I love tinkering with ideas and looking for things to build. But as soon as I have to share with the world, I get cold feet.
Can you relate?
That wonderful feeling of having a brilliant idea brewing in your head, the thrill of possibility and endless potential.
But when it is finally time to launch….reality hits.
All the people who said they loved your idea just may love it, but not enough to use it or even sign up for it. At least not right now they tell you; later, soon, they promise.
You aren’t alone.
In fact, 90% of startups fail because they lack product-market fit — their offering simply doesn't solve a real problem that enough people are willing to use, despite being brilliant on paper.
So how do we ensure we get our elusive first group of users to support our project?
I have a framework that I learned in Engineering School on how to build biz the lazy way. So I thought I’d share with you that formula.
But FIRST
If you are new, welcome to OCE’s weekly newsletter curated for the ambitious youth…here are some articles you missed from previous weeks:
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Best tools for building your passion project
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Ever heard of the Pareto Principle?
Also known as the 80/20 rule, is a phenomenon that states that roughly 80% of outcomes come from 20% of causes.
Now, you’re probably thinking.
“How does this mathematical principle apply to building a biz?”
Well, if you’re anything like me, chances are you aren’t a rocket scientist nor a moon shooter, we build largely by taking something that exists and iterate on it.
In this case, we take biz models with proven track record- aka product-market fit, copy the fundamentals (80%) while substantially reinventing the rest (20%).
Sure, everyone wants to talk about their AI-powered, web 3.0, metaverse but how many of those projects actually succeeded in generating $$$?
Y'all go hook up to the metaverse while I piggyback off vegetable delivering biz and innovate for real cashflow.
Why build from scratch, when you can steal others?
Now, let’s talk about all the feasible biz models that you can start in your communities (not metaverse)
I’m particularly interested in ones that requires minimum capital to start and cashflows asap – no R&D or maintaining a large inventory pls.
So if you are excited about starting small and lean, let me tell you what gets me snoring.
Waste to Profit
I'm a big fan of this Waste to Profit model. Here’s a slick concept:
Some fruits & veg look wonky but are nutritionally identical to pretty food. Grocery stores reject these ugly veggies.
But there's a company saving them from waste by shipping direct to consumer: Happy Grocers
They work directly with farmers, helping them to reduce loss and generate additional income.
"One man's trash is another man's treasure" is becoming increasingly true (and profitable) in a world with so much waste.
What other waste to profit idea can you think of?
Teach old dog new tricks
I also like small innovations that better monetize old, been around the block biz activity. It means more potential upside and less risk. Let’s give an example:
Most children receive allowance for doing chores around the house and it’s usually paid out in cash.
But shopping is becoming increasingly digital in the 21st century and children also enjoy browsing their favorite shops online.
Enter: Bling Card
It is a pocket money debit card specifically designed for children.
The startup works with the fintech/banking provider Treezor to provide the banking service – then charges a monthly fee to each Bling Card user.
Thanks to the educational content of the Bling app, the young users learn how to handle money responsibly. Parents can also monitor their children in using the Bling Card via the app.
Meanwhile, the bank gained a brand-new customer segment without having to do any work.
What other ways can you reinvent old processes?
Leverage underutilized resources
What do Uber, Airbnb, & Postmates all have in common?
They connect underutilized resources with people who need them - without owning those resources themselves.
For instance, Airbnb connects travelers to empty rooms without ever purchasing a house.
Another example is ResortPass.
It's a platform for hotels & resorts to sell day passes for their facilities.
They work with the hotel to determine an appropriate price – then take a cut of each booking.
With these day passes, users can access amenities like pools, spas & fitness centers for 1 day.
Hotels on the other hand, are getting basically free $$$ for minimal extra work.
Clever, right?
What other assets are underutilized and can be monetized?
In a sea of unicorn chasers, there are a savvy few who realized the wheel doesn’t have to be reinvented in order to provide value to the world… you just need to innovate on top of what already exists.
Like what you read? Share with friends!
PS. This summer, we are going to tackle pressing global issues and drive innovation in regions (such as your own community) where it is needed the most. Want in?
We run a summer cohort for ambitious youth (high school and undergrads) to work directly with world-class founders while learning from Silicon Valley leaders.
You can also explore purposeful opportunities through our Impact Internship Opportunities Database.
Get Curious.
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Lena
https://www.openclassroomexperience.com/
