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Fábrica de Nubes

In “Fábrica de Nubes”, we believe that together we can create a better world for the kids. Secure, educated and fun. Secure: providing environments where the kids can grow and take advantage of all their ever increasing motor development, surrounded whit people in charge, capable of handle emergency situation avoiding injuries and death among the child population. Educated: Offering a guide for the parents and personal in charge of kids, about the educational process, from toys to books, including expert advice in many referent topics and world tendencies. And Fun: creating and designing personalized spaces for every kid, according to his/her preferences and personality. All the sales are used to cover some expenses of the social project, “Regala una Nube”, which have 2 main purposes: To integrate the child´s nonprofits between them and connect them to all the philanthropic population and organizations willing to help. The communication and business platform of the project is a website www.fabricadenubes.org, it only require an assistant in charge of contact activities and the initial investment, designate mostly to expenses of graphic, web and mobile app design. The hard part is the correct formulation of the connection and communication strategies that will allow the project to scale locally at first and then global, in searches of the integration between nonprofits, the people and organizations who want to help them. For everyone to contribute when they can, how they can to improve and optimized the positive impact in the child community.

In a few words, we sell valuable advice and guide, to parents and organizations in charge of little kids. Whit the money, we support our social project to integrate the child´s nonprofits between them and connect them to all the philanthropic population and organizations willing to help. Whit the growing on our sales and community members, we´ll create an ever increasing positive impact in the child community.

These’re the notes from the project development. Love to hear some constructive criticism:

FÁBRICA DE NUBES (Seth Godin Class)

 

1. THE BUSINESS MODEL:

  • Who is it for?

For philanthropic individuals, mostly parents, grandparents or persons whose life revolves around kids, like educators, health professionals and others.

  • What does this group believe?

That together we can create a better world for the kids. Secure, educated and fun.

  • Have they bought a solution like this before?

Yes, but in unconnected way, each part on her or his own.

  • Do they know about you?

For now, just my closest friends, coworkers and family and the persons they´ve contact me whit.

  • Do they trust you?

Yes, at least the ones that know me for a while and the ones that gives good references about me to his or her friends.

  • Are people paying whit cash, or attention or connection?

In fact, they paying whit the three of them, all are valid contribution to the meaning of the project.

  • Are you connecting one customer to another?

Yes, connection is the only way this project can stand and grow, is the key element. If you see someone helping, that boosts your impetus.

  • Are you connecting one customer to your solution?

Yes, connection is the only way this project can stand and grow, is the key element. If not, there´s no solution.

  • Are you connecting one kind of customer to another?

Yes, connection is the only way this project can stand and grow, is the key element. Yes to convert them to the philanthropic spectrum of the mind.

  • What job is your costumer hiring your product or service to do?

For the parents, a guide to improve their kid’s environment in a personalized way to have a positive input in their present and future lives. For professionals and organizations, a connected and personalized way to optimized their social efforts, to put them where are more needed.

  • If this catches on, why won´t cheaper competitors be able to steal your market?

If they after the same goal of create a better world for the kid´s, they’re no competitors but coworkers.

  • What is the hard part?

The correct formulation of the connection and communication strategies that will allow the project to scale locally at first and then global.

  • What´s scarce?

The integration between nonprofits focus, the people and organizations who wanting to help them. For everyone to contribute when they can, how they can to improve and optimized the positive impact in the child community.

  • Does your offering become more valuable as more people use it?

Yes, only increasing the amount of people is possible to make significant impact.

  • How much does it cost to make a sale?

The cost of a sale is potentially $0, the project really don´t require more than the initial investment  if behave like intended, designate mostly to expenses of graphic, web and mobile app design and a personal assistant generally for contact activities.

  • What is the life time value of a costumer?

At least if a person share the project link among their contacts, generate a life time value. A person or organization who engage whit it, scale that impact, if they feel proud and want to share their experience.

  • Can you make what you make significally more cheaply?

No more cheaply, but if the quality of the services improve (at no cost, just for the engaging of capable professionals and organizations willing to contribute), can be perceive as cheaper.

 

  • Can you make what you make significally faster?

It depends in the number of persons helping in the development of the service as a community, in that case significally faster.

  • Can you add more value to what you make?

Yes, the key is making it more personally without compromising the growing of the project.

  • When can you ship?

