This is the progress thread for the new business I accidentally started at an event last weekend - for more about that check out https://www.thefastlaneforum.com/community/threads/startupweekend-post-mortem.55165/
To summarize:
Comments welcome! Part of my pitch was obsessive/fanatical engagement with my customer base (that includes anyone who might ever buy a box of snacks from me), and you guys are pretty much the demographic I highlighted - people on the go who don't have time to find neat things to eat who would find value in having a box of such snacks delivered to them.
To summarize:
- The business was pitched in 60 seconds on a Friday night, ignored until the team's other plan finally fell apart for good Saturday night, worked on for a few hours Saturday night and about 5 hours before presentations on Sunday afternoon. By that point the team was just me and one other guy (and he was half-hearted about it).
- In that time I spoke with at least ten people face-to-face, with prototype in hand, and wrote down what they would pay and their comments. After my presentation I spoke with many more people - huge groundswell of support and enthusiastic positive reaction. Initial validation - check!
- Over half the people would pay $25 or more for $15 worth of product - even with shipping, the money works out. I didn't even realize until a few days later that someone emailed me right after my presentation, offering to buy the prototype box for $25. First dollar - check! - and less than 24 hours after starting the business!
- On Monday morning two of the people involved in putting on the event contacted me. They want this to be a real thing, they have the contacts and resources to make this happen. I was hoping to meet some people and maybe get a few minutes of advice, instead I got an entire startup team. To put it another way, when I left the event Sunday night I thought I might get a few emails and send boxes out from my home...by Monday afternoon the team had already contacted their Amazon guy and confirmed that Amazon could do fulfillment.
- Need - YES! Everyone eats, but buying food is inconvenient, and finding new things to eat is a bother! I think only one person I talked to wasn't enthused about the idea, and several told me about variations I hadn't even considered (I don't have kids but apparently if you do then pre-made snacks are hugely appealing, as one example).
- Entry - Low, everyone and their brother has and already is doing it - and that's why no one does it. Come again? Basically this play crucially depends on two things (at least in my ever-evolving understanding of what I'm even doing here). One is that the product mix is unique and compelling enough for people to pay a premium. Two is the brand - people have to be willing to pay a premium (again) because of the brand. If I'm successful then I'm really the only company selling in the space of what my company offers, much like Red Bull is the only player in the Red Bull market. For those calling BS, consider this - why do grocery stores now have multiple shelf units full of various energy drinks when the coffee aisle has been around for years? For that matter, how can there even be dozens and dozens of different brands of energy drinks all sold right next to each other? And yes, not everyone I talked to was a customer...some people only offered to pay $10 - $11 for my product (seemed to be sharp moms who were highly aware of what my box of snacks actually cost).
- Control - Fairly high, of course outsourced fulfillment means I give up a big chunk of control, but as discussed elsewhere on this forum that's OK as long as you have alternatives, and there are a lot of companies who can provide this service, at various levels/layers of integration. In other words if Amazon doesn't work out I still have the possibility of making it work with another partner, it's not like MLM where I'm stuck with a single partner/supplier and have no business without them.
- Scale - This is where the high degree of outsourcing shines. Not only can shipments for this business scale to what Amazon can provide (megaparcels/hour? ... a whole lot, anyway) but after I learn how to perfect selling to this niche I can create new "front ends" for the company, using the same backends (same ecommerce platforms, same fulfillment partners, and in many cases, the same products!) to sell to entirely new markets. A post-workout box has already been floated...the possibilities are limitless.
- Time - Ideally this business can run 100% without my involvement, obviously not next week or next month, but it will be built from the start so that all business functions run either on a computer or are performed by employees - and not me. If I decide to be MIA CEO then the business in its current state should be able to keep running indefinitely.
Comments welcome! Part of my pitch was obsessive/fanatical engagement with my customer base (that includes anyone who might ever buy a box of snacks from me), and you guys are pretty much the demographic I highlighted - people on the go who don't have time to find neat things to eat who would find value in having a box of such snacks delivered to them.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited by a moderator:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
