Venture Concept No. 2

·       What are the forces or changes in the environment creating this opportunity?

The forces of change in the environment creating this opportunity is an economic incentive for nations and private interests to achieve security in an era where non-state actors are incredibly common. Criminal gangs, terrorists and corrupt groups are all at their zenith of power as of late and must be considered in terms of security.

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         How is this market defined geographically and demographically?

The market has the potential to be global, yet I will simply focus on the Latin American market as there is much demand for security. Demographically, Latin America is increasing in GDP and worth as such it can afford what I am going to propose.

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        How are customers currently satisfying this need?  And how loyal are they to whatever they use now? 

Customers are currently satisfying their need by hiring expensive private security, buying razor wire, alarms, steel doors and guns. Loyalty of private security is always in question, since they can flip on you and be a part of any break-in or attempt on one’s life. As such, many of the measures I have mentioned could be foiled by this lack of loyalty in the face of immense monetary reward.

·       How big is this opportunity?

This opportunity is massive since security is a human necessity as such that whenever someone decides not to invest in it, they are an instant target. Latin America being unstable and quite vulnerable to all sorts of vile things is an especially tempting market to invest in because the vast majority of the population can’t trust the police or security to keep them safe.

·       How long will the “window of opportunity” be open?

This window of opportunity will be open for as long as there is a need for security as well as the time it would take for these countries to regulate drones. As such, I would suspect around ten to fifteen years of an open window to create this idea. To be an early adopter, I suspect we have three years until someone does this.

Innovation. An innovation may be defined as a new or creative service, product, or process that may be applied in the marketplace to address customer needs. The service, product, or process you develop in this class may be radically innovative or it may be incrementally innovative. In this section, I would like to you discuss your innovation in moderate detail. Explain what it is, what it does, and how it works. You should also describe how you will make money – in other words, what, exactly, are you selling and for how much? For instance, if I was starting a business to teach people how to play the piano, I would be selling an hour of my time for $50.

The product which I wish to develop for my venture is quite radical in its premise. A mass-produced drone for the purpose of security. It can be outfitted with any number of modifications including night-vision, high-frequency siren to take care of delinquents, and even lethal counter-measures. A GPS kill-switch hooked up to a certain area to allow for a limited area of operation and to prevent possible theft. The drone in question will simply be a modified parrot drone-like knockoff produced in Latin America as it will be closer to the market in question. The cost of a base drone will be around $75.00 and will be hooked controlled with a remote control. Each mod will have an action button activation on the control meaning that if you had a camera one day and a siren the next, it would be controlled from the same button. We will sell modifications minus an actual firearm, as that is usually restricted by the statists and just allow for a modification to install one. These drones can allow homeowners to have a better sense of what is around them in addition to not putting them directly in harms-way.

Venture Concept. A venture concept may be defined as the application of a specific innovation to address a specific opportunity. In this section, describe how your innovation will solve or address the opportunity you identified. You also want to explain why customers will buy your innovation. In describing the concept, you also want to be sure to cover issues such as:

·       What are the reasons to think customers would switch to this new product?  How hard will it be to get them to switch? 

Customers will switch to this new product since many people are always looking for a new way to secure themselves and their property without having to put their own lives at risk. Another advantage of this is the idea that people can use the drone’s modification for other uses not based on security. Plus a lot of people love drone technology and this gives them an excuse to buy one.

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·       Who are the competitors?  What are their possible weaknesses or vulnerabilities? 

Competitors will be, of course, Chinese firms as well as if American or European firms decide to break in as well. Their weakness is the idea that the American/Euro tech is quite expensive and actually based more on brand value than comparison to sum of the whole parts. Chinese firms have to ship large quantities over the ocean, which is expensive. I will have the same cost to produce as China, but without the shipping costs. Also they don’t exploit the nationalistic angle in these nations, which see a high-tech factory as a sign that their country is moving up in the world and will contribute to high local sales of the product.

·       What role does packaging, your price points, distribution, customer support, the customer experience or the business location play (if any) in defining your business concept?

Packaging will be sleek and have various slight local variants to show the focus of it being a local product. My price points will be cheap enough that many of the middle class and rich to afford it as well as some of the poorer communities to advance some tasks. Business location is vital since it gives access to resources and labor which is underused to produce vast quantities of these drones. Regulation in these countries is so low, that with drone technology can be advanced quite rapidly without the intruding eye of the state.

·       How would you organize a “business” to support the ongoing production of your new product, service, or process? How many employees? What roles are in the venture?  

I would organize a business by establishing major factories in various points throughout Latin America with several hundred employees in total. The roles of the venture will mostly manufacturing of product and some selling to retail stores to see the product fly off the shelves.

The three minor elements

I also want you to cover three final elements in your description. Your treatment of these questions can be relatively short. Please focus most of your time on the opportunity, innovation, concept descriptions above.

First, describe what you think your most important resource will be. You might call this your venture’s “secret sauce” or “unfair advantage.” Besides your actual innovative product, service, or process, what will you have that will make it hard for competitors to copy your success?

My unfair advantage will be looking into ways on how to skirt the law of several countries to flood it with my product. What I mean by that is introduce the prospect of high-tech jobs to a country in need with the tradeoff of having local production in exchange for looser drone laws. In the end, this would allow for brand loyalty in many countries as I will have different drone brands in each country for example in Mexico, I would incorporate a company called Maya-Aeronautica and then in Panama create Ancon Sistemas and give each country the impression that they had a unique prospect.

Second, what’s next for the venture? Describe either the next opportunity you want to tackle with your current innovation, or describe the next new product, service, or process that may be aimed at your existing customers.

What is next for the venture is probably just advancing our drone designs and making more specialized models for each market like a mining drone or a farming drone. Something to help people in their everyday lives.

Third, what’s next for you? Assuming you launched, where do you want to be in five years with this venture? Where do you want to be, as an entrepreneur, in the next decade, and how does this first venture help you achieve your vision?

In five years after launch, I would like to be the sole producer of drones in Latin America or the majority producer. In the next decade as an entrepreneur I would like to be wealthy enough to stem the tide of regulation and government interference in business. This first ventures makes the governments of nations become dependent on me and allow me to dictate the terms of drone business in Latin America.