Startups Pet food delivery. |
- Pet food delivery.
- Stock option negotiations for a startup going through acquisition.
- Private Labeling Electronics, mistakes and recommendations?
- Rookie question on getting a product redesign
- Is the startup hype dying ?
| Posted: 25 Dec 2018 11:11 AM PST I live in an urban area where 3 out of 10 people have pets. I own a cat. Most of these people shop for the pet food at the local pet store. My city has a population of 6.7 million people, thus if we consider an average family size of 5 we get 1.34 million households, out of which 0.4 million (3/10) have pets. Amazon also delivers pet food, but it isn't same day delivery. Delivery usually takes 3 days. Amazon also charges delivery fees. A local pet store offers me 6% discount on each purchase. I want to test an idea of pet food delivery to houses in my city. If I could take the 3% as my margins and offer the rest of 3% to customer in the form of delivery charges (which basically means that the customer gets the product for retail price, no discount but no delivery charges either) and deliver the product to their house within a day, could this be a viable business? Note: I'd hire a guy to make deliveries and fulfill daily orders on a bike. The delivery boy's salary and fuel costs will come from the 3%. I'm also ready to give up my part of the 3% initially as I build up traction. Edit: I live in India where my only competition is Amazon and where cost of living is low. I'd have to pay only $120 per month to delivery guy and that would be fair pay. Edit 2: would like to add some numbers to the game-> If out of the 400000 households that own a pet and spend $10 bucks a month on pet food, after fully scaling the business in my city (would take 4-5 months of setup and marketing) if I would be able to get 10% of these to order from my website/call service, I'd get 40000 households X $10 per month = $400000 of GMV per month. Out of which my margins excluding supply chain costs would be 6-8% = $24k - 32k. Which means I would be processing 40k orders a month and 1.3k orders per day. Let's say a delivery boy could make 50 orders a day, I'd have to hire 26 delivery boys and pay them each $120 per month = $3120. I am left with 24k - $3120 = $21ish k excluding the fuel costs. My city is a 100 km wide, let's say a delivery guy has to travel each day across the city. Petrol costs $1.2 a litre and Indian bikes have a mileage of 60 km per litre. A delivery boy would thus consume 1.66 litres a day which would add up to 50 litres a month. 26 delivery boys would consume 1300 litres of fuel per month costing me around $1560. Thus ultimately, I'd be left with with 19-20k of margins per month. Let's take out some additional burn like Marketing costs, advertising on the local radio, newspapers, online advertising, supply chain costs, returns, customer support, bike maintenance, etc. I'm betting those won't go beyond $9k per month. I'd be left with a healthy margin of $10k per month. This math is of course if everything adds up according to the plan. This would be an MVP of sorts and I am willing to scale this model with other things and to other cities if this works. [link] [comments]  |
| Stock option negotiations for a startup going through acquisition. Posted: 25 Dec 2018 02:24 PM PST Hi, I am in process of negotiating equity for a seed funded company that is about to go through an acquisition. 2 months ago I quit a job paying 2x the salary and joined this startup as I was going to be a member of core team and the idea fascinated me. We haven't signed any documents for ESOP allocation yet. I am promised a X$(<0.1% of current valuation) of equity in the company. Recently I learnt that an acquisition is to follow in 1-2 months. Frankly $X worth of equity is low for my position but I joined for 2 reasons:
On account of no further scope of funding the company is going through a potential acquisition, I would like to maximise my chances for a fruitful exit. How can I initiate and drive the negotiations for the same? Appreciate the help. Cheers! [link] [comments]  |
| Private Labeling Electronics, mistakes and recommendations? Posted: 25 Dec 2018 05:54 PM PST Lately, I start to explore an business idea that is based on Electronics. Basically I want to buy OEM devices and Private Label them, then install my own software on it. At this point I'm starting to contact some manufacturer to know about customizations, minimum orders, shipping prices, etc... How to know if the manufacturer if trusty? Which certifications are needed (CE, Rohs, etc...) ? How to avoid high shipping fees (since the product is kinda fragile)? Best shipping companies for low and high orders ? Profit margin strategies? There is any recommendations or any mistake that should be avoided? [link] [comments]  |
| Rookie question on getting a product redesign Posted: 25 Dec 2018 02:07 PM PST I'm looking to get my physical product colors and accessory pieces redesigned to fit our target market's taste. Right now, we aren't hitting the mark. All I'm finding in my search is label and package designers. Are there key words or a job title I can search for improving the aesthetics of our current product? I've been searching on places like Fiverr and Upwork but haven't had any luck. If anyone here has suggestions or stories about this process, I'd love to hear it! To give a little background, we sell a mini fitness gym ($100 retail) that leans in the Yoga/Pilates niche and we want the look and feel to represent that. [link] [comments]  |
| Posted: 25 Dec 2018 10:16 AM PST Similar to the dot com hype (where everyone was creating websites and buying domains) or more recently the blockchain hype (where new useless cryptocurrencies popping every day), is the same thing happening to the startup field ? I see that every single person is creating his startup, just looking at the reddit "list your startup thread" , I see millions and millions of startups that either don't solve real problems or don't attract enough users. Seriously, do we need 100+ startups that books flight tickets for us ? or do we even need startups that use Artificial intelligence to make cows speak ? Seriously, I'm okay with 4-5 startups competing together to innovate but the market is already saturated by the time I'm writing this. What's your feedback on this? What do you think will happen ? Are startups dying ? [link] [comments]  |
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