AptDeco is a marketplace for buying and selling furniture in New York City. The founders, Reham Fagiri and Kalam Dennis, started the company after their frustrating experiences with selling furniture on Craigslist. They saw an opportunity to create a platform similar to Airbnb for furniture and did not consider any other ideas before starting their startup. They prepared to start AptDeco after business school and the corporate world, knowing they had a backup plan if they failed. Overcoming the fear of starting a startup involved identifying a problem and finding a practical solution. Communicating the concept to friends and family was initially challenging, but support and understanding were gained over time. Starting a startup after business school requires a different skill set, which they acquired through participating in startup competitions and being involved with Y Combinator. The founders emphasized the importance of financial modeling, analytical structure, and conflict management in startup businesses. They adjusted their business model based on unexpected discoveries and partnered with a delivery provider early on to test the product's viability. AptDeco's customers consist of sellers and buyers, with a shift where more sellers are becoming buyers. The founders discussed the role of brands in customer acquisition and the use of organic search and channels like Facebook, Instagram, and Google. They learned how to do delivery by overcoming initial lack of knowledge and experience and decided not to warehouse furniture due to cost and sustainability concerns. Some ideas that initially failed became successful when revisited and analyzed. Analytics and the use of tools like Looker revolutionized data analysis. Being a NYC company in Y Combinator allowed the founders to be closer to their customers and better understand their needs. The key to making the most of Y Combinator is fully committing to the program and implementing all suggestions, attending meetings with partners, establishing structure and accountability, taking specific advice from advisors, networking, and distilling feedback to improve the startup.
What is AptDeco?
AptDeco is a marketplace for buying and selling furniture in New York City.
- They handle the entire process, including pickup, delivery, and payments.
- Their aim is to create a trusted community of users and simplify the experience compared to Craigslist.
Why did Reham and Kalam start it?
- Reham and Kalam founded AptDeco due to their personal frustration with selling furniture on Craigslist.
- They discovered that adding delivery to listings increased interest and conducted market research to validate their idea.
- Furniture was the fifth most popular category on Craigslist, indicating a demand for their service.
- AptDeco had a successful launch, with a transaction occurring on the first day of operation.
- Their acceptance into Y Combinator further validated the potential of their startup.
Were they considering other ideas?
The founders of AptDeco, Reham Fagiri and Kalam Dennis, were motivated by their frustrating experiences with selling furniture on Craigslist and saw an opportunity to create a platform similar to Airbnb for furniture. They did not consider any other ideas before starting their startup and took the leap into entrepreneurship despite feeling unprepared.
Key points:
- Inspired by their own frustrating experiences with selling furniture on Craigslist
- Saw an opportunity to create a platform similar to Airbnb for furniture
- Did not consider any other ideas before starting their startup
- Motivated by frustration and took the leap into entrepreneurship despite feeling unprepared
How did they prepare to start AptDeco after business school/the corporate world?
Reham Fagiri and Kalam Dennis, founders of AptDeco, prepared to start their startup after business school and the corporate world. They saw starting AptDeco as an opportunity and were confident in their skills. They knew that even if they failed, they could always go back to corporate America or find another job.
- Reham was still working at L'Oreal while moonlighting on the side
- They were happy in their corporate jobs
- They saw starting AptDeco as an opportunity
- They were confident in their skills
- They knew they had a backup plan if they failed
Getting over the fear of starting
Getting over the fear of starting a startup is about identifying a problem and finding a practical solution. Reham Fagiri and Kalam Dennis overcame their fears by seeing a tangible and useful opportunity in the furniture industry. They communicated their idea to friends and family who had prestigious jobs and went to prestigious schools.
Communicating that they're starting something to friends and family
Starting a startup can be challenging when it comes to communicating the concept to friends and family. However, with time and effort, understanding and support can be gained. Here are the key points:
- Initially, it was difficult for Reham Fagiri and Kalam Dennis to explain the concept of raising millions of dollars and starting a company to their friends and family.
- Reham's parents, who are from Sudan, had a different perspective as they believed that having a job at a prestigious company like Goldman Sachs was the ultimate goal.
- However, Reham's parents are now starting to grasp the idea and are supportive, as entrepreneurship is highly valued in Sudan.
- The speakers discuss the challenges of running a business and the perception of stability in traditional jobs.
- They explain that even working at companies like L'Oreal or Goldman Sachs does not guarantee stability, and they were more interested in working in innovative and exciting companies.
- The perception of starting a startup has changed over the years, particularly among friends and family of individuals who have attended business school.
- There has been a shift from traditional career paths like private equity and consulting to more tech-oriented companies like Google and Facebook.
Starting a startup after business school
Starting a startup after business school requires more than just theoretical knowledge. The transition from zero to ten in a startup is a different skill set than what is acquired during professional years.
- After the financial industry crash, many business school graduates became interested in the tech industry as an alternative.
- Reham Fagiri and Kalam Dennis noticed a growing interest in tech among their peers and decided to explore the startup world.
- They participated in startup competitions and talked to entrepreneurs to gain insights and skills.
- Being immersed in the startup world, through their involvement with Y Combinator, was crucial for their success.
- The video highlights the shift towards tech entrepreneurship after business school and the journey of the speakers in starting their own startup.
Helpful learnings from a more traditional business education
The most profound aspect of a more traditional business education is the emphasis on financial modeling, analytical structure, and conflict management in startup businesses.
- Financial modeling and analytical structure are crucial in startup businesses.
- Establishing a business culture and effectively managing people is important for first startups.
