- 5 minutes ago
Are layoffs coming your way in 2024?
Don’t wait for the dreaded pink slip to shake your world!
In this video, I reveal 10 business ideas you can start RIGHT NOW to protect your income and take control of your financial future — no matter what happens at work.
From side hustles with low startup costs to scalable businesses, these ideas are perfect for anyone who wants to build a safety net before the storm hits.
👉 Learn which businesses have the highest profit potential in 2024 and how you can launch them quickly, even if you’re still working full-time.
This isn’t just advice — it’s a step-by-step plan to future-proof your income.
Don’t wait for the dreaded pink slip to shake your world!
In this video, I reveal 10 business ideas you can start RIGHT NOW to protect your income and take control of your financial future — no matter what happens at work.
From side hustles with low startup costs to scalable businesses, these ideas are perfect for anyone who wants to build a safety net before the storm hits.
👉 Learn which businesses have the highest profit potential in 2024 and how you can launch them quickly, even if you’re still working full-time.
This isn’t just advice — it’s a step-by-step plan to future-proof your income.
Category
📚
LearningTranscript
00:00Most businesses and humans struggle during recessions.
00:02So we went out to find 10 businesses that were recession-resistant.
00:06And ideally, could we find some that could be tailored specifically to you?
00:09That's what we're talking about today.
00:11The question is, are there recession-resistant businesses
00:15that you can start in 2024 so you can win no matter what?
00:18If you're worried about what's coming and want to profit off of it,
00:20this video is for you, backed by a bunch of data you're going to want to see.
00:24It is a huge recession warning.
00:27We still have to be vigilant.
00:28We still have a recession around the foreign country.
00:30Once again, I think Main Street America may be a lot smarter than the economics profession.
00:35To be fair, it looks like you are right to be worried about failures, recession, and layoffs.
00:40Look at these numbers.
00:42Job openings tanking, hires decreasing.
00:45My bet is layoffs are coming next.
00:48Layoffs are coming. Layoffs. Layoffs. Layoffs.
00:50And it looks like we're probably right.
00:52More than 240,000 people laid off year to date.
00:56Now I've been through terrible layoffs at my old corporate jobs.
00:59Goldman Sachs in particular.
01:01It was 2008 during the financial crisis.
01:03I was sitting in my cubicle watching people pick up everything they owned into cardboard boxes
01:08as 20% of the workforce was fired.
01:10People were crying.
01:11Protesters were outside chanting, fuck the 1%.
01:14And it was awful.
01:15But I remember I sat outside one of the glass offices where they fired people.
01:19I overheard them firing one of the managing directors.
01:21One of the head guys.
01:22And he wasn't crying.
01:24In fact, he was pretty stoic.
01:25And they were going back and forth over a piece of paper.
01:27On it, I'd find out later, was his equity percentage that he'd get in the firm.
01:31They were explaining to him what his exit package would be.
01:34And he was getting paid to leave, not work.
01:37That pay included him owning part of the company after he left.
01:39And his name was Jim.
01:40And he was paid millions over the next few years.
01:42Here's the problem.
01:44Most people don't realize that they don't have equity in the companies that they're in.
01:48And they don't use the money that they make to get ownership in either stock market businesses,
01:53businesses they run, or recession resistant businesses.
01:55And we're going to fix that today.
01:57Because I don't want you to be one of those people with cardboard boxes
02:00packing out of a high rise like so many of my friends were in 2007, 8, and 9.
02:06I remember thinking about a lot of what businesses I could start to get out of my 9 to 5
02:10when I survived all the cuts at Goldman.
02:12And since then, I've bought and sold dozens of businesses.
02:15We own a holding company that does 9 figures called Contrarian Thinking Capital.
02:19But not every business is actually right for you right now.
02:23And so we came up with this matrix based on data and a bunch of time at Goldman
02:28analyzing hundreds of businesses.
02:30This is called the Money Matrix.
02:31And it talks about which businesses are tailored to you in 2024.
02:35It was something that I told myself to me back in 2008.
