10 Businesses To Start BEFORE You Get Laid Off In 2024

Summary

The video script explores the concept of recession-resistant businesses, offering insights on starting businesses that can thrive during economic downturns. It discusses various business models tailored to different financial and skill levels, including low-investment service businesses, high-skill consulting, and productized services. The script also covers the acquisition of established businesses and the high-stakes world of SaaS entrepreneurship. It emphasizes the importance of being prepared and strategic in business decisions, especially during uncertain economic times.

Takeaways

• 😨 The script discusses the fear of recession and layoffs, emphasizing the importance of finding recession-resistant businesses to start or invest in.
• 💼 It highlights the personal experience of layoffs during the 2008 financial crisis and the importance of having equity in the businesses one is involved with.
• 📊 The 'Money Matrix' is introduced as a tool to identify businesses tailored to an individual's financial situation and skillset in 2024.
• 🛠️ The first quadrant of the 'Money Matrix' suggests starting a service business with low initial investment and high scalability potential, such as auto detailing, power washing, or landscaping.
• 💡 The script emphasizes the importance of scaling service businesses through strategies like protecting profit margins, adding reoccurring revenue, and focusing on online presence and referrals.
• 🔑 For those with specialized skills but limited funds, the second quadrant recommends becoming a consultant or turning services into productized offerings.
• 💰 In the third quadrant, with higher funds but fewer skills, the script suggests buying a simple, established business in a recession-resistant sector, like a laundromat or self-storage facility.
• 🚀 The fourth quadrant is for those with both high funds and skills, recommending starting or investing in a SaaS (Software as a Service) business, which can offer high rewards but requires significant time and financial commitment.
• 📈 The script provides a detailed breakdown of each business type, including the amount of money needed, skill level, risk, potential rewards, and time commitment involved.
• 🌐 It stresses the importance of having a strong online presence and utilizing SEO and social media strategies to grow a service-based business.
• 🛑 The video ends with a reminder of the potential risks of economic downturns and the opportunity they present for prepared individuals to invest wisely and potentially thrive.

Q & A

What is the main focus of the video script?

The main focus of the video script is to discuss recession-resistant businesses that individuals can start or invest in to protect themselves financially during economic downturns.

Why might someone be interested in starting a recession-resistant business according to the script?

Someone might be interested in starting a recession-resistant business to secure their financial future, especially if they are worried about potential economic downturns, layoffs, and job losses.

What is the 'Money Matrix' mentioned in the script?

The 'Money Matrix' is a tool or method developed by the speaker to help individuals identify which businesses are tailored to their specific financial situation and skill set in the year 2024.

What type of business is suggested for someone with low money and low skill?

For someone with low money and low skill, the script suggests starting a service business that can scale, such as auto detailing, power washing, landscaping, or cleaning services.

Why are service businesses considered a good starting point for individuals with low money and low skill?

Service businesses are considered a good starting point because they typically have low start-up costs, higher profit margins, lower failure risk, no shipping or supply chain issues, and are beginner-friendly with easier client acquisition.

What is the 'Promise Method' and how does it apply to scaling a service business?

The 'Promise Method' is a seven-step strategy to scale a service business. It includes protecting profit margins, adding reoccurring revenue, establishing an online presence, leveraging referrals, using interpersonal strategies for customer acquisition, and managing customer expectations through reviews.

What does the acronym BRRT stand for and what is its significance in the script?

The acronym BRRT stands for 'Buy a Boring Business in a Recession-Resistant Sector'. It signifies the strategy of purchasing an established, stable business in a sector that is likely to remain profitable even during a recession.

What are some examples of simple businesses that someone with high money but low skill could consider buying according to the script?

Examples of simple businesses that someone with high money but low skill could consider buying include laundromats and self-storage facilities.

What is the significance of the statement 'buy when there's blood in the streets' in the context of the script?

The statement 'buy when there's blood in the streets' is a metaphor suggesting that during times of economic crisis or downturn, there may be opportunities to invest or buy businesses at lower prices, potentially leading to high returns when the economy recovers.

What is the potential downside of starting a high-growth SaaS (Software as a Service) company according to the script?

The potential downside of starting a high-growth SaaS company is the high level of investment required, the risk involved due to the high cost of building the business, and the significant time commitment needed to scale the business successfully.

What is the average sales price for a SaaS company and what multiple is typically applied?

The average sales price for a SaaS company is $1.65 million, and the average multiple applied is 3.63, which is typically on revenue, not profit.

