https://open.spotify.com/episode/2wGUTyoFt7Jh3Kt6aHpyCu
Notes:
- process to found: no startup story starts with "I had the idea ..."
- Authentic topic - where you know something
- Car enthusiast (co-founder), worked for a company but was dissapointed by the culture
- What do you find interesting in this space? —> "He knows everything in this business"
- Loan from the car company —> was very messy
- started visiting these companies and learned from that
- then they gave advice to friends and made a business out of that
- "we're starting a company" - he didn't realize they were already starting a company
- most important thing: "value", "product market fit"
- How can we provide it to more people? after they sold the first car —> "leverage"
- how intentionally was technology solution? —> intention was to find value
- Some point they realized the incremental car that they needed to sell was so much more effort, because they were there when the test drives took place
- —> "how can we leverage technology"
- —> test drives by themselves through identification over an app —> "LEVERAGE"
- not 100 percent digital (test drives): marginally change the status quo, big step back because the experience was not perfect: so they focused just on the seller and the buyers each: changed their opionion over night from "there has to be a test drive" to "there can't be a test drive" —> but money back as new solution
- they became experts in a specific space of the car market, then they figured out how to scale, then found out how to get good good margins
- two ways to start a company: iterate iterate iterate and then figure out
- 2nd way: I know the future and I just build it —> and something in between: best way
- —> how he scaled it (execution): a lot of advisors and VCs that helped how to scale
- Email: if we had more cap we could grow faster (never said that for 2 years)
- —> "i wanna invest —> Series A —> "he said the right thing without knowing" 18.36min - 19.57min
- from start a company to "really big company" —> but they felt stuck: sales did not help anymore —> they partnered with a company that had different skills: good tech + bigger base through other company (carvana) —> "vertical integration"
- Carvana went public —> did not take off in the beginning
- We wanted to proof ourselves when Carvana had success —> The put in hard work
- Massively underpaying at the beginning, looked for a good team who stayed also in hard times —> when successful they were really relieved that these employees are payed off like that
- vertical integration: whole process + financial services (fin tech) —> good orientation for the future —> not relying on others, since they have different point of views —> unqiue customer service (one vision)
- the secret is "full stack" —> more margin, offering becomes more compelling, better experience
- how to do vertical integration: downstream? upstream? —> can't be done by first time founders, since you need a lot of money from VCs
- Multiple time founders have the advantage that people start believe in your idea quicker, and it's easier to get money
- but most important: everyone should understand that you understand the space really good —> persuasive
- north star needs to be very clear —> have a specific mission, it's all about direction and to do concrete direction
- "You cant climb up a hill if you continousely look at your feet, you need to remember where you are going" 38.35min
- reason to not start a tech company in Germany (for him): they just take the same businesses from another country and copy it
- customer centricity
- "How are you still learning so much?" —> risk of listening less if you have been successful already —> you need to keep that in mind 45.15 min
- Advice for 1st time founders: Just get started! Easy to talk yourself out of starting if you dont do anything, force yourself to figure out to create value, patience when you have founded, find your mission and your "Northstar", spend less money, keep learning, find out what product market fit means for you, dont think you have if when you're not sure 50.06 min
- important book recommendation: never split the difference (FBI hostage negotiator), "recently"