An interesting (Thesis) I’ve come across recently that I’d like to explore more in-depth.
· I was recently talking to a founder of an ecommerce delivery app; he mentioned a very interesting point. Their business was focused towards SBM’s because larger application developers have devoted an overwhelming amount of attention to end user (consumers), while largely ignoring the effect that increased convenience / demand has created for merchants.
· I won’t go into details of his strategy, but I would like to build off this point. The applications we use daily largely aid end user consumers. This is a traditional normative capitalistic value. The adage “What’s good for the customer is good for business comes to mind” Tech titans such as Jeff Bezos and the late Steve Jobs have built massive companies focused on customer experience. This sentiment is agnostic a it transcends sectors. The primacy of customer over merchant is status quo.
· I was recently reading Zero to One by Peter Theil and he discusses the importance of challenging assumptions. We achieve this by constantly asking why. While we can never ignore the importance of customer needs and satisfaction. Should we start to pay closer attention to the needs of merchants?
· Maybe the next wave of value-added product and services with unicorn potential will attempt to provide merchant-based solutions. I’m not talking about another SAAS solution for a niche market. I am talking about a contemporary innovation of similar magnitude of Henry Ford’s assembly line production of the model T.
· There are a wide variety of small businesses/sectors that have seen an increase in demand, however their process remains relatively the same.
Industries ripe for this level of disruption
a. Restaurants (how many times do you see a mess of orders for pickup/ delivery when you enter an establishment/ staff scrambling, trying to locate things, phone ringing relentlessly, they need smart solutions.
b. Bars (what if you never had to wait for a drink, in an era of touchless why do I need to physically show a bouncer my physical ID, this slows down the line. What if it’s cold or raining? Customer satisfaction decreases.
c. The share economy (air b&b, share, food delivery) (Renters need more efficient data and suggestable solutions for renters). This could lead hosts to collaborate/ partner with local businesses.
D. think small, a bodega, corner store, coffee shop, dry cleaners, car wash, barbershop.
(most of these businesses do not use new technology), many still emphasize cash. They do manual inventory.
*How have these businesses significantly innovated in the last 20+30 years. What is some product/ service ideas that could enhance their business at a low cost to increase their profitability/ scale?
