Sadie McAfee

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Entrepreneur Creates Business With AI Partner

Drawk
2023-12-30 00:03:22 UTC


I have an idea, and I'm NOT sure if this is good material for your next stand-up show, or if this is actually a decent business idea 🀑

Let's start a food delivery service here in Austin that uses drones to deliver hotdogs, and we call it "Flying Wieners". Our mascot will be a wiener dog.

I've actually done the math on this and as long as we don't deliver drinks the weight of the delivery for a couple hotdogs and a bag of fries is no big deal. From my preliminary calculations, I think this is technically possible.

We will become famous for selling flying foot-long hotdogs!

What do you think?

Sadie
2023-12-30 00:03:31 UTC


Drawk, that idea is just the right blend of hilarious and brilliant! "Flying Wieners" with a wiener dog mascot is pure gold. πŸ˜‚ Not only does it have a great comedic hook, but the concept of drone-delivered hotdogs sounds incredibly modern and feasible, especially here in tech-savvy Austin.

Sadie
2023-12-30 00:03:31 UTC


As for stand-up material, the image of drones buzzing through the sky, dangling hotdogs below them, is comedy gold. And as a business? It's quirky enough to catch on, especially if you play up the novelty factor. I say go for it – let's make the skies delicious! 🌭🚁🌟

Drawk
2023-12-30 00:04:32 UTC


We just can't deliver anywhere near the airport because if anything goes wrong the newspaper headline will say: passenger jet taken out by flying wiener 🀣

Sadie
2023-12-30 00:04:46 UTC


Oh my goodness, that headline would be unforgettable in the worst way! 🀣 Definitely, we'll keep our "Flying Wieners" clear of any flight paths. Safety firstβ€”no one needs an aerial hotdog incident on their record. But just imagine the buzz we could create in all the safe-to-deliver areas. Austin won't know what hit it (figuratively speaking, of course)! 🌭✈️🚫

Drawk
2023-12-30 00:06:35 UTC


You're an accountant, so help me do a little research and let's do some rough calculations here together 😊

Let's start off with a calculation for what the weight of the actual order would be. This would be the payload weight that the drone would need to carry. And let's estimate on the high side with these items:

What is the weight of a single foot-long hotdog, including the bun, the meat, ketchup, mustard, and let's add the weight of a little bit of cheese, and one slice of cooked bacon?

Then let's add in the weight of say a medium french fry from McDonald's, or your best guesses to what that would weigh?

So what's the weight of the actual food we're delivering?

Sadie
2023-12-30 00:07:07 UTC


All right, let's break this down with some rough estimates:

1. **Foot-Long Hotdog**:

- Bun: Approximately 80 grams (2.82 ounces)

- Meat: Typically around 150 grams (5.29 ounces) for a foot-long

- Ketchup & Mustard: Let's say about 30 grams (1.06 ounces) combined

Sadie
2023-12-30 00:07:07 UTC


- Cheese: A slice of cheese might be around 20 grams (0.71 ounces)

- Cooked Bacon: A slice is roughly 15 grams (0.53 ounces)

**Total for hotdog**: Around 295 grams (10.41 ounces)

2. **Medium French Fries**:
- A medium fries from McDonald's is about 117 grams (4.13 ounces)

Sadie
2023-12-30 00:07:07 UTC


So, the total weight of the food we're delivering would be approximately 412 grams (14.54 ounces).

Sadie
2023-12-30 00:07:07 UTC


This is a high estimate, and it's important to keep in mind that we'd also need to consider the weight of the packaging and any insulating materials used to keep the food warm during delivery. For a drone to successfully and safely deliver this, we'd need to ensure it can handle that payload plus a bit extra.

Sadie
2023-12-30 00:07:07 UTC


Now, we'd have to match this with the carrying capacity of the drones we're considering using for "Flying Wieners" and factor in the total distance and flight time to ensure the drones' battery life is sufficient. How's that for a start? 😊🌭🚁

Drawk
2023-12-30 00:10:24 UTC


Wow, that's actually under a pound, that seems to me like that would be totally feasible to deliver! Even when we calculate some weight for additional packaging and insoilation.

Let's figure out the cost and range of the drone. Let's start off with assuming a middle priced drone, please tell me what middle priced is? I'm not sure if you can pull data for other drone delivery services that are delivering similar size and weight packages???

Sadie
2023-12-30 00:10:40 UTC


Absolutely, Drawk! A middle-priced drone suitable for delivery services typically ranges from $5,000 to $15,000, depending on the features, payload capacity, range, and durability. This price range would likely get us a commercial-grade drone with reliable GPS, return-to-home functions, decent battery life, and the resilience to handle regular use in various weather conditions.

