🔑 Key Takeaways
- Clearly state your needs and goals when asking for advice, implement the advice given, and provide enough context for others to give targeted guidance.
- Building connections and reaching out to people can lead to unexpected opportunities and open doors for collaboration and new possibilities.
- Teachable offers a lucrative opportunity for teachers to earn significant income by creating diverse classes, inspiring individuals to monetize their expertise and explore profitable opportunities in various sectors.
- The COVID-19 pandemic has caused a significant decline in revenue for Airbnb and has left many hosts in a precarious financial situation, potentially contributing to housing shortages. However, Airbnb is adapting by exploring the long-term rental market.
- Companies like Sonder provide high-end corporate housing as a result of regulations, but COVID-19 has affected them. Despite challenges, Airbnb with strong financials remains a dominant player. Y Combinator expands investment opportunities beyond Silicon Valley.
- Focusing on smaller segments within a larger market allows companies to provide tailored solutions, gain a competitive edge, and generate substantial revenue, but establishing traction and profitability is vital before seeking venture capital funding.
- There is a growing demand for user-friendly work tools that prioritize design and streamline workflows, presenting an opportunity for entrepreneurs and investors in this market.
- Balancing innovation and usability is crucial for success, and the potential for disruption and accessibility in exclusive markets presents new opportunities for investors.
- Masterworks is revolutionizing the art market by allowing investors to purchase shares of artwork with a minimum of $1000, similar to how e-commerce companies offer installment payments for lower-priced items. This presents a unique opportunity for art enthusiasts and investors.
- Success in building a marketplace depends on the business itself, not just securing funding. Exploring credit options for influencers presents a hidden market with growth potential, but its utilization remains uncertain.
- Carrot and Lila are tapping into niche markets and expanding their offerings, providing tailored financial solutions for entrepreneurs and women, respectively.
- Egg freezing is becoming more popular, but there are still challenges to overcome, such as high costs and invasive procedures. Companies in this industry need to offer unique expertise or improve marketing strategies to stand out.
- When investing, consider the uniqueness and potential of a company rather than relying solely on the market or the people behind it. Evaluate the business model, growth potential, and profitability before making investment decisions.
- Thriving in unexciting industries and identifying opportunities in unconventional markets can lead to significant success and profitability, as demonstrated by Puff or Go Puff and True North Fleet.
📝 Podcast Summary
The Importance of Being Specific and Intentional in Seeking Advice
When asking for advice, it's important to be specific and intentional about what you need. Many people make the mistake of asking for validation or permission instead of seeking valuable advice. Jordan Harbinger emphasizes the importance of clearly stating your needs and goals when reaching out to someone for guidance. He also highlights the significance of implementing the advice given and demonstrating how it has been incorporated. By following these guidelines, individuals can receive more meaningful and transformative advice that can potentially change their careers. It's crucial to avoid vague questions and instead focus on providing enough context for others to give targeted advice.
The Power of Networking and Building Relationships
Building connections and reaching out to people can lead to unexpected opportunities. Sam Parr was able to connect with his idol, Ben Ascoran, through a simple cold tweet and ended up having a conference call with him. This shows the power of networking and taking the initiative to reach out to others. Furthermore, Sam is now working on convincing Ben to leverage his brand and create workout products, highlighting the potential for collaboration and business development. The story also emphasizes the importance of exploring second acts and new opportunities for individuals, such as retired fighters like Ben. Overall, this anecdote underscores the significance of proactively building relationships and seeking out new possibilities.
Creating an online class on your website without coding knowledge is possible with Teachable
You don't need coding knowledge to create an online class on your own website. Teachable, a successful platform in the education industry, proves this point. With revenue of around $20-250 million, Teachable provides a lucrative opportunity for teachers to earn a significant income, with some even making seven figures per year. The platform offers a diverse range of classes, including Excel, social media marketing, coding, and more. Additionally, Teachable's success story is inspiring, as its founder, an immigrant from India, achieved great financial success. This case highlights the potential for individuals to create and monetize their expertise, even without a traditional teaching background. And with the increasing demand for home fitness equipment, entrepreneurs in that sector may find profitable opportunities as well.
The Impact of COVID-19 on Airbnb and its Hosts
The COVID-19 pandemic has significantly impacted Airbnb and its hosts. With travel coming to a halt, the company's revenue has dropped drastically overnight. Not only is Airbnb suffering financially, but the hosts, who are mostly small entrepreneurs, are also facing immense challenges. Many hosts had invested in properties specifically for Airbnb rentals, but with the sudden decline in income, they are left in a precarious situation. The future of these hosts and their mortgage or rent payments remains uncertain. Additionally, the surge in rental listings in cities like San Francisco exposes the potential impact of Airbnb on housing availability. Critics now have evidence to suggest that Airbnb contributes to housing shortages and could use this argument to advocate for legislation against the platform. Despite these challenges, Airbnb is exploring the long-term rental market as a means of adapting to the current situation.
Impact of regulations on short-term rentals and the emergence of Sonder and Airbnb's resilience in the market
The regulations placed on short-term rentals in San Francisco had a significant impact on the market. When the legislation came into effect, 30 to 40 percent of listings were eliminated almost overnight. This has led to the emergence of companies like Sonder, which provide high-end corporate housing for shorter stays. However, the current COVID-19 crisis has also affected Sonder, causing them to lay off 20 percent of their employees. Despite these challenges, Airbnb remains a strong player in the market, with a substantial cash reserve to weather the storm. It is important to consider a company's financials and unit economics when investing, especially during times of downturn. Y Combinator has recognized the growth potential in African and Indian-based startups, opening the doors to applicants from these regions and expanding their investment opportunities beyond Silicon Valley.
