Unglamorous Business Profits

Shaan Puri and Sam Parr discuss how profitable businesses can be built by identifying overlooked niches and trends, particularly focusing on services that solve essential but unglamorous problems. They explore examples like cremation services and lice removal businesses to illustrate how these hidden opportunities can be lucrative.

Key Points:

• One Chart Businesses

  • Businesses can be built by identifying a single compelling trend
  • Example: Cremation rates increased from 10% to over 50% in recent decades
  • This shift created opportunities for companies like After.com

• Hidden Service Industries

  • Lice removal services as a profitable niche:
    • Mobile testing services charging $300+ per house visit
    • Territory-based business model
    • High demand due to school requirements
    • Some becoming franchise operations with multiple locations

• Characteristics of Successful Hidden Niches

  • Solve essential problems people can't avoid
  • Often unglamorous but necessary services
  • Can command premium pricing due to urgency
  • Opportunity for brand building in basic services

• Market Entry Strategy

  • Look for services with:
    • Mandatory requirements (like school lice checks)
    • Urgent needs (can't delay service)
    • Limited competition in local areas
    • Potential for territorial expansion

• Business Model Advantages

  • High margins possible due to service necessity
  • Recurring revenue through repeat customers
  • Word-of-mouth marketing potential
  • Opportunity to build trusted local brand
  • Potential for franchise expansion

• Success Indicators

  • Services that people need regardless of economic conditions
  • Problems that require immediate solutions
  • Services where price sensitivity is lower due to urgency
  • Opportunities for professional branding in traditionally unbranded spaces