In a month from now (today is 15/01/14)

 

Business model description:

In “Fábrica de Nubes”, we believe that together we can create a better world for the kids. Secure, educated and fun. Secure: providing environments where the kids can grow and take advantage of all their ever increasing motor development, surrounded whit people in charge, capable of handle emergency situation avoiding injuries and death among the child population. Educated: Offering a guide for the parents and personal in charge of kids, about the educational process, from toys to books, including expert advice in many referent topics and world tendencies. And Fun: creating and designing personalized spaces for every kid, according to his/her preferences and personality. All the sales are used to cover some expenses of the social project attach, “Regala una Nube”, which have 2 main purposes: To integrate the child´s nonprofits between them and connect them to all the philanthropic population and organizations willing to help. The communication and business platform of the project is a website www.fabricadenubes.org, it only require an assistant in charge of contact activities and the initial investment, designate mostly to expenses of graphic, web and mobile app design. The hard part is the correct formulation of the connection and communication strategies that will allow the project to scale locally at first and then global, in searches of the integration between nonprofits, the people and organizations who want to help them. For everyone to contribute when they can, how they can to improve and optimized the positive impact in the child community.

In a few words, we sell valuable advice and guide, to parents and organizations in charge of little kids, whit the money we support our social project to integrate the child´s nonprofits between them and connect them to all the philanthropic population and organizations willing to help. Whit the growing on our sales and community members, we´ll create an ever increasing positive impact in the child community.

I´m from Medellin, Colombia. As my project is at first local, the website content is written in my native language, Spanish. Love to have some feedback from those who can understand it; however I’m willing to explain whatever is necessary to any person interested.

 

2. FREE LANCING VS ENTREPENEURSHIP:

Determine who you are:

If you're an entrepreneur, write down how you will:

  • Relentlessly hire people to delegate work to: Designing a process and visioning the different areas required for it to scale, since the beginning. Even if there´s only one employee should follow the strict procedures of each area, knowing that when the organization grows will be delegate to a different person, according whit the needs of the project.  Identifying the profile for each one of the potential areas personal is key, is the foundation of the journal to conform the ideal team.
    • Give yourself a promotion so you are constantly doing work you're unable to hire anyone else to do: Based on a to-do list, identify the ones that can be done just by me at the time (due to the early stage of the project) or those that I really enjoy doing. The rest, after being analyze will allow me to identify the required characteristics of the firs employee. After that rinse and repeat.
    • Build an organization that has the cash flow to permit you to do those two things..: No rent to pay by running the project from home and using a website as a business and communication platform. Almost all the activities required for the functioning and growing of the project involve social efforts and can be delegate to volunteers, even whit a low amount of cash flow the project can run, due to the low money requirements.

 

3. FUNDING:

Determine who you are. Create a page or more that answers the following questions as completely as you can:

  • Do you need money for this business? No as it is focus today, however since I´ve the idea 4 years ago it´s been evolving to become practically a “no money” required project. Every potential investor was frightening by the social focus of the project (they´re all want money for themselves first). This make me decide to use all the money for the social efforts and not as intended in the beginning, a money focus company willing to give some percentage of the revenue to child care institutions.
  • Does more money increase the chances you will reach positive cash flow? Profitability? No, really. The connection is the key element of the project success.
  • What are the assets the money will go to pay for? The principal asset is time for contact activities at the beginning of the process, when it spreads it´ll take care of his own as it grows. In other words, a person to execute the communication strategy, inviting individuals and organizations to participate. If we do something remarkable some members of the community can take care of it as part of volunteer work.
  • How long before the money invested starts turning into money returned? As soon as we can raise money to pay for the salary of the first assistant, the project can grow and scale without incrementing the monthly fix costs.
  • Do you hope to sell this company? No, I want it to be my humble gift to the world.
  • When? N/A
  • For how much? N/A
  • What is the gross margin of what you'll be selling? N/A
  • How long will it take you to reach scale? Doing the work that has to be done, I estimate a year from now (21/01/14).
  • Given all this and what you learned in the video, what sort of funding are you seeking? Why would this investor choose your offering over all the others available? This project requires more guts and passion that it needs money. The more valuable founding I need is for more people to care and spread the word. That depends of my effort and accuracy reading each one of the situations along the way.

 

4. HIRING:

Commit to your hiring plan. If we can agree that a key part of your business is going to be your people and what they contribute, can we also agree that some hires are better than others? In this part of the 7-part plan, you're going to commit (not just describe, but commit) to what your human resources look like.

