While many entrepreneurs, especially those in Northern California, focus on starting the next sexy business, it is often the mundane ventures that generate the highest return. Companies like Waste Management generate billions in revenue yet investors fawn over and entrepreneurs try to replicate the Twitters and King.coms. Not that those are bad companies, but many would-be founders are overlooking opportunities in “boring” businesses that could yield billion-dollar returns.
The Amazon example
Probably the best example of this gap between the perceived opportunity and the real opportunity is Amazon. Most of the people reading this blog are probably excited about Amazon’s strategy to use drones for delivery or the newest content and original program that it has added to Amazon Prime. However, as Forbes Magazine wrote about in the article “Amazon’s Wholesale Slaughter”, its initiative in the $8 trillion wholesale distribution business is their most disruptive move yet.
AmazonSupply is an e-commerce site that targets the unsexy but huge wholesale and distribution market. While people are fascinated by the $4 trillion retail business (Amazon’s share is $74 billion) where Amazon has gained a huge share, wholesalers in the US alone generated $7.2 trillion. Continue reading “The beauty of starting a business with a nice personality”