decision to become an entrepreneur an entrepreneur case 1.2. embrace pet insurance: a lesson in...

Decision To BecomeDecision To Become An EntrepreneurAn Entrepreneur

Case 1.2. Embrace Pet Insurance:Case 1.2. Embrace Pet Insurance:A Lesson in PersistenceA Lesson in Persistence

Ly, Pham Hien MA1N0241PatMinh, Nguyen Van

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EmbraceEmbrace

Discussion Discussion QuestionsQuestions

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I. About EmbraceI. About Embrace

Embrace Pet Insurance is an online insurance agency, headquartered in Embrace Pet Insurance is an online insurance agency, headquartered in Cleveland, Ohio, specializing in pet health insurance for cats and dogs in the Cleveland, Ohio, specializing in pet health insurance for cats and dogs in the United States.United States.

Laura BennettLaura BennettCEO & Co-Founder (aka Chief CEO & Co-Founder (aka Chief Embracer)Embracer)Start date: July 2003Start date: July 2003

Alex KrooglikAlex KrooglikPresident, Chief Marketing Officer & President, Chief Marketing Officer & Co-founderCo-founderStart date: July 2003Start date: July 2003

Summary Case 1.2 Embrace Pet Insurance: Summary Case 1.2 Embrace Pet Insurance: A Lesson in Persistence A Lesson in Persistence

The idea for PAWS emerged in a series of MBA classes at Wharton. Laura Bennett and Alex Krooglik start this company in 2003 but it took three years to overcome many problems. Embrace received funding from JumpStart, a non profit venture fund. Embrace eventually hooked up with Lloyds of London. The differences that make Embrace surpass than other competitors which is they offers numerous choices for coverage and it also differs from most pet insurance companies in that it calculates its reimbursements on whether a member’s vet charged a “reasonable and customary” fee rather than on a set reimbursement schedule. Nowadays Embrace is the premium brand in the market.

#1.1 Four Primary Characteristics of Successful #1.1 Four Primary Characteristics of Successful EntrepreneursEntrepreneurs

Passion: Encourage extraordinary behavior and supply you with the Passion: Encourage extraordinary behavior and supply you with the energy it takes to invest the huge amount of effort it really takes to energy it takes to invest the huge amount of effort it really takes to succeed. succeed.

Product and customer focusesProduct and customer focuses TenacityTenacity Execution intelligenceExecution intelligence

(According to Barringer 2010)(According to Barringer 2010)

#1.2 How Embrace Pet Insurance reflect each of #1.2 How Embrace Pet Insurance reflect each of these characteristics?these characteristics?

Passion: they won the prestigious reward with 20,000 USD.Passion: they won the prestigious reward with 20,000 USD. Product and customer focuses: They give customer more choices.Product and customer focuses: They give customer more choices. Tenacity: Their first policy took 3 years instead of 6 months as they Tenacity: Their first policy took 3 years instead of 6 months as they

predicted.predicted. Execution intelligence: The try to find out good partner who has Execution intelligence: The try to find out good partner who has

experiences in insurance industry.experiences in insurance industry.

Key their success Key their success

• TenacityTenacity• Reason: it took 3 years for the launch their product instead of 6 Reason: it took 3 years for the launch their product instead of 6

months. And two of four members give up.months. And two of four members give up.

• Continue to find out possible partner after 6 months negotiating is Continue to find out possible partner after 6 months negotiating is failed. failed.

#2.1 Embrace Pet Insurance’s basic business idea #2.1 Embrace Pet Insurance’s basic business idea “adds value” to the lives of its customers.“adds value” to the lives of its customers.

It comes from the first idea of the founders is to avoid 5000 USD to get It comes from the first idea of the founders is to avoid 5000 USD to get their cat healthy again.their cat healthy again.

Embrace Pet Insurance gives its customer more choices in comparison Embrace Pet Insurance gives its customer more choices in comparison with the existed Insurance company. (They offer customized insurance; with the existed Insurance company. (They offer customized insurance; They offers numerous choices for coverage versus premium and They offers numerous choices for coverage versus premium and deductible; They are passionate advocates for fair and reasonably deductible; They are passionate advocates for fair and reasonably priced Pet Health Insurance…)priced Pet Health Insurance…)

#2.2 Who is likely buy Embrace Pet Insurance?#2.2 Who is likely buy Embrace Pet Insurance?

The USA is a huge potential market with 70 million dogs and 90 The USA is a huge potential market with 70 million dogs and 90 million cats and less than 0.5 percent of those insured. U.S people is million cats and less than 0.5 percent of those insured. U.S people is no reluctance to spend money on their pet.no reluctance to spend money on their pet.

Veterinary is costlyVeterinary is costly Population is aging (Old people tend to spend more on pets)Population is aging (Old people tend to spend more on pets) The pet insurance that was available give consumers very limited The pet insurance that was available give consumers very limited

choices for coverage.choices for coverage.

The way that they found InformationThe way that they found Information The way that they found PartnerThe way that they found Partner

Lesson:Lesson:Never give up, never surrender because you never know how close is Never give up, never surrender because you never know how close is

your target if you give it up. The time you nearly give up is always your target if you give it up. The time you nearly give up is always near the time when miracle things will be happened.near the time when miracle things will be happened.

#3. List the occasions in the development of Embrace #3. List the occasions in the development of Embrace

Pet Health Insurance showing their Pet Health Insurance showing their TenacityTenacity..

