Three-Tier Entrepreneur Framework

Scott Galloway outlines different entrepreneurial paths based on an individual's credentials and situation. Here's his framework for opportunities in today's market.

Uncredentialed Path (No College Degree)

• Focus on acquiring existing small businesses from aging owners
• Target businesses doing $500k-$10M in annual revenue
• Look for businesses owned by retiring baby boomers needing succession plans
• Examples include:
  • Carpet cleaning businesses
  • Gas stations
  • Drapery/furniture companies
• Strategy:
  • Be scrappy about understanding the business
  • Structure deals using seller financing
  • Approach owners about gradual buyouts over 5+ years

Credentialed Path (Elite University Degree)

• Join large established companies
• Rationale:
  • Big companies outperform smaller ones (top decile companies outperform bottom 9 significantly)
  • Provides security and steady wealth building
  • Great for networking and finding mentors
  • Good place to meet potential partners
• Examples:
  • Google
  • McKinsey
  • Other multinational corporations

Entrepreneur Path (With Ability to Raise Capital)

• Focus on AI + Healthcare intersection
• Why Healthcare:
  • $3.5-4 trillion market
  • Highly inefficient ($13k per person in US vs $6.5k in UK)
  • Poor outcomes despite high spending
  • Massive opportunity for disruption
• Strategy:
  • Use AI to transform healthcare from defensive to offensive
  • Focus on proactive health management
  • Leverage data (grocery receipts, workout routines, healthcare records, sleep patterns)
  • Create personalized health recommendations
• Example Company:
  • 98.6 - Text-based healthcare with AI integration
  • B2B model charging $3/month per employee

The framework emphasizes that entrepreneurial paths should be chosen based on individual circumstances, rejecting one-size-fits-all "hustle culture" advice that doesn't account for personal situations.