Business Ideas IV: Follow My Diet

Idea: Follow My Diet – Help users follow their diet’s guidelines when eating out

MVP: Eating within a diet’s guidelines is challenging for most, and is further complicated when eating out at restaurants. FMD solves this problem by detecting when a user is in a recognized restaurant, and showing only those menu options that meet their diet’s rules (the app would also show how to custom order at restaurants to stay within the diet). At launch the top 100 restaurant chains in America would be supported, representing the majority of all American restaurants – crowdsourcing additional restaurants and menu items should enable coverage to expand quickly from there. FMD will also enable the tracking and optimization of a user’s diet over the course of time – fall off track and the app will let you know what sorts of food choices would put you back on track for the rest of the day or week.

Market:

Roughly 15% of all Americans (45m people) are trying to follow a particular diet at any given time, with total spending in the diet and weight-loss industry exceeding
$33B last year. FMD could market the app toward existing diet providers in the space, as a management tool for their clients. FMD could also find a market in the management
of diabetes and other diseases where diet is an integral part of managing a long-term chronic disease.

With a large potential user b2c user base, freemium or advertising-based business models might make the most sense for FMD – but the possibility of a disease-management oriented approach remains open as well.

 

Idea Score (0-10 scale, up to 2 points per question): 4.5 points

(Overall this idea scored relatively poorly – I think pivoting it toward the health management space, perhaps diabetes or other food-related disease management, could strengthen the business case substantially)

Feasibility of MVP / Market Entry: 1

A substantial amount of restaurant menu data needs to be gathered and maintained in order to enable the app to function – but most of this is readily available and can be parsed online. With major restaurant chains commanding a huge market share in the restaurant industry, it should be possible to gather this data pre-launch in order to enable a functional product at launch.

Revenue Market Size or Eyeballs: 1

While the market size is large (as discussed above), advertising-supported products need to gain substantial scale in order to support a meaningful revenue stream. Since FMD is initially focused on helping dieters eat out, restaurants may be interested in sponsoring the app in order to drive traffic.

In a Growing Market? 1

The market for weight-loss and diet solutions is well established, and on the whole can no longer grow faster than single-digit growth rates. But the market for apps
that help manage diet-related diseases continues to grow rapidly, providing a strong potential growth niche.

Difficult, Barriers to Entry, and Competition 0.5

Numerous competitors exist in the diet app space, and apps even exist to find healthy restaurant options – but none attempt to analyze the mass market restaurant space. This is the opportunity for FMD – fast casual and similar restaurants can be hard to navigate for dieters, but it seems that there are no apps that attempt to solve this menu navigation process in a comprehensive way.

Riding Hype or a Trend? 1

Digital health apps, fitness trackers, and similar are a fast growing space. While diet-related apps operate at the edge of this space, the relationship may provide some halo for a business like FMD.

Business Ideas III: HalfTimer

Idea: HalfTimer – Link employed developers with spare capacity to half-time positions

The economy is going full steam. The number of job openings is at an all time high [1]. Technology positions are particularly in demand, with hundreds of thousands of developer positions unfilled nationwide.

MVP: Halftimer.com places developers interested in long-term part time employment with companies looking for experienced development talent. We have found that experienced developers are willing to lower their hourly rates by up to 40% in order to secure a long term contract that is in addition to their full time job. This differential enables savings for companies that work with HalfTimer – a substantial competitive advantage in the staffing business. The initial MVP need not involve more than outreach to employers and developers via LinkedIn, to staff the first several candidates and prove the model.

Market: 5M full time technology professionals

Halftimer.com builds on a concept successfully used by my other ventures to tap an underutilized resource: experienced, full-time employed developers. Many developers, particularly at large corporations, are not fully utilized whether in terms of mental capacity or even time (this documentary details the situation at length). There are almost 5m individuals employed in development-related positions in the US today – if even 10% have excess capacity, this represents a pool of 500,000 potential resources.

Scoring (0-10 scale, up to 2 points per question): 6 points

1. Feasibility of MVP / Market Entry: 1.5 points

The HalfTimer concept exploits an inefficiency: most employers historically won’t buy limited hours for professional work. On the developer side, developers looking for additional freelance work find it difficult to consistently find small projects that fit around their day jobs. HalfTimer attempts to solve this problem, and market entry is straightforward as this is just a new spin on existing staffing concepts.

2. Revenue Market Size or Eyeballs: 1.5 points

500,000 potential HalfTimers, with net revenue per resource at $15,000 = $7.5B/yr total addressable market. Put another way, staffing ~100 HalfTimers would generate 1.5M in net revenue (against roughly $6.5M in gross revenue), enough to run a profitable small startup. The crucial question: cost of acquisition of both employers and employees.

3. In a Growing Market? 2 points

The technology employment market continues rapid growth, and the core constraint remains supply – which is precisely the problem HalfTimer seems to resolve.

4. Difficulty, Barriers to Entry, and Competition: 1 point

Many existing players in the staffing space could potentially attack this idea, and technically there are no real barriers to entry. Gigster, Gun.io, TopTal, and FlexTeam are startups attempting to ease companies’ ability to find freelance talent – these are similar but not identical to the HalfTimer concept (startup competition bolsters the strength of the idea, as it confirms an idea is worth exploring).

5. Riding Hype or a Trend? 0 points

The gig economy has grown substantially, and HalfTimer represents an evolution halfway between freelance and traditional full time employment. But it’s not clear that concepts in this space have much mind-share at the moment.

[1] The JOLTS survey shows the number of openings to be at an all time high, even when compared to 2000 and 2007 on a relative basis.

Note: I changed the first scoring question to address feasibility rather than whether the idea is “transformative”, which seems to be an imprecise concept at best.