Businesses with millionaire potential

[Tanapiko]

In 2019, when most people talk about opening a business, they are likely going to talk about the following

FBA amazon, shopify, social marketing, online education ( Tai Lopez and others, udemy courses, etc...), Saas ( software as a service), processing payment solutions

I do not have a problem with these, the reality is that these are all very saturated markets, and the reason is that they have a low entry barrier, anyone with couple of dollars can have a shopify or FBA ready by tonight and start selling stuff by tonight.

I see these businesses as quick fixes, especially if you want to make thousand of dollars/months.

Yet when we look at the really wealthy people, real money is made in the finance industry(banking, investments), real estate, construction, transportation, government contractors and others...

Those are businesses with high entry barrier and solving the different needs in those areas can result in millions and billions in revenue.

The goal of this thread is to provide ideas about high barrier entry businesses for those not only interested at killimg it with women but money too.

For example, coming from Canada, when I travel to a beautiful city like NYC, it seems that nobody has yet found a solution for recycling, the city is dirty, now I am not sure how they manage waste ovet there, but it could be an opportunity?

 

[worldwidetraveler]

How do you plan on getting past these barriers of entry in order to compete?

You will need a lot of money to deal with competition and regulations which is why many people hit up items in list of "Low Barrier". They either don't want to deal with all the bullshit or don't have the capital to get past the endless hurdles.

I do not have a problem with these, the reality is that these are all very saturated markets, and the reason is that they have a low entry barrier, anyone with couple of dollars can have a shopify or FBA ready by tonight and start selling stuff by tonight.

Opening up a Shopify store doesn't mean success. You still have to get customers and compete with other vendors. These people have more money to throw into actual sales than putting huge amounts of money into just getting a company ready to compete in many of those larger barriers of entry markets.

A Shopify or FBA store is not a market. It may be created to serve a market but it isn't the same thing.

I'm still trying to figure out how SaaS is grouped with Shopify.

Many businesses will have millionaire potential. Even those that can be started with little money. I suggest looking at what market you want to serve first and foremost. This is like the cart before the horse.

Edited to add: The problem some of these companies in low barrier markets tend to run into is not continuing or unable to continue innovation. That is where they run into copycats stealing sales. The higher barrier of entries markets may stop some of that, but I don't see it stopping the people with access to a lot of capital. That is if the profits are there to warrant them to allocate resources.

 

[Tanapiko]

^^^^ I grouped Saas with shopify because as a software engineer, nowadays it is easy to see just about anyone with a computer background open a Saas business. You have an impressive amount of options for one problem.

 

[worldwidetraveler]

^^^^ I grouped Saas with shopify because as a software engineer, nowadays it is easy to see just about anyone with a computer background open a Saas business. You have an impressive amount of options for one problem.

I added a edit to the original post that I would say goes towards software companies in general.

The problem some of these companies in low barrier markets tend to run into is not continuing or unable to continue innovation. That is where they run into copycats stealing sales. The higher barrier of entries markets may stop some of that, but I don't see it stopping the people with access to a lot of capital. That is if the profits are there to warrant them to allocate resources.

SaaS falls into that category. That is why you see many of them seeking large investment rounds. Those investments rounds isn't what I would consider low barrier.

 

[RoadTo100]

First off: are you raising money or self-funding? The businesses you listed sound like the classic make-money-online self-funded business models.

If you want to tackle something big you’re almost certainly going to need funding. Unless you can figure out how to chip off a small piece of the problem to solve first. Is that what you’re looking for?

If so — consider a PhD in a technical field in an area of your interest. Studying recycling state of the art for a PhD will get you a lot closer to coming up with a relevant biz idea than sitting at your laptop working a 9-5 coding gig and dreaming.

For stuff like this, I don’t think there’s a shortcut. Just need to spend time (many years) in the trenches learning an industry inside and out to find original opportunities.

Relevant article from the founder of Y Combinator:

http://www.paulgraham.com/schlep.html

You should read the rest of his blog, he’s got a lot of gems related to coming up with big-potential business ideas.

 

[Mig Picante]

For example, coming from Canada, when I travel to a beautiful city like NYC, it seems that nobody has yet found a solution for recycling, the city is dirty, now I am not sure how they manage waste ovet there, but it could be an opportunity?

