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DAOD – Know Default Alive or Dead

Originally Posted on September 21, 2020
Last Update on September 23, 2020
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Business idea “DAOD” – Know Default Alive or Dead. Inspired by Paul Graham. [1]

Problem 

As a business owner, the most critical data is the cash left in your bank account. If it goes below zero – your company dies. But you shouldn’t spend too much time on it because you need to run your business. What’s the solution? Meet DADO.

Quote

“Instead of starting to ask too late whether you’re default alive or default dead, start asking too early.” – Paul Graham

Solution

It’s a simple fintech software to which you can link business bank accounts. It shows you whether you’re default dead or alive by analyzing cash flow, then tells you when your business goes bust or hits break-even – like the Trevor’s tool introduced in the essay. [2]

Validation

There are already tools to track and analyze your revenue automatically. Baremetrics is one example (their Open Startups is worth checking). [3][4] Another one is BurnRate, which helps companies to plan & model revenue. [5]

Business Model

DAOD targets small business owners and startups as main clients because they don’t have a dedicated finance & accounting team unlike big companies. It makes money through a monthly subscription (targeting: $300-$1000 ARR). 

[1] http://www.paulgraham.com/aord.html

[2] http://growth.tlb.org/

[3] https://baremetrics.com

[4] https://baremetrics.com/open-startups

[5] http://burnrate.io/

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