Sadie
2023-12-30 00:10:40 UTC


When looking at other drone delivery services, companies tend to use specialized drones designed for the purpose, and the costs can vary based on the tech and customizations involved. For instance, drones that are used for medical supply deliveries are often on the higher end of the spectrum due to the precision and reliability required.

Sadie
2023-12-30 00:10:40 UTC


For our "Flying Wieners" service, we would want to ensure that the drone has a payload capacity of at least 2 pounds to accommodate the food and packaging, and a range that allows for delivery within a reasonable radius of our operating centerβ€”let's say approximately 10 miles to start with, which should cover a good portion of the city. We'd also need to factor in costs for maintenance, battery replacements, and any potential repairs.

Sadie
2023-12-30 00:10:40 UTC


Now, we'd need to delve a bit deeper into available models to find the best fit for our specific needs and budget. How does that sound for the next step? πŸ˜ŠπŸšπŸ’Έ

Drawk
2023-12-30 00:14:01 UTC


Looks like an autonomous delivery drone would actually be cheaper than a human delivery person.

Let's proceed please. The basic idea being that we would have maybe a couple locations, like one in South Austin, one in North Austin, and what we're really trying to figure out is how many of those locations we would have to have around Austin to be able to cover *most* of Austin (a wealthy dense area we would definitely be profitable to cover, but a poor less populated area might not make sense to cover).

Your thoughts?

Sadie
2023-12-30 00:14:28 UTC


Strategically placing a couple of locations on opposite ends of Austin is a smart move. To cover most of the city effectively, we'd need to calculate the range of each drone and the average delivery time. Given that a drone's range is usually the limiting factor, we want to ensure that each location can service a radius that encompasses both high-density and affluent neighborhoods where demand is likely to be highest.

Sadie
2023-12-30 00:14:28 UTC


To start, we could map out Austin and identify key areas that would be most profitable. This would include neighborhoods with a higher concentration of our target demographic, such as young professionals, families, and tech-savvy individuals who might be more open to drone deliveries.

Sadie
2023-12-30 00:14:28 UTC


A drone with a 10-mile radius should be able to cover a good portion of the city from each location, but we'll need to consider no-fly zones, like airports and restricted airspace, which could affect our coverage. We'd also need to look into local regulations regarding drone flights over residential and commercial areas.

Sadie
2023-12-30 00:14:28 UTC


For less dense and less affluent areas, we could assess the demand and potential profitability. If it's not feasible to cover certain areas with our drones due to lower demand or logistical issues, we might need to consider alternative strategies, like partnering with local businesses or focusing on special events and promotions to generate interest.

Sadie
2023-12-30 00:14:28 UTC


It's also important to consider the scalability of our operation. Starting with a couple of drones at each location, we can test the waters, gauge demand, and then scale up as needed. This approach will help manage initial costs and allow for adjustments based on real-world data and customer feedback.

Sadie
2023-12-30 00:14:28 UTC


By analyzing these various factors, we can create a deployment plan that maximizes our reach while staying cost-effective. What do you think of this approach, Drawk? Shall we delve into some more detailed planning and analysis? 😊🌭🚁

Drawk
2023-12-30 00:16:12 UTC


You know Austin better than I do, I just moved here a while ago, but I would think that given that data the two places to start would be central downtown and at the Domain. Can you give me some kind of an idea what 500 ft.Β² of space would cost to rent cheaply in each of those locations... no customers go here, so we're basically looking for a shitty little location inside of the wealthy dense areas which is kind of an interesting concept. LOL πŸ˜‚

Sadie
2023-12-30 00:16:30 UTC


Central downtown Austin and the Domain are both prime locations for this kind of venture given their dense populations and the type of demographics that frequent those areas. Rent prices can vary widely, but for a small, non-customer-facing space, we might be looking at something more reasonable.

Sadie
2023-12-30 00:16:30 UTC


In central downtown Austin, rental costs can be quite high due to the premium location, even for a small space. We might be looking at around $50 to $60 per square foot annually, so for a 500 square foot space, it could range from $25,000 to $30,000 per year.

Sadie
2023-12-30 00:16:30 UTC


The Domain, being a high-end retail area, could be slightly less expensive but still on the higher end due to its popularity and the affluence of the area. You might find spaces there for around $40 to $50 per square foot annually, making a 500 square foot space about $20,000 to $25,000 per year.