Outlines

00:00

🛠️ Recession-Resistant Business Opportunities

The speaker introduces the concept of recession-resistant businesses and discusses the importance of finding businesses that can thrive during economic downturns. They share their personal experience with layoffs during the 2008 financial crisis and emphasize the value of owning equity in a business. The 'Money Matrix' is introduced as a tool to help individuals find businesses tailored to their financial and skill set in 2024. The first business idea presented is creating a podcast, which is positioned as a low-cost, scalable venture that can leverage personal skills.

05:01

🌱 Starting a Service Business with Low Capital

This paragraph delves into the advantages of starting a service business with low capital and skills, such as auto detailing, power washing, landscaping, and cleaning services. The benefits include low start-up costs, potential for high profit margins, reduced risk due to no upfront capital expenditure, and the absence of complex supply chains. The speaker also discusses the potential for scaling these businesses through smart pricing, targeting B2B opportunities, and leveraging technology platforms like Riverside for content creation and business management.

10:02

📈 Scaling Service Businesses with the Promise Method

The speaker outlines a method for scaling service businesses called the Promise Method, which includes seven steps focusing on profit, reoccurring revenue, and an online presence. They discuss the importance of setting competitive prices, securing long-term contracts, utilizing subscription services, and establishing a strong online presence through local SEO and social media. The paragraph also covers the strategy of leveraging customer referrals and the use of interpersonal marketing to grow the business within local communities.

15:03

🎓 High Skill, Low Capital Business Opportunities

The speaker shifts focus to businesses that require high skill but can be started with low capital, such as consulting and productized services. They discuss the potential of turning specialized skills into consulting services and the strategy of selling these services on platforms like GLG and Upwork. The concept of productizing services, as exemplified by Design Joy, is introduced, where customers pay a subscription fee for unlimited design requests, creating a scalable and profitable business model.

20:03

💼 Investing in Simple, High-Capital Businesses

The paragraph discusses the strategy for individuals with high capital but low skills to invest in simple, recession-resistant businesses. The speaker introduces the BRRT acronym (Buy a Boring Business in a Recession-Resistant Sector) and emphasizes the importance of purchasing profitable businesses with a clear understanding of the business model. Examples include laundromats and self-storage facilities, which are highlighted for their high success rates and potential for value addition.

25:05

🚀 High Capital, High Skill: Entering the SAS Market

The speaker addresses the high capital, high skill business segment, focusing on Software as a Service (SAS) companies. They discuss the potential of SAS businesses to generate significant returns, with an average sales price of $1.65 million and high revenue multiples. The challenges of entering this market are highlighted, including the need for substantial initial investment and the importance of innovation. The speaker also underscores the time commitment and the necessity for founders to understand both business and technical aspects of SAS companies.

🌐 Navigating Economic Uncertainty with Preparedness

In the concluding paragraph, the speaker reflects on the current economic climate, drawing parallels with the 2008 financial crisis. They argue that the present time may be one of the most precarious for employees and advocate for preparedness as a key strategy for success. The speaker encourages viewers to subscribe for more information and to consider the presented business strategies as a means to capitalize on potential economic downturns, echoing the sentiment that downturns can offer opportunities for the prepared.

Keywords

💡Recession-resistant businesses

Recession-resistant businesses are those that are less affected by economic downturns and can continue to operate profitably even during a recession. In the video, the concept is central to the discussion, as the speaker aims to identify businesses that can thrive regardless of economic conditions. Examples given include service businesses that can scale, such as auto detailing and landscaping companies.

💡Equity

Equity refers to ownership interest in a company, which can provide financial benefits beyond a standard salary, such as a share in the company's profits or assets. In the script, the speaker contrasts the experience of being laid off without equity to that of a managing director who received an exit package including equity, highlighting the financial security that comes with ownership stakes.

💡Service business

A service business provides intangible services to customers rather than physical products. The video emphasizes starting a scalable service business with low initial costs and high margins as a recession-resistant strategy. Examples from the script include auto detailing, power washing, and landscaping services.

💡Layoffs

Layoffs refer to the termination of employment for a group of workers, usually due to economic conditions. The script discusses the fear of layoffs during a recession and the desire to create a business that can withstand such economic downturns, thereby avoiding the need for layoffs.

💡Money Matrix

The Money Matrix is a conceptual tool introduced in the video to categorize businesses based on the amount of money needed and the level of skill required. It helps individuals determine which type of business might be best suited for them in the current economic climate, with the matrix dividing into quadrants for low and high money and skill.

