I feel like giving up on my startup.....

[rexxkai]

Hey guys,

Recently I started a startup around mid-Jan 2013 and I've been working on it everyday since then.

It's a peer-to-peer rental website

The website isn't finished yet, but after reading an article that some dude that has created a similar startup and him saying that "a supply focused, inventory-based platform for consumer goods like drills and vacuums is not a "scaleable startup," makes me want to give up, as he has already tried it out and failed.

He did say it can be a lifestyle business though, and that's something that I would be happy with, (considering i don't have a job, and parents telling me to get a job all the time) , but I really thought I could get really wealthy through this startup. I really thought that this startup could propel me to riches if I work on it really hard for 2-3 years.


link to article:
What can be learned when sharing leads to failing | PandoDailyPandoDaily


Also, a question to fellow fastlaners:
-Would you rent your items out to strangers if they had to put down a deposit??

Please answer truthfully, not to be nice or anything.

 

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[JasonR]

Perhaps, he's blowing smoke to ward of potential competitors.

If he said it can't be done, then it can't be done, right?

I smell opportunity (potentially). Can you find a way to make it scaleable? Can you do what he said he couldn't?

Just because someone else fails, or says something, doesn't mean its true.

 

[chaser]

Really cool idea.

Why can't you make it scaleable in a craigslist sort of way? Or am I missing something?

 

[rexxkai]

Perhaps, he's blowing smoke to ward of potential competitors.

If he said it can't be done, then it can't be done, right?

I smell opportunity (potentially). Can you find a way to make it scaleable? Can you do what he said he couldn't?

Just because someone else fails, or says something, doesn't mean its true.

your right, even though he can't make it a success, maybe i can.

as for scaleability, I think it can scale, but would need lots of employees to be calling the rental companies

there is a established competitor - fr.zilok.com, they have already expanded into united states, uk, and nederlands
I checked out their listings, most are consisted of listings from rental businesses. So maybe, if I can't turn this into peer-to-peer rental website, I can turn it into a middleman website--connecting rental businesses with customers.

PS: thank you for the support!!! you don't know how much this means to me!! i will not give up!!!

 

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[1PercentStreet]

Unless you 100% know it's going to fail, F*ck what others think.

Believe in your business more than anyone you know, because you are the determining factor whether it's even considered to have a chance at success.

 

[1PercentStreet]

 

[rexxkai]

Really cool idea.

Why can't you make it scaleable in a craigslist sort of way? Or am I missing something?

He says its not scaleable because most people are not willing to lend out their stuff. They would want access to being able to rent, but don't want to rent their stuff out.

I'm thinking if p2p renting doesn't work, i will switch to being like a lead-generation website (middleman; for rental businesses and customers)

thanks for your support!!

 

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[rexxkai]

Unless you 100% know it's going to fail, F*ck what others think.

Believe in your business more than anyone you know, because you are the determining factor whether it's even considered to have a chance at success.

thanks for your support!!! very power-giving!! i will push on!!!

 

[infinitus]

use wealth dynamics to hone in on your strength, your passion and core value you have to offer to the world, use direct marketing greats like jay abraham and dan kennedy and MJ DeMarco to deprogram the bs crap marketing ideas you've been taught, use some 'permission slip' to program your mindset for success

 

[healthstatus]

So if 1 pizza place fails, then it is impossible to start a pizza place because some idiot failed when he tried.

That being said, I wouldn't rent any of my stuff, I don't even let my relatives borrow my stuff. I do however rent other peoples stuff.

You might hit up pawn shops, and see if they want to rent anything that hasn't been picked up.

 

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[PaulRobert]

What's the worst thing that can happen if you do fail?

You truly fail if you learn nothing from failure. Failures are opportunities in disguise. You get to see the mistakes you made that led you to fail and the next time you attempt it you can avoid those mistakes. No startup is fail free. I have failed countless times but each time I have failed, I came out stronger and smarter.

 

[CommonCents]

a facebook based rental app would be better, as you are renting or borrowing stuff from your own network of people=some kind of trust to overcome that objection of lending stuff out to strangers. The other way to deal w/ the reluctance is you would bill the renters CC for the replacement cost of the item and if it is returned damaged they now own it. I'd hope people would damage some of my used stuff and get me a new one!

 

[EastWind]

The fact that someone else is thinking of the same problem is a VALIDATION to your idea!
The fact that they haven't figured how to solve it and given up you be JOY to you! You competitor killed himself before you had a chance!

