11 ms·

Sounds like the perfect start-up plan: just open a 50 bucks vitamin C store, and the dominant player will buy you out for $$$. Rinse and repeat for infinite mon

by taffer 4y ago

Sounds like the perfect start-up plan: just open a 50 bucks vitamin C store, and the dominant player will buy you out for $$$. Rinse and repeat for infinite money.

johannes1234321 4y ago
For that to work you first have to scale up production and distribution significantly enough to be on their radar. That requires some investment and then the question is whether is an investment, with higher probability of returns.
ldoughty 4y ago
There's usually a x-year non-compete agreement when this happens... I know a guy that does exactly what you describe, starting a new garbage pickup service every 3 years, when the agreement elapses. He then works for ~3-4 years to build it back up. Sold twice already, and on his third.
- technothrasher 4y ago
  Laundromat -> liquor store -> hotel -> retire rich is a common path here. Rinse and repeat a couple times at each point, and because you sell each time to the guy trying to do the same thing behind you instead of to a big competitor, there's never non-compete agreements. Bonus in that the first two are recession proof and cash heavy businesses (if you wish to avail yourself of the possibilities that suggests).
  - lotsofpulp 4y ago
    Anecdotally, work from home put a crimp in many laundromat businesses. And liquor stores only work in states that do not let the big stores sell liquor. These days, any half decent hotel brand will require a couple million cash (for the down payment), and more for a new build. At least in the western US.
- hackernewds 4y ago
  What if there were no agreement? seems like he is the driving successful factor in these businesses, but I'm guessing he'd rather sell his company than get hired by them. there are example employees I've seen that have this kind of leverage too
vmurthy 4y ago
You missed out the difficult part of distribution. This isn't exactly easy or cheap. Ask Walmart or any other retailer. Even the direct-to-consumer ones have to spend a lot on distribution.

by taffer 4y ago

Sounds like the perfect start-up plan: just open a 50 bucks vitamin C store, and the dominant player will buy you out for $$$. Rinse and repeat for infinite money.

johannes1234321 4y ago

For that to work you first have to scale up production and distribution significantly enough to be on their radar. That requires some investment and then the question is whether is an investment, with higher probability of returns.

ldoughty 4y ago

There's usually a x-year non-compete agreement when this happens... I know a guy that does exactly what you describe, starting a new garbage pickup service every 3 years, when the agreement elapses. He then works for ~3-4 years to build it back up. Sold twice already, and on his third.

technothrasher 4y ago
Laundromat -> liquor store -> hotel -> retire rich is a common path here. Rinse and repeat a couple times at each point, and because you sell each time to the guy trying to do the same thing behind you instead of to a big competitor, there's never non-compete agreements. Bonus in that the first two are recession proof and cash heavy businesses (if you wish to avail yourself of the possibilities that suggests).
- lotsofpulp 4y ago
  Anecdotally, work from home put a crimp in many laundromat businesses. And liquor stores only work in states that do not let the big stores sell liquor. These days, any half decent hotel brand will require a couple million cash (for the down payment), and more for a new build. At least in the western US.
hackernewds 4y ago
What if there were no agreement? seems like he is the driving successful factor in these businesses, but I'm guessing he'd rather sell his company than get hired by them. there are example employees I've seen that have this kind of leverage too

vmurthy 4y ago

You missed out the difficult part of distribution. This isn't exactly easy or cheap. Ask Walmart or any other retailer. Even the direct-to-consumer ones have to spend a lot on distribution.