Target Unglamorous Industries

Brent Beshore shares his perspective on selecting industries for business opportunities, emphasizing the importance of avoiding glamorous sectors that attract wealthy hobbyists and instead focusing on essential services that face less competition from well-funded dilettantes.

• Target Industries That Naturally Repel Competitors

  • Avoid industries that attract wealthy exiters (wineries, restaurants, films)
  • Look for businesses that have "natural selection bias against them"
  • Focus on essential but unglamorous services

• Specific Industry Examples to Avoid:

  • Wineries (attracts Silicon Valley exits)
  • Film business (attracts billionaires' children)
  • Restaurants (attracts anyone with money thinking it's easy)

• Recommended Industry Examples:

  • Construction space
  • Home services
  • Office services
  • Pool building in hot climates

• Strategy for Entry:

  • Partner with existing small businesses that have infrastructure
  • Focus on technical systems already in place
  • Implement modern technology to improve efficiency
  • Develop replicable billing and sales models
  • Build something scalable beyond local geography

• Key Success Factors:

  • Look for businesses with built-in moats
  • Focus on scalability potential
  • Prioritize operational efficiency through technology
  • Build on existing infrastructure rather than starting from scratch