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A hill I'm willing to die on:
If you're starting your first business and have ~$0, you should start a service business.
(that is... if your goal is to build wealth through entrepreneurship)
Here's why service businesses make such a great foundation for building wealth
If you're starting your first business and have ~$0, you should start a service business.
(that is... if your goal is to build wealth through entrepreneurship)
Here's why service businesses make such a great foundation for building wealth
What's a service business?
Any business where u basically sell your (or your employees) time for money. Examples:
Professional - law firm, bookkeeping, dental practice, consulting
Online - digital agency, web dev/design agency
Blue-collar - HVAC, landscaping, pool maintenance
Any business where u basically sell your (or your employees) time for money. Examples:
Professional - law firm, bookkeeping, dental practice, consulting
Online - digital agency, web dev/design agency
Blue-collar - HVAC, landscaping, pool maintenance
Product/market fit & predictable
There are many service businesses in high demand, so you know you'll have product/market fit from day one.
These businesses are about execution and growth/cash flows are very predictable.
It’s a simple linear formula: hours in = money out.
There are many service businesses in high demand, so you know you'll have product/market fit from day one.
These businesses are about execution and growth/cash flows are very predictable.
It’s a simple linear formula: hours in = money out.
Low investment, easy to get started
You only need a laptop, cell phone, and a website to get going. No inventory, overhead, rent (easily WFH).
Eventually, you'll have a payroll, but you can hire employees as you close new client deals (no extra capital needed).
You only need a laptop, cell phone, and a website to get going. No inventory, overhead, rent (easily WFH).
Eventually, you'll have a payroll, but you can hire employees as you close new client deals (no extra capital needed).
Learn the basics of running a business
People underestimate the importance of knowing things like accounting, hiring, legal, delegating, and admin.
It's easier to learn the basics when you have money coming in.
These skills are transferrable to any business.
People underestimate the importance of knowing things like accounting, hiring, legal, delegating, and admin.
It's easier to learn the basics when you have money coming in.
These skills are transferrable to any business.
Build wealth
A service business is a surefire way to build wealth. It’s a business where you can achieve a high level of owner earnings fast.
Sure, most can't scale to $100m, but you can easily generate a few million dollars within 5 years.
A service business is a surefire way to build wealth. It’s a business where you can achieve a high level of owner earnings fast.
Sure, most can't scale to $100m, but you can easily generate a few million dollars within 5 years.
Once you've built a base, you can easily switch to building a biz that can scale to $100m+.
Easier to work on riskier biz that wont make money for a while if your expenses are covered.
Creating this kind of optionality for yourself is a win-win when it comes to building wealth.
Easier to work on riskier biz that wont make money for a while if your expenses are covered.
Creating this kind of optionality for yourself is a win-win when it comes to building wealth.
For more on services businesses and why they're an amazing first business, check out: https://jayvas.com/why-service-businesses-make-great-first-businesses/
