Jameson CampAdvising on AI and GTM | 2x Exits

This is the way #entrepreneurship #onlinebusiness

14 Oct 2024 · 1 min

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In this concise monologue, the speaker outlines a clear strategy for acquiring businesses, emphasizing the importance of avoiding physical, brick‑and‑mortar operations such as restaurants and apparel brands due to their low margins, high failure rates, and inventory complexity. He illustrates the SKU explosion problem in apparel with a t‑shirt example, arguing that such complexity makes these businesses unattractive. The speaker then advocates focusing on internet‑based businesses, which he describes as having low entry barriers, lower operating costs, and significantly higher profit margins. He concludes by directing viewers to the video captions for further guidance on purchasing already profitable online businesses.

Chapters

So if you're gonna buy a business, whatever you do, I would avoid buying these. Physical businesses that only have a physical component. I would never touch a restaurant, for example. The margins are horrific. Almost every single restaurant fails. Apparel businesses. I would never buy an apparel brand. I actually started one that failed a long time ago. Think of it this way: 5 t-shirts, 5 different colors, 5 different sizes. Just in that, you have 125 different SKUs you need to worry about ordering. Now imagine you sell 10 different t-shirts. That's over 1,000. This is the most key of all of them. I would apply this to all businesses that I would not buy. Businesses that are on their way out. I don't wanna buy things that are dying. I wanna buy things that are growing. That are growing. All ships rise on high tide. I prefer internet-based businesses because they have a very low barrier to entry and cost and much higher margin. If you want to learn how to buy an already profitable online business, check the captions below.