Question: for each section, explain why there is either low moderate or high potential You be the VC 14.1, page 543. COMPANY: Spindrift Soda Business Idea:


for each section, explain why there is either low moderate or high potential
You be the VC 14.1, page 543. COMPANY: Spindrift Soda Business Idea: Make a specialty soda that is made entirely from just fresh-squeezed fruit juice, cane sugar, and carbonated water rather than sweetened syrup, juice concentrates, and preservatives. Pitch: The knocks leveled against traditional sodas, like Coke and Pepsi, have created a market for small, specialty sodas such as Jones's and Boylan's. Still, most specialty sodas are made from sweetened syrups, and in many ways they are not that dissimilar from the major brands. Spindrift Soda provides a healthy and refreshing alternative. It is a carbonated beverage that is made from triple-purified sparkling water, fresh-squeezed fruit or berry puree (pulp and all), and cane sugar. Unlike almost every other soda on the market, it contains no syrups, no juice concentrates, no additives, and no preservatives. It's also light, bright, and tastes great. Spindrift Soda is made every four to six weeks in small batches, and is shipped cold. It took nearly a year for Spindrift's founder, Bill Creelman, to figure out how to make it. Lots of people make fresh-squeezed juices on a small scale, and serve them to their families or sell them at a farmer's market. The challenge was to incorporate fresh-squeezed juices into a carbonated beverage at scale. Temperature-sensitive juices can't sit in vats the way syrups can. They have to be delivered in small jugs, stored properly, and then opened at the last minute and mixed in by hand. They're also hard to distribute to stores. Most sodas ship warm, like in the Coke or Pepsi trucks you see on the road. Spindrift Soda ships cold, which preserves its freshness. Creelman found distributors of fish, produce, and cheese willing to carry his product on their trucks. An added benefit of using fresh distributors is that they deliver daily, which allows them to quickly replenish Spindrift Soda inventories in stores when the stores are running low. Spindrift's mission is to change how America experiences soda. Spindrift sodas come in six flavors including Blackberry, Sparking Orange Mango, Sparkling Lemonade, Sparkling Grapefruit, Cranberry Raspberry, and Half and Half. Spindrift also makes three flavors of bottled water including Tangerine, Lemon, and Raspberry Lime. Its beverages are truly fresh. For example, Spindrift Sparkling Grapefruit contains the following ingredients: triple filtered sparkling water, fresh-squeezed juices (fresh pink grapefruit juice, fresh lemon juice), cane sugar, nat-ural flavor, fruit, and vegetable juice for color. Now that's a list of ingredients that anyone can feel good about serving their family. U 51 Part 5: Financial Issues High Potential Low Potential (- Moderate Potential (0) High Moderate 1) (+1) 53 1. Initial capital investment Low 2. Number of revenue drivers (ways in which the 55 company makes money) One Two to three More than three More than two years One to two years Less than one year 57 3. Time to break even 59 4. Financial performance of similar businesses Weak Modest Strong 5. Ability to fund initial product (or service) development and/or initial start-up expenses 51 from personal funds or via bootstrapping Low Moderate HighStep by Step Solution
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