💡Podcasting

Podcasting is a form of digital media where a person or team creates episodes of audio content that can be subscribed to and downloaded by listeners. The speaker mentions starting a podcast as a low-cost business idea that can utilize one's existing skills and has the potential to generate income through various means, such as sponsorships or advertising.

💡B2B (Business-to-Business)

B2B refers to transactions or services that are sold from one business to another, as opposed to B2C, which involves selling to consumers. In the context of the video, the speaker suggests that scaling a service business can involve targeting B2B clients, which can offer higher revenue through contracts and subscriptions.

💡Scalability

Scalability is the ability of a business to increase its size, output, or scope without a proportional increase in costs or resources. The video discusses the importance of choosing a business model that can scale, such as service businesses that can expand by adding more clients or services without a significant increase in overhead costs.

💡Local SEO (Search Engine Optimization)

Local SEO is the process of optimizing a business's online presence to rank higher in search results for local searches. The script emphasizes the importance of establishing a strong online presence for service businesses, particularly through local SEO, to attract customers searching for services in their area.

💡Consulting

Consulting involves providing expert advice or services to individuals or businesses for a fee. In the video, the speaker discusses becoming a consultant as a way to leverage specialized skills in a high-skill, low-money scenario, with the potential to scale the business by productizing the service.

💡SaaS (Software as a Service)

SaaS refers to a software licensing and delivery model in which software is provided over the internet as a service rather than being installed locally. The script mentions SaaS as a high-skill, high-money business model that can be highly rewarding but requires significant investment and expertise in technology and sales.

Highlights

The search for 10 recession-resistant businesses tailored to the individual.

The importance of being vigilant during a recession and the potential for layoffs.

Personal experience with layoffs during the 2008 financial crisis at Goldman Sachs.

The revelation that many people lack equity in the companies they work for.

Introduction of the 'Money Matrix' for identifying businesses suited to one's financial and skill situation in 2024.

Advantages of starting a service business with low cost and high margin potential.

The low risk of failure in service businesses due to minimal upfront capital and no inventory.

How to scale a service business using the 'Promise Method' with seven steps.

The strategy for scaling a service business with a focus on profit, reoccurring revenue, and referrals.

The potential of high-skill, low-money businesses like consulting and productized services.

The concept of turning a service into a product, exemplified by design subscription services.

The potential of high-money, low-skill businesses, such as purchasing a simple, cash-flowing business.

The use of acronym BRRT (Buy a Boring Business in a Recession-Resistant Sector) for business purchases.

The high potential of SaaS businesses during economic downturns and the importance of sales.

The average sales price and multiples for SaaS companies and the high reward potential.

The necessity for SaaS founders to understand both business and technical skills.

The current economic climate as a potential opportunity for the prepared to make significant financial gains.

