10 Businesses To Start BEFORE You Get Laid Off In 2024

most businesses in humans struggle during recessions so we went out to find 10 businesses that were recession resistant and ideally could we find some that could be tailored specifically to you that's what we're talking about today bye celicia the question is are there recession resistant businesses that you can start in 20124 so you can win no matter what if you're worried about what's coming and want to profit off of it this video is for you backed by a bunch of data you're going to want to see it is a huge recession warning we still have to be vigilant we still have a recession around the once again I think Main Street America may be a lot smarter than the economics profession to be fair it looks like you are right to be worried about failures recession and layoffs look at these numbers job openings tanking highes decreasing my bet is layoffs are coming next layoffs are coming layoffs layoffs layoffs layoffs and it looks like we're probably right more than 24,000 people laid off year to dat now I've been through terrible layoffs at my old corporate jobs Goldman Sachs in particular it was 2008 during the financial crisis I was sitting in my cubicle watching people pick up everything they owned into cardboard boxes as 20% of the workforce was fired people were crying protesters were outside shanting the 1% then it was awful but I remember I sat outside one of the glass offices where they fired people I overheard them firing one of the managing directors one of the head guys and he wasn't crying in fact he was pretty stoic and they were going back and forth over a piece of paper on it I'd find out later was his equity percentage that he'd get in The Firm they were explaining to him what his exit package would be and he was getting paid to leave not work that pay included him owning part of the company after he left and his name was Jim and he was paid Millions over the next few years here's the problem most people don't realize that they don't have equity in the companies that they're in and they don't use the money that they make to get ownership in either stock market businesses businesses they run or recession resistant businesses and we're going to fix that today because I don't want you to be one of those people with card Ward boxes packing out of a high-rise like so many of my friends were in 2007 8 and 9 I remember thinking about a lot of what businesses I could start to get out of my 95 when I survived all the cuts at Goldman and since then I've bought and sold dozens of businesses we own a holding company that does nine figures called contrarian thinking Capital but not every business is actually right for you right now and so we came up with this Matrix Based on data and a bunch of time at Goldman analyzing hundreds of businesses this is called the money Matrix and it talks about which businesses are tailored to you in 2024 it was something that I told myself to me back in 2008 so this is your plan to never be afraid of layoffs again first I'll kick us off with a quick business you can start for very little money that can use whatever skills you have creating a podcast because I might be doing that now I know that some of this seems like everybody's doing it and maybe there's not enough room but you don't need to be Rogan to earn and crush a pod and you don't need his team just some simple Tech is what I'm using this one is called Riverside it is the easiest way for me to to record and edit highquality video calls anywhere in the world like this whether you've got business meetings podcast episodes or creating talking head videos Riverside makes it stupid easy for you to produce highquality content that's ready to be marketed no editing skills required it also uses AI which is wild to cut your full recordings into Clips you can post quickly to socials no edited needed to Save hours of work it even analyzes your best moments to find what is most likely to go viral and since I have a badass content team they wrote this who want control over editing Riverside makes it easier on them by recording everything into separate audio and video tracks so you can use Riverside for podcast interviews panel discussions presentations webinars team meetings but best of all it makes it simple because I don't have time for complex I got you guys a deal if you want to try it for yourself get the code and Link in the description below all right here's how this breaks down our X AIS is skill our y AIS is money this gives us four quadrants up into to the left we've got low money low skill to the top right we've got low money High skill the bottom left we've got high money low skill and on the bottom right High money High skill so obviously low money means you don't have much money low skill means you don't have highly paid for or required skills I can't tell you exactly what business is going to be right for you but I can tell you that everyone falls into one of these four categories and then you pick one of the 10 businesses and if you do this right you can progress all the way to the fourth quadrant no matter where you start so let's dive in to the first quadrant low money low skill this is where I would start if I was you and it is called a service business but a specific type of service business a service business that can scale we're going to break down exactly what that means four companies I like in service based businesses auto detailing power washing landscaping companies all variations of cleaning companies here's what a service business is overall because definitions matter things where you are providing not a product to a person but a service that is really just Tim traded in a particular segment that is not the user's time I would start a service business for a few reasons reasons low cost