The Ashtons who proposed the business idea-Pet Health Insurance, The Ashtons who proposed the business idea-Pet Health Insurance, gave up because they predicted the company could start selling gave up because they predicted the company could start selling policies in six months but it seems not to work. But Laura Bennett policies in six months but it seems not to work. But Laura Bennett and Alex Krooglik decided to give PAWS Pet Health Insurance a and Alex Krooglik decided to give PAWS Pet Health Insurance a go. Three years later, the first policy was sold.go. Three years later, the first policy was sold.

Lesson: The distance between what we expected and what really is, Lesson: The distance between what we expected and what really is, a little bit far… Keep going!a little bit far… Keep going!



The way that they found InformationThe way that they found Information

- Problem: Pet Health Insurance Market with a few suppliers, it Problem: Pet Health Insurance Market with a few suppliers, it seems like Proprietary. Hard to take Data.seems like Proprietary. Hard to take Data.

- Solution: Exchange, Win-WinSolution: Exchange, Win-Win

Bennett and Krooglik have the right to access to pricing data of Vet Bennett and Krooglik have the right to access to pricing data of Vet Clinic but must provide feedback on their data to Vet Clinic.Clinic but must provide feedback on their data to Vet Clinic.

Lesson: Every problem has in it the seeds of its own solution. If Lesson: Every problem has in it the seeds of its own solution. If you don't have any problems, you don't get any seeds.you don't have any problems, you don't get any seeds.



The way that they found PartnerThe way that they found Partner

- Losing the first potential Partner but keep going then seek out the Losing the first potential Partner but keep going then seek out the other good choice.other good choice.

Lesson: Obstacles don't have to stop you. If you run into a wall, Lesson: Obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go don't turn around and give up. Figure out how to climb it, go through it, or work around it.through it, or work around it.



Business Practices: The History of Embrace Pet Insurance Customer Value Reimbursement Method (Straight % of vet bill >< Limited by

benefit schedule) Compare Coverage Embrace Customer Bill of Rights

Priorities: Core Value

#4. The company’s business practices, values and priorities, as #4. The company’s business practices, values and priorities, as depicted on its Website, consistent with the type of company depicted on its Website, consistent with the type of company that Bennett and Krooglik intended to create. that Bennett and Krooglik intended to create.

1.1. No, it doesn’t.No, it doesn’t.

But when I came here for the first semester I saw this competition But when I came here for the first semester I saw this competition posted by the group of STUST but I think it not support by posted by the group of STUST but I think it not support by university or college. It was hosted and organized by the university or college. It was hosted and organized by the Entrepreneurs Society of Taiwan (EST) and one of my Thai friend Entrepreneurs Society of Taiwan (EST) and one of my Thai friend (Pon) joined this competition that hold in Taipei and finally he got (Pon) joined this competition that hold in Taipei and finally he got the third prize. the third prize.

#1.1 Does your college or university sponsor a #1.1 Does your college or university sponsor a business plan competition, or are you aware of a business plan competition, or are you aware of a college or university that does?college or university that does?

Moneys- Raising money to finance your start-up is always a time Moneys- Raising money to finance your start-up is always a time consuming nightmare. Instead of relying on fickle investors, why not consuming nightmare. Instead of relying on fickle investors, why not try a business plan competition? Some award hundreds of thousands try a business plan competition? Some award hundreds of thousands of dollars in almost string free financing. of dollars in almost string free financing.

Connections- When you join the competition, you’ll meet a lot of Connections- When you join the competition, you’ll meet a lot of entrepreneurs as the judges and to know those people it might be the entrepreneurs as the judges and to know those people it might be the good thing when you do the business.good thing when you do the business.

Idea- Business plan competitions encourage people to create new Idea- Business plan competitions encourage people to create new ideas of business. ideas of business.

#1.2 What are the benefits of participating in a #1.2 What are the benefits of participating in a business plan competitionbusiness plan competition

•It would be exist or It wouldn’t be exist we’ll never know but one thing It would be exist or It wouldn’t be exist we’ll never know but one thing that I’m sure about this the business plan competition made them have that I’m sure about this the business plan competition made them have confident that they’re on the good way to go. confident that they’re on the good way to go.

#1.3 Do you think Embrace Pet Insurance would exist today if the group #1.3 Do you think Embrace Pet Insurance would exist today if the group of four students mentioned in the case hadn’t entered an early version of of four students mentioned in the case hadn’t entered an early version of Embrace’s business plan into their college’s business plan competition?Embrace’s business plan into their college’s business plan competition?

#2.1 What areas are you the most passionate about? #2.1 What areas are you the most passionate about? Take a piece of paper and draw a vertical line down the Take a piece of paper and draw a vertical line down the middle. middle.

Paper Meal Box

In Vietnam most of the restaurants still use foam box to put the food and as we know when the foam box disposable food on the temperature reached 60 degrees, the plastic foam will release toxic substances that will have some central nervous system damage, serious threat to people health. When the temperature reaches 65 degrees, disposable foam in the hazardous substances to leak into the food, would be the liver, kidneys and central nervous system damage.

Minh’s ideaMinh’s idea

As I mentioned above we’re trying to make Vietnamese people aware of As I mentioned above we’re trying to make Vietnamese people aware of this problem and then introduce paper meal box to the restaurants.this problem and then introduce paper meal box to the restaurants.

#2.1 What areas are you the most passionate about? #2.1 What areas are you the most passionate about? Take a piece of paper and draw a vertical line down the Take a piece of paper and draw a vertical line down the middle. middle.

Thanks for your attention!Thanks for your attention!

Questions & CommentsQuestions & Comments

decision to become an entrepreneur an entrepreneur case 1.2. embrace pet insurance: a lesson in...

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