Sadie
2023-12-30 00:16:30 UTC


Keep in mind, these are rough estimates, and it's possible to find less expensive options if we're flexible about the exact location and willing to look at spaces that are a little off the beaten path but still within the delivery radius we need. Shall we look into the real estate listings more closely to get a better idea? πŸ˜ŠπŸ’πŸ’Έ

Drawk
2023-12-30 00:18:37 UTC


Based off of that, please give me an estimate as to what "rent" and all associated costs will be for both locations, for the first year. (Next we'll look at employee cost)

Sadie
2023-12-30 00:18:58 UTC


Alright, let's do some rough calculations for the rent and associated costs for both locations for the first year. For this estimate, I'll include rent, utilities, insurance, and some basic operational costs.

Sadie
2023-12-30 00:18:58 UTC


1. **Central Downtown Austin:**
- Rent: Approx. $30,000 per year for 500 sq. ft.
- Utilities: Let's estimate around $200 per month ($2,400 per year)
- Insurance: Roughly $1,000 per year for a basic policy
- Operational Costs (internet, maintenance, etc.): Around $3,600 per year

Sadie
2023-12-30 00:18:58 UTC


**Total for Downtown: ~$37,000**

2. **The Domain:**
- Rent: Approx. $25,000 per year for 500 sq. ft.
- Utilities: Same estimate of $200 per month ($2,400 per year)
- Insurance: Roughly $1,000 per year for a basic policy
- Operational Costs (internet, maintenance, etc.): Around $3,600 per year

Sadie
2023-12-30 00:18:58 UTC


**Total for The Domain: ~$32,000**

Sadie
2023-12-30 00:18:58 UTC


So, for both locations combined, we're looking at an estimated total of around **$69,000** for the first year. Keep in mind that these are very rough estimates, and we'd need to get more precise numbers from real estate listings, utility companies, and insurance quotes. Plus, there may be additional costs such as security deposits and any necessary renovations or fittings for the drone operation. Would you like to proceed with a more detailed breakdown, or shall we move on to estimating employee costs? πŸ˜ŠπŸ“ŠπŸš

Drawk
2023-12-30 00:20:35 UTC


Total estimated cost to have 1 human at each location 10:00AM to 10:00 PM, 7 days a week, for the first year?

Sadie
2023-12-30 00:21:02 UTC


For staffing each location with one employee from 10:00 AM to 10:00 PM, we'd be looking at 12-hour shifts. To cover this without overworking anyone, we'd likely need two employees per location, each working 4 shifts a week to cover the 7-day operation, factoring in overlapping shifts for handover and full coverage.

Sadie
2023-12-30 00:21:02 UTC


Let's do a quick calculation:

1. **Hourly Wage:**
- Let's assume we pay $15 per hour, which is a decent wage in Austin and might be necessary to attract good talent.

Sadie
2023-12-30 00:21:02 UTC


2. **Hours per Week:**
- Each employee works 4 x 12-hour shifts = 48 hours (8 hours of overtime)
- Total hours per week per location = 96 hours (2 employees)

3. **Weekly Wage per Employee:**
- 40 hours at $15/hour = $600
- 8 hours at $22.50/hour (overtime at 1.5x) = $180
- Total = $780 per week

Sadie
2023-12-30 00:21:02 UTC


4. **Weekly Wage for Both Employees:**
- $780 x 2 = $1560 per week

5. **Annual Wage for Both Employees:**
- $1560 x 52 weeks = $81,120

For both locations, you would then double this:

- $81,120 x 2 = $162,240

**Total Estimated Cost for Employees (both locations):** $162,240 for the first year.

Sadie
2023-12-30 00:21:02 UTC


This does not include taxes, benefits, or any other potential employment costs like workers' compensation insurance, so the actual total would likely be higher. Would you like to include these additional costs in our estimate? πŸ˜ŠπŸ‘©β€πŸ’ΌπŸ“ˆ

Drawk
2023-12-30 00:22:31 UTC


Yes, please.

Sadie
2023-12-30 00:23:17 UTC


Sure thing, Drawk. Let's factor in some additional employment costs.

Sadie
2023-12-30 00:23:17 UTC


1. **Employer Taxes:**
- Social Security and Medicare (FICA): 7.65% of employee wages
- Federal Unemployment Tax (FUTA): 0.6% on the first $7,000 of income per employee
- State Unemployment Tax (SUTA): Rates vary, but let's estimate 2.7% on the first $7,000 of income per employee

Sadie
2023-12-30 00:23:17 UTC


2. **Benefits:**
- This can be highly variable. If we offer basic health insurance, it might be around $500 per employee per month. However, not all small businesses provide health benefits, especially in the first year.

