Quick, gritty business plans. 30 minutes or less. I like the concept because it doesn’t allow you to burn daylight laying plans that are ultimately erroneous. The best laid plans - so they say. It seemed like a fun exercise for you all to join me on an adventure through the process. Without wasting breath, here we go.
Problem Box - we are looking for the top 1-3 problems we solve with our service. Additionally, we are applying pressure to dig to the root of these problems. How do our customers solve these problems?
Answer: Rerouted co-op identified that outdoor enthusiasts were unable to buy, sell and donate used outdoor gear with immediate gratification. Exchanging used gear takes time, energy, money and trust (+social contact). The current solution for people who are committed to trading used gear is frequent time spent at Brick and Mortar Used Gear Stores and P2P marketplaces.
Unique Value Proposition: This is how you catch early adopters attention. A good way to think about this is via this hook formula, “Instant Clarity Headline = End Result Customer Wants + Specific Period of Time + Address the Objections” (Running Lean (Lean Series) . O'Reilly Media. Kindle Edition). Don’t be salesy. What’s the High Concept Pitch?
Answer: We provide unlimited, easy, immediate access for people to buy, sell and donate used outdoor equipment when they want.
We are building a business like PoshMark, but for outdoor adventure equipment.
Solution Box: Just initial thoughts. You are going to learn more as you experience. Tie this together as late as possible.
We will do that by providing our software and platform to a network of Mom & Pop, Brick & Mortar (MPBM) Used Gear Stores - in addition by collecting gear directly from customers via events, canvassing neighborhoods, rallying word of mouth.
Channels Box: How are you going to reach the market? What channels are scalable? What do we already have in place?
Revenue Streams Box: This is a crucial box. Price is part of the product. It is the epitome and most important part of any business you create. Don’t skip this step. Expect to change this. Build with flexibility in mind.
Answer: We have our inventory to sell to customers (50-75% margins). Additionally, we plan to take a 5-15% commission on sales via MPBM Shops.
Cost Structure Box: What are the simple outputs to get this off the ground? Think about how much your expenses are monthly so we can calculate a simple break even point. This will never be accurate until data is compiled. Just estimate.
Our operations costs are approximately $6000 a month to run the utilities of the business (website, booking keeping, bills, employees, rent). We average a purchase price of $50/order. If at minimum, we make a 50% margin, we need to avg. 250 sales a month to breakeven. I am not sure exactly how this translates to customers.
Key Metrics Box: What are the two key actions that are important? What is the action that drives value? Use Acquisition, Activation, Retention, Revenue, Referral as a model.
Acquisition - sign up for account
Activation - search multiple pages/submit size portfolio
Retention - frequenting our site multiple times, reading emails/social media engagement
Revenue - purchase, donate or sell gear to the site
Referral - repping our merch, using our referral program
Two additional key metrics regarding our business (because we’re a complex marketplace) is quantity of inventory available and quantity of business partnerships (MPBM Used Gear Stores, Guide Companies ect.).
Unfair Advantage Box: AKA Competitive advantage. What sets you apart from every other solution. Why would people choose us?
Our ethical compass and commitment to the wilderness and the community is what sets us apart. We promise to save gear from the landfill - while doing everything we can to support local wilderness communities.