 

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[DeletedUser2]

someone here locally tried that. asked me to come in and look at his biz, on why it wasn't working.

he was trying to be the craigslist of rentals, and be in every city.

all at once.

so here is some feed back I gave him, after looking at the whole model.

craigslist did not start out big.

it was very small.
VERY small at first.

THEN gained traction in 1 area, then added more, and more areas. and then more and more cities.


he tried to go nation wide first thing. but no capital to sustain any kind of advertising, even locally.

2. the thing things he was trying to rent...

cars, bikes, drills chainsaws ect.

so look at it from 1. a person who rents perspective
and the person who rents out perspective.

1. so im a renter, I want ot rent a drill. on your site I have to come up with 20 bucks, and drive to get the drill, and have 20 dollar deposit. and drive back the same day.

if its across town, I have to coordinate with the person who has the drill, put up 40 bucks, hope they are home when I need it, and then coordinate when they are home to get it back to them, and get my money back.

OR, I have 40 bucks in my pocket now, I buy a drill, and use it. I dont have to coordinate with anyone, and i can use it multiple times.

now if the drill they give me doesn't work, i may or may not get my money back, because they could say I broke it. but since I didn't test it before I rented it. its their word against mine, but they have my money, so they keep it, and now I bought a 40$ broken drill.

as someone renting my stuff out

1. someone I dont know comes to my house, and sees my stuff,
asks me when I'm going to be back to the house, so they can deliver it and get their money back. Risk 1. they come rob me when Im gone

if its an expensive item, and they dont have the money for the full value, (that's why rent vs buy right?) what if they dont come back? if they have a credit card, Do I need a merchant account? do i need to incur merchant fees? what if they charge back on the card? RISK 2. what if they steal it. what If they break it and I am out more money than I made? was it worth the risk?

Do i have a waiver? am I protected if the drill through their hand? can they charge me for getting a shock if the cord was frayed? rental places have attorneys who have spent alot of time getting rental agreements in place. does the average Joe have time for that? no.

If its a larger expensive Item, Do I have LOjack on it? did they put enough money down? what if the credit card they gave me was stolen?

What happens if I leave work, to "rent" my riding mower, someone got hurt loading it, they want to sue, the guy who Rented it on a stolen card, keeps my mower, gave me a bogus address, and no cash, now has my mower for sale on Craigslist?

as with any system there comes abuse. craigslist spends alot of their time just combating all the scammers on there. and its grown into a HUGE industry.

would I Put my stuff up for rent? nope. sell it on Craigslist, at a cheap enough cost someone can buy vs rent. sure. the idea sounds good, until you add the human element.

and if you caught the last of another thread, you can see someone who "stole a website and niche" from someone who helped him out. claiming his 2 kids as reasons for doing so. people are like that.

you wont get rich, on a site like this. but you will learn a ton of lessons. esp when people try to sue you for their stolen riding lawn mower.

Good luck


Z

 

[Jonleehacker]

I'm not trying to contradict all the other posters offering support. I actually do thing there is a good need there. I travel quite a bit and stay in places for a month or 6 weeks and I often wish for a service exactly like this.

But let's take a look at it from a business perspective, not your business, but the people using your services. If I want to rent out a drill to a stranger, is it really worth say 1 hour of my time dealing with the person picking it up and dropping it off and possible wear and tear all for $10, which is probably the most someone would pay to rent a drill when you could buy one for $20.

I have seen similar services for car rentals, and even those services operating at a higher price point, they seem to have trouble getting traction.

Not saying your idea won't fly, if I had a dollar for everyone that told me it was impossible to become a professional trader, I'd be rich.

 

[Nosferatu]

My Question is..... is there REALLY a big need for people looking to rent xyz item or tool? or are you just in love with the idea of this business?
i got a bunch of tools, and i cant see myself trusting someone with my personal shit. (im meticulous with my shit)

Now, don't get me wrong. I'm not saying it's a bad idea -- im just not the ideal target audience/market for something like that. Anything i need i just buy. (within reason) or i find other ways to accomplish my task.

How big is that market? How to secure peoples investment and stuff? How does one handle disputes or pays for damages? What about stolen items?

A lot of questions there..

 

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[PaulRobert]

Saw this video this morning..

Welcome to the new economy built on sharing - CBS News

 

[TK1]

https://www.thefastlaneforum.com/internet-mobile-apps-software/150-home-run-vs-single.html#post1069

 

[pascal1234]

I just read recently the economist - the cover story was about the sharing-economy. Here the link: Peer-to-peer rental: The rise of the sharing economy | The Economist

I think there is definitely a trend. Nevertheless, the notion of trust has to be included in the system. And clear benefits need to be shown.

