I came across Kickfurther today and think there is a really big idea somewhere in their premise.
* What if there was a Kickstarter or AngelList for small businesses?
* What if you could fund specific products they sell and receive a % of sales from that product?
I recently visited a trendy, family-owned clothing store in the Marina District of San Francisco and noticed a $90 Golden State Warriors sweatshirt in their storefront window.
This was a surprising discovery for me because the store is more focused on boutique items and fancy brands that target women.
I asked the storekeeper how the sweatshirts were selling.
He told me the sweatshirts are his most popular item, which is why he features them in the storefront window.
The sweatshirts bring him foot traffic that he normally wouldn’t attract to his boutique: 25–35 year-old men with disposable income.
The men are often accompanied by their wife or girlfriend, who are also shopping — this is the perfect scenario for the boutique.
The most interesting part of this discovery is that the sweatshirt was the only Golden State Warriors item in stock.
Knowing the sweatshirt is their top-selling product, an investor might predict that purchasing more inventory of this item would be a smart investment for this particular store.
Armed with these sales figures, investors might also want to invest in other products for the store to sell that are completely unrelated to the sweatshirt.
Would you invest in products at small businesses?
If this store owner offered you a percentage of future sales on a specific item (in return for taking on part of the inventory risk), would you be interested in the investment opportunity?
I would be. It sounds more interesting than 99% of consumer startups that get funded every day.
More importantly, what type of loyalty might this create between you (as an investor) and small businesses?
You would immediately become their promoter and might encourage your friends to buy their products, as you would make a return on sales.
I think there is a huge idea here. I’m not sure if Kickfurther will nail the opportunity, but I love the premise.
I bought a $90 Warriors sweatshirt that night, if you need proof.
Startup Idea is a new series by Jeff Morris Jr., co-founder of Requests For Startups.