Everyone’s Chasing AI. Start This Simple Business Instead

Would you believe that a high school teacher turned a few grand into a business that generates over a quarter million dollars per year turning used hot tubs like these that other people were throwing away into treasure? And here's what's even crazier. He's not even in the top three of the most profitable hot tub niche businesses that I'm about to show you. And here's the thing. Nobody's talking about the businesses around the businesses because the hot tub industry is over $5 billion a year and growing like crazy. So come with me real quickly while I show you the top five businesses I would love to start in the hot tub niche. I've got case studies, I've got receipts, and all of these can be started with very little money. And then after I show you my five favorite ideas, starting with number five, I'm going to show you how I would start all of these with every tool, growth, hack and strategy. So let's dive in. The funny thing about this business is that the opportunity is not in the hot tub industry itself. It's in what happens after someone buys a hot tub. Because that's where all of the approachable and affordable businesses are. Because who's going to start a hot tub manufacturing business? So let's get into number five, hot tub inspection services. See, a lot of times when someone buys a house with a hot tub, the inspector just skips it because it's not his specialty. You see, home inspectors know a little about a lot. They're not going to be able to granularly diagnose something that's happening with a hot tub, especially if it's problematic. That's why there's a market for roofing inspectors, foundation H vac electrical niche inspection services. When the cost of something going wrong with that thing in your house or investment property is very, very high, and the cost of inspecting it is relatively low. A lot of times on these home inspections, the inspector will literally write something like hot tub excluded from inspection. Like what? You're going to take that three to $10,000 asset and just exclude it? Well, of course he is, because it's not a specialty and that's not what he's getting paid to do. So I found this company online called Jersey Hot Tub Services and they're a great case study on how to start a business like this because it's exactly what they do. They charge 200 bucks for a standalone hot tub inspection, 40 to 75 bucks for an add on to a home inspection. And if they're inspecting a hot tub alongside a pool, they'll charge 500 bucks, which isn't a lot less than what people might charge for an entire home inspection. So, yeah, this could be a great add on for someone already inspecting homes. It could be a good addition to their revenue. But I think you should piggyback with home inspectors so they can sub this out to you. So they approach the homeowner or the real estate agent and say, hey, my normal fee for a home inspection is $800. I see you have a hot tub, but I don't cover hot tubs because it's not my specialty. So for an extra $400, I can make sure that that hot tub is inspected and then they can take that $400, give $300 of it to you, and keep 100 of it as a referral fee. That way your incentives are aligned and you can ensure that they will send you back the maximum amount of referrals. I found this Reddit post from a guy that reportedly bought a house and the inspector wrote on there, hot tub in general, good working condition. He closes on the house, he goes to use the hot tub. Boom, it's broken. $4,000 in repairs. It had a dead pump and a cracked shell. And I'm sure that the homeowner would have gladly paid an extra two to four hundred bucks to get that thing actually inspected. Here's what you're going to pay for materials to do stuff like this. You'll need a test kit for 250 bucks, you'll need a GFC eye checker for 50 bucks, some basic tools for about 200 bucks, and all in. You're in at about 500 bucks. Of course, there's going to be other unexpected expenses that come up, but this is a good starting point. I think a perfect way to launch this business would be to partner with real estate agents because they're touching multiple properties on a regular basis. When we first launched our tree trimming business, that is where we got all of our leads from real estate agents. Because people needed tree trimming services before or after they bought a house. I don't know why hot tubs are any different. I think the buyer in this case is more incentivized to get an inspection than the seller. But both parties should have need for your services, especially if the incentives are aligned like we talked about in this scenario with the general home inspector. All right, my fourth favorite business in this industry might surprise you. Hot tub covers. Okay, hear me out on this one. I found this story of this inspiring guy named Babul he came to America with $10 in his pocket. And he