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No kidding. There's no mention of any prior industry experience by anyone on their team. They seem to be a digital agency with an expensive coffee habit. They
by dublinben 4y ago
No kidding.
There's no mention of any prior industry experience by anyone on their team. They seem to be a digital agency with an expensive coffee habit.
They signed an expensive lease for office space before having any paying customers or other market validation of any kind?
They started with their chosen solution (pre-made gourmet coffee delivered in 15 minutes) before demonstrating that this was a problem their customers even had. Office managers and event planners all have a coffee budget, but rarely need anything with such immediacy. Their job is predicting demand and planning ahead so there's always coffee available, but it never has to be ordered at a moment's notice. There's no mention of talking to these potential buyers before investing in sunk costs like real estate, equipment, a bespoke software platform (!), payroll, etc.
They set their prices way too low. By anchoring to the cost of a takeaway coffee from a cafe, instead of to an on-demand delivered hot food/beverage (much more expensive!) they weren't able to cover their much higher overhead. Their insufficient margins lead them to be understaffed and unable to absorb any unplanned absences. Any amount of experience managing employees at this pay scale would have made it obvious that you can't expect military precision and perfectly consistent output.
>Don't become a software company!
They had six software engineers on staff! For a coffee delivery company! The (10+ year old) company that services my office employs zero software engineers. Their website is outsourced to a local web dev.
They seemed to have no financial projections whatsoever showing that this was a sustainable business at any level.