Venture Concept #2

1. My opportunity for this venture concept has not changed since the first concept. Everyone has the need for more focus and energy. Although I originally wanted to target only college students for a niche market in study aids with my supplement MentalEdge, I decided to open up my market and reach out to everyone who needs a boost of energy throughout the day by instead creating a healthy energy drink.  The difference between my choice of energy and others is health benefits. I want to create an energy drink that not only supplies lasting energy but is also healthy. I know a lot of people who will come to work and slam down redbull’s or monsters just to keep themselves going throughout the day. These drinks are filled with not so great ingredients that supply you with short-term energy but are not very great for you. I know that personally, this drinks severely upset my stomach, so I am basically out of the market for all energy drinks. Because of this, I think this opportunity is huge. The health industry is massive, and with ongoing obesity, I know that this drink would be a huge success. Unfortunately, I doubt this window of opportunity will be open for long because the already established, big time energy drink companies have been coming out with alternatives like no sugar, low carb, energy drinks, but if you’re smart and check the ingredients these are still very unhealthy.

These healthy Mental Edge energy drinks I plan on selling for a competitive price of  $2 per can. The problem with this is being able to mass produce these drinks so I can get a healthy product margin, instead of just breaking even. The innovation is basically the fact that these drinks would have healthy ingredients with energy boosting supplements and a lower/safer dose of caffeine. I think if I can successfully manufacture this and get enough capital to produce this product to scale, it would be a success.

My competitors are the energy drink giants like Monster and RedBull which are both very big and successful companies. They have great marketing strategies and a wide customer base, but their weakness is that they are unhealthy for you.  This is the exact reason why I think customers would switch to my product. A few celebrity endorsements, a mixed drink using my energy drink, and promoting the health benefits would also help to get this company off the ground. However, since this business is a sort of manufacturing business, I would need quite a few employees and large factories to make my drink successful and competitive. I think all of this along with my tenacity and will to never give up, and this company could turn from a mom and pop shop to a giant. After I came out with the original drink, I would add new flavors, better advertising, and bigger factories. If everything works out as planned, I would probably sell the company after it’s grown profitable, and retire young!

2. I got great feedback from my original venture concept. People were excited at the idea of a healthy energy drink, and while it is a far shot, every great thing started with an idea. People who already drank monster or redbull said they would switch over because they don’t like how bad they are for them, and others said that they simply don’t drink energy drinks because they’re bad for you but would start if there was a healthy option.

3. Based on the feedback I received, I didn’t change my venture concept very much. The only things I really added were the celebrity endorsements and adding more factories and employees to apply economies of scale. I think my first venture concept was accurate, and that if executed this product would be a hit.