WhoBuilt

Starting a Startup After Business School

Dec 14, 2018· 55 min· 6.7K views·Watch on YouTube

Speakers

Reham Fagiri and Kalam Dennis, co-founders of AptDeco, discuss building a New York furniture marketplace with the Y Combinator host.

Testing the furniture marketplace idea

AptDeco handles payments, pickup, and delivery for people buying and selling furniture. Fagiri says the founders tested interest by adding delivery to Craigslist listings and saw more responses. Their first site transaction came on launch day, after they had tested the service by delivering furniture themselves.

Leaving stable jobs and learning to build

Fagiri was still working at L’Oréal while developing AptDeco, and Dennis had already left his job before the YC interview. A successful same-day sale with free delivery helped convince them to commit. They say business experience helped with financial modeling and analysis, but building from zero required different skills.

Managing people and unit economics

The founders describe using financial models, weekly check-ins, project tracking, and team KPI reviews to guide the business. They use regular performance feedback and say employees should hear about problems early enough to respond. AptDeco initially underpriced delivery and had negative margins, then used pricing tests to learn what customers would pay.

Scaling delivery and finding customers

AptDeco used Facebook, Instagram, Google, and subway ads to acquire customers; the founders say referrals accounted for 45 to 50 percent. Early demand strained their delivery operation, and leasing eight or nine vans proved premature during slower seasons. They built their own scheduling and routing tools to coordinate pickups and deliveries across three states without warehousing furniture.

Learning from experiments and YC

Some add-on services, including photography and cleaning, failed to attract customers. A customer testimonial ad performed well when the founders revisited an earlier campaign, prompting them to study digital advertising more closely. They advise YC founders to test suggestions thoroughly, talk directly with customers, and return to advisers with clear progress.

Takeaways

  • Test a marketplace idea with real transactions and customer responses before scaling it.
  • Track every cost in a transaction; early pricing assumptions may hide negative margins.
  • Set recurring check-ins and share clear performance feedback before problems build up.
  • Treat delivery capacity and seasonality as part of the business model.
  • Revisit past experiments with fresh analysis, since a channel may work after you understand it better.

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What was claimed 13

  • feature
    AptDeco: Furniture marketplace that handles pickup, delivery, and payments
    “A marketplace for buying and selling furniture ... We take care of ... pickup and delivery to payments.”
    YouTube
    Unverified1 source· Talk
  • previously at
    Reham Fagiri previously at L'Oréal
    “I was still moonlighting ... and still working at L'Oréal.”
    YouTube
    Unverified1 source· Talk
  • metric
    AptDeco: The company had been around for almost five years
    “We've been around for almost five years.”
    YouTube
    Unverified1 source· Talk
  • metric
    AptDeco: Transaction fees increased from 10–15% to 19–29%
    “We were charging ... 10% to 15% per transaction, versus now ... 19% to 29%.”
    YouTube
    Unverified1 source· Talk
  • metric
    AptDeco: 65–70% of sales come from the top seven brands
    “Around 65 to 70% comes from the top seven brands.”
    YouTube
    Unverified1 source· Talk
  • uses
    “We acquire customers through Facebook, Instagram, and Google.”
    YouTube
    Unverified1 source· Talk
  • uses
    “We acquire customers through Facebook, Instagram, and Google.”
    YouTube
    Unverified1 source· Talk
  • uses
    “We acquire customers through Facebook, Instagram, and Google.”
    YouTube
    Unverified1 source· Talk
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