WEBVTT - 7 Most Profitable Business Models for 2025

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<v S1>Welcome to Building Billions, the podcast for business owners who

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<v S1>are getting things done and scaling fast. I've helped business

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<v S1>owners create billions of dollars in value over the past decade,

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<v S1>and now I'm here to share the strategies that actually work.

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<v S1>This show is for the doers, the ones solving problems,

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<v S1>making tough calls, and building real value. If you're ready

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<v S1>for straight talk on what it takes to grow a

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<v S1>massive business, you're in the right place. Let's get to work.

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<v S2>Welcome back to the podcast. I am going to dive

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<v S2>into the four best, smartest, and most profitable businesses, and

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<v S2>this is an interesting podcast that was converted from my

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<v S2>YouTube channel because I normally work with business owners who

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<v S2>already have businesses. So going into looking at what's working,

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<v S2>looking at what models really make people money was a

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<v S2>fascinating deep dive. And it's different content than what I

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<v S2>normally talk about. But these businesses, especially the last ones,

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<v S2>really are the businesses that I would start if I

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<v S2>wanted to make $1 million in a business in 2025

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<v S2>as the co-founder and president of a $100 million business

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<v S2>that has analyzed $5 billion worth of businesses over the

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<v S2>past five years, I see every single day what kind

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<v S2>of business models succeed and which ones fail. And based

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<v S2>on the current markets, there are four business opportunities that

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<v S2>I would personally go into if I wanted to start

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<v S2>$1 million business in 2025. Before we even get into

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<v S2>the four business models of 2025, we have to go

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<v S2>over what makes for a good business. There are two

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<v S2>things that you should focus on when deciding what kind

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<v S2>of business to start. The first is the buyer's income.

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<v S2>The idea is to sell to rich people. Go up market.

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<v S2>Better to start with premium high ticket, low volume, then

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<v S2>scale with small ticket and high volume. Why is that?

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<v S2>People with more money are willing to have their problems solved.

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<v S2>The second decision, when deciding what kind of business to

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<v S2>start is looking at market growth rate. Now you can

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<v S2>easily Google this to find out how fast a market

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<v S2>is growing. In order to decide if right now is

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<v S2>a good market to start your business in. What's really

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<v S2>cool about 2025 is we are going to have a

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<v S2>golden era of growth in our economy. There has never

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<v S2>been a better time than right now to start a

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<v S2>business and to make a lot of money, especially in

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<v S2>the United States of America. Create an online coaching business

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<v S2>is super cool and awesome, and I know a lot

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<v S2>of people who have found success doing that, but at

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<v S2>some point there is a cap in what that person

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<v S2>can actually generate because it is a business based off

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<v S2>of them. In an industry that might not have the

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<v S2>growth rate that they're looking for. The idea behind this

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<v S2>is now probably wouldn't be the best time to choose

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<v S2>the opportunity to go into the printing business. All of

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<v S2>the world has moved on digital now. Sure, there are

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<v S2>opportunity for certain things to be printed. Of course there is.

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<v S2>And somebody somewhere can make money doing that. But is

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<v S2>that the most strategic business to start right now? Probably not.

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<v S2>You can make money, but there's not the headroom to

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<v S2>be able to truly grow and scale a large business.

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<v S2>And think of how many printing businesses or faxing businesses

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<v S2>are no longer in business, because that's not how we

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<v S2>do business any longer. If they would have chosen to

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<v S2>go into the streaming business, there would have been tons

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<v S2>of headroom. So this is the type of thought process

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<v S2>that you have to have. If you're looking to start

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<v S2>a business that's going to scale in 2025, because the

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<v S2>growth rate is so important. Let's go through these four

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<v S2>best business models in order of how fast their markets

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<v S2>are growing. Starting with pet care. This one is unexpected,

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<v S2>but the pet care market has been growing annually by 5%.

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<v S2>So let's talk about some stats. In the United States,

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<v S2>the pet care market is expected to grow from $151

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<v S2>billion in 2024 to $251 billion in 2030. So if

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<v S2>you want the entry point for the pet care space,

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<v S2>you should focus on high end services like pet sitting,

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<v S2>pet grooming, or premium pet treats. What's so cool about

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<v S2>the pet care space is you're trying to solve the

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<v S2>problem not necessarily of the pet, but of the owner.

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<v S2>So sure, you could focus on making the world's fanciest treat,

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<v S2>but what problem does the owner of the pet have

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<v S2>and how do you associate your service your solution with

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<v S2>that owner. Now, I think of all of the team

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<v S2>members that are required to travel inside of our business,

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<v S2>and some of them pay a hefty amount to send

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<v S2>their beloved pooch to a pet hotel. And then the

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<v S2>pet hotel has all of these additional services, all of

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<v S2>these ways to be able to look at and watch

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<v S2>the dog or cat, to be able to communicate with

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<v S2>the dog or cat. And it is solving this huge

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<v S2>guilt related problem that my team member has, because they

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<v S2>can't be with their pet all the time or throughout

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<v S2>the day. So if I was going to cut out

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<v S2>my piece of this industry, that's exactly what I would do.

