Venture Concept No. 2

The opportunity for my venture concept is a swimming pool pump automation device that will turn on and off a pool’s water pump dynamically. It will do this based on a number of factors.

The first factor is the current level of chlorination in the pool. The second is the amount of debris in the pool.

Today, pumps are commonly set on a very basic timer and typically turn on at a given point in the day. They then turn off at another given point in the day. This goes on and on, with no regard to the direct and immediate chlorination levels in the pool.

The pumps turn on and off like this to circulate water and chlorine throughout the pool. They also do this to create suction for debris removal. Debris is removed via the skimmer or skimmers at the top of the pool. Debris is also removed by any robotic or automatic pool vacuums that may be in the pool. At times there are more than one device. Sometimes there is a skimmer and a vacuum, both running at the same time.

When the pool pump turns off, there is no chlorine circulation aside from the mostly stationary chlorination float with a tablet or two in it. Also, when the pump is off there is no debris collection.

The opportunity is to optimize the times and duration that pool pumps run. This will provide opportunities for cleaner, more safely chlorinated pools and will also potentially save pool owners in electric bills because the pool pump will only run when debris is detected or chlorination levels are low.

People all over the world own pools. Most commonly pools are found in warmer climates but indoor heated pools exist even in places like Alaska and Siberia where it is mostly freezing throughout the year. My target market will be the southern United States in states like Florida, Texas and (southern) California. Those states have high numbers of houses with swimming pools.

I see the opportunity as a $3M opportunity. That is based on assumptions I’m making on the number of homes that are in my target areas with swimming pools.

This window of opportunity is open for likely three years. By that time a competitor will surely create a similar device and eat into my opportunity’s potential for revenue generation.

From an innovation perspective, my product is a very innovative one by its nature. It will leverage Internet of Things concepts and will be proactive in its ability to drive owners to living a more green lifestyle with a smaller carbon footprint. Going green in energy is an innovative concept and there is much attention being placed on that concept today.

My venture concept will draw customers to add my device to their pool systems because of the return on investment it provides to owners. They will be able to recoup the costs of the device and its maintenance within a short timespan through savings on energy usage and pool service companies that provide weekly maintenance for them. If they do not use a pool maintenance service, they will still be able to save on the amount of chlorine they buy and place in the pool because they’ll have a more efficient and timely understanding of how much chlorine is actually needed.

There are no significant competitors today that I can see.

Packaging is important as this device will sit in pools and be on display. Distribution will influence pricing, and pricing must remain effective and low. The business I organize around this venture will remain small and simple, with a partner as a manufacturer of the physical product, and electrical and mechanical engineer, a marketer and myself to handle business functions.

My most important resource will be myself in this venture. I have the skillset and connections to make this venture come to life.

This venture will lead to me being able to sell the company and product line for $2.4M, enabling me to invest that money and live off of the modest 5% interest I anticipate as a return annually. I would be free for other ventures as well, all while knowing my previous venture was covering my bills through investments. This is what would be next for me as well.

I didn't complete the first venture concept in time, so this one was new for me. I did incorporate feedback I've gotten on other assignments into this one, such as what to do with the investment money and to include potential debris collection, which came indirectly from a comment saying to look for other things the product can do, that helped me in a small way to think through a bigger picture.