Targeting Niche Markets for Profitability
Targeting niche markets within a larger market can lead to significant profitability. The success of companies like Flexport, SmileDirect Club, and Airbnb in specific regions demonstrates the importance of localized strategies. By focusing on a smaller portion of a larger market, these companies have been able to provide tailored solutions and gain a competitive edge. Similarly, the app Kron is targeting a specific segment of calendar users who are willing to pay for enhanced features and efficiency. This approach has the potential to generate substantial revenue, as seen with the success of Calendly. However, it is crucial for companies in these niches to quickly establish traction and profitability before seeking venture capital funding.
Creating Sleek and User-Friendly Work Tools: A Market Opportunity
There is a market for creating slick and user-friendly versions of popular work tools. Companies like Superhuman, Airtable, and Notion have already found success by offering improved alternatives to widely-used software like email, Excel, and document management. The success of these companies highlights the demand for products that prioritize user experience and streamline workflows. There is potential for other work tools, such as task lists, calendars, and presentation software, to follow this trend and attract users with their sleek design and intuitive interfaces. However, it's important to note that building and scaling such products may require careful attention to security compliance and enterprise needs. Overall, this signals an opportunity for entrepreneurs and investors to leverage the market demand for more user-friendly work tools.
Opportunities for Improvement and Potential Red Flags in the Market
There are opportunities in the market to improve existing products and services. This conversation highlights two companies attempting to do just that. Pitch.com aims to create a better PowerPoint experience, while Causal is working on enhancing data modeling capabilities. However, while their ideas show promise, there are potential red flags to consider. Pitch.com may struggle due to their lack of established employees, and Causal's focus on complex data modeling may limit its appeal. This demonstrates the importance of balancing innovation with usability. Additionally, the conversation briefly mentions Masterworks, a platform that allows investors to purchase shares of fine art. This reveals the potential for disruption and accessibility in traditionally exclusive markets.
Making Fine Art Accessible Through Fractional Shares and Installment Payments
Masterworks is making fine art more accessible by allowing people to purchase fractional shares of artwork, making it possible to invest in this illiquid asset class with a minimum of $1000. This approach is similar to the installment payment trend seen in e-commerce, with companies like Affirm and Afterpay allowing customers to buy lower-priced items in easy installments. Masterworks aims to create a marketplace for artists to sell their work and attract more buyers by offering the option to buy in installments. This strategy resembles how SoundCloud grew by catering to independent artists and providing an easy way to share their music. Overall, the art market is a sizable and often overlooked industry, and Masterworks' model presents an opportunity for art enthusiasts and investors alike.
The Challenges and Opportunities of a New Art Marketplace and Financing Program
Building a successful marketplace is incredibly difficult. While the idea of an art marketplace with a financing program may seem promising, it is yet to be seen if it will truly work. However, the fundamentals of the concept are intriguing and not a foolish bet for an entrepreneur to take. When it comes to raising money, the key is whether the business itself is working, not just the ability to secure funding. It is important to consider if raising money will actually make the venture successful or if it will lead to failure. Another interesting opportunity lies in providing credit to influencers, as traditional banks and lending institutions often struggle to assess their creditworthiness. This hidden market has the potential for growth, but it remains uncertain how influencers would use the capital to invest and expand their businesses.
Filling the Gap: Home Loans for Small Business Owners
There is a significant opportunity to provide home loans for small business owners and cater to their unique financial needs. Traditional banking systems often overlook and misunderstand this niche market, but companies like Carrot are filling the gap. Carrot has already loaned out a large sum and has a fast payback period, making them an attractive option for entrepreneurs. Moreover, Carrot's expansion into other financial services, such as credit cards, shows their potential to become the go-to banking solution for influencers and entrepreneurs. Another example is Lila, a company that helps women freeze their eggs. Like Carrot, Lila could also explore additional products and services to sell to their existing customers.
The growing market for egg freezing and the challenges it faces
The market for egg freezing is growing and becoming more mainstream. The number of people freezing their eggs is currently small, but it is increasing at a significant rate of 25% a year. Large companies like Facebook and Google are even subsidizing the cost of egg freezing. However, there are challenges and gaps present in the industry. The process is expensive, invasive, and time-consuming, requiring shots and needles for several weeks. The new company in question needs to differentiate itself by offering unique expertise, a go-to-market strategy, or improved marketing to acquire customers. Distribution and marketing play a crucial role in the success of a product, even if the product itself is not groundbreaking. Overall, the space of egg freezing shows potential for a winner in the future.
The importance of evaluating company uniqueness and potential in investment decisions.
When investing, it's important to evaluate the uniqueness and potential of the company, rather than solely relying on the market or the people behind it. Shaan Puri and Sam Parr discuss various startups and where they would invest $100,000. While Puri is skeptical about Lilia and Cron, he sees potential in Arden Res due to its overlooked marketplace model. On the other hand, Parr believes in the simplicity and scalability of Cron, predicting a fast growth in revenue and potential for acquisition. Ultimately, the key takeaway is that investors should carefully consider the market, the business model, and the potential for growth and profitability before making investment decisions.
Success in Unconventional Markets
There are two successful companies, Puff or Go Puff and True North Fleet, that are thriving in unconventional markets. Puff or Go Puff, started by two college students, is generating over $100 million in sales annually. They have managed to create a profitable business model without raising substantial funding. On the other hand, True North Fleet is targeting the trucking industry, an often underestimated sector that plays a crucial role in logistics in America. By providing software solutions for small trucking businesses, True North Fleet is tapping into a market with immense potential. These examples highlight the potential for success in seemingly unexciting industries and showcase the importance of identifying opportunities in unconventional markets.