Friday, February 1, 2019

Testing the Hypothesis


The Opportunity: Increase in Natural Disasters

  • The Who: Those who live in areas prone to natural disasters, for example: southern Florida and California.
  • The What:
  • The Why: With climate change being a very real phenomenon, natural disasters such as flooding, fires, and hurricanes are becoming more common. Consider the past few years (Hurricane Irma, Hurricane Michael, the current polar vortex, California fires).



Hypothesis: As climate change increases, natural disaster relief-related companies are going to be a good business opportunity.



Interviews:

  1. Disaster Relief Company CEO

Q: Have you seen an increase in natural disaster?

A: Oh, of course. Literally within the last few years, since hurricane Michael, I've had a busy work season each fall.

Q: Do you think this is a very location dependent job?

A: Well I would have said that a while ago, but look at the polar vortex; I guarantee some people are gonna have some damages in need of fixin'.

Q: Do you think the market is oversaturated with companies?

A: My office is located in Dayton Beach, but I'm getting calls to do work over in the panhandle left and right. I don't know if that answers your question, but I think if there were more companies, they wouldn't be calling me.

  1. Financial Advisor

Q: Have you seen an increase in natural disaster?

A: I don't know if I would say yes? I'm not sure, but they definitely seem to be more intense.

Q: Have you noticed this impact on the stock market?

A: Yes. I can't really tell you about things I do but I've noticed company stocks increase and decrease with direct correlation to hurricanes or the fires.

Q: Do you think there's enough money to be made in starting a business in the disaster relief field?

A: Yes. I've witnessed the money to be made in the market firsthand.

  1. Hurricane Survivor

Q: Have you ever experienced a hurricane firsthand?

A: Yes, I've witnessed a bunch throughout my stay her in New Smyrna but it's definitely amped up in the past few years.

Q: Have you ever experienced damage to your home?

A: Oh yes. I had to replace all of my windows with hurricane glass, I've had my roof on my previous home completely removed, it's been a hassle.

Q: If you care to share, would you be comfortable sharing how much you've paid disaster relief companies?

A: Sure thing sweetie, I've spent a good couple of thousand in the past few years alone, but I don't really remember entirely.

  1. Restaurant Owner

Q: Have hurricanes ever directly affected your business?

A: Oh don't get me started. This was maybe 15 years ago or so, but once my power wasn't restored for days and all of my inventory became spoiled or rotten. I almost never got back up and running.

Q: Who do you think get affected worst by natural disasters?

A: Anyone in nature's path, obviously. Maybe business owners? I'm not sure how to answer that.

Q: Would you invest in equipment offered by disaster relief companies to help secure your business?

A: If I had the funds, certainly.

  1. Meteorologist

Q: Have you noticed any different weather patterns?

A: Of course, it's kinda hard to deny climate change at this point. Our winter was warm, followed by some freezing days, then back to warmth. Much more extremely high tides, you know the drill.

Q: Do you think natural disaster's are going to be increasing in frequency?

A: I don't think, they already have. It's common sense, look at the facts.

Q: Why do you think a disaster relief company would be a good or bad idea to implement?

A: It's not a bad idea. But I don't know the facts, just make sure that the market isn't oversaturated.



Write-Up:

I had a little bit of trouble focusing on one of my opportunities for this assignment; I decided that this prominent issue of natural disasters could be an interesting one to dedicate my focus to. Step two, however, was simple for me to synthesize.

When I decided to conduct some interviews, I decided to ask people in the field, whether that be company administration or hurricane survivors. These interviews helped me realize that the issue here isn't going to be the opportunity, because everyone can agree on the increase in natural disasters. The problem will be seeing if the market needs companies in the field or not.

1 comment:

  1. Hi Francis,

    I would recommend noting your target population. Not only that, but recognizing their financial differences. Plenty of people do not have the money to immediately rebuild after a disaster rips away their homes. Often times, the people you see on TV are those who are devastated by the tragedy and need all the help they can get. I wouldn't worry about focusing on what disaster so much as who your victims are and whether or not if they can afford your service.

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