The Right Stuff Company’s Start-Up

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Table of Contents

Business Model
The Timmons Model
Conclusion
Reference List

The aim of this paper is to analyze a case study of a start-up, The Right Stuff, which sells a hydration product helping athletes and first responders to avoid dehydration. The paper will explain the company’s business model, provide a business model canvass, and analyze its entrepreneurial process with the help of the Timmons model.

Business Model

The company’s target markets include team athletes, individual athletes, and non-athlete markets such as military, first responders, and long-distance airline passengers. The Right Stuff’s business model seeks to increase the product range, thereby serving to different groups of customers in every segment of the market. Therefore, the start-up’s founder, David Belaga, has developed the following flavors for his product: orange tangerine, citrus, berry, and zero flavor. The business is value-driven and focused on the premium value proposition.

Business Model Canvas

Table 1 shows the business model canvas (BMC) for The Right Stuff.

Key Partners

NASA
A network of suppliers (Business model canvas explained 2011)
An advertising agency

Key Activities

Manufacturing
Distribution
Advertising (Imke 2016)

Value Propositions

A unique hydration product that improves “athletes’ performance by preventing dehydration and its associated symptoms” (Terjesen 2014, p. 715).

Customer Relationships

Dedicated personal assistance (phone)

Customer Segments

Institutional market segment, individual athletes, and non-athletes

Key Resources

A patent for a product, $625, 000 budget, sales force, and manufacturing and distribution facilities

Channels

Phone
Social media

Cost Structure

The most important costs associated with the business model are production, marketing, and distribution.

Revenue Streams

All revenue streams will come from the direct sales of the product. The price of one serving would be $2.70.

Based on the analysis of the company’s business model, it can be argued that the hydration product producer will be able to make a profit in an extremely short period of time. The support from high-profile athletes across a wide range of sports will help The Right Stuff to quickly gain popularity in both professional and mainstream athlete communities, thereby rapidly scaling the business. The same can be said about the company’s attempts to reach new customer markets. Dehydration is a real problem that is associated with numerous side effects. By using innovative technologies and the latest scientific advances, the company will be able to eliminate unfavorable symptoms of dehydration for athletes around the world.

The Timmons Model

The Opportunity Factor

The Right Stuff proactively seeks opportunities for scaling its business. There are three target markets that can provide it with secure revenue streams. The company has acquired sufficient funds to address its expense challenges and achieve its milestones within a 3-to 5-year period. However, the business can explore the opportunity of producing recovery drinks for boosting athletes’ muscle functions.

The Team Factor

A board of advisors has a solid background in science, sports, and business. Other team members have been engaged in marketing activities for almost two decades and have extensive knowledge of market trends.

The Resources Factor

The main strength of The Right Stuff is the patent for the unique product that has been licensed by a National Aeronautics and Space Administration. The founder’s experience in consumer products also sets the company apart from its rivals.

Final Assessment

All three components perfectly align with each other. However, The Right Stuff has the potential to expand its revenue sources by producing recovery drinks for athletes.

Conclusion

The company’s entrepreneurial process is well-balanced and aligned with the industry. The Right Stuff’s business model is sustainable and has a significant chance of achieving rapid growth within a reasonable timeframe.

Reference List

Business model canvas explained 2011. Strategyzer, New York. Web.

Imke, S 2016, Applying the business model canvas: a practical guide for small businesses, CreateSpace Independent, New York.

Terjesen, S 2014, ‘The Right Stuff: a NASA technology-based new venture and the search for markets on Earth’, Entrepreneurship Theory and Practice, vol. 40, no. 3, pp. 713-726.

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