started as just a pool tech in Florida making $10 or $15 an hour. But pretty soon he noticed that all of these hot tub covers sucked. They got waterlogged, they fell apart, they didn't fit right. So all the way back in 1991, he saved up $1,200 to buy a sewing machine. Now hear me out, because I don't think you should buy a sewing machine to start this, but it's a good starting point. He was working from a garage with no AC, and he got his first order for $87.50. And he said it was the best moment of his life. And he was literally just hand making better, stronger, higher quality hot tub spa covers. Today, that same company, Ocean Spa Covers, is a multi million dollar business manufacturing thousands of these spa covers on a monthly basis with a two to three week turnaround time. Then in 2009, he bought an industrial cutting machine which brought his production time down from one hour to 10 minutes per cover. But with all the tools that exist today that didn't exist back in 1991, I think you could start this without needing a garage with no AC and, and sewing machine skills and all that stuff. Here's exactly what I'd do. I would use some AI design tools like Canva, VO3 Sora, Rock, you name it, to generate some images of some polarizing spa covers, anything political or religious, anything that you wouldn't talk about at your Thanksgiving. So here's how this works. I make you free videos. I actually know what I'm talking about. I have no greasy sales pitch at the end. And if you implement what I talk about, you'll make a lot more money and have a better life. And all I ask for in return is, is that you hit the subscribe button and maybe even the notification bell. Just like that. Thank you. And then I'd watch my free 50 minute video called Facebook Ads for Noobs. And I'd learn how to run some Facebook ads just to run some tests. I want to get my LTV to CAC ratio, which stands for lifetime value to customer acquisition cost ratio to about 5 to 1, which means I want to be able to find customers for about a fifth of what I could sell those products for. If I need to give $100 to Mark Zuckerberg to get me a conversion on my Shopify site, then that better be a $500 hot tub cover. See, these custom hot tub covers can retail from 300 to $1,000 plus and the thing is about these covers, they need replacing every four to five years. So you have a built in recurring revenue model. Yes, it is hard to stay top of mind over a five year time span, but as long as you capture their email and or phone number is possible. So I would generate about 10 to 20 designs with ChatGPT. I would go to Shopify, I'd get a free theme, 39 bucks a month, this is not an ad. And build a website to put these 10 to 20 designs. And then I'd push Facebook ads towards all of them. And the ads that have the lowest cost per click, I would start putting more budget towards or just let the Facebook algorithm do its trick. And then I would go to China, Alibaba or Aliexpress and I would start getting these manufactured one by one where the manufacturer can ship it directly to the consumer. That way you don't have to come out of pocket beforehand. So you sell the thing for let's say $500. Let's say your cost is $250. You say three week turnaround time, you collect the money, you send it to China, they print the thing in a week or two, they ship it directly to your customer, you're in business. Will there be headaches, problems? Wrong sizes, misprints, defects? 100%. But at least you're not in the logistics and fulfillment business, having to get a warehouse to store all these things. The days of easy drop shipping are long gone, but you can still do a hybrid model. We do a lot of legwork yourself, but still outsource the logistics of this whole process to the Chinese manufacturers which are used to shipping directly to the States, Europe, Latin America, etc. I found another case study. This guy's name is David. He started a business called spacovers.com and 19 years old. And his whole competitive advantage was that his competitors were shipping in four weeks. He shipped in two weeks, that's it. They weren't better quality, they were just delivered faster to the customer. He started by strapping these covers to the roof of his Honda Accord. All right, for my third favorite business in this industry, hot tub moving and relocation. So if you're listening to this, you can't see me, but if you're watching, you'll see that I'm walking around a cabin in Northern Idaho. I'm at an Airbnb and about two hours ago, I don't believe in coincidences. I was sitting here thinking of what type of content could I make about hot tubs because I have a Hot tub here in this Airbnb. And I thought, oh, I need to. I need to make one about hot tub cleaning services or hot tub moving services. And I kid you not, I'm on my MacBook planning out this video, and a van pulls up and these two teenage girls get out, and I'm like, what is going, Are