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If you only had five bucks and two lessons, what would you do to make money? That is the task that I gave to the student in one of my Stanford University grades as part of the Stanford Technology Ventures Program..... Fourteen team members each were given a five dollar sealed package of seeds financing and each team was asked to commit as much money as they wanted.
Once they had opened the cover, however, they had two full hour to earn as much money as possible. Then on Sunday night each of the teams had to mail me a foil explaining what they had done, and on Monday afternoons each team had three minute to present their projects to the group.
And the second most frequent proposal is to build a stall for washing cars or lemonades, where the five bucks are used to buy the raw material. It is a good choice for those who are interested in making a few additional bucks in pocket money in two acres. However, most of my pupils finally found a way to go far beyond the usual answers.
Here is a hint: The winning team did not use the five dollar at all. In fact, they realised that the focus on money was far too narrow a definition of the issue. Understanding that five bucks are basically nothing and deciding to interpret the issue more broadly: How can we make money when we don't begin with anything?
Uncovering these issues and then working on their solution, the winner crews earned over $600 and the median ROI on the five dollars was 4,000 per cent! Considering that many of the team did not use the money at all, their revenue was endless.
There was another crew that was even easier. First they thought they would take unfair advantage off their classmates, who could go to a petrol filling place near by to fill their tyres. However, already after the first clients the bikers noticed that they were unbelievably thankful. Although the bikers could have their tyres inflated free of charge near by and the job was simple for the pupils to do, they soon realised that they were offering a comfortable and precious one.
Indeed, after half the two-hour time, the squad quit asking for a certain amount and asked for contributions instead. Experimentation in this way has been worthwhile not only for this particular squad, but also for the squad that makes restaurants for them. Every one of these has earned a few hundred bucks, and their peers have been correspondingly astonished.
On the other hand, the winning squad considered the available funds through entirely different objectives and earned 650 bucks. Those college kids realized that the most expensive thing they had was neither the five bucks nor the two hour period. Instead, her realization was that her most valued ressource was her three-minute Monday session.
The decision was made to divest it to a business that wanted to hire the student classmates. They made a three-minute "commercial" for the firm and showed it to the college kids during the period they were presenting what they had done the year before.