Hidden Opportunity Framework

A framework for identifying profitable businesses that sell "free" products/services that are hiding in plain sight.

Core Concept

• Businesses can make significant money by selling things that are technically free
• Success opportunities are everywhere but often overlooked
• Value comes from making free things more accessible or convenient

Examples of Hidden Opportunities

Labor Law Posters ($1M+ Business)

• Required by law in all business break rooms
• Posters are technically free from government websites
• Private companies:
  • Send official-looking notices to businesses
  • Charge ~$45 per poster subscription
  • Update posters annually
  • High margins due to simple printing/distribution model
  • Make millions by simplifying compliance process

Marketing-Created Occasions

• Companies creating cultural norms that drive sales:
  • De Beers: "Diamonds are forever" campaign
  • Created 2-3 month salary diamond ring standard
  • Kellogg's: "Breakfast is most important meal"
  • Johnson & Johnson: Baby showers
  • Macy's: Wedding registries
  • Lysol: Spring cleaning concept

Key Insights for Identifying Opportunities

• Look for everyday objects/services that seem basic but necessary
• Find areas where complexity can be simplified for customers
• Identify free things that people would pay for convenience
• Notice required compliance or regulatory requirements
• Look for opportunities to structure/aggregate available data
• Consider how to make free things more accessible

Mindset Shift

• Success isn't about rare, revolutionary ideas
• Business opportunities are everywhere in plain sight
• Focus on finding one good opportunity rather than the perfect idea
• Every object or service exists because someone created a business around it
• Even simple services (like painting parking lines) can be highly profitable