Transcripts

most businesses in humans struggle

during recessions so we went out to find

10 businesses that were recession

resistant and ideally could we find some

that could be tailored specifically to

you that's what we're talking about

today bye celicia the question is are

there recession resistant businesses

that you can start in 20124 so you can

win no matter what if you're worried

about what's coming and want to profit

off of it this video is for you backed

by a bunch of data you're going to want

to see it is a huge recession warning we

still have to be vigilant we still have

a recession around the once again I

think Main Street America may be a lot

smarter than the economics profession to

be fair it looks like you are right to

be worried about failures recession and

layoffs look at these numbers job

openings tanking highes decreasing my

bet is layoffs are coming next layoffs

are coming layoffs layoffs layoffs

layoffs and it looks like we're probably

right more than

24,000 people laid off year to dat now

I've been through terrible layoffs at my

old corporate jobs Goldman Sachs in

particular it was 2008 during the

financial crisis I was sitting in my

cubicle watching people pick up

everything they owned into cardboard

boxes as 20% of the workforce was fired

people were crying protesters were

outside shanting the 1% then it was

awful but I remember I sat outside one

of the glass offices where they fired

people I overheard them firing one of

the managing directors one of the head

guys and he wasn't crying in fact he was

pretty stoic and they were going back

and forth over a piece of paper on it

I'd find out later was his equity

percentage that he'd get in The Firm

they were explaining to him what his

exit package would be and he was getting

paid to leave not work that pay included

him owning part of the company after he

left and his name was Jim and he was

paid Millions over the next few years

here's the problem most people don't

realize that they don't have equity in

the companies that they're in and they

don't use the money that they make to

get ownership in either stock market

businesses businesses they run or

recession resistant businesses and we're

going to fix that today because I don't

want you to be one of those people with

card Ward boxes packing out of a

high-rise like so many of my friends

were in 2007 8 and 9 I remember thinking

about a lot of what businesses I could

start to get out of my 95 when I

survived all the cuts at Goldman and

since then I've bought and sold dozens

of businesses we own a holding company

that does nine figures called contrarian

thinking Capital but not every business

is actually right for you right now and

so we came up with this Matrix Based on

data and a bunch of time at Goldman

analyzing hundreds of businesses this is

called the money Matrix and it talks

about which businesses are tailored to

you in 2024 it was something that I told

myself to me back in 2008 so this is

your plan to never be afraid of layoffs

again first I'll kick us off with a

quick business you can start for very

little money that can use whatever

skills you have creating a podcast

because I might be doing that now I know

that some of this seems like everybody's

doing it and maybe there's not enough

room but you don't need to be Rogan to

earn and crush a pod and you don't need

his team just some simple Tech is what

I'm using this one is called Riverside

it is the easiest way for me to to

record and edit highquality video calls

anywhere in the world like this whether

you've got business meetings podcast

episodes or creating talking head videos

Riverside makes it stupid easy for you

to produce highquality content that's

ready to be marketed no editing skills

required it also uses AI which is wild

to cut your full recordings into Clips

you can post quickly to socials no

edited needed to Save hours of work it

even analyzes your best moments to find

what is most likely to go viral and

since I have a badass content team they

wrote this who want control over editing

Riverside makes it easier on them by

recording everything into separate audio

and video tracks so you can use

Riverside for podcast interviews panel

discussions presentations webinars team

meetings but best of all it makes it

simple because I don't have time for

complex I got you guys a deal if you

want to try it for yourself get the code

and Link in the description below all

right here's how this breaks down our X

AIS is skill our y AIS is money this

gives us four quadrants up into to the

left we've got low money low skill to

the top right we've got low money High

skill the bottom left we've got high

money low skill and on the bottom right

High money High skill so obviously low

money means you don't have much money

low skill means you don't have highly

paid for or required skills I can't tell

you exactly what business is going to be

right for you but I can tell you that

everyone falls into one of these four

categories and then you pick one of the

10 businesses and if you do this right

you can progress all the way to the

fourth quadrant no matter where you

start so let's dive in to the first

quadrant low money low skill this is

where I would start if I was you and it

is called a service business but a

specific type of service business a

service business that can scale we're

going to break down exactly what that

means four companies I like in service

based businesses auto detailing power

washing landscaping companies all

variations of cleaning companies here's

what a service business is overall

because definitions matter things where

you are providing not a product to a

person but a service that is really just

Tim traded in a particular segment that

is not the user's time I would start a

service business for a few reasons

reasons low cost they don't cost you

much to start you can have higher

margins if you're actually running the

business there's a lower failure risk

because you don't have much money up

front or what's called capex Capital

expenditures no shipping or supply chain

nonsense that comes with e-commerce for

instance you can actually add a more

sophisticated B2B option which means you

can charge more they're beginner

friendly that means they're easier to

start finding clients is easier than

most other businesses and you can scale

for instance you can start I would say

more than 20 to 30 service businesses

