Assignment 29A – Venture Concept No. 2

Throughout the semester I have been developing an idea around a pen that functions as a stylus for touch screen devices, but also works on paper as a regular pen. Here I will describe a description of a potential venture I would start around this idea/product.
Opportunity:
As a student I spend a lot of time in the library working on my iPad around other students. With increasing amount of online work, textbooks, and online assignments I have used my iPad to take notes. Yet some classes still require handwritten notes and assignments. Having to switch between writing utensils made doing work an even more tedious and stressful task. After discussion with students facing similar problems, I came up with the idea of having a pen that works for both uses. The driving forces behind this need is the development and accessibility of technology. More users are beginning to use touch screen devices to complete task, especially with the integration of technology in education. Initially I thought students would be the primary target, but after feedback I realized many businesses would benefit from a pen like this, as well as graphic and fashion designers who often sketch out idea before transferring them to a digital state. Currently people don't satisfy this need, and still switch between stylus pens for touch screen devices, and normal pens for paper. The people who have this need have the money to afford expensive touch screen devices to take notes and design on, therefore I believe they have the money to afford a pen that makes this process more efficient. For this reason I see this as a small opportunity, medium sized at best. While this opportunity will be available as long as technology remains dominant, I question if consumers will be willing to pay for a product that only solves a simple problem.
Innovation:
This product would be a functioning pen that also works as a stylus for touch screen devices such as iPads. I would primarily focus on making it a efficient for the use on touch screen devices that can also write as a pen. This product would be the size of a regular touch screen stylus with the added functionality of being able to write on paper. I would price my product at $90.
Venture Capital:
Having to switch between writing utensils while working with paper and a touch screen devices is a very tedious process. This product will combine the two writing utensils in one for more convenience
Touch screen stylus can range between $75-$150. I would like to price my product around $90. Currently the Apple's stylus pen is $130, by pricing it lower than that and with more functionality, I would hope to attract and gain customers from my competitors. I would test my product on a college campus because it has a young population that is affluent in technology. I would attempt to keep my business small at the start and expand as needed. I have a specific audience I want to target and can easily advertise through the internet.
Three Minor Elements:
My secret sauce would be a stylus with added functionality, without the premium price of a name brand. If this product were to be successful I would want to sell my product to a company and have a bunch of money. I would take my money and attempt to be more successful with my next idea as a entrepreneur.