these the cleaners? I'm here for three more days. Someone got something wrong, and they go straight around the back and they start cleaning the hot tub. And so I went out the back and I said, hey, what are you doing cleaning the hot tub? Oh, do you mind if I interview you about your business? And they're like, well, it's my dad's business. They probably thought I was a serial killer or something, but they were super cool. And they said, yeah, ask away. So I started picking their brain about their business. And they do two major revenue lines. Hot tub cleaning, primarily for Airbnbs that are managed by large property managers. And then hot tub moving where their customers are. Spa companies, hot tub companies, retailers that need these things moved. They need old ones moved out of their customers homes, and they need the new ones moved, well, like lifted up onto the bed of a flatbed and into the backyard. They don't want to be in the delivery of the logistics business, so they hire this guy's company to move them. I just love it because it's two completely separate revenue lines in the same niche industry. So that's my number three here. Hot tub moving services. This one's kind of interesting because most people have no idea that if you move a hot tub wrong, it can cause thousands of dollars worth of damage. And regular movers refuse to touch these things. And for good reason. Like, look at this. Look at this thing. Look at this freaking thing right here. How would I ever move that without a crane or a forklift or a flatbed? But before you get turned off by how expensive that equipment is that I just referenced, there's always a cheaper way, a more creative way of testing the viability of this concept before going all in on heavy equipment. Once again, I found a case study. This guy's name's Charles, he's in Quebec, and he started as a regular household mover. And then he noticed something interesting. He noticed that some of his competitors, a lot of times when he started the process of helping someone move and they had a hot tub and he couldn't do it, he would call one of his competitors, but they were niche competitors. They only did hot tubs and say, hey, I got this hot tub that needed moved. He's charging, say 750 for a move. And the hot tub guys would charge 750 or $900 to move just the hot tub. So he started scratching his head thinking, what am I doing? Where did I go wrong? It's one of those moments where it's like, I'm in the wrong business. And that got him down this rabbit hole of hot tub moving businesses. So he gently, slowly pivoted. And that's the thing about pivoting. A lot of times we think of pivoting a business as a hard pivot. It's like, okay, I'm going all in. I'm burning the boats. I'm calling all of my customers in the moving business and saying, I don't do moving anymore. I only do hot tub moving. That's not what a pivot usually looks like. A pivot is usually gradual and slow. And it's like how you start talking to your customers in a different way. So let's say you get an inbound call and they're like, hey, how much is your move? Yada, yada, yada. They're asking all the same questions. And then you ask, do you have a hot tub? Whereas before, you never would have asked that. I do, actually. Who's going to move it? Oh, I'm talking to this one guy. They quoted 500. We can do it. We can do it for 450. That's what a pivot in business usually looks like. It's more related to how you're talking to your customers or your employees. You're just kind of putting out feelers. At least that's the smart way of doing a pivot, in my opinion. So that's what he did. But he also started buying these or getting paid to take them. Because if you go look at Facebook Marketplace right now, you'll see people giving away their hot tubs because it's a liability. A lot of times they're broken. They're selling the home. The new buyer says, hey, yeah, I'll buy that home, but I don't want the hot tub. Get rid of it. So they're paying hundreds of dollars to get rid of a hot tub that might need a new $100 pump or $200 cover. That's what this guy started learning. That's why I always preach, chase all those shiny objects, chase the rabbits. You'll never know what you might come up with Today. That guy's business is a full fledged operation. It's called CK Spas. He's got Great initials. And it's a retail operation, but it started as a moving operation, which is an interesting pivot. So he went from house mover to hot tub mover to hot tub flipper on Facebook marketplace to full fledged hot tub retail operation. According to his story, the average hot tub move is $600. The average time it takes to complete this move is two to three hours. So five moves per day would be $2,500 per day. Most of your costs are overhead that stays fixed no matter how much you scale. And the net Prof. The owner, depending on how much help they're getting, averages between 35 and 45%. And