they don't cost you much to start you can have higher margins if you're actually running the business there's a lower failure risk because you don't have much money up front or what's called capex Capital expenditures no shipping or supply chain nonsense that comes with e-commerce for instance you can actually add a more sophisticated B2B option which means you can charge more they're beginner friendly that means they're easier to start finding clients is easier than most other businesses and you can scale for instance you can start I would say more than 20 to 30 service businesses for less than 500 bucks I have multiple friends that started an 8 fig eventually cleaning business that cleaned windows for $500 what did they actually need to do their first job they needed Rags they needed cleaning solution they borrowed a ladder they needed a truck that they also borrowed they needed some window wipers and they needed somebody to say yes let's get specific on what are good margins 30% at least but you could have upwards of 80% if you're the owner and you run the business the second reason this type of business is interesting is because of low failure risk your only cost is your labor if you decide to scale up this business you have low inventory not a ton of big expenses and no shipping expectations the risk of bankruptcy is actually quite small you don't have shipping or supply chain e-commerce companies for instance are not my jam nine times out of 10 too expensive order values are high you actually buy something before you can sell it so you have to have a lot of guessing and make sure that you're right the other thing is lots of oversaturation and competition with China none of these problems exist when you're are mowing people's Lawns you do not have to proactively pay for it out of pocket now B2B options are interesting because you can go and you can charge somebody 50 bucks to mow a standard lawn in Austin Texas or you can get a contract with a commercial building and they could pay you $5,000 every month for you to mow the lawn two times a month and guess what those contracts pay upfront you get money before you provide the service the other thing is these typically will not require to be experts or licensed which is great because I don't know about you but I haven't gotten around to getting my journeyman's license so unless you're doing something more complex like Plumbing or HVAC you do not need a license typically to do things like mow Lawns or clean houses finding clients is much easier why you live next to them and most people need these types of services if you see a neighbor cleaning their pool there's a business if you see a neighbor cleaning a pool and talking to another neighbor there's your second customer other thing that's interesting about these businesses they're scalable they're not easy to scale but they are much easier to scale than buying a bunch of inventory you use initial profits to invest more in equipment marketing and more employees what is scaling actually look like you can make an a 100 every now and then through service jobs for sure but that's you being an employee again which is with an opportunity to get laid off or you could build it into a real business that functions without you and exceeds your current salary that's what real scaling looks like all right so at this point you go well how do you scale Cody I've never built a business I don't know how to build one to a million 10 or 100 million let's use what I call the promise method there's a lot of moving Parts but if I were to distill it down to seven steps here's how I'd scale a service business I'd start with P profit one thing we want to do more than anything else is we want to protect the margins so this is kind of interesting because if you're going to scale you want to think about how you price things first that means you'd go out you look at what other people in the market price for landscaping services let's say and you'd price it slightly higher than them why would you do this you're brand new at it because you're probably not efficient and you want to keep 30% profit margins are higher good thing about service businesses they suck at distribution meaning getting sales and you are going to be good at that because you're going to follow the promise method so we're going to protect those 30% margins by the way margins are basically this I charge a dollar for my service it costs me70 cents to fulfill my service that 30 cents that's left is my margin 30% margins all right the second thing we're going to do is we're going to add reoccurring Revenue that's the R I have a motto called sell once charge continuously you're going to do long-term contracts which means monthly and annual contracts you're going to have Auto renewals with subscription services like jobber or service Titan you're going to also allow for pay as you go subscription if they want to do add-ons around the holidays perhaps you do Christmas lights around this time of year that could be a pay as you go subscription to add then you might add a loyalty program the longer you stay with us the more you continue to use our subscription Services the more you get a little value very few service businesses ever do that so you're going to be unique the last thing that I want you to do I want to make sure you obsess on the thing that no Services businesses do online presence what do you do when you need a handyman you Google it so I want you to obsess on how do I establish what's called local SEO Authority I want to try to get people to come to my little website and say that I'm awesome one of the best ways to do that is the thing I'm doing to you right now which is creating content around my Niche look at all these examples of landscaping content look at these examples of power washing content