02:38So this is your plan to never be afraid of layoffs again.
02:41First, I'll kick us off with a quick business you can start for very little money
02:44that can use whatever skills you have.
02:46Creating a podcast.
02:47Because I might be doing that.
02:48Now, I know that some of this seems like everybody's doing it,
02:50and maybe there's not enough room.
02:52But you don't need to be Rogan to earn and crush a pod.
02:54And you don't need his team.
02:55Just some simple tech is what I'm using.
02:57This one is called Riverside.
02:58It is the easiest way for me to record and edit high quality video calls anywhere in the world.
03:02Like this.
03:03Whether you've got business meetings, podcast episodes, or creating talking head videos,
03:07Riverside makes it stupid easy for you to produce high quality content
03:10that's ready to be marketed, no editing skills required.
03:14It also uses AI, which is wild.
03:16To cut your full recordings into clips, you can post quickly to socials,
03:19no editing needed, to save hours of work.
03:21It even analyzes your best moments to find what is most likely to go viral.
03:25And since I have a badass content team who want control over editing,
03:29Riverside makes it easier on them by recording everything into separate audio and video tracks.
03:33So you can use Riverside for podcast interviews, panel discussions, presentations,
03:37webinars, team meetings.
03:38But best of all, it makes it simple because I don't have time for complex.
03:41I got you guys a deal.
03:42If you want to try it for yourself, get the code and link in the description below.
03:45All right, here's how this breaks down.
03:47Our x-axis is skill.
03:49Our y-axis is money.
03:51This gives us four quadrants.
03:53Up and to the left, we've got low money, low skill.
03:56To the top right, we've got low money, high skill.
03:59The bottom left, we've got high money, low skill.
04:02And on the bottom right, high money, high skill.
04:04So obviously, low money means you don't have much money.
04:08Low skill means you don't have highly paid for or required skills.
04:12I can't tell you exactly what business is going to be right for you,
04:14but I can tell you that everyone falls into one of these four categories.
04:17And then you pick one of the 10 businesses.
04:19And if you do this right, you can progress all the way to the fourth quadrant,
04:22no matter where you start.
04:23So let's dive in to the first quadrant.
04:26Low money, low skill.
04:27This is where I would start if I was you.
04:29And it is called a service business.
04:31But a specific type of service business, a service business that can scale.
04:35And we're going to break down exactly what that means.
04:37Four companies I like in service-based businesses.
04:39Auto detailing, power washing, landscaping companies,
04:42all variations of cleaning companies.
04:44Here's what a service business is overall, because definitions matter.
04:47Things where you are providing not a product to a person,
04:51but a service that is really just time traded in a particular segment
04:56that is not the user's time.
04:57I would start a service business for a few reasons.
05:00Low cost. They don't cost you much to start.
05:01You can have higher margins if you're actually running the business.
05:04There's a lower failure risk because you don't have much money up front,
05:08or what's called capex, capital expenditures.
05:10No shipping or supply chain nonsense.
05:12That comes with e-commerce, for instance.
05:14You can actually add a more sophisticated B2B option,
05:17which means you can charge more.
05:18They're beginner friendly.
05:20That means they're easier to start.
05:22Finding clients is easier than most other businesses.
05:25And you can scale.
05:26For instance, you can start, I would say, more than 20 to 30 service businesses
05:31for less than 500 bucks.
05:33I have multiple friends that started an eight-figure, eventually,
05:35cleaning business that cleaned windows for $500.
05:39What did they actually need to do their first job?
05:41They needed rags.
05:42They needed a cleaning solution.
05:43They borrowed a ladder.
05:44They needed a truck that they also borrowed.
05:45They needed some window wipers.
05:47And they needed somebody to say yes.
05:48Let's get specific on what are good margins.
05:5130% at least, but you could have upwards of 80%
05:54if you're the owner and you run the business.
05:57The second reason this type of business is interesting
05:59is because of low failure risk.
06:00Your only cost is your labor.
06:02If you decide to scale up this business, you have low inventory,
06:05not a ton of big expenses, and no shipping expectations.