If I want to rent something out, who takes responsibility if the item gets damaged or lost? Can you offer a insurance solution or will it become to complicated?

Sharing/renting certainly becomes a market for itself. But in my opinion only for items that require a certain investment - either to buy it or to make it work/build...

 

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[pascal1234]

and what i actually wanted to say: Don't give up, just focus on the value you can provide and make your website as simple and secure as possible

 

[rexxkai]

That being said, I wouldn't rent any of my stuff, I don't even let my relatives borrow my stuff. I do however rent other peoples stuff.

You might hit up pawn shops, and see if they want to rent anything that hasn't been picked up.

Thx that's a great idea!! I will try that too

 

[rexxkai]

someone here locally tried that. asked me to come in and look at his biz, on why it wasn't working.

he was trying to be the craigslist of rentals, and be in every city.

all at once.

so here is some feed back I gave him, after looking at the whole model.

craigslist did not start out big.

it was very small.
VERY small at first.

THEN gained traction in 1 area, then added more, and more areas. and then more and more cities.


he tried to go nation wide first thing. but no capital to sustain any kind of advertising, even locally.

2. the thing things he was trying to rent...

cars, bikes, drills chainsaws ect.

so look at it from 1. a person who rents perspective
and the person who rents out perspective.

1. so im a renter, I want ot rent a drill. on your site I have to come up with 20 bucks, and drive to get the drill, and have 20 dollar deposit. and drive back the same day.

if its across town, I have to coordinate with the person who has the drill, put up 40 bucks, hope they are home when I need it, and then coordinate when they are home to get it back to them, and get my money back.

OR, I have 40 bucks in my pocket now, I buy a drill, and use it. I dont have to coordinate with anyone, and i can use it multiple times.

now if the drill they give me doesn't work, i may or may not get my money back, because they could say I broke it. but since I didn't test it before I rented it. its their word against mine, but they have my money, so they keep it, and now I bought a 40$ broken drill.

as someone renting my stuff out

1. someone I dont know comes to my house, and sees my stuff,
asks me when I'm going to be back to the house, so they can deliver it and get their money back. Risk 1. they come rob me when Im gone

if its an expensive item, and they dont have the money for the full value, (that's why rent vs buy right?) what if they dont come back? if they have a credit card, Do I need a merchant account? do i need to incur merchant fees? what if they charge back on the card? RISK 2. what if they steal it. what If they break it and I am out more money than I made? was it worth the risk?

Do i have a waiver? am I protected if the drill through their hand? can they charge me for getting a shock if the cord was frayed? rental places have attorneys who have spent alot of time getting rental agreements in place. does the average Joe have time for that? no.

If its a larger expensive Item, Do I have LOjack on it? did they put enough money down? what if the credit card they gave me was stolen?

What happens if I leave work, to "rent" my riding mower, someone got hurt loading it, they want to sue, the guy who Rented it on a stolen card, keeps my mower, gave me a bogus address, and no cash, now has my mower for sale on Craigslist?

as with any system there comes abuse. craigslist spends alot of their time just combating all the scammers on there. and its grown into a HUGE industry.

would I Put my stuff up for rent? nope. sell it on Craigslist, at a cheap enough cost someone can buy vs rent. sure. the idea sounds good, until you add the human element.

and if you caught the last of another thread, you can see someone who "stole a website and niche" from someone who helped him out. claiming his 2 kids as reasons for doing so. people are like that.

you wont get rich, on a site like this. but you will learn a ton of lessons. esp when people try to sue you for their stolen riding lawn mower.

Good luck


Z

first off, thanks for reply!!

wow you are really good at poking holes at a business model!! professional status in fact!!

you make me wanna put an end to this business right now lol

1. I am starting out in just one city, in see how it works. If it works well, i will expand to other cities.

2. people would be renting at least $75+ items. For exmple, ipad renting for $25-30 day, approx 5-10% of retail cost.

As for security issues:
-Owner of item should ask for driver's license and security deposit(cash/cheque) or something of value

As for people hurting themselves with the borrowed items, can my website be sued for something that happens between the users??
Can't I just write some stuff on my terms of use and privacy policy to prevent my website being sued?? Will I only be sued if I charge users money for using website??

last- thank you very much for pointing all of these issues out, i truly appreciate your help!!

you da man!!