for less than 500 bucks I have multiple

friends that started an 8 fig eventually

cleaning business that cleaned windows

for $500 what did they actually need to

do their first job they needed Rags they

needed cleaning solution they borrowed a

ladder they needed a truck that they

also borrowed they needed some window

wipers and they needed somebody to say

yes let's get specific on what are good

margins 30% at least but you could have

upwards of 80% if you're the owner and

you run the business the second reason

this type of business is interesting is

because of low failure risk your only

cost is your labor if you decide to

scale up this business you have low

inventory not a ton of big expenses and

no shipping expectations the risk of

bankruptcy is actually quite small you

don't have shipping or supply chain

e-commerce companies for instance are

not my jam nine times out of 10 too

expensive order values are high you

actually buy something before you can

sell it so you have to have a lot of

guessing and make sure that you're right

the other thing is lots of

oversaturation and competition with

China none of these problems exist when

you're are mowing people's Lawns you do

not have to proactively pay for it out

of pocket now B2B options are

interesting because you can go and you

can charge somebody 50 bucks to mow a

standard lawn in Austin Texas or you can

get a contract with a commercial

building and they could pay you $5,000

every month for you to mow the lawn two

times a month and guess what those

contracts pay upfront you get money

before you provide the service the other

thing is these typically will not

require to be experts or licensed which

is great because I don't know about you

but I haven't gotten around to getting

my journeyman's license so unless you're

doing something more complex like

Plumbing or HVAC you do not need a

license typically to do things like mow

Lawns or clean houses finding clients is

much easier why you live next to them

and most people need these types of

services if you see a neighbor cleaning

their pool there's a business if you see

a neighbor cleaning a pool and talking

to another neighbor there's your second

customer other thing that's interesting

about these businesses they're scalable

they're not easy to scale but they are

much easier to scale than buying a bunch

of inventory you use initial profits to

invest more in equipment marketing and

more employees what is scaling actually

look like you can make an a 100 every

now and then through service jobs for

sure but that's you being an employee

again which is with an opportunity to

get laid off or you could build it into

a real business that functions without

you and exceeds your current salary

that's what real scaling looks like all

right so at this point you go well how

do you scale Cody I've never built a

business I don't know how to build one

to a million 10 or 100 million let's use

what I call the promise method there's a

lot of moving Parts but if I were to

distill it down to seven steps here's

how I'd scale a service business I'd

start with P profit one thing we want to

do more than anything else is we want to

protect the margins so this is kind of

interesting because if you're going to

scale you want to think about how you

price things first that means you'd go

out you look at what other people in the

market price for landscaping services

let's say and you'd price it slightly

higher than them why would you do this

you're brand new at it because you're

probably not efficient and you want to

keep 30% profit margins are higher good

thing about service businesses they suck

at distribution meaning getting sales

and you are going to be good at that

because you're going to follow the

promise method so we're going to protect

those 30% margins by the way margins are

basically this I charge a dollar for my

service it costs me70 cents to fulfill

my service that 30 cents that's left is

my margin 30% margins all right the

second thing we're going to do is we're

going to add reoccurring Revenue that's

the R I have a motto called sell once

charge continuously you're going to do

long-term contracts which means monthly

and annual contracts you're going to

have Auto renewals with subscription

services like jobber or service Titan

you're going to also allow for pay as

you go subscription if they want to do

add-ons around the holidays perhaps you

do Christmas lights around this time of

year that could be a pay as you go

subscription to add then you might add a

loyalty program the longer you stay with

us the more you continue to use our

subscription Services the more you get a

little value very few service businesses

ever do that so you're going to be

unique the last thing that I want you to

do I want to make sure you obsess on the

thing that no Services businesses do

online presence what do you do when you

need a handyman you Google it so I want

you to obsess on how do I establish

what's called local SEO Authority I want

to try to get people to come to my

little website and say that I'm awesome

one of the best ways to do that is the

thing I'm doing to you right now which

is creating content around my Niche look

at all these examples of landscaping

content look at these examples of power

washing content this is going going to

be in my opinion the new type of SEO

which is social media SEO the m is

mouth-to-mouth marketing strategies here

we're talking about referrals most

businesses get less than 10% of their

current clients from referrals which is

crazy because when you like something

you are more likely to tell a friend to

use a service and so you already have

somebody who's using your service

continuously why wouldn't you ask them

for more referrals you're going to be

unlike everybody else and you're going

to have a strategy for referrals that's

going to look like this every single

time you get a new customer because

you're tiny and you're just starting

you're going to follow up immediately

afterwards ideally with a phone call but

you know Millennials we don't like

phones and we don't answer them so it

could be a text message and the text

message is going to be kind of cute

you're going to send something like this

hey we loved mowing your lawn today I

hope that it turned out awesome if you

also liked the service could you do me a

huge favor I'm a brand new small small

business here in Austin your referral