06:08The risk of bankruptcy is actually quite small.
06:11You don't have shipping or supply chain.
06:13E-commerce companies, for instance, are now my jam.
06:16Nine times out of 10.
06:17Too expensive.
06:18Order values are high.
06:19You actually buy something before you can sell it.
06:23So you have to have a lot of guessing and make sure that you're right.
06:25The other thing is lots of oversaturization and competition with China.
06:29None of these problems exist when you're mowing people's lawns.
06:31You do not have to proactively pay for it out of pocket.
06:34Now, B2B options are interesting because you can go
06:37and you can charge somebody 50 bucks to mow a standard lawn in Austin, Texas.
06:41Or you can get a contract with a commercial building
06:45and they could pay you $5,000 every month for you to mow the lawn two times a month.
06:49And guess what?
06:50Those contracts pay up front.
06:52You get money before you provide the service.
06:54The other thing is these typically will not require you to be experts or licensed,
06:58which is great because I don't know about you,
07:00but I haven't gotten around to getting my journeyman's license.
07:02So unless you're doing something more complex like plumbing or HVAC,
07:06you do not need a license typically to do things like mow lawns or clean houses.
07:10Finding clients is much easier.
07:13Why?
07:13You live next to them.
07:15And most people need these types of services.
07:17If you see a neighbor cleaning their pool, there's a business.
07:21If you see a neighbor cleaning a pool and talking to another neighbor,
07:23there's your second customer.
07:25The other thing that's interesting about these businesses, they're scalable.
07:27They're not easy to scale,
07:29but they are much easier to scale than buying a bunch of inventory.
07:32You use initial profits to invest more in equipment, marketing, and more employees.
07:36What does scaling actually look like?
07:38You can make an odd 100 every now and then through service jobs for sure,
07:42but that's you being an employee again with an opportunity to get laid off.
07:45Or you could build it into a real business that functions without you and exceeds your current salary.
07:50That's what real scaling looks like.
07:52All right.
07:52So at this point you go, well, how do you scale?
07:54Cody, I've never built a business.
07:56I don't know how to build one, two, a million, 10, or a hundred million dollars.
08:00Let's use what I call the promise method.
08:01There's a lot of moving parts, but if I were to distill it down to seven steps,
08:05here's how I'd scale a service business.
08:07I'd start with P, profit.
08:08One thing we want to do more than anything else is we want to protect the margins.
08:12So this is kind of interesting because if you're going to scale, you want to think about how you price things first.
08:17That means you'd go out, you'd look at what other people in the market price for landscaping services, let's say,
08:22and you'd price it slightly higher than them.
08:25Why would you do this?
08:26You're brand new at it because you're probably not efficient and you want to keep 30% profit margins or higher.
08:30Good thing about service businesses, they suck at distribution, meaning getting sales.
08:35And you are going to be good at that because you're going to follow the promise method.
08:38So we're going to protect those 30% margins.
08:41By the way, margins are basically this.
08:43I charge a dollar for my service.
08:44It costs me 70 cents to fulfill my service.
08:48That 30 cents that's left is my margin, 30% margins.
08:51All right.
08:52The second thing we're going to do is we're going to add reoccurring revenue.
08:54That's the R.
08:55I have a motto called sell once, charge continuously.
08:58You're going to do long-term contracts, which means monthly and annual contracts.
09:03You're going to have auto renewals with subscription services like Jobber or Service Titan.
09:08You're going to also allow for pay-as-you-go subscription.
09:12If they want to do add-ons around the holidays.
09:14Perhaps you do Christmas lights around this time of year.
09:16That could be a pay-as-you-go subscription to add.
09:18Then you might add a loyalty program.
09:20The longer you stay with us, the more you continue to use our subscription services,
09:25the more you get a little value.
09:27Very few service businesses ever do that, so you're going to be unique.
09:29The last thing that I want you to do.
09:31I want to make sure you obsess on the thing that no services businesses do.
09:34Online presence.
09:36What do you do when you need a handyman?
