aware of potential international copyright laws as well.

The Lateral Thinking Method

Look at an existing problem and apply lateral thinking principles to its solution. Shift your thinking and redefine the problem. Consider alternate possibilities, no matter how far-fetched or frivolous they may seem.

This riddle is an example of lateral thinking: “A man and his son are in a car crash. The father is killed and the son is taken to hospital. When he gets there, the surgeon says ‘I can’t operate on this boy—he is my son!’ How is this possible?” The answer involves shifting perceptions to allow alternate possibilities. One such answer is: the surgeon is the son’s mother.

The Godin Method (or The Edgecraft Method)

Seth Godin, author of Purple Cow and Free Prize Inside, writes about creating remarkable products or services and the art of Edgecraft. For many businesses, remarkable marketing and branding help garner success, even with products and services that aren’t new.

Edgecraft is the concept of “going all the way to the edge” of an existing product or service. It means looking at an idea and adding a special twist, a unique element, that makes the original idea remarkable. Godin says it’s more than just a gimmick or product differentiation, it’s turning the idea into a Purple Cow (something that people will remember and talk about).

The Christensen Method (or The Disruptive Innovation Method)

Clayton Christensen, author of The Innovator’s Dilemma, The Innovator’s Solution, and Seeing What’s Next, writes about sustaining and disruptive innovations in the high technology markets. His definitions of disruptive innovations can be a great source of ideas as well.

Disruptive innovations are new products or services that fundamentally change an industry, oftentimes shaking the top companies from their pedestals. There are two types of disruptive innovations: low-end disruptions and new-market disruptions.

Low-end disruptions
These serve less demanding customers with low-priced, relatively straightforward offerings using low-cost business models. Look for markets with over-served customers and offer a simpler product or service.
New-market disruptions
These serve new customers by making it easier for them to do something that previously required being or hiring specialists. Look for unfulfilled needs and create new products or services for them.

The Borrowed Ideas Method

There are lots of sources of free ideas all around you. The web is especially full of them. Some sources are:

See, isn’t that easy? What are other methods or sources you use for your ideas?

Pretty Independent Machine: New Opportunities

Ths music industry has been on my mind this week. First, it was NIN and Radiohead going independent, then it was how free songs were going to effect musicians.

Now I’m wondering: What will the role of record labels be if songs become freely available to the public, as opposed to within paid CDs or digital files?

And to that, I also wonder: Are there any helpful comparisons to make with the fields of writing, painting, photography, acting, or filmmaking? Perhaps, in these comparisons, there will be a demonstrated example of needing, or not needing, a record label.

All are creative fields with professionals seeking to make a living. So I’m sure there are some similarities, which I’m going to simplify into the need for marketing and distribution. And in all of these fields, the way to get the proper marketing and distribution (as well as other connections) is through representation by some kind of agent or manager.

(Disclaimer: I’m not a professional in any of these fields, so please let me know if anything I write here is incorrect.)

Writers

Representation
This is handled by literary agents. They are generally considered to be crucial, since they hold the key to the marketing and distribution channels. Blogging and online publishing is rapidly becoming an alternative means of self-publishing, diminishing the need for representation.
Marketing
This is handled by publishers. They have access to large budgets, teams of graphic designers, and marketing channels such as book tours and merchandising. Some business-savvy bloggers are beginning to learn how to market themselves, diminishing the need for publishers.
Distribution
This is handled by publishers. They have access to economies of scale, book production, and distribution channels such as bookseller chains. Blogging and online publishing provides a natural distribution alternative: the Web, diminishing the need for publishers.

Painters/Illustrators

Representation
This is handled by artist agents. They aren’t commonly used, since some artists aren’t aware they exist, don’t know how to find them, or prefer to go it alone.
Marketing
This is handled by art galleries. Larger galleries are able to offer some advertising, though the gallery itself is the main marketing vehicle. Some web-savvy artists also use the Web as a supplementary marketing channel, but still rely heavily on art galleries.
Distribution
This is handled by art galleries and, if the photographer chooses this means of income, stock illustration services. They provide an aggregation point for artwork, making it easier for buyers to find and purchase the art. Some web-savvy artists also set up online stores as a supplementary distribution channel, but still rely heavily on art galleries or stock illustration services.