this is going going to be in my opinion the new type of SEO which is social media SEO the m is mouth-to-mouth marketing strategies here we're talking about referrals most businesses get less than 10% of their current clients from referrals which is crazy because when you like something you are more likely to tell a friend to use a service and so you already have somebody who's using your service continuously why wouldn't you ask them for more referrals you're going to be unlike everybody else and you're going to have a strategy for referrals that's going to look like this every single time you get a new customer because you're tiny and you're just starting you're going to follow up immediately afterwards ideally with a phone call but you know Millennials we don't like phones and we don't answer them so it could be a text message and the text message is going to be kind of cute you're going to send something like this hey we loved mowing your lawn today I hope that it turned out awesome if you also liked the service could you do me a huge favor I'm a brand new small small business here in Austin your referral literally keeps my lights on would you mind mind telling me one or two other people we could reach out to is that possible is there somebody else that you might know in this area or region that we can service and you're going to do that for every single customer now most people are going to tell you no but you're going to use the law of 12 which is basically for every single person that you ask out of 12 one will probably give you a referral the ey is interpersonal this is how you get your first customers by talking to your neighbors getting personal you start in your neighborhood and you use the concentric Circle model which is you start at your house and you look at if you were going to do a five minute series of laps around your house can you go and knock on all those doors and ask for their business why would you want to do it in your neighborhood well because one of the most important parts about keeping your margins tight on a service business is your ability to group and bundle your individuals now when you're not the only one eventually running this business you're going to have a fleet of people out there that are going to be mo lawns all around Austin but in the beginning it's just going to be you and the more money you make is going to be directly correlated to how close the services you are providing are to one another you're going to knock on your neighbor's door and you'll be like hey Tanner I'm Cody I actually live down the street we run a landscaping business locally in this neighborhood we actually do a bunch of the neighbors houses we'd love to have you as a client would you be open to trying a local small business like mine there's immediate trust transfer because you live down the street the second thing you're going to do is you're going to open your phone download your contacts this is your very second lead list and on this second lead list you're going to start texting people now let me tell you how much better it is to get text about Landscaping than a Tupperware party this is not an MLM scheme you're one of the few people who are offering a service people need every single day I would love to give my business in landscaping to somebody that I know just happen to be somebody who knocked on my door now we get to something a little bit more technical sales subscription bundles specifically we are going to do what's called the three-fold method look at this website every single good service business has a three-fold sales tier basically cheap product and offering to the left more expensive product and offering to the right and that Goldilocks perfectly warm offer in the middle you're going to have a subscription offer in each one but your middle pricing is going to be the one that you actually want them to choose and more often than not we humans choose the one in the middle just make sure you have a subscription offer most small businesses do not e stands for expectations for customers well actually stands for reviews but that didn't really fit into the acronym reviews are super critical 93% of customers read reviews 90% will not use your product if there's less than three and a half Stars 58% of consumers will pay more and travel further for a better reviewed company unhappy people are 10x more likely to leave a review and it can take 10 to 20x positive reviews to neate one negative review entire story here is you're going to obsess on reviews and if you want my exact process for how to get reviews you can click this link we've put it all together in one document for you this is a super simplified version if you want to see me apply this to a power washing business to grow it to $4. 1 million 10 minutes this video is for you so I'm just showed you your first quadrant how to take the promise method and apply it to any simple service business and how anyone can start this business even if you don't have much cash and you don't have many skills this will not work for you if you're not willing to do any work but it will work for almost anybody who is willing to put in the work I especially wish that I had started something like this when I was young instead I was waiting tables and getting beer spilled on me all for minimum wage and no equity this is the money Matrix that we've just gone through money level needed basically Z skill level I don't know don't be an idiot let's call it a 3 out of 10 risk level 2 out of 10 reward first year on average I think you could make somewhere between 10,000 to 100,000 best case after several years Millions lots of examples of companies that do this time commitment 8 out of 10 it's going to take up a lot of time at least until you make enough money to hire the person who's going to