  • Who are the first employees you need? This can be a one or a zero employee company.
  • Where will you find them? At first it´ll be me, due to the fact that is my vision and is not until someone else shares it with me in an active way, that I´ll find out their willingness to be part of the project. I believe that along the way of promoting my idea and working whit people the time will be a depurator of the work team.
  • Why would they join you? This project relies on volunteers for the activities and donation for the different child care institutions, but the project itself is an ever growing opportunity always open to new ideas and improvement. Is a gift to the kids, from everyone else, so any person can be part of it, as long his or her passion drives them to it.
  • How will you tell the good ones apart from the convenient ones? As their ultimately doing it for free is easy to tell apart who legitimate want to participate.
  • What's your funnel? As their ultimately doing it for free is easy to tell apart who legitimate want to participate and continue doing it.
  • After hiring people, how will you evaluate them? Is a big project divided in lots of micro projects. The idea is that each member of the community can propose an activity that helps the child population in any way and the rest of us will help them achieve it.
  • How long after starting will you give people a formal review? Is not my job but the tangible results, to evaluate the participation of every member of the community.
  • What's your approach for talking about the uncomfortable? Trying to focus the initial part of the speech in something uncomfortable for me before bringing up the thing that has to be said to the other person. It appears to me that showing some vulnerability can help putting us in the same level and gain empathy.
  • Are you asking people to do work that's been done before, or to explore the edges of a new universe? I´m asking people to take what the know or enjoy doing and focus it in activities that help create a better world for the kids, through the institution we represent or in any other way.

 

 

5. NAMING:

Create a mane (and live with it). This is a tactical exercise in digital marketing and storytelling (don't use the word branding, please). As I already pick a name for the project , I´ll leave this blank, but if it scales global, the translate to the English is going to be a problem because “Cloud factory” already exist in a bunch of product and services categories.

  • Open your browser to wordoid. Also open a new window to nameboy. And a third one to hover.
    • Make a list of thirty words that describe things that remind you of how you want your business to make people feel. They might be colors or animals or emotions or holidays or relationships or historic figures...
    • For each word on the list, make a list of five more words that remind you of (but aren't exactly about) that word.
    • Now you have 150 names. Start running single ones through wordoid and combinations through nameboy.
    • Repeat until you find an available dot com domain. Grab it in Hover!

 

 

6. PARTNERSHIP:

Delineate your approach to partners. Consider the following:

  • Who else is helping you start this thing? After two years of searching for a partner I realized that the only thing they can really offer from the beginning is just money. The partners that I need for this project should be here not for money but for their generosity and philanthropic way of thinking. That’s one of the main reasons the project has evolve from the original idea of producing and selling diverse lines of babies and kids products, to a nonprofit focus.
  • If they stopped working on the project in a month, would that be okay? That’s what’s happened to me 3 times now. Generosity is a difficult thing to demand, is a gift. So when money is involve, I ended putting all the heart and they demanding to put aside the social efforts (for a while, they said) to focus on money, then we can help (yea, alright).
  • How much are you actually hoping they will contribute, today, tomorrow and year from now? It feels good to finally realize that I’ve been using the lack of partners as an excuse not to execute the idea. I know that I can´t make it all the way by my own, but I just need to make some honest and transparent effort, for them to come and help me   ¡I´m bootstrapping this myself!

 

  • Create a spreadsheet, listing each prospective partner. Under their name, list everything you're hoping to have them do, in the long run and the short run. N/A for this project.
  • On the same spreadsheet, make a different section where you list the hierarchy of how decisions are going to get made. N/A for this project.
  • In the video, we'll talk about how to take these two components and combine them with the financing page of your guide to come up with an equitable plan for sharing the upside. N/A for this project.

 

7. CASHFLOW:

Understand and control cash flow and pricing. Answer these questions, in writing!

  • How much is your product or service going to cost? U$500
  • How much does it cost you to make one additional unit? Virtually U$0, it´s practically a onetime effort whit less extenuates actualizations along the way.
  • How much is your monthly overhead, all the expenses that aren't included in the cost of making one more unit. Maybe the actualizations of the initial material, that should be execute by some members of the community.
  • How many units are you going to sell every month? 10

Now you know what the monthly profit is (IF you sell all you make, AND people pay on time). Some questions, then:

  • What would happen to your numbers if you increase your retail price by 20%? 40% Lower it 10%? As the potential cost of selling one more service in this case, is supposed to be U$0 and at the end our purpose isn´t to make a sale but to motivate the buyer to contribute actively whit the social effort, The price of the services will low proportionally to the grown of the community as that amount of money won´t be relevant in comparison whit the amount of donations we want to impulse and generate.
  • What would you have to change about your business to get people to pay in advance? To subscribe? How much more could you charge if you gave them credit? The services are already design for the buyers to pay in advance and the products can be made on demand so no more stock that a 12 item will be require.
  • For the first six months of your business, what if you committed to being much smaller but only had clients that paid upfront? That’s the bootstrapping idea here, to make it (the project) small and personal and let it grow if it deserves, if work focus is correct.

 

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