Tell me what industry you want to build or work in and I’ll tell you your future.
The framework goes like this:****
The sexier the industry = the less money you are going to make.
Not always true if you're a brilliant tech founder, but for the rest of us, I'm pretty sure it's just science. Perhaps that's why everything in Hollywood pays poorly, marketing and advertising roles are at the bottom of the income tier, as are journalists.
Too many people want to be those things, and the credentials needed are not high. However, there are just some businesses that get no love, and I am here for them like Onlyfans is for incels. I started calling these "boring" businesses because I am all about misdirection.
If you tell people you invest in boring businesses they, first of all, are probably not going to be that interested, and second, want to talk to you about their new Al-powered, social media, Web3.0 dating app instead.
Cool.
Table of Contents 👇
Y'all go hook up to the metaverse while I get paid to clean your house and mow your lawn in the actual sunshine. I have a framework that I learned in private equity on how to invest in businesses the lazy way. So I thought I'd share with you that formula.
Because the truth is PE firms and SMB buyers; we aren't rocket scientists, we aren't moon shooters, we largely take something that exists and iterate on it.
No Elon Musk in here.
And that is okay because the world needs small businesses to serve us every day.
So if you are intrigued by the "boring," let me tell you what really gets me snoring….
What is a boring business that I like to buy, build, or invest in?
Here's my formula, I call it SOWS. Like cows.
(Stale) = ****minimal innovation
(Old) = longstanding business
(Weak) = poor competition
(Simple) = simple but needed business model
The Fax Machine Test
I'm looking for businesses that haven't innovated. Less innovation means more potential upside and thus less risk. Let's give a couple of examples, I went into one business and they asked me to fax in an ID. YES. Every time I do a deal and I see a fax machine I grin like the Cheshire cat ate the canary.
A great trigger: