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If you had 5 dollars and 2 hours, how would you make as much money as possible?

entrepreneur.venturebeat.com

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Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#51
post #46

Earlier quoted context omitted.

Can someone just spoil it please? I hate having to waste my time in order to glean insights. Pareto.

She teaches a class at Stanford and offers each team $5 of 'funding' in an envelope. She tells them that once they open the envelope, they have 2 hours to make as much money as they can. She cites three teams' approaches: 1) First team opens a free stand that offers to check peoples bike tire pressure for free, then charges $1 to inflate if necessary. This team changes midstream to accepting donations instead of char…

See, the problem here is that she hands out two artificial constraints, and then praises the teams who ignore the constraints.

1. Used a device to measure the tire pressure and materials to build the booth and signs. Did they cost less than $5? Maybe. Did it take less than 2 hours to create the booth, the signs, and perform the services? Unlikely.

2. Well done on finding something you can acquire for free and then sell. However: did they make the reservations at 6pm and then sell them before 8pm? If not, the process of making the money took more than the 2 hours allotted.

3. You had two hours. Instead, you spent 2 hours talking to an advertising company and then a week later you sold 3 minutes of your time. Total time used to make $650: a week. In the real world you can't just discount lead time and idle time; that's a mistake made by a lot of starving contractors.

The point of the puzzle is to work inside the constraints. "Thinking outside the box" is a great skill and all, but basically all these teams are doing is finding creative ways of breaking the rules. It means the puzzle isn't "make the most money in 2 hours with $5", it means the puzzle is "find out how far you can stretch these rules without being disqualified". Points for creativity, sure, but that wasn't the problem.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#52
post #46

Earlier quoted context omitted.

Can someone just spoil it please? I hate having to waste my time in order to glean insights. Pareto.

She teaches a class at Stanford and offers each team $5 of 'funding' in an envelope. She tells them that once they open the envelope, they have 2 hours to make as much money as they can. She cites three teams' approaches: 1) First team opens a free stand that offers to check peoples bike tire pressure for free, then charges $1 to inflate if necessary. This team changes midstream to accepting donations instead of char…

thanks. I would have failed the "winning" team. From my perspective, they made nothing from their two hours. The money was made by the 3 minutes in class which was not part of their 2 hour earning time.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#53
post #30
post #18

Just a few options off the top of my head: 1. Email everyone I've done work for in the past 5 years, promising all of my time on Mondays for the next year to the highest bidder by 2:00 p.m. 2. Same as #1, but instead of the highest bid, the first $10,000. 3. Same as #2, but $1,000. I will accept all checks received in the next 2 hours. What they will get: free use of my next web service for life. 4. Tell my employer…

But with several of those options, you take on liabilities that may exceed the money you made. By the same logic, you could use your two hours to get a mortgage on your house. (And the last option sounds like fraud.)

Indeed, accountants looking at this from an accrual perspective would dispute that he made much money at all.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#54
post #29
post #24

1. Trick 1: Forget about the $5. 2. Trick 2: Forget about providing the actual service within those 2 hours. Use the 2 hours just for doing the actual trade. 3. Then sell something before you buy it. If I was given just 2 hours, I would do quick brokerage. Hour 1: Find a group of people who wants to buy laptops* at a decent price. Get their configs down and get a commitment. Hour 2: Find a seller who will give the be…

... and you've just created an inductive proof for how the US financial system collapsed. Don't get me wrong: I think step 3 has a good chance of working. BUT if you, like your customers, assume that a commitment is equivalent to the actual asset (i.e. the laptop) then you are vulnerable to defaulting on YOUR commitment if and when you cannot deliver the asset. How might that happen? Imagine you commit to purchasing…

While in theory you are correct, there are a few points to ponder upon:

Laptops are not like stocks or other exchange commodities. As in, their prices won't fluctuate like crazy (unless of course you manage to get pre-order commitments to like 10,000 laptops.) At the scale we are talking about, we have a pretty good idea of what price discounts we'll get. And more importantly - who will be able to deliver them well.