literally keeps my lights on would you

mind mind telling me one or two other

people we could reach out to is that

possible is there somebody else that you

might know in this area or region that

we can service and you're going to do

that for every single customer now most

people are going to tell you no but

you're going to use the law of 12 which

is basically for every single person

that you ask out of 12 one will probably

give you a referral the ey is

interpersonal this is how you get your

first customers by talking to your

neighbors getting personal you start in

your neighborhood and you use the

concentric Circle model which is you

start at your house and you look at if

you were going to do a five minute

series of laps around your house can you

go and knock on all those doors and ask

for their business why would you want to

do it in your neighborhood well because

one of the most important parts about

keeping your margins tight on a service

business is your ability to group and

bundle your individuals now when you're

not the only one eventually running this

business you're going to have a fleet of

people out there that are going to be mo

lawns all around Austin but in the

beginning it's just going to be you and

the more money you make is going to be

directly correlated to how close the

services you are providing are to one

another you're going to knock on your

neighbor's door and you'll be like hey

Tanner I'm Cody I actually live down the

street we run a landscaping business

locally in this neighborhood we actually

do a bunch of the neighbors houses we'd

love to have you as a client would you

be open to trying a local small business

like mine there's immediate trust

transfer because you live down the

street the second thing you're going to

do is you're going to open your phone

download your contacts this is your very

second lead list and on this second lead

list you're going to start texting

people now let me tell you how much

better it is to get text about

Landscaping than a Tupperware

party this is not an MLM scheme you're

one of the few people who are offering a

service people need every single day I

would love to give my business in

landscaping to somebody that I know just

happen to be somebody who knocked on my

door now we get to something a little

bit more technical sales subscription

bundles specifically we are going to do

what's called the three-fold method look

at this website every single good

service business has a three-fold sales

tier basically cheap product and

offering to the left more expensive

product and offering to the right and

that Goldilocks perfectly warm offer in

the middle you're going to have a

subscription offer in each one but your

middle pricing is going to be the one

that you actually want them to choose

and more often than not we humans choose

the one in the middle just make sure you

have a subscription offer most small

businesses do not e stands for

expectations for customers well actually

stands for reviews but that didn't

really fit into the acronym reviews are

super critical 93% of customers read

reviews 90% will not use your product if

there's less than three and a half Stars

58% of consumers will pay more and

travel further for a better reviewed

company unhappy people are 10x more

likely to leave a review and it can take

10 to 20x positive reviews to neate one

negative review entire story here is

you're going to obsess on reviews and if

you want my exact process for how to get

reviews you can click this link we've

put it all together in one document for

you this is a super simplified version

if you want to see me apply this to a

power washing business to grow it to

$4.1 million 10 minutes this video is

for you so I'm just showed you your

first quadrant how to take the promise

method and apply it to any simple

service business and how anyone can

start this business even if you don't

have much cash and you don't have many

skills this will not work for you if

you're not willing to do any work but it

will work for almost anybody who is

willing to put in the work I especially

wish that I had started something like

this when I was young instead I was

waiting tables and getting beer spilled

on me all for minimum wage and no equity

this is the money Matrix that we've just

gone through money level needed

basically Z skill level I don't know

don't be an idiot let's call it a 3 out

of 10 risk level 2 out of 10 reward

first year on average I think you could

make somewhere between 10,000 to 100,000

best case after several years Millions

lots of examples of companies that do

this time commitment 8 out of 10 it's

going to take up a lot of time at least

until you make enough money to hire the

person who's going to take over for you

quadrant two where we're going now you

need a specialized skill that you can

sell nice thing about skills you can

learn them even if you're broke the the

internet's a wonderful thing you could

also subscribe to our Channel and you

could learn a lot more of these skills

so maybe hit that button if you already

know everything about a high skill

service this quadrant is all about

learning how to sell it or better yet

turn that service into a product this is

a gold mine

guys second quadrant High skill low

money there are three buckets for these

types of businesses consultant product

as service product as a service let's

talk about the three types Consultants

what are they there's somebody who has a

mark aable skill that's in demand that

you pay in order to steal their 10,000

hours for instance we have a consultant

that taught us how to do YouTube shout

out Jamie we have a consultant that

taught us how to do newsletters that was

Jordan I had a consultant in Chile

Brazil Colombia Mexico for every single

Market I tried to enter when I was in

first trust and build an upper Asset

Management business Town self if you

want to scale fast you use consultants

and if you have money you use

consultants if you don't have those

things you become one do you have a

skill set that's valuable enough to be a

Consulting business you probably have

one if you have a job right now where

they teach you to think and not just use

your hands if you have anything that is

not a labor based business but a

thinking business you can likely be a

consultant and if you want to check go

to these three sites go to upwork GLG

get intro when you look at those three

sites you can Google search exactly what