Photographers

Representation
This is handled by photo agents. They aren’t commonly used, since some photographers aren’t aware they exist, don’t know how to find them, or prefer to go it alone.
Marketing
This is handled by art galleries and photography magazines. Larger galleries are able to offer some advertising, though the gallery itself is the main marketing vehicle. Many web-savvy photographers are increasingly using the Web as their primary marketing channel, especially with the rise of sites like Flickr.
Distribution
This is handled by art galleries and, if the photographer chooses this means of income, stock photography houses. They provide an aggregation point for photographs, making it easier for buyers to find and purchase them. Many web-savvy photographers are increasingly using the Web as their primary distribution channel, though there are difficulties in digital rights, since it’s easy to make digital copies of photographs.

Actors/Actresses

Representation
This is handled by talent agents. They are generally considered to be crucial, since they hold the key to the marketing and distribution channels. There have been no viable alternatives to talent agents in this field.
Marketing
This is also handled by talent agents. They are the ones who promote and sell their clients to various “customers” such as casting directors and production companies. There have been no viable marketing alternatives to talent agents in this field.
Distribution
Since the “product” is the person him/herself, there is no need for a distribution channel, per se.

Filmmakers

Representation
This is handled by talent agents. Independent filmmakers generally don’t use them, preferring instead to go it alone. Online publishing is rapidly becoming an alternative means of self-publishing, diminishing the need for representation.
Marketing
This is handled by movie studios. They have access to large budgets, marketing departments, and marketing channels such as television and billboards. Some web-savvy filmmakers are increasingly using the Web as their primary marketing channel, such as sites like YouTube, diminishing the need for movie studios.
Distribution
This is handled by movie studios. They have access to economies of scale, production facilities, and distribution channels such as movie theater and DVD rental chains. The Web provides a natural distribution alternative, diminishing the need for movie studios. There are difficulties in digital rights, however, since it’s easy to make digital copies of movies.

Musicians

Representation
This is handled by music managers. They are considered crucial by some, though a few are beginning to publish music on their own, diminishing the need for representation.
Marketing
This is handled by record labels. They have access to large budgets, marketing and design departments, and marketing channels such as television and magazines. Some web-savvy musicians are increasingly using the Web as their primary marketing channel, such as MySpace, diminishing the need for record labels.
Distribution
This is handled by record labels. They have access to economies of scale, recording studios, and distribution channels such as online and offline music store chains. Some web-savvy musicians are increasingly using the Web as their primary distribution channel, though there are difficulties in digital rights, since it’s easy to make digital copies of music.

My Prediction for the Music Industry

So what does this mean? A lot of creative professions are experimenting with the Web as a new marketing and distribution channel. For some, it makes sense; for others, it doesn’t—at least, not with the current state of their industry.

I don’t believe the marketing and distribution providers will ever go away completely. Not all creative professionals are business- or web-savvy, nor do they want to be. Some want to concentrate on creating their art, and nothing else. For those professionals, there will always bee a need for someone handling their marketing and distribution needs.

The current entities handling the marketing and distribution will need to evolve, however, if they want to survive. Going back to the music business, record labels have realized that they need new revenue vehicles as CD sales continue to drop. So they’ve been cutting into the musicians’ pockets, as stated in Jeff Leeds’s New York Times article “Squeezing Money From the Music“:

Lately, the major labels have in effect tried to move into the talent management business by demanding that new artists seeking record contracts give their label a cut of concert earnings or T-shirt and merchandise revenue – areas that had once been outside the labels’ bailiwick.

No wonder musicians hate record labels. As much as musicians need marketing and distribution services, record labels that do this are going to chase away more and more musicians. They’re killing the golden geese that lay the golden eggs, so to speak.

What this means is an opportunity for smart competition—i.e. independent record labels who are willing to take on experimental business models. Although the largest record labels still dominate mainstream marketing and distribution channels, as they lose artists (and consequently, revenue), they’ll lose market share in favor of new and evolved players.

Digital rights will also be a concern, though if digital songs become a marketing tool, then digital rights are moot.

