Nadim Hussain gave an amazing talk and presentation about his entrepreneurial journey! There were a few key concepts I took away from the time listening, but the one that stood out the most was testing the company did for their target market research.
The company’s mission was to be able approve someone’s credit application approved, with money in your account, within 7 minutes. The loan would start with a beginning limit that will increase the borrower continues to pay the loan back on time.
Nadim talked about the company conducting a blind test, which is testing waters to find a customer archetype that will be good to loan to and that will pay you back. The expected default rate was between 50-60%, which you can take a positive from by knowing what type of customers aren’t likely to pay you back. He then talked about not stopping here but conducting multiple test, with each one being increase from 5K-10K-20K. Just by conducting a 2nd test, which he said is about 80% blind still and 20% information gathered from the first test, the company was able to bring the default rate down from 60-10%.
I learned that it is key to not just immediately give up on an idea, expect to struggle at first, but be ready to learn from those struggles and slowly build your company closer to the desired vision.
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