like the founder of 1-800-GOT Junk said, as long as pianos weigh 800 plus pounds, we will always have a business. So I would say as long as these things weigh thousands of pounds when full of water, there will always be business opportunities in this niche. I found another company in Houston, Big Beard movers. They charge 500 bucks to move hot tubs with an additional per mile rate if it's over 75 miles away. I found another company called Utah Tub and Spa movers that run three crews and book six to eight moves every day at 350 to 650 each. Their 2024 revenue was over $4 million from moving freaking hot tubs. And how many people you think are thinking about competing against these guys on any given day versus the average landscaping or roofing company until this video podcast? No. 1. Now the costs are a little higher for this business. You're going to need what's called a spa dolly. Those cost three to five thousand dollars, but you can get them financed. Insurance will be about three grand a year. Straps and equipment will be an extra thousand dollars or so. All in this is going to be about 10 grand to start this business. But like all the other businesses I talk about, you can validate this business before buying all this stuff. You can post Facebook marketplace ads for your moving services, Google Ads, Facebook ads, posting in Facebook groups organically. But next, let's talk about number two, my second favorite business in this niche, which is the hot tub rental business. So listen to this teacher. This guy's name is Steve Nadremia. He lives in Long island, and he's a high school teacher. He used to make ten grand every summer working as a lifeguard, but he wanted to replace that with something better. Okay, quick pause. What if you had an employee who worked 24, seven answering leads, building funnels, tracking conversions, and you didn't even have to pay them a salary? Well, that's exactly what you get with High Level's new AI employee. And right now they're giving you 30 days free as part of their Summer of AI promo. And after that, it's just 97 bucks a month. Way less than you'd ever pay a human. And it doesn't even ask for lunch breaks or vacation time. So check out the link in the description below and let AI handle all the grind for you. So what was his Solution? To buy three used hot tubs for $6,500, he rents them out. For a weekend rental. He charges between $200 and $400, depending on the model. Weekly is $269 and monthly is $499. So yes, after just a couple months, depending on the season, his cost on these used hot tubs is fully paid off. Here's where it gets crazy. He now has over 25 used hot tubs that he rents out. Even at 50% capacity, he makes 12 to 15 grand a month in revenue. After delivery and chemicals, he's netting 7 to $9,000 per month while still teaching full time. He didn't even quit his gig. Think about why this works. People will pay 2 to $400 for a bouncy house for one day. Why not pay 2 to $400 for a hot tub for the whole weekend? Especially if you're able to split that cost between four to eight different adults. Maybe you rented an awesome Airbnb that, for whatever reason, doesn't have a hot tub. That's not a bad price. It's a good value proposition. So let's compare this to, say, buying a rental property that might net you 9 to 11% per year. Even one single tub at 50% capacity would net you over $10,000 a year, which is well over 50% return on investment every single year. Steve and his wife run the whole operation. She handles scheduling, he handles deliveries. It's not sexy, but the numbers are insane. And guess who dominates the search results for Long Island Hot Tub rentals? Steve. He was first mover. What's stopping you from being the first mover in your local market? Speaking of, time for number one, my favorite business idea in the random hot tub niche is a Airbnb hot tub cleaning maintenance service. This is my friend Austin. He's on Twitter. He has a land clearing business in Colorado, and one day he thought, this business is pretty seasonal. How can I stay busy during the winter months? And so he started a hot tub maintenance business, only marketing to Airbnb property owners. So Austin Said he only spent 750 bucks to build his website. And, and this was three years ago, you could spend almost nothing to build that same website today with AI. And then he only spent a couple hundred bucks for his LLC and his first month's monthly recurring revenue, over $2,000. So yes, more than all of his startup costs were recouped in the first few months. In addition to his recurring maintenance revenue, some of his service calls are over $900 not recurring, but still one time $900 service call with no paid ads, just inherent demand in his local market is nothing to scoff at. He spent about $1,000 in chemicals to get started and he was in business. And then I found this guy on Reddit who lived in a different mountain town. He paid 