New Potential Business Ideas

Here’s a new business idea: You the musician can hire me for a percentage of sales (or a flat reoccurring fee), while I help you market and distribute your music. This could be as simple as operating a web site to getting your songs onto P2P networks. I’d have to have a lot of clients in order to turn a profit however, since margins will be slim. Or a business like iTunes could offer such services.

Another new business idea: Not every musician will have the expertise to create polished, well-edited music. So you can hire me to help you handle the recording and editing of it. Come to my recording studio, or hire me to teach you how to do this on your own. Maybe I can sell you some of the equipment and software too. The margins here are a little better. This isn’t quite an alternative for record labels, but aspiring entrepreneurs could sure consider it. People who can do this well will be in high demand, just as current music producers are.

Another evolved-business idea: You’ll still need someone to manage your gigs, merchandise, commercial licensing, and other revenue streams. I’m basically still your music manager, though with a slightly revised set of responsibilities. Or I could write some software, like Quickbooks, to help you manage your finances. Such software exists already, but none dominate the market or are widely-known.

Evolving industries always means new opportunities. Exciting times, indeed!

Ideas from Ironic Sans

Ironic Sans Now for some Friday fun. David Friedman of Ironic Sans has had some great product ideas, and some not-necessarily-great, but oh-so-funny ones too.

Of the latter kind, here are my top picks:

Is this guy a genius or what?

Biz Idea: Green Vehicle Service Stations

Toyota Prius Here’s a great idea. As green vehicles (like hybrid and electric vehicles) become more popular, there’s going to be a need for service stations that specialize in them.

These could be fueling/recharging stations. Or maintenance and general service stations. Or both.

Since green vehicles have different internal systems and parts than traditional gas-and-oil vehicles, they’re going to need specially-trained mechanics. Green vehicle owners will probably trust a service station that specializes in their cars, over a general-purpose service station too.

The stations could be outfitted with environmentally-friendly facilities. Like solar panels and energy-conservation equipment at the very least. Since a significant portion of green vehicles are within California, the first few pilot stations could start here.

Some of the challenges include still a relatively small (but growing) number of consumers, rapidly changing and advancing technology (which, operationally, would be a huge hurdle), a lack of parts suppliers, and a lack of trained mechanics. The break-even point may not be for a few years and would require significant capital. There’s also the real estate to worry about.

However, if you were to establish a presence and brand right now, by the time this trend hits the mainstream, you’ll have secured a strong position in the market.

I’d love to do this if I could, but don’t have the know-how or capital. But if you do, I’d love to put up some capital and help out in any way that I can!

Biz Idea: Video Pop-Ups

VH1 Here’s an amusing idea. Remember VH1’s Pop-Up Videos? How about a product that offers a way to add captions, text, word bubbles, etc to videos?

Some sites offer this functionality for photos right now, though mostly to create lolcat photos (like Big Huge Labs and ICanHasCheezBurger Factory, of course).

Now extend this to videos, and there are all kinds of possibilities! Like:

  • Karaoke videos
  • Mishead lyrics videos
  • Pop-up videos (of course)
  • Comic strip videos
  • Faux silent movies
  • Instructional/how-to videos
  • Presentations
  • lolvideos?
  • And many more!

Biz Idea: Money-Making Facebook Apps

Facebook I was thinking about Facebook applications the other day. These new apps are kinda fun and getting a lot of buzz. But can you make money off of them, I wondered? Hmmm.

Here are a few that I think could actually generate money.

  • Fantasy Sports

    Since Facebook doesn’t allow sports bookings or gambling in any form, the business model here would be subscription-based, much like what most fantasy sports sites offer right now. CBS SportsLine Fantasy Sports is one such app.

  • For Sale Lists

    Commerce is always a good way to make money. If you have something to sell, perhaps someone on Facebook will be willing to buy it. Ebay To Go and Garage Sale are two such apps.

  • Freelance Services

    Customers don’t only buy products; they buy services as well. If you have desirable skills, why not offer them? No such apps yet exist, though I’m sure a company like Elance, oDesk, or DoMyStuff.com could offer this soon (wink wink).

What other Facebook apps do you think could make money?