I always recommend humor when you’re trying to convince someone of something. Please watch this very short video as a Primer before reading this article. The reason for the boldface will be clear soon, I promise.
Ok, let’s talk about Prim. Prim, please don’t take this the wrong way, I am just making an example out of you. Here’s a glowing article about them:
This business suffers from the Free Pony Initiative problem, often felt in my state of Washington. Many years back, voters approved I-776, a measure to drop car license tab fees to $30/year. A friend & I joked that the ballot should have read:
- I want a Free Pony.
- I do not want a Free Pony.
- Do you do it more efficiently than others? Do you have a competitive advantage that is sustainable? Perhaps Yin Yin Wu is the world’s best launderer (yes that’s the right word), and she’s doing all the laundry by hand? Maybe she built a robot that launders better than the Mafia (mixed metaphor)?
- How much will people pay for your service? Call that x. Let me give you a business equation that I provide all of the companies in my portfolio:
- If (x < Cost of you paying people to drive to a house & pick up laundry & drop it at the laundromat & pick it back up & drop it off & handle disputes where you lose the laundry or damage it & handle cases where your drivers steal things or crash their cars)
- And let me provide a related equation:
- If (x is NOT bad) AND (you become profitable & successful)
- How long do you think it will be before LaundromatX starts cutting out the middleman & offering pick up services? I’ve seen this offered before, but the cost is so prohibitive that only Silicon Valley Dreamers use it.