30 bucks for a logo, 250 bucks for a generic like service contract which today ChatGPT could do for free. And he spent I think it was $220 on hoses and chemicals. His first month he posted in a local Facebook group, landed three clients and cleared over $3,000 in net profit from yes, one Facebook post in a local group. And these aren't like pie in the sky hypothetical scenarios maybe try this and you get that these are real case studies and I'm always talking about posting in local Facebook groups. It's the lowest of low hanging fruit. And the same guy on Reddit, by month seven he was getting multiple quotes every day. And he knew that he that in his local market within a 25 mile radius he had over 1700 different hot tubs that he could service. That was his tam, his total addressable market. And here's how he did his pricing. 45 to $65 for a weekly chemical balance, $199 for a drain and fill monthly maintenance plans for $100 every month. So if you crunch the numbers that at 40 hot tubs per week he's grossing 7,000 to $8,000 per month. And then this guy in Chicago named Davis, he built a hot tub maintenance service company only for Airbnbs. He's three years in and he has over 100 units under management and over a million dollars of annualized revenue. The 17 employees all done in three years. And his like secret sauce is a couple automations. Zapier plus Slack. $30 a month in software, nothing too special or proprietary. He guarantees Airbnb level cleanliness and he buys his chemicals in bulk. And I just love this is why it's my number one because of the recurring revenue aspect and the alignment of incentives. You see Airbnbs like this one I'm staying in today I'm in Island Park, Idaho, are able to charge between 40 and $100 more per night if they have a hot tub. What's more, even if they're not able to charge more per night, they have to have a hot tub in markets like these because all of their competing Airbnbs have hot tubs. So at 20 nights rented per month, that's an extra one to $2,000 per month in booking income because of that hot tub. So yes, it's worth paying a little money every month to get that thing cleaned out and maintained on a regular basis. Because normal Airbnb cleaners have no idea how to do it. It's not in their wheelhouse, they can't wrap their heads around it. It's a separate business entirely. And then this other business, spa service company in Vermont, they do 30 to 40 hot tubs a day, four days a week. They charge 45 to $65 per week in the summer and 65 to 75 per week in the winter. So if you do the math, that's nine to $10,000 per week in revenue in Vermont of all places. So here's how I would start these businesses. You already know what I'm going to say. Start with the cheap. The low hanging fruit for cheapos like me. Like local Facebook groups. Remember, every town, every city, every neighborhood has multiple Facebook groups. You will never run out of them. And yes, a lot of the Facebook groups are garbage, maybe even 80 plus percent. You got to sift through all those. It's worth your time. A lot of them are overrun with spam. You will find comments that are just ads. There's no likes, there's no comments, there's no administration, no moderating. Ignore those. Find the 10 to 20% that are gold. Spend all your time in there and ignore everything else. Pick one of these five niches that I just talked about or pick all five of them at once and just start posting, putting out feelers, talk to people, post, post polls, post Instagram polls. What is their demand for? Maybe there's no demand for covers and a ton of demand for moving or vice versa. Maybe there's a lot of demand for repairs, which you weren't even posting, but you learn about that through your posting. Ask Airbnb owners, what are you missing in your systems and processes? What is breaking is a hot tub Cleaning your cover, Repairs, maintenance, moving, balancing the PH levels. Do you even have hot tubs? Maybe they don't. Maybe you're In a colder climate, you assume they have hot tubs and you learn they don't and there's not an opportunity there. That's okay, at least you know before launching anything. Be honest with everyone. Be upfront. Say, listen, I'm just feeling this out. At this stage. I can't promise you I'm going to be the cheapest or the highest quality. But I can promise you I will always answer my phone, I will be fast, I will be honest, and I will stand behind all of my work. If you're willing to learn with me, then I promise I will be the best vendor in your Rolodex. And yes, you have to get a solid Google business profile set up. Do that yesterday. Lots of pictures, videos, five star reviews. Put your hours link your website. Do your first jobs for free if that's what it takes to get your testimonials clean Website Use something like bulk replit, cursor, lovable Windsurf to build one of these websites with just a few prompts. Don't overthink the website. One