Startup 2: Week 1– Why “Cheating” is Actually Good
Note: 4 Weeks to Launch is an ongoing series about building passive income across multiple startups — a new startup every 4 weeks. Read the first post on 4 Weeks to Launch to get started, or subscribe for weekly updates.
Over the next 4 weeks I will design, build, release, and promote an iOS app (with a little help from my friends). We’ll go from paper to finished product while sharing the process – full transparency.
One startup down! If you haven’t, check out startup #1 (metrics here, about it here). This month we’re shifting focus to users instead of revenue. As Silicon Valley preaches, often to excess, if you get users you can monetize later. We will be building an iOS app that caters to the impulsive tendencies of millennials. Let the experiment begin!
Impulse Savings (working title)
The problem: Millennials suck at saving. We’re impulsive, hate any form of long-term commitment, and don’t worry about the future (though we should). Why save for future me when present me is having so much fun?
The solution: Gamified Savings
Saving money is boring and ungratifying. Impulse Savings is centered on you, whether you’re saving for retirement or a shopping spree. Watch your friends’ progress–are they saving more than you?–and work towards a goal that you care about. Personally, I’m looking forward to Maui.
There are a few saving-focused apps available which fall under two main categories. The first group moves small amounts from your checking to savings passively. This is good but with little incentive, emotional or otherwise, plus it’s hard to get started. The second group focuses on setting up a recurring deposit. Even less fun.
Saving money is an abstract concept and if not anchored to an emotion it’s hard to get excited by moving money around. Retirement is 50 kajillion years away, so why should I plan for it? By creating “want to” goals instead of “should do” goals, saving is more fun, especially when competing with friends.
Why this and why now?
Whether you’re rich or poor, money will affect your entire life. What I find difficult to understand is why financial literacy isn’t taught until 11th-freaking-grade, and even then it’s an elective! It’s as if money is the ugly stepchild who no one likes to talk about. Financial education falls to our parents and I hate to break it to mom and dad, but they sucked at money. This is a problem that needs a solution.
And hey, money isn’t even all that scary! It’s a game and if you figure out the rules, you do well. It’s learning and internalizing the rules that’s the hard part. Spend less than you earn. Make money work for you, don’t work for money. Invest and earn compound interest. A penny saved is a penny earned. While these are cliche they also have a lot of truth to them. It’s time for impulse saving to be just as easy as impulse spending.
Building the dream team
While working on JFDI.ninja I constantly felt overwhelmed. There’s always more to do! Startup #1 was no different so this month I decided to pull in some experts and share the work. I introduce to you the team, Nick Pirollo and Andrew Tider!
- Nick is a badass engineer who’s been a great friend of mine for years. Check out his newest app HaterDater that got 100K+ downloads in the first week of the app store.
- Andy is a friend who’s marketing success speaks for itself. Check out the 100 pound bust of Snowden he put in Greene Park, later confiscated by the NYC Parks Department.
Isn’t having help cheating?
So Elijah, I thought you were going to be building a startup a month. What gives?
School teaches us to work in isolation. Don’t work with others on the test–that’s cheating! And if you copy Tawny’s homework you fail because you didn’t learn by yourself!
Then a remarkable thing happens. You graduate (or dropout in my case) and realize you don’t have to do everything solo. You can ask anyone for help. If you are able to recruit someone who is a pro then that’s success rather than fraud. Be genuine, yes, but don’t for a minute think you have to do everything on your own like in school. That’s the slowest and most difficult path to success.
Entrepreneurs know this well. A good entrepreneur knows their strengths, but also knows how to find support for where they are weak. Cameron Herold talks about how he outsourced his homework in college (TED Talk):
I hired kids to do my accounting assignments in university for 13 consecutive assignments. But as an entrepreneur you don’t do accounting, you hire accountants. So I just figured that out earlier.
– Cameron Herold
We learn most by being close to people better people. Nick is a stronger engineer than me, and same goes for Andy with marketing chops. Surround yourself with people who force you to grow and you’ll dramatically accelerate your learning.
How to design and build a product
I’ll be leading the product for Impulse Savings. While less obvious than engineering or marketing, product management (PM) and user experience (UX) are critical to building a quality product.
I’m a self taught designer and PM. While my methods may not be from Business School they have served me well to date. So far I’ve finished sketches and wireframes for the product and will be designing pixel perfect mockups over the next week. If interested in watching and learning more about product design post below and let me know you want me to livestream!
- Do you want to learn how to design a mobile app? Let me know why or why not below.
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