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<v S2>I would focus on premium solutions for busy business owners,

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<v S2>busy moms, busy dads who can't spend time with their

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<v S2>pets but feel very guilty about it, and that guilt

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<v S2>will drive them to invest and spend more money on

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<v S2>their pets, and making sure that their fluffy little loved

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<v S2>one is well taken care of throughout the day. If

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<v S2>I was looking to create a business, I would lean

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<v S2>into the guilt that pet owners have about not being

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<v S2>with their pets. The wildest types of products have been

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<v S2>created for pets in the last decade. Everything from snout

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<v S2>soothers to spa treatments where pets actually have cucumbers on

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<v S2>their eyes. There is so much money to be made.

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<v S2>As the urbanization of the United States continues to happen.

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<v S2>People live in smaller homes, smaller apartments. They are busier

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<v S2>and have more demands. Therefore cannot be with their precious pooch,

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<v S2>but want to be able to provide their most beloved

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<v S2>family member with something that removes their guilt and treats

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<v S2>their pet. The second strongest business opportunity for 2025 is

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<v S2>in the health and wellness space. The health and wellness

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<v S2>industry is a gold mine for new businesses, with a

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<v S2>projected compound annual growth rate of 8.6%. I know this

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<v S2>to be true because one of our primary investments inside

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<v S2>our ventures business is in the health and wellness space.

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<v S2>We made a small investment three years ago in a

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<v S2>business that was generating $2 million, and this year that

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<v S2>business will do over $100 million. Why people care about

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<v S2>their health. Longevity is not just a trend. It is

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<v S2>something that people prioritize in Prioritize. In a post-pandemic world

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<v S2>where we feel like the health care system failed us.

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<v S2>Consumers want better information, more data about themselves, and more

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<v S2>options that they truly understand where they are actually in

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<v S2>control of how they feel. And the future of their health.

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<v S2>With the traditional healthcare system failing us during the pandemic.

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<v S2>If you love the health and wellness space, you no

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<v S2>longer have to use that. You don't have a degree

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<v S2>as your barrier to be able to start a business

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<v S2>in this space, because you have access to real time

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<v S2>information that doctors have access to. A doctor who got

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<v S2>their medical degree 20 years ago has to entirely understand

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<v S2>what has evolved in the field of medicine. And most

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<v S2>of them don't keep up to date on this. So

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<v S2>the health and wellness field has never seen the opportunities

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<v S2>that are about to be created in 2025 and beyond

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<v S2>because of this barrier that has practically evaporated in front

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<v S2>of us. Now, if you do have a degree, there's

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<v S2>still hope for you because the global wellness economy was

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<v S2>valued at $5.6 trillion in In 2022, and is projected

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<v S2>to reach $8.5 trillion by 2027. What does this mean

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<v S2>for you? People are still investing in their health. They

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<v S2>want solutions, and you are trained specifically to be able

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<v S2>to provide those things to them. So how can you

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<v S2>pivot your products and services to be able to be

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<v S2>more focused on med spas or telemedicine or wellness treatments

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<v S2>and centers that cater to high end clientele? People want

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<v S2>these solutions. They want these products. You can just change

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<v S2>the service offering instead of going through traditional healthcare, traditional

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<v S2>hospitals and partner with somebody who is business savvy to

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<v S2>create the health and wellness empire of your dreams. The

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<v S2>third business model that's worth starting in the next year,

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<v S2>is an industry with nearly a 10% compound annual growth rate,

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<v S2>and it's sustainable and eco friendly products. Sustainable and eco

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<v S2>friendly products have a five year compounded annual growth rate

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<v S2>of 9.9%, compared to 6.4% for conventional products. So what

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<v S2>does that even mean? Well, what's wild about sustainable products

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<v S2>is you could apply it to anything that people purchase.

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<v S2>So the barrier to entry is ridiculously low. Because this

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<v S2>can apply to cosmetics. It can apply to skincare, it

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<v S2>can apply to fashion, clothing, garments, shoes. The idea of

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<v S2>sustainability and products that are sustainable can be looked at

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<v S2>from so many different lenses, because there's no shortage of

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<v S2>things that are made in a non sustainable way. 2025

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<v S2>brings no better time to hop on board this shift

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<v S2>that really started two decades ago into more sustainable products

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<v S2>and creating a more sustainable lifestyle as the perfect example.