09:37You Google it.
09:38So I want you to obsess on how do I establish what's called local SEO authority.
09:42I want to try to get people to come to my little website and say that I'm awesome.
09:47One of the best ways to do that is the thing I'm doing to you right now,
09:50which is creating content around my niche.
09:52Look at all these examples of landscaping content.
09:56Look at these examples of power washing content.
09:58This is going to be, in my opinion, the new type of SEO, which is social media SEO.
10:04The M is mouth-to-mouth marketing strategies.
10:07Here we're talking about referrals.
10:09Most businesses get less than 10% of their current clients from referrals, which is crazy.
10:14Because when you like something, you are more likely to tell a friend to use a service.
10:20And so you already have somebody who's using your service continuously.
10:24Why wouldn't you ask them for more referrals?
10:26You're going to be unlike everybody else.
10:28And you're going to have a strategy for referrals that's going to look like this.
10:30Every single time you get a new customer, because you're tiny and you're just starting,
10:34you're going to follow up immediately afterwards.
10:37Ideally with a phone call, but millennials, we don't like phones and we don't answer them.
10:42So it could be a text message.
10:43And the text message is going to be kind of cute.
10:45You're going to send something like this.
10:46Hey, we loved mowing your lawn today.
10:48I hope that it turned out awesome.
10:50If you also like the service, could you do me a huge favor?
10:52I'm a brand new small, small business here in Austin.
10:56Your referral literally keeps my lights on.
10:58Would you mind telling me one or two other people we could reach out to?
11:01Is that possible?
11:02Is there somebody else that you might know in this area or region that we can service?
11:07And you're going to do that for every single customer.
11:09Now, most people are going to tell you no, but you're going to use the law of 12,
11:11which is basically for every single person that you ask out of 12,
11:15one will probably give you a referral.
11:17The I is interpersonal.
11:18This is how you get your first customers by talking to your neighbors, getting personal.
11:22You start in your neighborhood and you use the concentric circle model,
11:25which is you start at your house and you look at if you were going to do a five minute
11:29series of laps around your house, can you go and knock on all those doors and ask for
11:34their business?
11:35Why would you want to do it in your neighborhood?
11:37Well, because one of the most important parts about keeping your margins tight on a service business
11:42is your ability to group and bundle your individuals.
11:47Now, when you're not the only one eventually running this business,
11:50you're going to have a fleet of people out there that are going to be mowing lawns all around Austin.
11:54But in the beginning, it's just going to be you.
11:55And the more money you make is going to be directly correlated to how close
11:59the services you are providing are to one another.
12:02You're going to knock on your neighbor's door and you're like,
12:04Hey, Tanner, I'm Cody.
12:05I actually live down the street.
12:07We run a landscaping business locally in this neighborhood.
12:10We actually do a bunch of the neighbors houses.
12:12We'd love to have you as a client.
12:13Would you be open to trying a local small business like mine?
12:16There's immediate trust transfer because you live down the street.
12:19The second thing you're going to do is you're going to open your phone,
12:20download your contacts.
12:22This is your very second lead list.
12:24And on this second lead list, you're going to start texting people.
12:28Now, let me tell you how much better it is to get texts about landscaping
12:31than a fucking Tupperware party.
12:33This is not an MLM scheme.
12:34You're one of the few people who are offering a service people need every single day.
12:38I would love to give my business and landscaping to somebody that I know
12:41just happened to be somebody who knocked on my door.
12:43Now we get to something a little bit more technical sales, subscription, bundles.
12:47Specifically, we are going to do what's called the three-fold method.
12:50Look at this website.
12:52Every single good service business has a three-fold sales tier.
12:56Basically, cheap product and offering to the left,
12:59more expensive product and offering to the right,
13:01and that Goldilocks perfectly warm offer in the middle.
13:04You're going to have a subscription offer in each one,
13:07but your middle pricing is going to be the one that you actually want them to choose.
13:11And more often than not, we humans choose the one in the middle.
13:13Just make sure you have a subscription offer. Most small businesses do not.
