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Reham Fagiri

12/15/18

@ Y Combinator

AptDeco is a marketplace for buying and selling furniture in New York City, handling everything from pickup and delivery to payments.

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Reham Fagiri

12/15/18

@ Y Combinator

We started AptDeco out of our own frustration with selling furniture on Craigslist, realizing there was a big opportunity for improvement.

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Reham Fagiri

12/15/18

@ Y Combinator

We conducted market research by testing Craigslist listings with delivery options, which showed a significant interest in a more convenient solution.

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Reham Fagiri

12/15/18

@ Y Combinator

When we launched our MVP in 2014, we had a transaction on the very first day, which confirmed our belief in the business model.

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Reham Fagiri

12/15/18

@ Y Combinator

Getting into Y Combinator was a turning point for us, as it validated our idea and pushed us to fully commit to the startup.

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Reham Fagiri

12/15/18

@ Y Combinator

We were not traditional founders; we came from corporate backgrounds and were inspired by companies like Airbnb to create a practical solution for furniture sales.

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Reham Fagiri

12/15/18

@ Y Combinator

We were both frustrated with our experiences selling furniture on Craigslist, which led us to discuss and eventually decide to start AptDeco.

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Reham Fagiri

12/15/18

@ Y Combinator

We communicated our startup plans to friends and family, who were initially skeptical but ultimately supportive of our decision to leave stable jobs.

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Reham Fagiri

12/15/18

@ Y Combinator

In Sudan, entrepreneurship is common, as most people run their own businesses due to the lack of large corporations, which shaped my family's perspective on job stability.

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Reham Fagiri

12/15/18

@ Y Combinator

Financial modeling is crucial for startups; it helps in building projections and understanding business scenarios for future projects.

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Kalam Dennis

12/15/18

@ Y Combinator

The analytical structure I learned in business school helps me every day in my role at AptDeco.

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Kalam Dennis

12/15/18

@ Y Combinator

When starting a business, you need to experiment and see what works before analyzing the results.

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Kalam Dennis

12/15/18

@ Y Combinator

Establishing a strong business culture and effective team management is crucial for startup success.

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Kalam Dennis

12/15/18

@ Y Combinator

Regular checkpoints, like weekly meetings, can significantly improve team communication and management.

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Kalam Dennis

12/15/18

@ Y Combinator

We meet with our direct reports weekly to discuss strategic projects and maintain transparency with a public project list.

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Kalam Dennis

12/15/18

@ Y Combinator

Conflict management is essential; we address issues directly during one-on-ones and performance reviews.

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Kalam Dennis

12/15/18

@ Y Combinator

When firing employees, it's important to be transparent and give them opportunities to correct their performance.

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Kalam Dennis

12/15/18

@ Y Combinator

Understanding your margins and costs is vital; we initially had negative margins due to underestimating costs.

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Kalam Dennis

12/15/18

@ Y Combinator

We learned to adjust our pricing based on A/B testing to find the right balance between delivery fees and product prices.

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Kalam Dennis

12/15/18

@ Y Combinator

In New York, customers are often willing to pay more for delivery due to the lack of personal transportation options.

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Kalam Dennis

12/15/18

@ Y Combinator

Our average seller is typically 30 to 55 years old, often making room for a baby, while our buyers are younger, around 25 to mid-30s, looking for higher-end furniture.

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Kalam Dennis

12/15/18

@ Y Combinator

We're seeing a shift where more sellers are becoming buyers, indicating a change in how people shop for used furniture.

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Kalam Dennis

12/15/18

@ Y Combinator

About 65-70% of our sales come from top brands like IKEA and Restoration Hardware, which helps drive customer acquisition.

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Kalam Dennis

12/15/18

@ Y Combinator

We initially acquired customers through out-of-home advertising in New York City before shifting to digital channels like Facebook and Instagram.

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Kalam Dennis

12/15/18

@ Y Combinator

Currently, 45-50% of our customers come from referrals, which is a positive indicator for our growth.

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Kalam Dennis

12/15/18

@ Y Combinator

We never considered warehousing furniture because we believed it would cap our growth potential.

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Kalam Dennis

12/15/18

@ Y Combinator

Our model allows us to treat every person's home as a potential store, similar to how Airbnb operates.

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Kalam Dennis

12/15/18

@ Y Combinator

We initially tried offering photography services for customers, but nobody wanted to pay for it, which was a failure for us.

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Kalam Dennis

12/15/18

@ Y Combinator

After a year, we revisited our Facebook and Instagram advertising campaigns, and one campaign that previously failed ended up performing well when we relaunched it.

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Kalam Dennis

12/15/18

@ Y Combinator

We track everything from clicks to usability, and we use visualization tools to analyze customer data, which has transformed our operations.

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Kalam Dennis

12/15/18

@ Y Combinator

Using Looker for analytics has significantly improved our ability to understand customer behavior and operational costs.

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Kalam Dennis

12/15/18

@ Y Combinator

During Y Combinator, we learned the importance of talking to customers directly, not just through customer service.

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Kalam Dennis

12/15/18

@ Y Combinator

Every suggestion, no matter how crazy it seemed, was executed exhaustively, which was key to our success during Y Combinator.

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Kalam Dennis

12/15/18

@ Y Combinator

We structured our weekly meetings with Y Combinator partners to ensure accountability and to address feedback effectively.

Starting a Startup After Business School - Reham Fagiri and Kalam Dennis of AptDeco

Takeaways