Ask HN: how would you turn this idea into a business?

2 points by conductr ↗ HN
Hi HN,

I have a thoroughly validated concept/idea and I'm looking for advice on how to really develop a business out of it.

"Thoroughly validated" means I have 3 years of history where 10 close friends/family members have been on board as customers. Over that time, the revenue model has proven to be absolute.

The revenue model is basically a financial service. Revenue is generated for clients based on a few transactions per week (without going into transaction specifics, just know it is legit). Each client grosses ~$90/month, I usually take 50% for about 10 minutes of my time. This revenue rate has proven to be fixed over time.

New client requirements: - the biggie is a power of attorney (giving just the proper permissions to make the transactions on client's behalf) - also $200 is needed to fund a couple of accounts; I am willing to subsidize this and be paid back through future earnings - generally need to open two accounts with specific US financial institutions

I'd like to scale this up to 50-100 clients and see how things go. However, I'm not sure how to market this to people outside my "first ten." The POA and low client upside certainly makes it a tough sale and generally I don't know how to talk about it without people assuming it's some kind of get rich quick junk or a scam of some type. How would you get more clients?

Thanks!

3 comments

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Your description makes it sound like a get rich scheme. So step 1 is to describe it completely opposite from how you're describing it now. Step 2 would be to ask your current customers for referrals. If trust is an issue, people trust their friends' recommendations.
Without knowing more about the business it's hard to say... Why don't you try referrals from those successful clients to start? Or you can try to make it plain and simple so everyone here understands and you may have some takers!

One question - do you need POA? Or would it be possible for a person to consent for you to make decisions in your specific arena. That does seem a bit scary.

Referrals do sound like the best option given the constraints, I just wish I could control it a bit more.

Unfortunately, the POA is the proper legal consent. It's the biggest turn-off when I am explaining the service to a potential client.

Thanks for the feedback