13:17E stands for expectations for customers.
13:19Well, actually, it stands for reviews, but that didn't really fit into the acronym.
13:23Reviews are super critical.
13:2493% of customers read reviews.
13:2690% will not use your product if there's less than three and a half stars.
13:3058% of consumers will pay more and travel further for a better reviewed company.
13:35Unhappy people are 10x more likely to leave a review,
13:37and it can take 10 to 20x positive reviews to negate one negative review.
13:42Entire story here is you're going to obsess on reviews.
13:44And if you want my exact process for how to get reviews,
13:47you can click this link.
13:48We've put it all together in one document for you.
13:49This is a super simplified version.
13:51If you want to see me apply this to a power washing business
13:54to grow it to $4.1 million in 10 minutes, this video is for you.
13:58So I've just showed you your first quadrant,
14:00how to take the promise method and apply it to any simple service business,
14:04and how anyone can start this business,
14:06even if you don't have much cash and you don't have many skills.
14:09This will not work for you if you're not willing to do any work,
14:12but it will work for almost anybody who is willing to put in the work.
14:16I especially wish that I had started something like this when I was young.
14:18Instead, I was waiting tables and getting beer spilled on me,
14:21all for minimum wage and no equity.
14:24This is the money matrix that we've just gone through.
14:26Money level needed, basically zero.
14:29Skill level, I don't know, don't be an idiot, let's call it a 3 out of 10.
14:33Risk level, 2 out of 10.
14:35Reward, first year on average, I think you could make somewhere between 10,000 to 100,000.
14:41Best case after several years, millions, lots of examples of companies that do this.
14:46Time commitment, 8 out of 10.
14:47It's going to take up a lot of time,
14:48at least until you make enough money to hire the person who's going to take over for you.
14:52Quadrant two, where we're going now, you need a specialized skill that you can sell.
14:56The nice thing about skills, you can learn them even if you're broke.
14:58The internet's a wonderful thing.
14:59You could also subscribe to our channel and you could learn a lot more of these skills.
15:03So maybe hit that button.
15:04If you already know everything about a high skill service,
15:06this quadrant is all about learning how to sell it.
15:10Or better yet, turn that service into a product.
15:12This is a gold mine, guys.
15:15Second quadrant, high skill, low money.
15:17There are three buckets for these types of businesses.
15:19Consultant, productized service, product as a service.
15:23Let's talk about the three types.
15:25Consultants, what are they?
15:26There's somebody who has a marketable skill that's in demand
15:30that you pay in order to steal their 10,000 hours.
15:33For instance, we have a consultant that taught us how to do YouTube.
15:36Shout out Jamie.
15:36We have a consultant that taught us how to do newsletters.
15:39That was Jordan.
15:40I had a consultant in Chile, Brazil, Colombia, Mexico,
15:43for every single market I tried to enter when I was in First Trust
15:46and building up our asset management business to himself.
15:48If you want to scale fast, you use consultants.
15:51And if you have money, you use consultants.
15:52If you don't have those things, you become one.
15:55Do you have a skill set that's valuable enough to be a consulting business?
15:59You probably have one if you have a job right now
16:01where they teach you to think and not just use your hands.
16:04If you have anything that is not a labor-based business,
16:07but a thinking business, you can likely be a consultant.
16:10And if you want to check, go to these three sites.
16:13Go to Upwork, GLG, Git, Intro.
16:16When you look at those three sites,
16:17you can Google search exactly what you're good at.
16:20Graphic design, accounting, sales, YouTube.
16:24Type in the thing that you think you're good at
16:25and see what the average hourly rate is for that.
16:28If nobody on there is searching for you,
16:30maybe you don't have sufficient skills.
16:32But if somebody on there is searching for you,
16:33you already have your price tag that's associated with consulting.
16:36If I was going to start a consulting business,
16:39I would start on one of these platforms.
16:40In fact, I did.
16:41I used GLG back in the day.
16:43I would probably also use Intro now.