take over for you quadrant two where we're going now you need a specialized skill that you can sell nice thing about skills you can learn them even if you're broke the the internet's a wonderful thing you could also subscribe to our Channel and you could learn a lot more of these skills so maybe hit that button if you already know everything about a high skill service this quadrant is all about learning how to sell it or better yet turn that service into a product this is a gold mine guys second quadrant High skill low money there are three buckets for these types of businesses consultant product as service product as a service let's talk about the three types Consultants what are they there's somebody who has a mark aable skill that's in demand that you pay in order to steal their 10,000 hours for instance we have a consultant that taught us how to do YouTube shout out Jamie we have a consultant that taught us how to do newsletters that was Jordan I had a consultant in Chile Brazil Colombia Mexico for every single Market I tried to enter when I was in first trust and build an upper Asset Management business Town self if you want to scale fast you use consultants and if you have money you use consultants if you don't have those things you become one do you have a skill set that's valuable enough to be a Consulting business you probably have one if you have a job right now where they teach you to think and not just use your hands if you have anything that is not a labor based business but a thinking business you can likely be a consultant and if you want to check go to these three sites go to upwork GLG get intro when you look at those three sites you can Google search exactly what you're good at graphic design accounting sales YouTube Type in the thing that you think you're good at and see what the average hourly rate is for that if nobody on there is searching for you maybe you don't have sufficient skills but if somebody on there is searching for you you already have your price tag that's associated with Consulting if I was going to start a Consulting business I would start on one of these Platforms in fact I did I used GLG back in the day I would probably also use intro now the platforms aren't ideal because they take a cut of your money and it takes time to apply for gigs but it's a good first step and then you can send your link without having to build out an entire website or having to build out an entire brand you can just send that link to people people that you want to start building one the strategy that I would use to scale it is the exact same thing for a service based business this is you building your lead list and your lead list is comprised of the people that you already know and perhaps the clients that you're already working with in your employee situation right now there's a problem with Consulting and freelancing business and that's there's only really two ways to realistically scale charge more spend more time working there's a ceiling there so instead I would do this a productized service let's use design joy as an example because it's brilliant this is Brett he decided he wanted to do more than his 9 to-5 design job however he didn't want to fight all the other consultants in design work so what did he do instead of having to manage people send all of his profit to payroll he decided he would create a design as a subscription think of it is Netflix you pay a subscription fee but instead of unlimited movies you get to make unlimited graphic design requests the key word here is unlimited whether you make five requests a month or 50 the price stays the same either 5 or 8K per month great caveat though you can only make one request at a time so unlimited really becomes limited to how fast they can get them done we have a business called viral Cuts uses a similar pricing model here's the three tiers you could do this with just about any Consulting business remember promise exact same process here but you're selling a productized service nothing changes from the P all the way to the e a product as a service second example would be Justin Welsh a friend of mine solo prener business model gives away lots of free content on socials sells $150 courses plus gets some sponsors for newsletters and teaches people only this how to repurpose content across multiple Platforms in a course method all right here's the breakdown how much money do you need not much theoretically zero maybe some monthly subscriptions up to 1,000 2,000 bucks skill level you need to have some skills 8 out of 10 so you could spend your time just there the risk probably a two out of 10 because you're not going to spend a bunch of money up front but if you're not good at marketing it this is one where somebody's going to have to believe that your skills your knowledge in your head is worth paying for that is harder than showing somebody that you mow their lawn the reward though is realistically if you take this seriously this is a multi-million dollar business uh but I think upfront doing it on GLG and on a service like intro in the beginning I used to make first a th000 and then 5,000 bucks a month on the side the time commitment here way less than the first the first one was eight out of 10 I would say this one you're talking about more like a six out of 10 quadrant three High money low skill for this I'm talking by simple businesses I'm going to tell you exactly what types I like this is maybe if you have a good salary but you're feeling stuck you have some money set aside but maybe you don't know very much about running a business what can you do with that money the first and foremost caveat is we buy businesses that cash flow we don't buy dreams we buy realities and profits so please do me a favor and don't do yourself a huge disservice and buy a roofing company