In this segment, Codie Sanchez contrasts two types of businesses she terms "dessert" and "oxygen" to illustrate why some ventures generate far higher profits. A dessert business sells nonessential, discretionary products or services—like birthday cakes, life coaching, or brand refreshes—that customers can postpone indefinitely without serious consequences, leading to limited budgets and low urgency. An oxygen business, by contrast, provides essential, high‑pain solutions—such as emergency plumbing or payroll software—that customers must obtain promptly, often finding budget to cover the cost because the pain of not having it is acute. Sanchez adds a second, often‑overlooked element: essential products are also extremely painful to lack, intensifying urgency. She proposes a practical 30‑day test: imagine a customer goes without the product for a month; if nothing changes, the business is a dessert type; if the customer suffers significant pain or loss, it’s an oxygen type. This framework helps entrepreneurs identify and shift toward "oxygen" businesses that can "print money" versus those stuck in the low‑margin dessert space.