Buy realestate on every block, build a rear laneway, and then let people put their garbage in the laneway rather than in the street.

It has a high barrier to entry because real estate in NYC is expensive.

 

[TheMaleBrain]

Here is a thought:
Make a business plan for it.
Pick your industry/business. Write it down carefully and look at how to grow it. Take your time thinking about it, reading and interviewing people.

I noticed that the highest return on assets (long turn) is in utilities (power, i recall). That's because there is an extremely high barrier of entry. Read this on one of ‏Michael Porter's articles (he had a list of long turn best ROA industries).

 

[Captain Gh]

This is right in the wheelhouse of a book I recently re-read named the FastLane Millionaire by MJ Demarco! He goes on about ideal businesses needing to respect the N-E-C-S-T law attributes to vastly increase the chances of Millions coming your way. These attributes are Need Entry Control Scale and Time! The potential is humongous, especially if they respect Control & Scale.

Myself I will dabble in lead generation this year... which has a low entry level... but from my experience on blackhatworld.com... even bizness minded peeps suffer from Money Making approach anxiety by wanting to make huge money without connecting or talking to anyone & spending no money on ads and celebrating about making $10 on Porn uploading! That's the bulk of your competition on Shopify guys!

I've crushed my Women gettin approach anxiety way back in 2012... and I've got a fantastic mentor... so I'm hoping to jump the line of success in 2019 beside the easyness of Entry & time consuming scaling!

 

[Prince Charming]

Lead gen or affiliate marketing is THE BEST entry business because it shows you where the money is. Plus it allows you to move onto higher cost of entry businesses like becoming a merchant, traffic source, or network

 

[C-Note]

Patent jumping, especially on medical devices. If you patent a device that a medical technology company eventually wants to market either as a stand-alone device or part of a larger product, you can make hundreds of millions of dollars. There are a number of multi-millionaires in the US who did this. I first learned of this when reading the book about Elizabeth Holmes of Theranos. She was sued because her company marketed a product that someone (who happened to be an acquaintance of her parents) had patented years before even though he had no intention of ever manufacturing it himself.

 

[Sooth]

Patent jumping, especially on medical devices. If you patent a device that a medical technology company eventually wants to market either as a stand-alone device or part of a larger product, you can make hundreds of millions of dollars. There are a number of multi-millionaires in the US who did this. I first learned of this when reading the book about Elizabeth Holmes of Theranos. She was sued because her company marketed a product that someone (who happened to be an acquaintance of her parents) had patented years before even though he had no intention of ever manufacturing it himself.

Agree, but the problem with this is that the up front cost of filing a bunch of solid patents internationally can run into the hundreds of thousands, especially if you don't know what you're doing.

There a many companies with millionaire potential. The guy that owns the company that paints the lines on the road in my town just bought a new Lambo.

 

[Savonarola]

Drycleaning.
Buy a franchise and work sixty hour weeks. Invest maybe $30,000 total.
Supposedly this has made more millionaires than any other field.

 

[Laner]

One of the wealthiest men I know started out by finding under serviced product manufacturing. He started with dumpsters as they are universal and get shit kicked so are always needed to replace current ones. This got him some tooling and he eventually expanded into chrome tubing for things like tractor units. From there he bought his industrial land, bought other cash flow real estate, developed multi family, got into automation and robotics, then golf courses to sell his real estate on the golf course that he built, and on and on.

But millionaire status is not that hard to do. I know plenty of welders, plumbers or even small scale industrial electricians who make $500k a year and worth well over a million before 30. But these take a lot of hands on work. 5am wake ups and seven days a week which not many 'men' are willing to do these days.

 

[Tanapiko]

@Laner that is some good intel bro, the fact is almost every industry is prone to make millions, and I feel like most people want to be in "sexy" businesses. Not everybody would be down to start out with dumpsters as a business

 

[SlickyBoy]

For example, coming from Canada, when I travel to a beautiful city like NYC, it seems that nobody has yet found a solution for recycling, the city is dirty, now I am not sure how they manage waste ovet there, but it could be an opportunity?

