Question

CASE STUDY RENDEZWOLF

Entrepreneurs create minimal viable products to allow them to test their product with real customers as quickly as possible. Testing the product this way helps to determine whether consumers really want the product, provides feedback from these customers to help improve the product, and gathers hard data that demonstrates the proof of concept many investors want before they fund an emerging business.

Judson Aikens wanted to start a business but had a good paying job and was concerned about taking on too much risk. While brainstorming about possible businesses he could launch, Aikens came up for an idea for a new dating app. He had observed that it is easy to meet new people at places like dog parks.

Aikens’s idea was to develop an app called RendezWoof that created a virtual dog park. “The app would not only connect dog owners with each other, it would connect them with dog-friendly resources around them,” says Aikens. “Using GPS, the app’s map would populate restaurants with patios and parks convenient to users interested in meeting up to grab a beer or throw a Frisbee.” Aikens reached out to an entrepreneur, Ben Dolgoff, who had spoken to one of the entrepreneurship classes he had taken in graduate school. Ben was an experienced app developer who had developed and launched several successful apps. After asking Ben to sign a nondisclosure agreement, Aikens shared his idea. Ben said he thought the app had promise as a commercially viable product.

He suggested that Aikens develop some designs for his idea and then get back with him. If the idea had promise, Ben said he might be willing to develop the app in exchange for some equity in the new business. Aikens shared his app idea with a friend who was a graphic designer.

She was eager to help him with the designs and was willing to provide ongoing graphic design services in exchange for equity. The next step was for Aikens to work with the graphic de- signer to develop a wireframe of the app. A wireframe is a drawing of the various screens that make up an app; it includes the kinds of information displayed, the functions of the app, and the basic flow from screen to screen. Aikens took the wireframe designs to Ben, who was eager to move forward. Ben’s company would develop the app in exchange for equity. “This arrangement was very acceptable to me,” says Aikens. “It simultaneously removed the financial burden of development and provided an experienced go-to consultant I could work with through the life of the app.”

Aikens formed an LLC and secured the RendezWoof name on all social platforms and for the Web domain. He opened an Apple developer account and applied for copyrights and trademarks. Judson Aikens, RendezWoof, LLC Because he is still working his day job, Aikens spends many late nights working with the developers to improve the app’s user interface and user experience.

Because the goal of the initial version of the app is to gain users and prove the concept, RendezWoof initially offered the app for free through the Apple Store. Future versions of the app will have more features, which will allow the company to charge a small fee for the app.

1. Why would you recommend that an entrepreneur develop a minimal viable product or a prototype?

2. Can you think of additional market research that Aikens could have done before developing his product?

3. What are the advantages and disadvantages of offering equity in exchange for work done on a new product? Source: Judson Aikens, personal communication, December 17, 201

Answer 1

Answer 1) I would recommend that an entrepreneur develop a minimal viable product rather than a prototype , as the minimal viable product provide real time data from real users in quick time period. A prototype product requires more time to collect data from customer. A prototype test is costlier than arrangement of minimal viable product as well.

Answer 2) Yes, I think , Aiken should go for few additional market research before actual development of product . The research should be based on the competitor structure and similar available products in mrket.

Answer 3) Advantage of offering equity in exchange for work done are:

• Less initial cost
• low requirement of capital
• Risk sharing in business
• low cost of operation

Disadvantage of offering equity in exchange for work done are:

• Share in profit
• sharing in decision making
• chances of loss of own idea
• high cost of capital in long run