Value In Overlooked Markets

Sam Rattner believes that significant business opportunities often lie in overlooked, niche markets that others dismiss or don't understand. Through his experiences with various ventures, from riverboat casinos to vending machines, he's developed a philosophy about finding value in unexpected places.

Key Points:

• The "Duck Calls" Philosophy:

  • Value exists in niche ecosystems and communities others don't know about
  • These markets often have passionate, dedicated customers willing to spend significant money
  • Example: Duck call industry has merchants doing $5M/year with 800k followers that most people don't know exist

• Characteristics of Valuable Opportunities:

  • Regional or geographically specific
  • Too complicated for most to understand
  • Hard to find or access
  • Niche markets with dedicated communities
  • Areas where "99% of people don't look"

• Strategy for Finding Opportunities:

  • Deep dive into unfamiliar industries
  • Look for businesses that seem "terrible" at first glance
  • Do thorough due diligence before dismissing
  • Find markets where existing solutions are outdated or inefficient

• Real-World Examples He Explored:

  • Vending machines in remote locations with captive audiences
  • Water taxi services in lake towns
  • Riverboat casinos
  • Each opportunity had unique characteristics others overlooked

• Evaluation Criteria:

  • Can the business be 5x better (not just 10% better)?
  • Is there a passionate customer base?
  • Are there structural reasons why others haven't pursued it?
  • Does it have potential for significant scale?

• Philosophy on Market Research:

  • "Before I say no, let me do some diligence"
  • Look beyond surface-level understanding
  • Investigate why certain businesses outperform similar ones
  • Focus on understanding unique market dynamics