The Best Type Of Business To Start

Summary

• The best businesses are those that can grow on their own over time, like a snowball rolling down a hill getting bigger and bigger.
• You can build a compounding business in two main ways: sell products that people keep buying again and again, or have a team that keeps selling consistently.
• Continuous sales can happen by having products like Coca-Cola, where customers come back every month to buy more.
• In a business model like a real estate brokerage, your agents are your main focus because they bring in revenue by selling homes regularly.
• Encourage your team to expand by bringing in more members who will also contribute to sales. This way, the business keeps growing.
• Whether through products or sales teams, the key is ensuring there's a consistent flow of repeat business or sales activities.

Video

How To Take Action

I would suggest implementing a business model that naturally grows, like a snowball rolling down a hill. Start by creating a product or service that customers crave repeatedly, like how folks keep buying Coca-Cola. Focus on retaining those customers so they come back every month. This doesn’t have to be costly, but it does mean understanding your customers' needs and delivering consistently.

Next, a good way of increasing growth is by building a strong team. If you've got a business like a real estate brokerage, your agents are crucial. Encourage them to sell consistently and recruit more team members who can do the same. This way, your revenue can grow because your agents are bringing in sales, month after month.

Make sure your team feels motivated and valued. Create incentives for them to bring in more sales or refer more agents. This doesn’t have to involve huge bonuses; sometimes recognition, small rewards, or career growth opportunities do the trick.

By focusing on these small actions—selling what people want repeatedly and building a dedicated team—you'll see your business grow steadily and sustainably without putting up massive costs upfront. Consistency and small, impactful actions are key to a compounding business that thrives over time.

Full Transcript

the best businesses start are ones that compound and there's only two ways to build a compounding business number one is you build stuff that people never stop buying all the way through they buy again they buy again they buy again the other way is to add on people who never stop selling for you and so that means that even if they sell people only once they themselves consistently sell month after month after month and so if you have for example a real estate brokerage the Realtors you have really are the customers of the business because each of them represents a certain amount of Revenue that they will collect for you they're going to sell two houses a month every single month and you can count on that versus something like Coca-Cola where you'd have somebody who buys this month buys the next month and buys the next month but in both situations these realtors get more Realtors and then the next month they sell more houses and that's how this compounds and then for this one you continue to get more customers and then they never stop buying