Venture Concept No.1

Water is a rare and priceless commodity.  People are searching for a way to maximize their water usage in an efficient way, which conserves water while minimizing costs.  It would be useful to have a system that would provide additional free water, without a negative impact to the environment.  This need has always existed because mankind has always needed to find the most effective way to manage the limited resource of water, making this opportunity boundless.  In order to meet this need, people make an effort to restrict their water use.  When that is not possible, people simply opt to pay more for their water to meet their needs.  This opportunity is big enough to have a lasting and positive global effect. 

Any individual, home, or business could benefit from having an external reservoir of renewable, pressurized water to use at their disposal.  Anyone with a lawn, a pool, or a garden would find this product indispensable.  There are numerous practical applications for this product.  For example, a farmer could use a larger version of this tank to help with irrigation and livestock needs.  Businesses such as car washes and auto rental agencies use large amounts of water for maintenance and business operations.  This product would prove to be a valuable asset in reducing service and production costs.

My innovation is called Water Harvest.  This is a water storage system that efficiently utilizes runoff water to create a reservoir of filtered, pressurized water.  I would like to develop a water storage tank that could be installed on the side of a home and attached to the downspout drain of the gutter system.  During a rainstorm, as the water is channeled through the gutter system, it would be collected into the tank and stored for later use.  The internal pressurized pump would allow the homeowner to use pressurized water for numerous projects such as watering the lawn, filling a pool, or washing a car.  Additionally, I would also offer a product line of biodegradable soaps, organic fertilizers, and chemical free pesticides that would significantly reduce harmful runoff that is destructive to the environment.

The Water Harvest system will include the following:

• 120 gallon storage tank
• Pressure pump
• External mounting hardware kit
• Valves and fitting
• Filters
• Tank cleaning kit
• Projected retail price: $425.00

 Upgrades and additions:

• Onsite assistance with installation
• Variety of sizes available: Standard, large, and industrial
• Ship, repair, and return
• Warranty: Service and parts
• Underground tank options
• Tank additives: Biodegradable soaps, insecticides, and organic fertilizers
• Customized  tank enclosures
• granite display
• wood display

Admittedly, there are similar products in the marketplace, which classifies my product as an incremental innovation.  However, I believe that customers would switch to the Water Harvest because water use can now be regulated and pressurized.  This would create a wide range of practical applications for the user.  It will be difficult for new customers to switch because there would be a substantial initial investment incurred by the customer.  Another concern is that there is a lack of information available because it is a new product.  Rather than simply placing my product on the shelf of a retail store, I would find unique ways of relaying my product to potential customers.  The most difficult market to penetrate will be home improvement stores where the solution would be to offer free educational seminars.  I would also promote to homeowner associations that already manage resources for their community.  This would allow me to sell in large quantities in a single transaction.  By finding different ways to reach potential customers, my product will have a greater chance for success.

According to my research, the top three competitors include Tank Depot, Dultmeier Valve Company, and Norwesco.  The toughest competitor is Norwesco, which is the world’s largest manufacturer of water storage tanks.  Their main weakness is that their product is standardized with limited options which require purchasing parts from other vendors.  They focus on the industrial and commercial market while neglecting the needs of a typical private homeowner.  There seems to be little brand awareness which is indicative of minimal marketing.

The largest expenses will be packaging, shipping and assembly and my biggest challenge will be to reduce those costs.  I believe in using the highest quality products and materials to ensure a positive customer experience when the Water Harvest is used.  I plan on implementing the notion that the customer is always right.  Any concern or issue will be treated as an unmet need and I will make every effort to meet it.  The business location is irrelevant to the product’s success because the focus will be on shipping and distribution.  One priority for manufacturing will be finding locations that offer tax incentives to reduce startup costs. I anticipate that the product will qualify for a government funded rebate of up to 33%.  According to the U.S. Department of Energy, rebates for solar panels and solar water heaters fall within this range.  Since this product aims for water conservation, I plan to secure an incentive package for this product.

I will focus my organization based on rewarding productivity.  It is my goal for my employees to be paid among the highest in the industry.  I plan to reward hard work, effort, and accomplishment whenever possible.  I also believe an eight hour work day is antiquated.  I prefer to implement the concept of working until the job is completed independent of set schedules.  Finally, I plan to base work relationships on respect and to change the workplace into a joy place.  

My most important resource is communication. A successful venture is centered on the idea that the message about a product and its benefits is received clearly and understood by potential customers.  Additionally, for a consumer to fully understand the cost effectiveness of harvested water, communication is needed.  The next step for the venture is to design an internal reverse osmosis water purifier. Installing a quality filtration system will certainly add to the cost of the tank, but the prospect of having an easy source of clean, purified water will help to drive the sales of the Water Harvest.  Finally, the next thing for me is to develop other businesses that are related to conservation.  I hope to be running a family of successful companies, bringing prosperity to many while improving the quality of our environment.