4 Simple Businesses That Will Make You RICH in 2023
Summary
- Many people overlook stable business opportunities that offer consistent paths to wealth, instead chasing trendy industries with high failure rates.
- I advise against starting a business in an industry where you have no experience, education, or financial resources to acquire them.
- Consider "boring businesses" with proven stability that match your skills and experience, as they can provide a better chance of success.
- E-bike rentals have a low startup cost of around $25,000, high-profit margins of approximately 60%, and success depends on location factors like tourism and public transport.
- Tent rentals for events require a startup cost of between $30,000 and $40,000, with an average profit margin of about 50%, influenced by local event demand, weather, and pricing for off-hours.
- Starting a daycare can be low risk when using an excess capacity model, with initial costs as low as $10,000. The profit margin ranges from 15% to 25%, but the risk is minimized by utilizing existing facilities during off-hours.
- Funeral services offer high-profit margins, between 50% and 70%, with a higher startup cost of about $170,000. The industry profit margins depend on upsells and ancillary products beyond the basic funeral services.
Video
How To Take Action
A good way of doing business is to look for stable opportunities that many might ignore. Choose "boring businesses" that fit your skills instead of trendy options that many fail at. Here's how:
Firstly, if you know a lot about bikes and tourism, consider e-bike rentals. With only about $25,000 to start, you can get good profits if you choose the right location. Pick a place with lots of tourists or weak public transport.
For those good at planning events and understanding of local demand, tent rentals for events might work for you. With $30,000 to $40,000 to start, you could make about 50% profit. Remember to account for weather and pricing for odd hours.
If you love kids and have extra space, starting a daycare is a smart move. It can cost as low as $10,000 using excess capacity, like renting a school classroom after hours. It's low risk, and profits are decent.
Lastly, funeral services offer large profit margins between 50% and 70%, though you'll need about $170,000 to start. It's a higher cost, but you can make lots by selling extra services and products for the ceremonies.
- Look for a proven, stable business where you have expertise.
- For e-bike rentals, start with $25,000 and find a tourist spot or place with poor public transport.
- Start a tent rental with $30,000-$40,000, think about weather, demand, and premium pricing for inconvenient hours.
- Offer a daycare in existing spaces not in use, like schools or gyms, to keep startup costs around $10,000.
- Invest in a funeral service business if you can raise $170,000, and focus on upsells to increase profit margins.
Remember, success in business is about matching what you're good at with what's in demand. Aim for something within your skill set, manage your risks, and don't be discouraged by simpler ideas – they can work wonders!
Quotes by Leila Hormozi
"Entrepreneurship is romanticized"
– Leila Hormozi
"Ninety percent of startups fail"
– Leila Hormozi
"Consider doing a boring business"
– Leila Hormozi
"Pick a business that's already been done before, it's been proven, you know there's product Market fit"
– Leila Hormozi
"What's even worse when you're not confident and then you start and then you fail"
– Leila Hormozi
Full Transcript
unsexy and unheard of businesses that can actually make you pretty rich I think a lot of people look past the for sure opportunities where you can get for sure Rich rather than maybe one out of 10 chance of getting rich entrepreneurship is romanticized a lot of people talk about these like crazy up and coming Trends and industries but what they don't talk about is that most of those things have a one in ten failure rate so last week I actually spoke at two different events and I got to speak with say over a hundred different people who were telling me about the businesses that they were starting and it was a trend I started to notice the first one was a guy who was telling you that he was starting a software for agencies I asked him have you done software before are you a developer do you have a background no have you had an agency before have you run an agency no interesting second example a woman tells me that she's starting a social media marketing agency for nft influencers and she was like well I don't know much but I know that they're really hot right now and they're trending okay we'll have you grown an influencer's account substantially before and she was like well no but that's why I'm starting the business interesting third guy tells me that he's starting AI for gyms something I actually happen to know a lot about I said oh amazing what's your background in the gym industry and he was like well I don't have one I was like okay well what's your background or connection with AI and he was like well I don't have one I just heard AI is the next thing interesting here's the thing ninety percent of startups fail if you want to set yourself up for Success the last thing you want to do is pick something you have no experience in you have no way to educate yourself about you also have no cash flow and no money to go educate yourself about or get the experience and it's all really hard so instead what I would beg you to do is consider doing a boring business consider something that's been proven it's stable and that maybe your skill set matches one of these businesses because I'm going to name off these four businesses and what I have come to find as the industry norms for each of them and think to yourself do I have expertise here do I have experience in this area is this a business that I feel like is a worthy challenge for me so the first business that a lot of people don't think about is e-bike rentals the startup cost for an e-bike rental is typically around twenty five thousand dollars so it's really low barrier to entry profit margins on this business are great they're about 60 percent it's a low startup cost it has high profitability and most of anything if you look at what affects the business it's really where you pick in terms of the region that you're going to be there is there a lot of Tourism is there not tourism do people ride bikes a lot how's the public transport those are the things that you want to be looking at when starting one of these businesses the second business is a tent rental sport events this business actually only costs about between 30 and 40 000 in startup costs the average profit margin is about 50 which is great for having all that inventory now what affects the profitability of that business and how much money you're gonna make is there tourism is there not is this a hot area to have events what's the weather like in that region how often are people going to be renting tents is it year round or is it seasonal are you going to charge more for weekends nights Etc the odd hours where you'd have to send staff to staff up and it's gonna be harder to find the staff those are the things that typically affect our business a lot of business owners when they start their first business I see a lot of them get really discouraged because they pick a business that's really really hard and then they fail and then they don't want to go do business again if you're trying to get into business you're trying to pick a business and you don't know where to start I wouldn't pick something super complicated if you were going into real estate for example there's a reason that a bank isn't going to give you a 10 billion dollar loan because you've never done real estate so then why set yourself up for failure in business by picking such a hard business you're not qualified to run it pick a business that's already been done before it's been proven you know there's product Market fit and it's not super complicated because then that business what it's going to do for you is it's going to at minimum provide you with the confidence that you can do this well often is the barrier is that we're not confident in ourselves and so what's even worse when you're not confident and then you start and then you fail and then you feel worse about yourself and you think what's wrong with me that's why I like these boring businesses because they give people a better shot at success the third one is daycare there's two ways that you can do it when you are doing an excess capacity model it's only about ten thousand dollars to start up excess capacity means this you find an existing business that doesn't use part of their facility for certain hours so a good example is school they don't use their classrooms after school so why not set up a daycare one of their classrooms they're not using it after 3 pm so you can ask them if you could rent it out another one might be a gym why not ask the gym if during the hours where they're not running classes you could have a daycare in there so it's using someone else's excess capacity to run your business now if you're not using eska's capacity it might be more like 30 000 at startup costs so the profit march on this business is not as good it's usually between 15 and 25 percent which is why I like the excess capacity model because if you can only put down ten thousand dollars to start and you're just using someone else's space there's very low risk and yes there's less reward but it's something that I feel like a lot of moms for example could start in their free time and then the last business is definitely by far the highest startup cost of about 170 000 but it is funeral services I feel like a lot of people don't want to get into this and a lot of Industries where people don't want to get into them are good to get into the profit margins on average are between 50 and 70 percent and so yes it has a higher startup costs about the same cost as like an average franchise however the upside can be really big especially if you tweak your services so that you're charging for the right thing so when I was researching this the average profit margin is mainly affected by upsells and downsells what ancillary products are you selling them besides maybe providing them for a space for the funeral providing them with a coffin what are the other things that they're going to be purchasing for that day or for that ceremony if you can provide those as upsells and downsells then you are more likely to have a higher profit margin