- Regular checkpoints, weekly meetings, and team meetings maintain stability and communication within the team.
- Using a project list sheet in Google Sheets and daily stand-up meetings help track strategic projects and provide quick updates.
- Managing a team requires regular touch base meetings, one-on-one meetings, and performance reviews.
- Transparency and accountability are essential within the team.
- Constructive feedback and conflict management are important in a startup.
- Transparent and early communication is crucial when letting someone go.
- Meeting expectations as a manager is vital to avoid surprises for employees.
Early models of AptDeco vs today
The early models of AptDeco lacked a clear understanding of their margins and charged a low transaction fee without considering their costs. However, they learned from their experiences and adjusted their fees and prices accordingly. They emphasized the importance of being open to modifying their business model based on unexpected discoveries. They initially focused on establishing a desired product before analyzing data to determine costs and adjust pricing. They also partnered with a delivery provider early on to test the product's viability.
Key points:
- AptDeco initially charged a low transaction fee without considering their margins
- They adjusted their fees and prices as they gained more experience and learned about business costs
- They emphasized the importance of being open to modifying their business model based on unexpected discoveries
- They focused on establishing a desired product before analyzing data to determine costs and adjust pricing
- They partnered with a delivery provider early on to test the product's viability
- They faced issues with job cancellations and upset customers when working with moving companies for deliveries
- They brought delivery in-house and ran pricing tests to find the right balance between product sales and delivery fees
- The optimal pricing mix varies across cities, with New Yorkers being more willing to pay for delivery due to limited access to cars
- AptDeco's average customers have become older as the company has grown
- They have separate customer bases for sellers and buyers.
AptDeco's customers
AptDeco's customers consist of two main groups: sellers and buyers. Sellers are typically individuals looking to sell their furniture, while buyers are aspirational individuals in their mid-20s to mid-30s. AptDeco is seeing a shift where more sellers are becoming buyers, indicating a change in the way people shop for used furniture.
Brands and customer acquisition
The importance of brands in customer acquisition is discussed by the founders of AptDeco, who highlight the role of understanding brands in driving acquisition and presenting their site. They also mention the use of organic search and channels like Facebook, Instagram, and Google for acquiring customers. Out-of-home advertising in New York City helped them learn and adapt, and referrals from friends and family now contribute significantly to customer acquisition. Tracking customer acquisition is done by asking customers how they heard about them at checkout.
Key points:
- Understanding brands is crucial for driving customer acquisition
- Organic search and channels like Facebook, Instagram, and Google are effective for acquiring customers
- Out-of-home advertising in New York City helped them learn and adapt
- Referrals from friends and family play a significant role in customer acquisition
- Tracking customer acquisition is done by asking customers how they heard about them at checkout
Learning how to do delivery
Learning how to do delivery for a startup involves overcoming initial lack of knowledge and experience. Key points include:
- Inefficient practices such as renting vans without considering costs.
- Learning from mistakes and now having a head of operations with relevant experience.
- Developing a unique model that does not involve warehousing.
- Efficient scheduling of pickups and deliveries across multiple states.
- Emphasizing the importance of thinking outside the box and building their own systems.
Deciding not to warehouse furniture
Reham Fagiri and Kalam Dennis of AptDeco decided not to warehouse furniture, opting for a model where individuals sell directly to buyers. They found warehousing costly and unsustainable, and noted other startups' failures in warehousing.
- Reham Fagiri and Kalam Dennis of AptDeco chose not to warehouse furniture
- They believed warehousing would limit their business potential
- Instead, they focused on a model where individuals sell furniture directly to buyers
- AptDeco facilitates the transaction
- Warehousing was found to be cost-prohibitive and unsustainable
- Other startups that attempted warehousing were unsuccessful
Ideas that didn't work and some that worked on the second attempt
The most profound aspect of the text is that some ideas that initially failed can become successful when revisited and analyzed.
- Ideas that didn't work for AptDeco: offering photography services and cleaning services.
- Importance of taking time to figure things out in startups.
- Shift towards focusing on a few things and understanding the nuance and detail of them.
- Difficulty of understanding algorithms.
- Success of a testimonial ad campaign.
- Importance of understanding digital channels, search volume, landing pages, and click-through rates for effective advertising and acquisition.
Analytics
- Analytics involves tracking and analyzing data points such as clicks and usability.
- Looker is a visualization tool that has revolutionized data analysis.
- Looker saves time and enables data-driven decision making for marketing, product updates, and operations.
Being a NYC company in YC
Being a NYC company in YC allows founders to be closer to their customers and better understand their needs.
- AptDeco founders initially rented out their apartments in preparation for their time in Mountain View, unaware of the importance of being in NYC.
- They quickly realized the value and started flying back and forth every week for three months.
- This allowed them to be closer to their customers and better understand their needs.
- Despite the exhaustion, being in NYC was a crucial aspect of their YC experience.
How to make the most of YC
The most profound aspect of the text is the importance of fully committing to the Y Combinator (YC) program and implementing all suggestions, no matter how unconventional or challenging they may seem.
- Fully commit to the YC program and implement all suggestions, no matter how unconventional or challenging they may seem.
- Attend weekly meetings with YC partners to receive feedback and ideas.
- Establish structure and accountability by setting up recurring meetings and establishing goals.
- Take specific advice from advisors, such as creating a blog for SEO and engaging with customers.
- Network and learn from mentors.
- Distill feedback to improve your startup.
- Visit aptdeco.com to try out their app.