you're good at graphic design accounting

sales YouTube Type in the thing that you

think you're good at and see what the

average hourly rate is for that if

nobody on there is searching for you

maybe you don't have sufficient skills

but if somebody on there is searching

for you you already have your price tag

that's associated with Consulting if I

was going to start a Consulting business

I would start on one of these Platforms

in fact I did I used GLG back in the day

I would probably also use intro now the

platforms aren't ideal because they take

a cut of your money and it takes time to

apply for gigs but it's a good first

step and then you can send your link

without having to build out an entire

website or having to build out an entire

brand you can just send that link to

people people that you want to start

building one the strategy that I would

use to scale it is the exact same thing

for a service based business this is you

building your lead list and your lead

list is comprised of the people that you

already know and perhaps the clients

that you're already working with in your

employee situation right now there's a

problem with Consulting and freelancing

business and that's there's only really

two ways to realistically scale charge

more spend more time working there's a

ceiling there so instead I would do this

a productized service let's use design

joy as an example because it's brilliant

this is Brett he decided he wanted to do

more than his 9 to-5 design job however

he didn't want to fight all the other

consultants in design work so what did

he do instead of having to manage people

send all of his profit to payroll he

decided he would create a design as a

subscription think of it is Netflix you

pay a subscription fee but instead of

unlimited movies you get to make

unlimited graphic design requests the

key word here is unlimited whether you

make five requests a month or 50 the

price stays the same either 5 or 8K per

month great caveat though you can only

make one request at a time so unlimited

really becomes limited to how fast they

can get them done we have a business

called viral Cuts uses a similar pricing

model here's the three tiers you could

do this with just about any Consulting

business remember promise exact same

process here but you're selling a

productized service nothing changes from

the P all the way to the e a product as

a service second example would be Justin

Welsh a friend of mine solo prener

business model gives away lots of free

content on socials sells $150 courses

plus gets some sponsors for newsletters

and teaches people only this how to

repurpose content across multiple

Platforms in a course method all right

here's the breakdown how much money do

you need not much theoretically zero

maybe some monthly subscriptions up to

1,000 2,000 bucks skill level you need

to have some skills 8 out of 10 so you

could spend your time just there the

risk probably a two out of 10 because

you're not going to spend a bunch of

money up front but if you're not good at

marketing it this is one where

somebody's going to have to believe that

your skills your knowledge in your head

is worth paying for that is harder than

showing somebody that you mow their

lawn the reward though is realistically

if you take this seriously this is a

multi-million dollar business uh but I

think upfront doing it on GLG and on a

service like intro in the beginning I

used to make first a th000 and then

5,000 bucks a month on the side the time

commitment here way less than the first

the first one was eight out of 10 I

would say this one you're talking about

more like a six out of 10 quadrant three

High money low skill for this I'm

talking by simple businesses I'm going

to tell you exactly what types I like

this is maybe if you have a good salary

but you're feeling stuck you have some

money set aside but maybe you don't know

very much about running a business what

can you do with that money the first and

foremost caveat is we buy businesses

that cash flow we don't buy dreams we

buy realities and profits so please do

me a favor and don't do yourself a huge

disservice and buy a roofing company

that's bleeding cash nobody needs that

we want you to buy a simple business

with a business model you can already

understand quick caveats I want you to

remember this acronym brrt it stands for

buy a boring business in a recession

resistant sector we're going to explain

some data specifically on what those

would be raise prices add technology

remember how we talked about your

promise methodology before here we add

promise and brrt how much do you need to

buy a business well you could do it for

zero but in reality many deals are going

to need a mix of your money other

people's money plus some cash so in my

mind this really starts to make sense

right around you have 2550 $100,000 at

least that you're willing to put on the

line for a business there's tons of

caveats on how to do this correctly or

not if you want more information there's

actually a free newsletter here that you

can learn more on simple business number

one laundromat this is where I started

average purchase price somewhere between

250,000 up to a million success rate

they say

95% most likely a little bit lower the

most likely reason a laundromat would

not succeed over time is you buy it too

expensively simple business number two

Self Storage lots of the perks of real

estate but some simpler tenants very

simple model people have too much stuff

in the us cuz we're hoarders you put it

in a room that's not at your house you

can do a value add capacity AKA my

friend Nick Hubert talked about adding

$150,000 facelift to one of his

buildings and how much that increased

the total value the success rate more

like 90% the average profit for a

storage unit business owner is somewhere

around

$184,000 a year now lots of members of

our community like these people have

bought roofing companies plumbing

companies electricians cleanings well

pumps yep garage door companies shower

door installation so you could refer

back to the first segment where we told

you to start service companies and you

could certainly buy one instead but

let's start really really simple because

if you fail the first time you'll stay

an employee forever and you won't do

another deal let's break down the money

I think you need six figures skill level

5 out of 10 risk 7 out of 10 you can