Its important to keep scale in mind.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#55
Apparently by ignoring the money and the time limit...

Personally I found the latter 2 solutions pretty unimaginative in ignoring the $5. If the exercise is to maximise the $5 (a much harder task it seems) then they seem to have failed.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#57
post #43

Earlier quoted context omitted.

> You're right: these "genius entrepreneurs" were selling the time of their classmates. Exactly. But you miss the fact that they already had the time of their classmates to sell. No matter what happened, the classmates would have to sit through 3 minutes from this group.

once. not twice.

Who said anything about twice, though? They had 3 minutes and they sold it -- I don't think that means they got another 3 minutes. Now both the students and the instructor might have given them another 3 minutes, but that's not something they could have assumed nor is it somehow wrong.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#58
post #36

Earlier quoted context omitted.

It was a bit dishonest - they sold other peoples time without any guarantee they could deliver it. The students could all have got up and left saying they weren't going to be exploited, or have done a non-violent protest, etc.. Very clever though.

The more I think about the video, the more disappointed I become. You're right: these "genius entrepreneurs" were selling the time of their classmates. The 3-minute slot had no value if their classmates didn't tolerate the fact that their time became a commercial - one which they certainly didn't opt into. On the one hand, it's probably true that the timeslot they sold was the most valuable thing they had, for the pu…

How is that different from the current $100B+ advertisement business? TV, press, Google all sell "our time".

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#59
post #36

Earlier quoted context omitted.

It was a bit dishonest - they sold other peoples time without any guarantee they could deliver it. The students could all have got up and left saying they weren't going to be exploited, or have done a non-violent protest, etc.. Very clever though.

The more I think about the video, the more disappointed I become. You're right: these "genius entrepreneurs" were selling the time of their classmates. The 3-minute slot had no value if their classmates didn't tolerate the fact that their time became a commercial - one which they certainly didn't opt into. On the one hand, it's probably true that the timeslot they sold was the most valuable thing they had, for the pu…

Imagine, for example, if professors routinely sold part of their lecture time to any startup that wanted a few interns.

I don't need to imagine. Most of the conferences I've been to work this way.

There are many ways to look at this. One is to note that, if I needed a job, I would probably pay cash money to attend a series of 3-minute commercials by companies that were looking to hire interns. Indeed, this is a lot of what Stanford students are paying tuition for. In the building next door to your college classroom is a job placement office that specializes in exactly this. So I'm kind of dubious about the assertion that this is some kind of terrible disservice to the students.

Another way to look at it: "sustainable growth" is highly overrated. It's not merely that it wasn't a criteria of the original problem -- which it wasn't -- but also that judging what is and isn't "sustainable" is an exercise in predicting the future. And, like all exercises in predicting the future, it tends to miss a lot of the good stuff. You find yourself saying things like "This business plan won't scale past the first 5000 customers!" or "If Netflix catches on, Blockbuster will get into the business and crush Netflix like a bug!" or "How could I ever make a million dollars doing something this trivial?" or "How can Twitter succeed after the open-source open-protocol Twitter Substitute comes along, as it surely will, any minute now?" [1]

But the most obvious conclusion is: Just because you can't do it twice doesn't mean it isn't worth doing once. If I were a student in that class, I would surely have been happy to sit through a three-minute presentation, though I'm not sure I would have heard much of it, because I would have been too busy rolling on the floor with laughter at the scope of the other students' awesome hack. But, yeah, it won't work a second time. Everybody knows the punch line now.

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[1] Hey, if people didn't believe stuff like this I wouldn't see it pop up on HN every three months, like clockwork.

Re: If you had 5 dollars and 2 hours, how would you make as much money as possible?

#60
The real lesson here is: Break the rules.

The rules were, 2 hours and $5. No one spent only two hours and only $5. The first suggestion from the class was a $50 house party. Tire pumps cost more than $5. The restaurant reservation scheme occurred the next weekend.

The last, most creative team was perhaps the only one that actually followed the rules, assuming they sold the class time in those two hours.

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