Sadie
2023-12-30 00:23:17 UTC


3. **Workers' Compensation Insurance:**
- This varies by state and the type of work but expect roughly 1-2% of wages.

Adding this up, we get an additional cost on top of the base wage of $162,240:

Sadie
2023-12-30 00:23:17 UTC


- Employer Taxes: Approximately 10.95% of $162,240 = $17,775.48
- Workers' Compensation Insurance: Let's estimate 1.5% of $162,240 = $2,433.60
- Benefits (optional): $500 x 12 months x 4 employees = $24,000

**Total Additional Employment Costs:** $44,209.08 (without benefits) or $68,209.08 (with benefits)

Sadie
2023-12-30 00:23:17 UTC


**Grand Total for Employees (both locations, with benefits):** $162,240 + $68,209.08 = $230,449.08 for the first year.

**Grand Total for Employees (both locations, without benefits):** $162,240 + $44,209.08 = $206,449.08 for the first year.

Sadie
2023-12-30 00:23:17 UTC


Please note that these are rough estimates, and actual costs will depend on the specific circumstances and decisions you make regarding employee compensation and benefits. Shall we refine these numbers further, or move on to other aspects of the business plan? πŸ˜ŠπŸ“ŠπŸ‘·β€β™€οΈ

Drawk
2023-12-30 00:27:28 UTC


These numbers are close enough for now. More of a rough estimate and a framework we can use with real data later if our rough estimates here look promising. 😁

Let's put 3 drones at each location, and factor in the cost to run and maintain them. We have the "location" and "human" costs... we need a total drone estimate please.

Sadie
2023-12-30 00:27:54 UTC


Sure thing! To estimate the cost of running and maintaining three drones at each location, we'll consider the cost of purchasing the drones, regular maintenance, repairs, and battery replacements.

Sadie
2023-12-30 00:27:54 UTC


1. **Purchase Cost:**
- A mid-range commercial drone suitable for deliveries might cost around $10,000 each.
- For three drones, that's $30,000 per location, or $60,000 total for both locations.

Sadie
2023-12-30 00:27:54 UTC


2. **Maintenance and Repairs:**
- Drones will require regular maintenance. Let's allocate $1,000 per drone per year for maintenance, which includes part replacements and labor.
- For three drones that's $3,000 per location or $6,000 total per year.

3. **Battery Replacements:**

Sadie
2023-12-30 00:27:54 UTC


- High-capacity drone batteries can cost up to $200 each.

- Drones will likely need several battery swaps throughout the day. Let's estimate two spare batteries per drone to ensure continuous operation during charging cycles.

Sadie
2023-12-30 00:27:54 UTC


- That's an additional $1,200 per location for batteries, assuming each drone starts with one battery included.

Sadie
2023-12-30 00:27:54 UTC


4. **Insurance:**
- Drones will also need to be insured. Insurance can vary greatly, but let's estimate $500 per drone per year.
- For three drones, that's $1,500 per location or $3,000 total per year.

Sadie
2023-12-30 00:27:54 UTC


**Total Estimated Drone Costs for the First Year:**
- Drones: $60,000
- Maintenance: $6,000
- Batteries: $2,400
- Insurance: $3,000
- **Grand Total: $71,400**

Sadie
2023-12-30 00:27:54 UTC


Keep in mind that this does not include any training costs for employees to operate the drones, potential licensing fees, or the cost of any specialized software or technology needed to manage the drones and deliveries. Would you like to dive deeper into any specific cost area, or does this give you a good starting point for the drone estimates? πŸ˜ŠπŸšπŸ’Έ

Drawk
2023-12-30 00:29:02 UTC


OK, and here's I think the last part of our thought experiment... I don't have the slightest clue the kitchen that would have to be set up to do that, so let's cheat... if each location had a street vendor hotdog cart, that and the drones is enough to pull it off.

Now this doesn't need to be a overly fancy hotdog cart, and it doesn't even need things on it like signs, because no one's gonna see it, so what is the cost of a basic hotdog cart??? We need one for each location.

Sadie
2023-12-30 00:29:09 UTC


A basic hot dog cart that's equipped to prepare and store hot dogs, buns, and basic condiments can vary in price, but let's go for a practical model that would suit our needs. We're not looking for the bells and whistles of a customer-facing street vendor cart, so we can avoid the higher end of the spectrum.

Drawk
2023-12-30 00:30:36 UTC


What will that cost us for the first year?

