How we pivoted Flowtab from bars to stadiums

When Kyle Hill and I were operating Flowtab we came to the realization that on-premise mobile ordering was not a viable business model in the bar and nightclub vertical.

Our story is written in TechCrunch here:
The Decline And Fall Of Flowtab, A Startup Story | TechCrunch

At this point we took a deep dive in researching the opportunity landscape. Our approach was to take 10 weighted factors and use those to assess each vertical market opportunity.

10 weighted factors used to assess each vertical market

  1. Ability to Differentiate
  2. Competitive Intensity
  3. Barrier to Entry
  4. Frequency of Events
  5. Market Size
  6. Growth Rate
  7. Profitability
  8. Technical Fit
  9. Capabilities
  10. Maturity & Timing

After whiteboarding realistic mass market potential market verticals we landed on 5 of the most promising… while now I believe there are more.

Here is the spreadsheet we used to track each potential market:

Chess Move (5 Potential Markets)

From our research we determined that we had the best chance for success in the Stadium ordering space.

While I truly believe in the opportunity in this vertical, so did Bypasslane, who raised $3.5M 1 month later…
Bypass Grabs $3.5M From eBay, Nolan Ryan & Others To Help Big-Ticket Venues Upgrade Their Payment Solutions

Kyle and I called every stadium in the United States (114 on our list), and met with every stadium in Nor Cal.

Every stadium in the U.S. list

The business economics make sense here, however, it is the type of market that winner will take all will likely play out in the short (2–5 year) term.

In another post soon, I’ll give my thoughts on what makes a high potential marketplace, and specifically why we think HomeHero has a bright future.

Resources
All our resources are open-sourced on www.flowtab.com including:

  • Pitchbook
  • Patent application
  • POS integrations
  • Source code
  • Bar owner contracts
  • Sales guides