2. If you were one of Tim's friends back when he was first thinking about his idea, how would you have advised him? Would you have invested money in this venture? If so how much give your financial situation today?

2. Had I been Tim’s friend I would have advised him to test the hypothesis and one more alternative approach to the issues. The first step is to develop a business model and the second one is to identify the underlying assumptions. In the second step, one has to write down the assumptions that include the market available and the probability of success. In this case, they have not thought well about the database as when the issue came up about the smaller database being a problem in selling to Amazon occurred. There were not able to recover from it quickly. The third step is building falsifiable hypotheses. In this, the percentage of positive results has to be taken and this could be having a testing audience to know about their preferences and this step was not considered. The next steps are choosing a test format, developing a test setup, executing the test, and analyzing the test. This involves testing the model on different parameters and based on the results the business model can be created. If Tim has done the testing, he would have come across the issues in the smaller database, equity share, and alternative approaches. In the smaller database scenario, he would have hired more employees to address that issue prior. I would not invest in this company because they did not foresee what was coming as challenges in the company.