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