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Business Ideas #53: Reimagining REITs, Modifying Meals...
Plus selling 1m pixels to make $1m
Welcome to Half Baked, the newsletter serving up business ideas hotter than an AI-powered blockchain robotics startup presenting at Y-Combinator’s Demo Day.
PSA: We’ve had lots of people reach out to us for feedback on their own business ideas, so we decided to make that process as simple as possible for our readers! Click the link (later in the email), submit the Google form and we’ll get back to you asap with our thoughts on your idea (100% confidentially of course).
Here’s what we’ve got for you today:
Business Idea #1: Taking REITs to a new market
Business Idea #2: Modifying meals to make us all healthier
Drunk Business Idea: BeReal…but for workplaces
Big Deck Energy: Beehiiv’s $2.6m Seed Deck
The Moneyshot: Selling 1m pixels to make $1m
Psst…if you want to read any previous editions of Half Baked you can on our website.
Let’s get into it.
BUSINESS IDEA #1 | VENTURE STARTUP
REIT for Cash Flow Businesses 🏦
Cash (flow) is king
💡 TLDR: An investment vehicle which allows investors to buy fractional shares in a portfolio of cash flowing businesses.
1. Problem/Opportunity❓
Before REITs were invented property investing was a rich man’s game (or rich woman’s game of course, gotta be careful these days).
Until REITs came along and changed the game.
Real Estate Investment Trusts are companies that own, operate, or finance income-generating real estate and sell fractional shares to investors who can then gain exposure to a portfolio of real estate without having to own or manage properties themselves which they earn dividends from.
But what about investors who want access to cash flowing businesses? Like laundromats, car washes or landscapers?
Let’s create exactly that.
2. Solution ✅
The idea: create an investment vehicle which allows investors to buy fractional shares in a portfolio of cash flowing businesses.
Here’s how it works. The platform goes out and identifies high performing cash flowing businesses and acquires a stake in them or acquires them outright, in the same way a REIT goes out and buys real estate. The fund can operate the businesses if it wants to.
Investors can then buy shares in this which they can buy and sell to other investors, providing them with access to a liquid marketplace where they can buy/sell their shares at the prevailing market rate. This gives them exposure to a portfolio of cash flowing businesses and they take a share of the profits of the fund as dividends.
3. Business Model 🏦
Go-to-market: The key here will be to engage with a creator in this space, like Codie Sanchez or Nick Huber to leverage their audiences
Monetisation: the fund makes money through distributions of profits
Startup Costs: This is a big boy business. You’re gonna need some serious backing here and to do a raise to get it off the ground
4. How You’ll Get Rich 💰
Ideally you could sell this business to a large financial institution who want access to these customers
BUSINESS IDEA #2 | STARTUP
Meal Modification App 🥗
A mouthwatering opportunity
💡 TLDR: An app which creates healthy, macro-friendly versions of meals we consume regularly
1. Problem/Opportunity❓
If you’ve been on the internet lately you’ve probably come across Alex Hormozi. The sale guru/Warren Buffett fanboy has made hundreds of hours of business content for all of us to consume. Some of it is gold. Some of it is a little questionable. But there’s one thing everyone can agree on.
The dude is jacked.
He talks a lot about health and fitness and he made a great observation in this video which got us thinking about a business idea:
@ahormozi Most humans eat to same 5-10 meals most of the time.... Change those, and you can change your body.
In case you didn’t watch the video Alex basically explains how we all eat the same 5 - 7 meals all the time, so by making healthy versions of those meals you can completely transform your physique.
Good point Alex. Let’s build an app for this.
2. Solution ✅
Here’s the idea. Create an app where you input the meals you eat most often and the app creates macro friendly versions of these meals for you to hit your fitness goals.
Here’s how it works. You sign up for the app and you input details about yourself and your goals with your diet, whether it’s to lose weight, put on muscle, whatever. You also input your favourite meals that you consume on a regular basis, where you can take pictures of them and AI deciphers what’s in the meals or you simply describe the dish and the ingredients in them.
The app then generates your macros for you based on your goals. It also generates a meal plan based on slightly changing the core meals the user eats all the time to create healthy, nutritionally dense versions of these meals. The app also generates recipes for making the meals and shopping lists for what to buy.
There are plenty of meal planning apps out there but almost all of them just give endless lists of random healthy recipes. This app is much more bespoke for users.
3. Business Model 🏦
Go-to-market: Start by working with personal trainers since they’ll have multiple clients who can trial the software. You’ll want to sell to customers like this rather than individual users
Monetisation: Charge users a subscription fee
Startup Costs: The major cost here will be the dev work, which you can either outsource of find a technical co-founder to work with you
4. How You’ll Get Rich 💰
There are plenty of players in this space who would acquire a business with engaged users, such as MyFitnessPal
DRUNK BUSINESS IDEA
BeReal at Work
BeReal: the social network built around authenticity, showing what your life is really like.
Well how about BeReal for Workplaces? Share exactly what you’re up to while “working“ from home with your coworkers.
BIG DECK ENERGY
Beehiiv’s $2.6m Seed Deck
Year: 2022
Stage: Series A
Amount: $10m
Beehiiv is the best newsletter platform in the game. Period.
Founded by a host of early Morning Brew employees the platform makes it easy to design, write, send, promote and monetize newsletters all in a single platform.
Back in 2021 they raised $2.6m to build the platform.
Click the link to see the deck they used to do it.
THE MONEYSHOT
Selling 1m Pixels to Make $1m
Making $1m is a milestone all entrepreneurs dream of.
And back in 2005 Alex Tew hatched a simple but genius plan to make $1m.
He launched a website called Million Dollar Home Page and sold space on it. $1 per pixel.
One million pixels, one million dollars. A beautifully simple but straight up insane business model.
And guess what? The internet loved it. He sold all of his pixels and made a gross income of a whopping $1,037,100. Boom.
A brilliant idea executed that brought in a shit ton of money. What a legend.
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