Jump to content
Search In
  • More options...
Find results that contain...
Find results in...
  • entries
    12
  • comments
    16
  • views
    539

"Unsexy" Startups

CircleTech

159 views

In today's world, we tend to pay attention to the "sexy" startups. companies like Uber, Lyft, or AirBNB frequently grab our headlines. But there are plenty of great business in industries that most people find mundane: Laundry, Logistics, Auto Wreching, and Scrap Yards, just to name a few.

 

Here's an example: One of the largest Auto Wreching Companies internatonally is called Copart. All Copart does is buy wrecked cars (primairaly from insurance companies), and resell them to the public on it's website. Their average profit margin is 33%, while the average margin for a Fortune 500 company is about 10%. The Founder is a billionaire with no College education, and he's in his 70s:

 

https://www.bloomberg.com/news/articles/2019-11-19/junkyard-billionaire-thriving-on-car-wrecks-expands-his-empire

 

 

I was once at an Investors Conference, and I met someone with a 10 million dollar net worth in the most Mundane of Industries: Dry Cleaning. He owned a chain of Dry Cleaners in Upstate New York, and that's all he does. 

 

Wanna find out how to start an Unsexy Business? Check out the Channel "Investment joy" On youtube. We get to see inside the life of a man who owns a business in southern Ohio who owns everything from Real Estate to Laundrymats to Trailer parks. He definitely has over a million dollar net worth:

 

https://www.youtube.com/channel/UCTz8K5TMmkQkRArybXfoVDg

 

"Unsexy" Businesses like these are frequently ignored by the public because they don't introduce anything revolutionary to the world. But your business doesn't have to! you just need to serve a need for your community, and the money will follow. You could be doing anything from Owning Real Estate to pool Cleaning to Laundry. As long as your business is providing value to your community, you will always have customers. Dont' think you need to begin the next billion dollar company to get rich. There are plenty of other things you can do.



3 Comments


Recommended Comments

CoParts in Missouri is awesome....I have 50% ownership in a body shop, its how you used to make money.  (part of our shop is where we house our miners now)

 

Anymore however - note - cars are modular, body work is a prehistoric way of doing things.  So CoParts is now only good for a few things - do I need that half of the cars worth of still good parts (rather then buying a wrecked car, use body putty and a straightener to make the old bent parts look like new and resell, but now you cant do that its all plastic or thin ass sheet metal) - is the motor intact - is the transmission intact.

 

While I see a place for CoParts in the industry (because its all Auctions style you walk car to car and bid - sometimes in bad weather no one shows up and you get all kinds of cars for $25 a piece) I don't see it generating that kind of revenue for much longer.

Share this comment


Link to comment

Business isn’t my thing, but I’ve almost bought a car from Copart several times. The genius is that you don’t need a license for a lot of it, and you’re still finding cool stuff

Share this comment


Link to comment
×