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<v S2>This founder, Vicky Tsai, took her small, sustainable beauty business

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<v S2>from completely unknown to getting celebrity deals with Jennifer Aniston

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<v S2>and Drew Barrymore, and eventually sold her business for $500 million.

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<v S2>The key to Tasha's success were unique ingredients that merged

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<v S2>this idea of being eco friendly with a sense of

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<v S2>premium luxury. There is often the stigma of eco friendly

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<v S2>products being flat out boring. So in order to succeed

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<v S2>in this space. With these types of products, you'll need

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<v S2>to combine this idea of sustainability. With a fun and

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<v S2>sexy brand that stands out. And the key to making

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<v S2>money in this market. Is to avoid the traditional granola

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<v S2>type brands for these products. Instead, develop a brand that emphasizes.

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<v S2>Fresh and clean aesthetics, focusing on household goods, beauty products.

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<v S2>Pet supplements. And make them eco friendly. Finally, we have

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<v S2>the largest, fastest growing market where I would recommend starting

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<v S2>a business in 2025. The demand for this kind of

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<v S2>business is expected to reach a value of around $10.2

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<v S2>billion by 2030, with a compound annual growth rate of 14%

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<v S2>from 2022 to 2030. And it is social media consulting

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<v S2>specifically for businesses, not creators. I work with thousands of

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<v S2>business owners, and what I know is they know nothing

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<v S2>about social media. They don't know how to leverage it

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<v S2>in their business. They normally hire somebody who is very junior,

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<v S2>and just because they think that they're young, they think

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<v S2>that they understand how to communicate on social. Social has

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<v S2>evolved so much over the last 15 years, and you

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<v S2>can no longer have your cousin, your nephew, your niece,

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<v S2>your daughter. Just handle your social media and have results.

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<v S2>You need somebody who actually knows what the heck they're doing.

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<v S2>If I was actually starting a business in this space,

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<v S2>I would niche down so far. I would pick one

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<v S2>industry and I would pick one platform. I would not

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<v S2>just do social media because Instagram is very different from YouTube.

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<v S2>It's very different from TikTok. Twitter x I don't even know.

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<v S2>Is TikTok still around by the time you're watching this?

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<v S2>So much uncertainty. The point with that is you should

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<v S2>pick one platform for one type of industry where you

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<v S2>are able to drive results for that business owner. There

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<v S2>is no shortage of opportunity in this space, because what's

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<v S2>so cool about this is you can actually make a

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<v S2>business owner more money, which means that they're willing to

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<v S2>pay you more money. The more you focus on business

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<v S2>models that allow you to do exactly this, the longer

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<v S2>you're going to have retention with these customers. If your

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<v S2>products make somebody more money, not just make them look

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<v S2>better or feel better, but actual dollars are generated, it's

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<v S2>easy to charge what you're charging and then charge more

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<v S2>because they see a result, and results can be created

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<v S2>in the social space. So one platform in one industry

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<v S2>and you go gangbusters learning how to get them results.

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<v S2>And you will have no shortage of people who are

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<v S2>banging down your door in that space who want your services.

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<v S2>So here are two obstacles that I want to help

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<v S2>you get in front of. The first is onboarding and

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<v S2>offboarding your client. Yes, you might be fantastic inside the

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<v S2>application and posting the content, but if you are so

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<v S2>great as a technician in the platform, you might not

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<v S2>be great on setting expectations and communicating what the process

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<v S2>is for no longer utilizing your services, you will get

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<v S2>more business and create more confidence in the person that

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<v S2>you're doing business with. If you have a dialed in

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<v S2>onboarding plan and a dialed in onboarding plan, and you

0:12:15.890 --> 0:12:18.329
<v S2>can even talk about the off boarding plan when you

0:12:18.330 --> 0:12:19.970
<v S2>onboard them, just so that they know that they're not

0:12:19.970 --> 0:12:22.310
<v S2>going to be held hostage by your business, and your

0:12:22.309 --> 0:12:26.030
<v S2>primary responsibility is to set them up for success. That

0:12:26.030 --> 0:12:28.150
<v S2>is how you gain trust with the business owner. The

0:12:28.150 --> 0:12:32.150
<v S2>second potential obstacle that you might run into is talent acquisition.

0:12:32.230 --> 0:12:34.150
<v S2>There are so many different ways that you can try

0:12:34.150 --> 0:12:36.550
<v S2>to solve this problem. Most people, when they start a

0:12:36.550 --> 0:12:39.230
<v S2>business like this, think that they should offshore the talent.

