This week are looking at organization structures, the scope of the venture and the hiring plan. I have very little knowledge defining organizational structures in business terms. So I did a little bit of research to find the right terms. I have worked in both start ups and large companies, the former being completely flat the latter was divisional and hierarchical. CycleRaja will only function in a flat design driven structure. The future of CycleRaja is based in design innovation. To encourage innovation the company has to be organized to support employees' creativity. Creativity is not limited to making the helmet "shiny". Many businesses loop design at the end of their product process to "shiny-fy" their product but what a lot of companies don't understand is the full range of what design can offer. Creativity is a key ingredient when you are penetrating a unique market. By focusing on the needs and behaviors of our target market we will be able to creativity break into the market and spread and have the kind of impact that we would like to have.
The core leadership team has to have a member with a business background and hopefully someone who has experience working with developing economies.
Scope of the social venture
We looking at the business cycle in class this week (shown below). Visually looking at the process makes it easer for me to understand what will be done in house and what will have to be outsources.
Research and development will be conducted through a partnership with a material engineering company based in India that has experience working with foams.
The production of the soft core foam and the customizable shells will be outsourced to micro-factories that will set up by CycleRaja but handed over to the community. The idea is to support local economies and help people build expertise in manufacturing.
Marketing and sales: Marketing will be outsourced to companies that are local to the cities that CycleRaja is expanding to. To popularize CycleRaja helmets it is important to use mediums that our target market is familiar with, this includes advertising on regional channels using local celebrities. Another aspect of marketing will including hiring autorickshaws to penetrate into different areas of the cities and advertise. This is a mode that is used by politicians during elections and by the government to announce health camps for the poor.
Autorickshaw used for political campaigning
Distribution: To ensure that the bicycle helmet is available in every local store I have to make it easier for cycle store owners to access it. For example I recently found out that Decathlon India (http://www.decathlon.in/) a warehouse for sports goods has made it easier for shop owners to stock up on bicycle accessories because they offer them for cheap. Decathlon has reduced their distribution cost by setting up a single Costo like self service warehouse with goods that both private individuals and business owners can buy. Would that work for me? Will I have to set up hub in each city to support distribution. I think I have rethink this aspect of my business. I could also emulate distribution of successful Indian cycle companies like TI Cycles of India.
Service: CycleRaja will not have it's own shops where the helmets will be sold. By using existing local cycle shops we will be eliminating service costs.
Partnerships
Distribution of bicycle helmets will not be possible without the help of local small business owners and therefore it is important for CycleRaja to build good relationships with them. Other partnerships include our foam suppliers, manufacturers and the leads in our distribution system that will take our helmets and put them in the hands of the bicycle shop owners.
Hiring plan
I don't have the hiring plan right now but I have an idea of what I need. Starting off I will require a marketing team to help bring CycleRaja visibility and to educate the public about bicycle safety. I will also need a team to work on building partnerships with shops and to monitor the distribution. I will have to think through the timeline for the hiring period. I would like to keep the team small and tight for the first couple of years to reduce spending and focus on the product and breaking into the market.
Phew. I wish there was a term for "brain pain from thinking business" because that is what is happening right now.
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