Assignment 24A – Venture Concept No. 1

Assignment 24A – Venture Concept No. 1

•           Opportunity:

• Music hobbyists, professionals, or just those interested in making a song would be Hyperspeed’s potential customer base.  Hyperspeed provides the ability for clients to work with music professionals to develop their song idea.
• The forces that let this happen include the professional music industry at large and the premium pricing of music studio equipment, creating a large demand for affordable music recording. This means the middle-class people continue to be excluded from the traditional studio experience, and the window of opportunity will stay open until the best solution is found to serve the middle-class marketspace.
• There is no current solution to satisfying this need, they are priced out from using it.  Studios remain unaffordable for the average non-professional consumer.  Hyperspeed would provide a much better quality product than iPhone recording, the most common workaround that people don’t particularly like and are mostly unsatisfied with.

• Innovation:
• For professionals, I would offer the chance to work with members of our in-house staff for a flat rate of $60 an hour. This would be the collaboration aspect of the business, and be a key revenue driver.  This in-house talent would initially come from my own personal connections in the industry, and grow by word of mouth exposure.
• For people who want to create their own music and casual hobbyists I would sell packages.  For only $200 a day, you’d get an entire studio setup mailed to you and a 2-and-a-half-hour session every day on your time with an in-house producer, songwriter, or audio engineer, depending on your needs.  The introductory 3-day package for $575 is an easy way to learn at a convenient pace, and is recommended for beginners.
• I would make money through a combination of these two revenue drivers, with the majority coming from selling to consumers, and diversifying with collaboration. Margins would be around 20-30%
• Venture Concept: 
• I am offering it to two main groups: those who want to rent a studio equipment setup and learn to make music, and those who would like to collaborate with the professionals on the platform. Included in my target market would be young affluent college students (a subsection of the local Gainesville market), amateur music professionals (for the collaboration service), middle class affluent music enthusiasts, beginners to music creation.  This service will mostly be marketed toward men based on the demographics of the DAC, although women are also encouraged to buy it.  Music should be diverse.  While this service is marketed for the lower end of music production, it is still at a premium price in the minds of many consumers (which is why affluence is a key trait of all my targeted customers). 
• The second aspect of the collaborative service would be marketed as the lower end of HomeStudio, encouraging people to get lessons before renting the equipment.  Other music creators can pay a $60 flat hourly rate for the opportunity to work with our in-house staff.

Unfair advantage: The VRIN analysis has shown me my top resource is my expertise in the music field.  I intimately know what I’m selling to a deep degree, and have a wealth of music knowledge and experience to offer to customers.  This ability is unique and special, if the leader of the business knows all aspects of it on an expert level, the company can thrive and succeed.

What’s next: I think the next move for Hyperspeed would be to branch out and differentiate and diversify our offerings. I would like to get all aspects of the business up to their peak earning potential.  Hyperspeed should do some local marketing to attract the first clients to perform testing and begin to make improvements in the infrastructure of the company.

• For Me: I plan to remain with Hyperspeed until I could realize a large enough return to be able to start a new venture. After the $5 million revenue mark, I would want to be acquired by a large music company like Spotify who understand what I was trying to do.