0:12:39.230 --> 0:12:42.270
<v S2>And I would strongly recommend that until you have fantastic

0:12:42.270 --> 0:12:45.429
<v S2>processes that you can prove work and that you can

0:12:45.429 --> 0:12:48.510
<v S2>prove can be duplicated over and over again. I wouldn't

0:12:48.510 --> 0:12:51.710
<v S2>recommend bringing on offshore talent because it is going to

0:12:51.750 --> 0:12:54.429
<v S2>create more of a lag, and you're cutting a corner

0:12:54.429 --> 0:12:57.550
<v S2>instead of really understanding what is working and what is

0:12:57.550 --> 0:13:00.589
<v S2>not working. Before you bring somebody on that potentially has

0:13:00.590 --> 0:13:03.510
<v S2>a language barrier and a time zone barrier. As you

0:13:03.510 --> 0:13:06.590
<v S2>build this business, you being the person that understands it first,

0:13:06.590 --> 0:13:10.390
<v S2>then creating documentation to train somebody else who could then

0:13:10.390 --> 0:13:12.470
<v S2>train somebody who lives in a different country. How to

0:13:12.470 --> 0:13:14.510
<v S2>do it is the best way to set yourself up

0:13:14.510 --> 0:13:17.470
<v S2>for success. Because I work with thousands of business owners,

0:13:17.550 --> 0:13:20.190
<v S2>I know what they are willing to spend in order

0:13:20.190 --> 0:13:24.770
<v S2>to solve this problem. And it is mega dollars, but

0:13:24.770 --> 0:13:27.050
<v S2>the people who are providing these solutions for them are

0:13:27.050 --> 0:13:30.050
<v S2>very confused. You are not going to be confused. You

0:13:30.050 --> 0:13:33.810
<v S2>could at least charge five, if not $10,000 a month.

0:13:34.010 --> 0:13:37.450
<v S2>If you could guarantee that the results that you're driving

0:13:37.690 --> 0:13:41.450
<v S2>would equate to 5 or $10,000 a month, plus the

0:13:41.450 --> 0:13:45.090
<v S2>brand recognition. So when you think about it like that,

0:13:45.090 --> 0:13:48.210
<v S2>it's very easy to start a business and create real

0:13:48.210 --> 0:13:51.250
<v S2>value through leveraging social media. But you have to gain

0:13:51.250 --> 0:13:54.370
<v S2>the expertise first. I know our business spends hundreds of

0:13:54.370 --> 0:13:57.690
<v S2>thousands of dollars a month on social in order to

0:13:57.730 --> 0:14:00.250
<v S2>be able to support the ads that we run, and

0:14:00.250 --> 0:14:02.570
<v S2>many businesses don't look at the fact that they run

0:14:02.570 --> 0:14:05.770
<v S2>ads and that their social should be complementing what that

0:14:05.809 --> 0:14:09.449
<v S2>ad strategy looks like. We used to lose hundreds of thousands,

0:14:09.450 --> 0:14:12.809
<v S2>if not millions of dollars, all because our ad strategy

0:14:12.809 --> 0:14:16.329
<v S2>was not in alignment with our representation on social. And

0:14:16.330 --> 0:14:19.330
<v S2>when these two things are combined, there is an exponential

0:14:19.330 --> 0:14:22.010
<v S2>effect that can take place in a business. If you

0:14:22.010 --> 0:14:26.230
<v S2>enjoyed this episode, I have a sneaking suspicion that you

0:14:26.230 --> 0:14:30.790
<v S2>would love my weekly newsletter called business, and is my

0:14:30.990 --> 0:14:33.870
<v S2>love letter to all of the business people out there

0:14:33.950 --> 0:14:37.150
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0:14:37.150 --> 0:14:41.270
<v S2>their life. Health. Wellness. Beauty. Fashion. I have a lot

0:14:41.270 --> 0:14:43.470
<v S2>of fun with the newsletter, and I write it every

0:14:43.470 --> 0:14:46.030
<v S2>single week on the products that I love, what I'm

0:14:46.030 --> 0:14:47.910
<v S2>focused on in our business. So if you want to

0:14:47.950 --> 0:14:51.310
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0:14:51.670 --> 0:14:55.950
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<v S2>inbox when you subscribe. If you enjoyed this episode, I

0:15:01.990 --> 0:15:05.750
<v S2>have a feeling you would love my YouTube channel. I

0:15:05.790 --> 0:15:08.670
<v S2>am investing a lot of time going into this year,

0:15:08.670 --> 0:15:13.270
<v S2>into YouTube, and creating a visual experience of all the

0:15:13.270 --> 0:15:15.230
<v S2>different things that I love to give advice on, whether

0:15:15.230 --> 0:15:17.990
<v S2>that's how to make more money, what business models to start.

0:15:18.150 --> 0:15:21.270
<v S2>The YouTube channel is popping off, and I got to.

0:15:21.270 --> 0:15:23.150
<v S3>Spend time with you over there too. So go to

0:15:23.150 --> 0:15:26.550
<v S3>my YouTube channel, hit subscribe and I'll see you over there.