The Startup Ideas Podcast
The best businesses are built at the intersection of emerging technology, community, and real human needs.
Vending Machine Profitability Model
Evaluate business opportunities based on whether you can predictably put in $1 and get $1.50+ back, focusing on mechanistic rather than aspirational metrics
Decision Rule
If you can clearly demonstrate the input-output ratio and it's positive, scale by increasing inputs rather than optimizing the mechanism
How It Works
Reduces complex business decisions to simple mathematical relationships, enabling rapid scaling decisions
Failure Modes
Oversimplifying complex customer journeys
Ignoring longer-term brand impacts
Missing market saturation effects
Assuming linear scalability
Example Decision
“AI ad service gets leads at $10 each, converts 20% at $5K average, generating $1000 revenue per $50 spent - clear vending machine signal to scale advertising spend.”