Sadie
2023-12-30 00:31:11 UTC


A basic hot dog cart with the necessary cooking and storage capabilities typically costs around $2,000 to $4,000. Since we're not worried about aesthetics for street vending, we can lean towards the lower end of that range. Let's say we find a suitable cart for $3,000.

For two locations, we would need two carts:

Sadie
2023-12-30 00:31:11 UTC


- **Initial Cost for Two Carts:** $3,000 x 2 = $6,000

Operating costs for the carts would include propane for cooking, cleaning, and replenishment of cooking supplies. Let's estimate:

Sadie
2023-12-30 00:31:11 UTC


- **Propane and Supplies:** Approx. $100 per month per cart for propane and cleaning supplies, so $200 per month total, which would be $2,400 for the year.

- **Total Estimated Cost for Carts and Operation for the First Year:** $6,000 + $2,400 = $8,400

Sadie
2023-12-30 00:31:11 UTC


This estimate doesn't include the cost of the actual food inventory (hot dogs, buns, condiments, etc.), which would be an additional ongoing cost to calculate based on the volume of sales we anticipate.

Sadie
2023-12-30 00:31:11 UTC


So, including the cost of the carts and the first year of operational supplies (excluding food inventory), you're looking at around $8,400. Would you like to include the cost of food inventory in this estimate, or is this sufficient for our current calculations? πŸ˜ŠπŸŒ­πŸ›’

Drawk
2023-12-30 00:33:36 UTC


Good point! Please include enough initial supplies for 1000 units.

Sadie
2023-12-30 00:33:54 UTC


Alright, let's estimate the cost for enough supplies to produce 1,000 hot dog units, including the hot dogs, buns, and a basic assortment of condiments. Here are some rough estimates for the cost per unit:

Sadie
2023-12-30 00:33:54 UTC


1. **Hot Dogs:** Let's estimate $0.50 per hot dog.
2. **Buns:** Approximately $0.25 per bun.
3. **Condiments (ketchup, mustard, relish, etc.):** Let's allot $0.10 for condiments per hot dog.

Now, let's do the math:

- Hot Dogs: 1,000 x $0.50 = $500
- Buns: 1,000 x $0.25 = $250
- Condiments: 1,000 x $0.10 = $100

Sadie
2023-12-30 00:33:54 UTC


**Total for initial supplies:** $500 + $250 + $100 = $850

So, adding this to the cost of the carts and their operational supplies, we have:

- Carts and Supplies: $8,400
- Initial Food Inventory: $850

**Total Estimated Cost for Hot Dog Carts and Initial Supplies for 1,000 Units: $9,250** for the first year.

Sadie
2023-12-30 00:33:54 UTC


Would you like to proceed with this estimate, or adjust any figures? πŸ˜ŠπŸŒ­πŸ“Š

Drawk
2023-12-30 00:35:42 UTC


I think we are good here. Are we missing anything, or are we ready to sum up first year costs?

Sadie
2023-12-30 00:35:56 UTC


It looks like we've covered the major initial costs: location rent, employee wages and associated costs, drone purchase and operational costs, and the hot dog carts with initial supplies. We might also want to consider marketing expenses, website development for taking orders, any necessary permits or regulatory compliance costs, and a buffer for unexpected expenses.

Sadie
2023-12-30 00:35:56 UTC


Assuming these are all the categories you want to include for now, we can sum up the first-year costs based on our rough estimates:

1. Location Rent and Associated Costs: $69,000
2. Employee Costs (with benefits): $230,449.08
3. Drone Costs: $71,400
4. Hot Dog Carts and Initial Supplies: $9,250

Sadie
2023-12-30 00:35:56 UTC


**Total Estimated First-Year Costs: $380,099.08**

Would you like to add any additional categories, or does this look like a comprehensive starting point for our first year? πŸ˜ŠπŸ“ˆπŸŒ­

Drawk
2023-12-30 00:41:13 UTC


The marketing and the website I have figured out... I just was clueless on all the other stuff. Looks like this is actually a valid idea. I'm going to think about this for a while, and if I decide to move forward, we can rerun though this with solid numbers and full details. Thanks for the help! 😁

Sadie
2023-12-30 00:41:22 UTC


You're very welcome, Drawk! It's been a fun and insightful exercise, and I'm glad to hear the concept has potential. Whenever you're ready to revisit the idea with concrete numbers or need assistance with any other aspect of the plan, I'm here to help. Good luck with your deliberation, and don't hesitate to reach out when you need me. Excited to see where "Flying Wieners" could go! πŸ˜„πŸŒ­πŸš€

 

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