16:45The platforms aren't ideal because they take a cut of your money
16:48and it takes time to apply for gigs,
16:50but it's a good first step and then you can send your link
16:53without having to build out an entire website
16:54or having to build out an entire brand.
16:56You can just send that link to people
16:58that you want to start building one.
17:00The strategy that I would use to scale it
17:01is the exact same thing for a service-based business.
17:03This is you building your lead list
17:05and your lead list is comprised of
17:07the people that you already know and perhaps
17:09the clients that you're already working with
17:10in your employee situation right now.
17:13There's a problem with consulting and freelancing business
17:15and that's there's only really two ways to realistically scale.
17:18Charge more, spend more time working.
17:20There's a ceiling there.
17:21So instead, I would do this, a productized service.
17:25Let's use Design Joy as an example because it's brilliant.
17:28This is Brett.
17:28He decided he wanted to do more than his nine to five design job.
17:32However, he didn't want to fight all the other consultants in design work.
17:36So what did he do?
17:37Instead of having to manage people, send all of his profit to payroll,
17:41he decided he would create a design as a subscription.
17:44Think of it as Netflix.
17:45You pay a subscription fee, but instead of unlimited movies,
17:48you get to make unlimited graphic design requests.
17:50The key word here is unlimited.
17:52Whether you make five requests a month or 50, the price stays the same.
17:55Either five or eight K per month.
17:56Great caveat though, you can only make one request at a time.
17:59So unlimited really becomes limited to how fast they can get them done.
18:03We have a business called Viral Cuts, uses a similar pricing model.
18:06Here's the three tiers.
18:08You could do this with just about any consulting business.
18:11Remember promise.
18:12Exact same process here, but you're selling a productized service.
18:15Nothing changes from the P all the way to the E.
18:18A product as a service second example would be Justin Welsh, a friend of mine.
18:22Solopreneur business model, gives away lots of free content on socials, sells $150 courses,
18:27plus gets some sponsors for newsletters, and teaches people only this,
18:31how to repurpose content across multiple platforms in a course method.
18:36All right, here's the breakdown.
18:37How much money do you need?
18:38Not much.
18:39Theoretically zero, maybe some monthly subscriptions, up to a thousand, two thousand bucks.
18:45Skill level, you need to have some skills.
18:47Eight out of ten.
18:48So you could spend your time just there.
18:50The risk, probably a two out of ten because you're not going to spend a bunch of money up front,
18:54but if you're not good at marketing it, this is one where somebody's going to have to believe
18:59that your skills, your knowledge in your head is worth paying for.
19:02That is harder than showing somebody that you mowed their lawn.
19:05The reward, though, is realistically, if you take this seriously, this is a multimillion dollar business.
19:18But I think up front, doing it on GLG and on a service like Intro, in the beginning,
19:24I used to make first a thousand and then five thousand bucks a month on the side.
19:28The time commitment here, way less than the first.
19:30The first one was eight out of ten.
19:32I would say this one, you're talking about more like a six out of ten.
19:34Quadrant three, high money, low skill.
19:37For this, I'm talking buy simple businesses.
19:39I'm going to tell you exactly what types I like.
19:41This is maybe if you have a good salary, but you're feeling stuck, you have some money set aside,
19:46but maybe you don't know very much about running a business.
19:48What can you do with that money?
19:49The first and foremost caveat is we buy businesses that cash flow.
19:53We don't buy dreams, we buy realities and profits.
19:57So please do me a favor and don't do yourself a huge disservice and buy a roofing company that's bleeding cash.
20:02Nobody needs that.
20:03We want you to buy a simple business with a business model you can already understand.
20:06Quick caveats.
20:07I want you to remember this acronym, BRRT.
20:10It stands for buy a boring business in a recession resistant sector.
20:15We're going to explain some data specifically on what those would be.
20:17Raise prices, add technology.
20:19Remember how we talked about your promise methodology before?
20:22Here we add promise and BRRT.
20:24How much do you need to buy a business?
20:27Well, you could do it for zero, but in reality, many deals are going to need a mix
20:31of your money, other people's money, plus some cash.