page is plenty. Contact Us Phone Number Form Email Services Pricing don't incorporate first find your customers first Once you find customers and you're sure this is going to be a thing, use something like Busy to incorporate. I like Busy because going directly through the state's websites is a terrible experience. Horrible user interface. You will pay a premium to Busy for them to do it for you, but you get a better experience in the process. And yes, you can get a discount if you use my referral link in the show Notes Quick question. What if there were a private community out there of people that were building businesses based on this podcast? Well, I just made it and it's only for business starters and business builders. It's called TK Owners and it's basically like having me and a hundred other business geniuses as your business partner, but you give them 0% equity. Also, there's going to be exclusive new trends, growth hacks, business ideas, and a database of everything I've ever talked about. You'll find thousands of startup case studies. You'll have weekly ask me anythings with me while I'll answer your questions directly. You'll be in my Slack channel where I'm hanging out every week and helping members one on one. We've got exclusive guest speakers, including some names that you'll recognize, and if you're building something cool, I'll introduce you to anyone you need. TK Owners is the fastest way to plug into a smart, easy, ambitious group of builders and accountability partners that are sharing wins without the fluff. And it's 99 bucks a month about the cost of an energy drink per day. You can join now@tkowners.com link in the show notes try offering 50% off for your first jobs for a photo testimonial or Amazon gift cards for referrals. But just think about it this way. One home, one Airbnb customer, one short term rental customer could be worth thousands or tens of thousands of dollars over the course of months and years. So treat them well. Spend up to find them. Don't over buy your materials or your chemicals. Under buy. You're going to get excited. You're going to get caught up. You're going to get shop happy. Don't start lean, start small. Track every single expense in Google sheets. Don't worry about getting a business bank account until you're up and rolling. Use your personal account, but separate the expenses in a Google sheet. Only upgrade to Quickbooks or Xero once you're rolling. Pay up for insurance. It's going to cost two to three grand a year. I did a little digging and it's not that hard to find a company that will offer insurance in any of these five niches. Use Facebook ads to directly market to people that are vacationing or to people that are about to visit an area. Yes, you can do that with Facebook. That would be a perfect strategy for this hot tub rental business. Now I have another idea. Go up to an Airbnb owner and say, hey, I see you don't have a hot tub. A lot of your competitors do. Why is that? Get their answer, yada yada yada. Then say, listen, how about for the month of December, you advertise your property as having a hot tub? See if bookings pick up from last year or see if bookings stay the same with a higher price from last year. Ask the people that book is it because of the hot tub? Did the hot tub play a role? If so, then you know it's going to be worth renting this hot tub from me or buying a hot tub from me, or buying a hot tub from any company and using me to maintain or service it. That way the data can do the speaking and the selling for you and you don't have to try to convince them. That way they can see if having a hot tub in their Airbnb actually nets them more money before they have to spend money speaking more broadly. Remember this about AI. I love AI. 30, 40, 50% of my content is about AI. In some way because I'm following it and I'm building with it. But the more that we see the rise of businesses built and grown with AI, the more that we're going to see a high demand to start non AI businesses. Sweaty startups, startups that don't rely on AI. AI is not going to lift that hot tub off the deck. It's never going to do that. At least not for a while. The more you see these hustling, enterprising entrepreneurs chasing AI ideas, the more demand there will be to start these non AI ideas. And if the level of demand for hot tub services stays steady or rises and the level of supply of people offering these services stays steady or drops, then the prices you can charge will go up and up and up. And the chance you will have of succeeding at one of these businesses will go up and up and up. So let me know in the comments which one of these five businesses you prefer or like or plan to start, and maybe I'll do a much deeper follow up on one of the five. Whichever one gets the most Comments thanks for hanging out with me on the Kerner office. Please be sure to subscribe Share with a friend. We'll see you next time.