My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Start Retail, Scale Wholesale
Begin with higher-cost retail purchasing to prove demand quickly, then transition to wholesale pricing once model is validated
Decision Rule
If you can make the economics work at retail prices, wholesale will provide massive margin expansion
How It Works
Retail purchasing removes minimum order quantities and upfront capital requirements while testing market demand. Success at retail proves wholesale viability.
Failure Modes
Starting with wholesale before proving demand
Never transitioning to wholesale after proving concept
Underestimating wholesale relationship requirements
Example Decision
“Porch pumpkin business starts buying decorations at grocery stores, proves demand with 100 customers, then negotiates directly with pumpkin farms for 50% cost reduction”
Related Knowledge
Starting with marketing channel, not product idea
Design products around proven distribution channels
Dubai Trend Forecasting
A method for predicting trends that will reach Western markets by observing what's popular in Dubai 1-3 years early
Mimetic Desire Business Model
Building businesses around visible status displays that create peer pressure for neighbors to adopt the same service
Viral-First Product Development
Designing products primarily based on their viral content potential rather than traditional market research
Launch a seasonal porch decoration business
$500-1500 per job, 1300-2000 orders per year, $1-2M annual revenue with 40-50% net margins
Pivot existing contractor business to sport court installation
$50-60k revenue per job with 50% margins, competing against saturated pool market with new category