20:34So in my mind, this really starts to make sense right around you having $25,50, $100,000 at least
20:41that you're willing to put on the line for a business.
20:44There's tons of caveats on how to do this correctly or not.
20:47If you want more information, there's actually a free newsletter here that you can learn more on.
20:50Simple business number one, laundromat.
20:53This is where I started.
20:54Average purchase price, somewhere between $250,000 up to a million.
20:58Success rate.
20:59They say 95%, most likely a little bit lower.
21:02The most likely reason a laundromat would not succeed over time is you buy it too expensively.
21:08Simple business number two, self-storage.
21:10Lots of the perks of real estate, but some simpler tenants.
21:13Very simple model.
21:15People have too much stuff in the US because we're hoarders.
21:17You put it in a room that's not at your house.
21:19You can do a value-add capacity, aka my friend Nick Huber talked about adding a $150,000
21:24facelift to one of his buildings and how much that increased the total value.
21:27The success rate, more like 90%.
21:30The average profit for a storage unit business owner is somewhere around $184,000 a year.
21:35Now, lots of members of our community like these people have bought
21:38roofing companies, plumbing companies, electricians, cleanings, well pumps, yep,
21:42garage door companies, shower door installations.
21:44So you could refer back to the first segment where we told you to start service companies
21:48and you could certainly buy one instead.
21:50But let's start really, really simple because if you fail the first time,
21:54you'll stay an employee forever and you won't do another deal.
21:57Let's break down the money.
21:58I think you need six figures.
21:59Skill level, five out of 10.
22:01Risk, seven out of 10.
22:03You can take steps to de-risk your purchase, but ultimately you're putting a lot more money on the
22:07line buying a business in this example.
22:10Reward could be an eight out of 10.
22:13Risk is higher, but your reward is more immediate too.
22:16I can't promise you, you'll make a certain amount of money.
22:18Nobody can.
22:19But if you buy a business that's already making money,
22:22you have a higher likelihood of that continuing than if you start a business
22:25where most businesses go out of business 90% of the time, and most startups never actually
22:30make any money.
22:31Time commitment.
22:32This is actually a little bit less.
22:34So it could be anywhere from five to 10-ish.
22:36With an operator, it could be less than 10 hours a week.
22:39Without an operator, you know, depends on which business.
22:43Laundromats, maybe 20 to 30 hours a week.
22:45Self-storage business, probably the same thing.
22:48Full-time empire of this type of business, 24-7, just like any other CEO.
22:52Okay, don't freak out, YouTube.
22:53I'm going to do some public math.
22:54Class is in session.
22:57The average service business sold for 2.38x its profits last year.
23:05The median sale price was $290,000.
23:08Which means that that business probably had a cash flow of $121,000 if it sold for $290,000.
23:14Now, your take-home pay for owning this business likely won't be near $121,000
23:19and will depend on you having operators in the business.
23:21But I don't think that's too far off to say you can make four to five figures a month from
23:24buying a good profitable business without having hundreds and hundreds of thousands of dollars.
23:29Because you could get an SBA loan for anywhere from 10% to 50% of the purchase price.
23:35And you could also use seller financing.
23:37If you don't know us about seller financing, subscribe to this channel.
23:39We talk about it all the time.
23:40Last one.
23:41High money, high skill business.
23:43SaaS business.
23:44Why now?
23:45Well, I myself just bought a SaaS business.
23:47We own a few and we're scaling.
23:49The reason why is, you know what all these companies have in common?
23:52All these logos you see on here?
23:54All of these companies were started during a recession and these are now unicorns.
23:58There's a common belief in venture capital that more unicorns are created during downturns
24:02and upturns.
24:03I don't know.
24:04It says 95 US companies were valued at more than a billion and were founded during recession.
24:08But 757 were not.
24:10So, mixed bag.
24:12The good news for you though is, I think we are in a teeter-totter.
24:16We've had boring companies, like I talk about, doing well, hiring.
24:19And bootstrapped companies, totally fine.
24:22But then over here on the right, we've got VC money drying up.
