Great article by the WSJ on people starting businesses - Tons of opportunity

[LongHaul]

I liked this article about people starting a variety of businesses in the pandemic.  Human resourcefulness at its best.

 

https://www.wsj.com/articles/is-it-insane-to-start-a-business-during-coronavirus-millions-of-americans-dont-think-so-11601092841?mod=business_minor_pos5

 

 

I think there is a TON of opportunity in the US to start all types of businesses.  If you show up on time, are capable and have a fair price you can clean up in the US as in so many

fields customers are desperate for great services and solutions.  Opportunity is of the mind.

 

Thoughts?

 

 

 

[fareastwarriors]

Have definitely thought about it.

However, I'm not sure What to start.

 

What about you?

[Guest cherzeca]

@longhaul

 

agree. there is opportunity to see how to serve newly-created demand for services/products post-covid, that take into account a post-covid culture...for example, WSJ also did a story on teachers leaving public schools to teach parent organized homeschooling.  will this continue and grow? imo yes, because I believe home schooling will morph into an alternative form of schooling, less institutional, more hands-on, more parent focused.  we shall see, but almost every business has had to adjust to covid, and some of the aftermath will be serviced by entrepreneurial activity filling gaps which businesses leave open

[jasonchin]

Interesting. Two thoughts came to my mind:

 

1. What % of the new businesses were started by employees that were furloughed?

2. How much did the stimulus check impact the %?

 

This can be a social experiement and possibly creating a business case for future recessions. Just thinking out loud!

 

Thanks for sharing, longhaul.

[Orchard]

I think there is a TON of opportunity in the US to start all types of businesses.  If you show up on time, are capable and have a fair price you can clean up in the US as in so many

fields customers are desperate for great services and solutions.  Opportunity is of the mind.

 

Thoughts?

Sure. A lot more opportunity if your product or service is good enough to charge a price higher than the competition.

[SharperDingaan]

There is a big difference between starting a business that can actually support you, and one that may throw off maybe 5-20K/yr at best - net of all costs. In the former case, buy an existing business and expand it - don't start it. In the latter case, work for someone else and let them take the business risk. Most people are the latter case.

 

Covid and it's long-term implications has tipped a great many owners, with very good small businesses, into retirement mode. As a consequence, there are a number of very unglamorous, limited scalability, and highly profitable businesses available. Deep knowledge benches, but invitation only. Zero tolerance for financial cowboys.

 

SD

 

[mbreject]

It *might* be difficult to hire right now, since a ton of people are on unemployment and not many would willingly take the risk to bring the virus home to their loved ones.

 

Just to give an example of how hard it might be - I was trying to negotiate a bill a few weeks ago and the person offered me a job.

 

 

 

[LongHaul]

There are probably a lot more opportunities for very small businesses than big scaleable ones.

 

Perhaps we can start a thread at some point on this.

 

I'll throw out one that could be really big.

 

An Auto mechanic shop that is essentially like the Costco of Auto mechanics.

 

1.  Honest all the time so Grandma can walk in and Never EVER be ripped off.

2.  Lower prices because of lower costs of real estate, marketing, sales for lower overall costs.

3.  Quality fixes

4.  Could be specialized in fixing pickups or by brand like the dealers.

5.  Open longer hours. 6am-11pm as long as utilization could be higher.

 

So it would honest, cheaper, and offer good service.  I think it would essentially be a dealer killer.

There was a great place like this that cleaned up.  Simple formula but it would take expertise and organization skills and capital and CHARACTER in

a businessperson's bones to do.

 

 

 

 

 

 

 

 

 

 

 

[SharperDingaan]

Think more along the lines of industrial cleaning. Over time, pipes can accumulate different types of debris such as calcite, roots, waste, and other materials that can clog them or slow them down. Industrial pipe cleaning methods clear out these obstructions and others. Think effluent, sewage, fat downstream of restaurants, etc.

 

Very stable businesses, very stable customer bases, high market share within their niche, relationships go back decades. Just starting something up in the space, not really viable. Internal return more than covers growth and dividend requirements. Private businesses that don't need public money, & all under the radar. Invitation only.

 

SD

 

 

 

 

[fareastwarriors]

I think those are good ideas. So who here is quitting their white collar job to start these businesses?

 

What about HVAC, electrician, plumbing, or construction? Bring some "professionalism" to these valuable blue collar professions.

 

My cousin just started as assistant to do residential HVAC work in Bay Area.

 

They are working 6 days a week but still have plenty of clients waiting weeks or a month for project to start. They can't install A/C's fast enough during all these heat waves...

 

[SharperDingaan]

You aren't quitting the day job. You're buying your stake in stages, using proceeds from working holidays/weekends (under their supervision) to pay for your entry stake. Demonstrate your commitment, grow the business (incremental weekend work), while you learn the trade. Fit in - and the partner sells you the rest of his/her shares. Don't fit in - you're just paid for your time (with interest), and shown the door. Invitation only, means what it says.

 

SD