You're correct in identifying some very saturated markets. Even at its peak being an Amazon affiliate was never going to make anyone a millionaire; ditto for YouTube and other online hustles that too often amount to e-begging.

As for your idea about recycling, this probably isn't a NYC-specific situation. Where have you identified anyone making millions off of recycling? If you mean waste removal generally, that market is pretty much cornered already in every city. It would take some serious political weight as well as capital to get involved there.

Recycling is usually about politics of a different sort since most of what gets recycled isn't worth recycling, with the exception of aluminum and maybe a few other items. Glass is already cheap to make and newspaper is working its way out of existence with each baby boomer obituary. Sure, we will all hear about the benefits of recycling as a matter of social conditioning, but the question is whether the metrics demonstrate that recycling is more cost effective than raw production, absent tax incentives or artificial inducement.

If you're looking for ideas, you need to identify genuine demand versus what seems like a good idea. Check Google Trends to see what people are searching for and go from there.

To be sure the best paths will involve female consumers and anything that spins their hamster, speaks to their vanity or paces their conditioned social interests. This is what the recent Gillette ad was trying to tie into, although it backfired miserably.

 

[worldwidetraveler]

You're correct in identifying some very saturated markets. Even at its peak being an Amazon affiliate was never going to make anyone a millionaire; ditto for YouTube and other online hustles that too often amount to e-begging.

Those aren't markets. They are distribution channels.

 

[SlickyBoy]

True, but they've pretty much cornered the markets they distribute.
Amazon with respect to retail consumer goods, and YouTube with respect to video content.

 

[worldwidetraveler]

True, but they've pretty much cornered the markets they distribute.
Amazon with respect to retail consumer goods, and YouTube with respect to video content.

Right, but Amazon and Youtube shouldn't be looked at as businesses themselves. I understand people are selling those types of ideas and maybe that is why people consider them businesses. It's marketing bullshit.

Amazon and Youtube are big search engines now. I wouldn't discount them just like I wouldn't discount Google.

It all depends on who you are selling too and what you are selling. Use them to access customers and get those customers into your sales funnels.

 

[the.king]

Yet when we look at the really wealthy people, real money is made in the finance industry(banking, investments), real estate, construction, transportation, government contractors and others...

A lot more of the world's current billionaires generated their wealth in traditional fields (finance, retail, fashion, food & beverage etc) than technology.

I think people are obsessed with the idea of earning big money/value with limited upfront effort, eg make an 'online business' without leaving your home. Or 'fuck your boss, make a 'startup' and be a billionaire by age 22'. Learn this secret PUA technique and be able to attract any girl you see in seconds etc. Its why casinos, theft etc are so common for centuries. Short term thinking by the sheep.

I see a lot of kids obsessing with 'innovating', 'disrupting', becoming an 'entrepreneur' etc and more often than not there is no business sense in what they're saying.

I think the most likely path to being a millionaire is to go for an established industry, and try to outperform existing competition, through technology or otherwise.

Of course like you say this path has high barriers of entry, ie you'll need to pay upfront - either your time or money.

Examples would be to study law, pass the bar, gain 5 years of experience, and open your own law firm. Or accounting practice/consulting firm. Or open a restaurant/furniture store etc.

A good real life example is the Dollar Shave Club. It was founded in 2011, as a company selling razors. In 2016 they were acquired for over 1b USD. Selling razors for me is as basic an idea as it gets.


An idea I want to pursue when I have the cash is to invest in apps. Pay developers to create apps (which I will own) and sell them in the apple/samsung app stores. I like this idea, it seems pretty neat/clean and extremely scaleable. Of course up front cash needed would be significant.

 

[croquet]

A lot more of the world's current billionaires generated their wealth in traditional fields (finance, retail, fashion, food & beverage etc) than technology.

I don't disagree with the bolded, I'd like to point out though that tech catapults those billionaires to the highest end of the spectrum. Just look at the top 10 companies, how many are tech vs traditional?

We are digressing really, most people would be happy with a few million never mind a few billion.

But getting back to the topic, it isn't that difficult really. Just buy RE in a major Western city somehow and hold for 50 years. Boom millionaire. That's not what most guys are aiming for though.