24:26Downward pressure.
24:27Huge tech layoffs.
24:29And when that happens, you can see from, let's say, you know, the first part of this year
24:34to 2019, we've basically lost 182 million dollars in funding during that period.
24:41And that's important because it's expensive to start a SaaS company.
24:44So, you could start a micro SaaS company.
24:46They say for around 15K.
24:48I still think that's hard.
24:49And you could start an MVP of a complex SaaS company for about 150,000.
24:54But the truth of the matter is, if you want to scale a big business in SaaS,
25:00it's going to take millions of dollars.
25:01Like the average high growth SaaS company raises 9.5 million dollars by series A.
25:05That's like the first real time they go out and say, give me your money, VCs.
25:09For Slack, for instance, if you wanted to go recreate Slack today,
25:13they say you could create an MVP that's similar to Slack for 100K.
25:17The problem with that is, Slack's already been created.
25:20So, that really wouldn't get you very much.
25:22You need to come up with something totally new.
25:23The cool part about this is, how much can you make?
25:26While the average sales price for a SaaS company is 1.65 million dollars,
25:31you also have an average multiple that's quite a lot higher, 3.63.
25:36And this is for the lower end of the spectrum.
25:38Often, this is 5 or 10x.
25:40And this multiple is on revenue, not profit.
25:42How much time is this going to take for you?
25:44Well, I think it's about like this.
25:46Can't tell if you're homeless or just a tech entrepreneur.
25:49The time is going to be all of your time.
25:51If you think, well, I don't want a nine-to-five job,
25:54but I'd like to work 24-7, SaaS is for you.
25:57And the one thing that SaaS entrepreneurs never really think of, in my opinion,
26:01is that they like to raise money, they like to build things,
26:05and then they're a little bit like Ryan Gosling here,
26:07not saying hi to the actual customers they need to onboard.
26:11So, remember back in Promise, where we told you sales is everything?
26:14Same with SaaS companies, one way or another.
26:16Skill segment.
26:17Take a screenshot.
26:19It's a lot.
26:19If you want to be a founder in general, you need to learn all of these skills.
26:23But if you want to be a tech founder, you've got to also learn the language of technology,
26:27something like what these programming skills are.
26:30You don't actually have to be a programmer.
26:31I'm not, and I own some tech companies.
26:33But you do have to be able to speak the language that they use to build it.
26:36So let's do a little recap here.
26:37Money level, a lot of it, probably a couple hundred thousand dollars
26:41to a couple million over the life of it.
26:44Skill level high, 9 out of 10.
26:46I think the highest skilled entrepreneurs typically play in tech.
26:50Risk, 8 out of 10, because it's going to be expensive to buy one,
26:54and you can't buy one profitably, so you're going to have to build one yourself.
26:57Reward, really high.
26:59If you do this well in SaaS, this is a 10 out of 10.
27:01And then the time commitment is all of your time.
27:03I don't know, somewhere between 8 and 10.
27:0510 businesses, 4 different types.
27:07But I want you to think about this for a second.
27:09In my mind, this might be one of the scariest times to be an employee since 2008,
27:13and I should know because I was sitting next to all the cardboard boxes at Goldman Sachs.
27:17Interest rates at 22-year highs.
27:19Wars across the world.
27:21Still recovering from crazy inflation.
27:23Americans' outlook on the economy is getting worse by the month.
27:26And although inflation is kind of improving,
27:29what's happening in the labor market like we talked about?
27:31I think what you're going to start seeing is
27:33acceleration of all the things that go bump in the night.
27:36Economic downturns like this make a lot of people poor.
27:39But if you position yourself right, this could also be one of the chances you have
27:43to make the kind of money that most people could only dream about.
27:46One of my favorite quotes is from Baron Rothschild, and he says,
27:49buy when there's blood in the streets, even if the blood is your own.
27:52And maybe especially then.
27:54There's an old saying in investing that market downturns steal from the unprepared and give to
28:02the prepared.
28:03So be prepared.
28:04Hit the subscribe button.
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