that's bleeding cash nobody needs that we want you to buy a simple business with a business model you can already understand quick caveats I want you to remember this acronym brrt it stands for buy a boring business in a recession resistant sector we're going to explain some data specifically on what those would be raise prices add technology remember how we talked about your promise methodology before here we add promise and brrt how much do you need to buy a business well you could do it for zero but in reality many deals are going to need a mix of your money other people's money plus some cash so in my mind this really starts to make sense right around you have 2550 $100,000 at least that you're willing to put on the line for a business there's tons of caveats on how to do this correctly or not if you want more information there's actually a free newsletter here that you can learn more on simple business number one laundromat this is where I started average purchase price somewhere between 250,000 up to a million success rate they say 95% most likely a little bit lower the most likely reason a laundromat would not succeed over time is you buy it too expensively simple business number two Self Storage lots of the perks of real estate but some simpler tenants very simple model people have too much stuff in the us cuz we're hoarders you put it in a room that's not at your house you can do a value add capacity AKA my friend Nick Hubert talked about adding $150,000 facelift to one of his buildings and how much that increased the total value the success rate more like 90% the average profit for a storage unit business owner is somewhere around $184,000 a year now lots of members of our community like these people have bought roofing companies plumbing companies electricians cleanings well pumps yep garage door companies shower door installation so you could refer back to the first segment where we told you to start service companies and you could certainly buy one instead but let's start really really simple because if you fail the first time you'll stay an employee forever and you won't do another deal let's break down the money I think you need six figures skill level 5 out of 10 risk 7 out of 10 you can take steps to drisk your purchase but ultimately you're putting a lot more money on the line buying a business in this example reward could be an 8 out of 10 risk is higher but your reward is more immediate too can't promise you you'll make a certain amount of money nobody can but if you buy a business that's already making money you have a higher likelihood of that continuing than if you start a business where most businesses go out of business 90% of the time and most startups never actually make any money time commitment this is actually a little bit less so could be anywhere from 5 to 10ish with an operator could be less than 10 hours a week without an operator you know depends on which business laundromats maybe 20 to 30 hours a week Self Storage business probably the same thing full-time Empire of this type of business 24/7 just like any other CEO okay don't freak out YouTube I'm going to do some public math class is in session the average service business sold for 2. 38 X its profits last year the medium sale price was $290,000 which means that that business probably had a cash flow of $121,000 if it sold for $290 now your take-home pay for owning this business likely won't be near 121k and will depend on you having operators in the business but I don't think that's too far off to say you can make four to five figures a month from buying a good profitable business without having hundreds and hundreds of thousands of dollars because you could get an SBA loan for anywhere from 10 to 50% of the purchase price and you could also use seller financing if you don't know us about seller financing subscribe to this channel we talk about it all the time last one high money High skill business SAS business why now well I myself just bought a SAS business we own a few and we're scaling the reason why is you know what all these companies have Inc commmon all these logos you see on here all of these companies were started during a recession and these are now unicorn ORS there's a common belief in Venture Capital that more unicorns are created during downturns and upturns I don't know says 95 us companies were valued at more than a billion and were founded during recession but 757 were not so mixed bag the good news for you though is I think we are in a teeter totter we've had boring companies like I talk about doing well hiring and bootstrapped companies totally fine but then over here on the right we've got VC money drying up downward pressure hug huge Tech layoffs and when that happens you can see from let's say you know the first part of this year to 2019 we've basically lost $182 million in funding during that period and that's important because it's expensive to start a SAS company so you could start a micro SAS company they say for around 15K I still think that's hard and you could start an MVP of a complex uh SAS company for about 150,000 but the truth of the matter is if you want to SK scale a big business in SAS it's going to take millions of dollars like the average high growth SAS company raises $9.

5 Million by series a that's like the first real time they go out and say give me your money VCS for slack for instance if you wanted to go recreate slack today they say you could create an MVP that's similar to slack for 100k the problem with that is Slack's already been created so that really wouldn't get you very much you need to come up with something totally new the cool part about this is how much can you make well the average sales price for a SAS company is $1. 65 million you also have an average multiple that's quite a lot higher uh 3.