 

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[rexxkai]

I'm not trying to contradict all the other posters offering support. I actually do thing there is a good need there. I travel quite a bit and stay in places for a month or 6 weeks and I often wish for a service exactly like this.

But let's take a look at it from a business perspective, not your business, but the people using your services. If I want to rent out a drill to a stranger, is it really worth say 1 hour of my time dealing with the person picking it up and dropping it off and possible wear and tear all for $10, which is probably the most someone would pay to rent a drill when you could buy one for $20.

I have seen similar services for car rentals, and even those services operating at a higher price point, they seem to have trouble getting traction.

Not saying your idea won't fly, if I had a dollar for everyone that told me it was impossible to become a professional trader, I'd be rich.

thanks for reply, hmmm... you got me thinking about starting a rental business franchise, but i am really quite worried about the profit margin, and i really don't want to deal with legal issues.

what type of items would you like to rent when you do travel?? (i think there is a potential business within this question)

as for the items, they would be more expensive items, like at least $75+ . for the drill, i don't think people will want to rent something that costs them $10 a day and $20 to purchase...

 

[rexxkai]

My Question is..... is there REALLY a big need for people looking to rent xyz item or tool? or are you just in love with the idea of this business?
i got a bunch of tools, and i cant see myself trusting someone with my personal shit. (im meticulous with my shit)

Now, don't get me wrong. I'm not saying it's a bad idea -- im just not the ideal target audience/market for something like that. Anything i need i just buy. (within reason) or i find other ways to accomplish my task.

How big is that market? How to secure peoples investment and stuff? How does one handle disputes or pays for damages? What about stolen items?

A lot of questions there..

thanks for reply!! the market is probably quite enormous, considering there are existing rental businesses. as for the other questions, please view my previous posts..

Thanks!

 

[rexxkai]

I just read recently the economist - the cover story was about the sharing-economy. Here the link: Peer-to-peer rental: The rise of the sharing economy | The Economist

I think there is definitely a trend. Nevertheless, the notion of trust has to be included in the system. And clear benefits need to be shown.

If I want to rent something out, who takes responsibility if the item gets damaged or lost? Can you offer a insurance solution or will it become to complicated?

Sharing/renting certainly becomes a market for itself. But in my opinion only for items that require a certain investment - either to buy it or to make it work/build...

the owner and renter of item deals with the problems.
if this business model is successful, i will try to offer an insurance solution. but right now i am brokeeee hahaha

 

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[KirbyRaymund]

i believe there is some market out there the question is the whether tools is the right item to be rented. you need to find tools that are expensive enough for people to not even think about of buying them over renting them.

maybe the key is in localizing your listings. people within the same city might not even know there's someone in the next block who has what they need. when it's localized, it's easier to deal with the issue of having to ship or mail the tools and other "trust" concerns.

hope that helps.

 

[theBiz]

Just because one site fails, does not mean they all will, i agree with Zend as far as adding the human element slightly kills the idea.... look at all of the apartment rental sites out there now though, you have strangers renting your vacation houses for a few days... they are making it work somehow.... the tool rental thing, again as Zend said its almost not even cost efficient at some point, need to work on bigger margins, like house rentals, car rentals, motorcycles, etc.. things where we can sit and sign a contract, if i need a drill i need it now, not even going to waste time to save 20%, 30% ill just go buy it, a house in Malibu for the weekend though.... you get the point

There are so many ways to monetize a business or website... same thing... ive seen someone take the dumbest idea and be so extremely profitable by having 5 different revenue models, all of them custom crafted, there was no traditional model to go by, he said this would make sense.... he went and created the back end that 99.9% of other entrepreneurs never would of created, so 99.9% would of failed, he certainly didnt. Everyone needs to stop looking at how others monetize and just be dumb, be obvious, and go for what simply makes sense... but alot of times you have to custom create the solution.

 

[edpaiz]

Hi iwould recommend you go niche with this one dont try to get everything in there because then youll have to deal with the specifics of everything. Pick 4 or 5 items you think are the most popular and start from there, that way youll learn all the problmes that might rise and can scale with more items little by little, knowign the potential problems that might come up.

 

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[Juhill]

Focus on the process and not the end goal. I believe if your whole intention is just to get rich you will never be as successful than if you genuinely care about solving your customer's problem/need. Oh, and I agree on not seeing someone else's failure in a similar business as a good reason to thrown in the towel. There are a million factors that lead to success and failure.