take steps to drisk your purchase but

ultimately you're putting a lot more

money on the line buying a business in

this example reward could be an 8 out of

10 risk is higher but your reward is

more immediate too can't promise you

you'll make a certain amount of money

nobody can but if you buy a business

that's already making money you have a

higher likelihood of that continuing

than if you start a business where most

businesses go out of business 90% of the

time and most startups never actually

make any money time commitment this is

actually a little bit less so could be

anywhere from 5 to 10ish with an

operator could be less than 10 hours a

week without an operator you know

depends on which business laundromats

maybe 20 to 30 hours a week Self Storage

business probably the same thing

full-time Empire of this type of

business 24/7 just like any other CEO

okay don't freak out YouTube I'm going

to do some public math class is in

session the average service business

sold for

2.38 X its profits last year the medium

sale price was $290,000 which means that

that business probably had a cash flow

of

$121,000 if it sold for $290 now your

take-home pay for owning this business

likely won't be near 121k and will

depend on you having operators in the

business but I don't think that's too

far off to say you can make four to five

figures a month from buying a good

profitable business without having

hundreds and hundreds of thousands of

dollars because you could get an SBA

loan for anywhere from 10 to 50% of the

purchase price and you could also use

seller financing if you don't know us

about seller financing subscribe to this

channel we talk about it all the time

last one high money High skill business

SAS business why now well I myself just

bought a SAS business we own a few and

we're scaling the reason why is you know

what all these companies have Inc

commmon all these logos you see on here

all of these companies were started

during a recession and these are now

unicorn ORS there's a common belief in

Venture Capital that more unicorns are

created during downturns and upturns I

don't know says 95 us companies were

valued at more than a billion and were

founded during recession but 757 were

not so mixed bag the good news for you

though is I think we are in a teeter

totter we've had boring companies like I

talk about doing well hiring and

bootstrapped companies totally fine but

then over here on the right we've got VC

money drying up downward pressure hug

huge Tech layoffs and when that happens

you can see from let's say you know the

first part of this year to 2019 we've

basically lost $182 million in funding

during that period and that's important

because it's expensive to start a SAS

company so you could start a micro SAS

company they say for around 15K I still

think that's hard and you could start an

MVP of a complex uh SAS company for

about 150,000 but the truth of the

matter is if you want to SK scale a big

business in SAS it's going to take

millions of dollars like the average

high growth SAS company raises $9.5

Million by series a that's like the

first real time they go out and say give

me your money VCS for slack for instance

if you wanted to go recreate slack today

they say you could create an MVP that's

similar to slack for 100k the problem

with that is Slack's already been

created so that really wouldn't get you

very much you need to come up with

something totally new the cool part

about this is how much can you make well

the average sales price for a SAS

company is

$1.65 million you also have an average

multiple that's quite a lot higher uh

3.63 and this is for the lower end of

the spectrum often this is 5 or 10x and

this multiple is on Revenue not profit

how much time is this going to take for

you well I think it's about like this

can't tell if you're homeless or just a

tech entrepreneur the time is going to

be all of your time if you think well I

don't want a 9 to-5 job but I'd like to

work 24/7 sass is for you and the one

thing that SAS entrepreneurs never

really think of in my opinion is that

they like to raise money they like to

build things and then they're a little

bit like Ryan Gosling here not saying hi

to the actual customers they need to on

board so remember back in promise where

we told you sales is everything same

with SAS companies one way or the

another skill segment take a screenshot

it's a lot if you want to be a Founder

in general you need to learn all of

these skills but if you want to be a

tech founder you've got to also learn

the language of technology something

like what these programming skills are

you don't actually have to be a

programmer I'm not and I own some tech

companies but you do have to be able to

speak the language that they use to

build it so let's do a little recap here

money level a lot of it probably a

couple $1,000 to a couple million over

the life of it skill level high 9 out of

10 I think the highest skilled

entrepreneurs typically play in Tech

risk 8 out of 10 because it's going to

be expensive to buy one and you can't

buy one profitably so you're going to

have to build one yourself reward really

high if you do this well in SAS this is

a 10 out of 10 and then the time

commitment is all of your time I don't

know somewhere between 8 and 10 10

businesses four different types but I

want you to think about this for a

second in my mind this might be one of

the scariest times to be an employee

since 2008 and I should know because I

was sitting next to all the cardboard

boxes at Golden Sachs interest rates at

22-year highs Wars across the world

still recovering from crazy inflation

Americans outlook on the economy is

getting worse by the month and although

inflation is kind of improving what's

happening in the labor market like we

talked about I think what you're going

to start seeing is acceleration of All

the Things That Go Bump in the night

economic downturns like this make a lot

of people poor but if you position

yourself right this could also be one of

the chances you have to make the kind of

money that most people could only dream

about one of my favorite quotes is from

Baron Rothchild and he says buy when

there's blood in the streets even if the

blood is your own and maybe especially

then there's an old saying in investing

that

Market downturns steal from the

unprepared and give to the prepared so

be prepared hit the subscribe buttton