29A - Venture Concept No. 2

Venture Capital No. 2 - Zenergy Cycling Co. 

Opportunity:

• The opportunity is to create a Wellness Cycling Studio called Zenergy. This is a cycling studio which creates a dynamic form of group exercise that fuses indoor cycling with meditation and wellness. The environment promotes an uplifting culture on and off the bike. There are a diverse group of classes which caters to an individual's workout goals. Each class should leave the rider feeling  energized and rejuvenated. The main mission of these classes is to decrease stress and increase productivity. Since our mind and bodies are interconnected, this will allow one to find time to relive their stress.
•  College Students have a high need for this service since they are faced with various pressures to perform well. Students do not pause and take time for themselves and therefore the nature of this need is crucial. Through exercise, one can focus on various dimension of wellness such as exercise, nutrition, mindful, and social. Exercise and wellness can decrease mental health issues which are more relevant now compared to previous decades.
• Factors creating the opportunity for this service:
• Increasing awareness for mental health
• Living in a more sustainable environment
• Focusing more on their physical and mental needs.
• Forces aiding to this movement:
• Wearables
• demand for healthy foods
• new exercise services
• health care costs
• The main targeted customer group are college students from the University of Florida in the Gainesville. In addition, professors, Gainesville locals, and any able body person are welcome to attend classes.
• This demographic is currently satisfying this need by taking group fitness classes at Rec Sports, going to YogaPod, and Orange Theory. As a whole, I would say out of all the students who try these services 20% are extremely loyal while 40% attend classes on a convenience base and the other 40% do not attend classes at all.
• The opportunity to create a new and innovative cycling studio in Gainesville is somewhat big. Many students love cycling at a specific studio at home. Currently, the only place to attend cycle classes in Gainesville is at the Recreational Center. The classes offered her are great, but they do not provide the same quality of customer service and intimacy as boutique cycle classes. This window of opportunity is not opened for long. Gainesville has been rapidly growing and expanding. With this, there has been an increase in gyms and fitness related concepts. This past year they opened YogaPod, and now they are currently opening an Orange Theory.

Innovation:

• For students:
• Individual class = $15
• 5 Class Package = $50
• 10 Class Package = $85.
• Unlimited Monthly Package = $100/month.
• Note: The pricing structure of these classes is still below market rate due to college students' lack of income. Therefore, they need to show a valid student ID. In addition, rider's first class is free of charge.
• For non students:
• Individual class = $20
• 5 Class Package = $60
• 10 Class Package = $100.
• Unlimited Monthly Package = $120/month.
• Note: This prices of these classes still more affordable compared to other studios in the area.  First class is free of charge.
• Our initial profits will mostly be from those in Greek Life due sororities and fraternities increasing our marketing and philanthropic efforts. We will contact these organizations to book customizable group rides at $10/person. The organizations can make song request. In addition, these rides can also be a fundraising event for a charity of choice.  I chose this market to start with because if one of these organizations partake in this service, it is extremely likely for others to follow this trend.

Venture Concept:

• Students will buy my product if they are concerned with their mental and physical health. They will be able to attend classes on a weekly basis. We have a diverse schedule which will provide classes before classes, during lunch, and after classes. In addition, the studio will be located no more than 5-10 miles from the University.
• Individuals with incomes my product to demonstrate community involvement and health awareness. In addition, they can promote this studio by word of mouth. Since there are many local health related restaurants and fitness clothing stores, there is potential for a joint marketing push. Consumers are looking to businesses to be responsible somehow, at Zenergy we offer a multiple of ways to give back to the Gainesville Community.
• Sororities and Fraternities will buy these services because it does something good for them and their community. This is a new social initiative with brings awareness to mental health through exercise. A trend can be started here.
• There will be a "switch" for customers to join Zenergy. The current cycle classes offered at for free through the Rec Center. To combat this, we are offering every first ride free. In addition, there are many discounts and advantages for students to attend these classes. For nonstudents, there is not a switch to start partaking in cycling since there are no other studios in the Gainesville Area. In all, we are keeping the costs relatively affordable because we know financials can aid as a stressor to mental health. 
• Major competitors (they only offer a different service) -
•  YogaPod, Orange Theory, and other gyms are competitors
• These services have been offered to me, but I have not tried due to the pricing structure and better alternatives for group fitness.
• Price points: This is very important for my services success. If I am too expensive, many students will not attend these classes. In addition, if my costs are too minimal I will not be able to profit.
• Distribution: I would target Greek Life first to increase awareness of my product. Once a handful of organization have members attending my classes regularly, I will start bringing my glasses to Gainesville as a whole and team up with other local businesses. They can help advertise my company by putting flyers or coupons at company. This can help show their company is also dedicated to the mental and physical health of their clients. My logo will be unique and distinct so students can recognize it on stickers, shirts, etc. While I’m not expecting a lot of revenue from this last phase, it is important my services are recognized and build a positive community in and out of the studio.
• Customer Service: Since the company is built upon care for mental and physical wellness friendly customer service is critical to the success of my operations. My instructors will go through auditions and interviews to ensure they are passionate about teaching and brining this mission / mindset to our community of riders.
• Location: College towns; Preferable 5-10 miles away from campus
• Employees:  I’m estimating around 10 employees to begin with.
• Me - Owner and Operator
• I will conduct HR Recruiting
• 4 other instructors to teach the classes.
• Student Intern - Marketing:  Will be in charge of social media awareness, website, gaining customers from their collegiate organizations, etc. The brand and image is crucial to Zenergy's success.
• 3 front desk / student ambassadors – these employees can seek student that relate to this concept. In addition, they will be responsible for the day to day operations of the studio - like cleaning, checking in riders, and providing positivity to others who enter our studio.
• Unfair advantage:  I believe one of my best recourses is my established social capital.  I already have an established network of cycle participants and cycle instructors. This leverages this business venture. I am able to gather feedback, try out this services, acquire employees, and create a community following before Zenergy is completely up and running. This unfair advantage is dependent on my "secret sauce" and how I interact with others. Since this resource is social capital, it can lead me to more clients, financial capital, knowledge, marketing coverage, and resources. These participants and Greek Life Contacts can and will be able to open doors to other contacts and perspectives I am currently unaware of.
• What’s next: I want to spearhead charity rides based off of the University Athletic Teams. For example, having 15 football players ride in honor of Veterans. This will create amazing publicity for Zenergy, the team, and Dan Mullen. Also make my rides more inclusive for the international students at the University of Florida.
• For Me: As an entrepreneur, I love to tackle more health related issues in an innovative way. Each day I try to bring goodness into the world and make the day better than the last. In five years, I hope to be launching Zenergy in Tallahassee and targeting the students at Florida State. In 10 years, I want to have launched another studio through out Florida and potential at other SEC schools like Georgia, Auburn or Alabama.
• Feedback:
• Admiration to keep the business private and in my control and sticking to the values of the company
• Detailed and thoroughly planned out venture capital plan
• Pricing Structure is effective
• Creative to offer different classes and target all demographics of students
• How I adapted:
• Made the information more clear and concise
• Added my outreach to international students
• Did not include "Exit Strategy"