My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Automation as Competitive Manufacturing Moat
Timeframe: Already happening, will accelerate over next 10 years
What's Changing
Manufacturing moving from labor-based to fully automated systems, creating massive cost and speed advantages
Driving Forces
Robotics technology becoming more sophisticated and affordable
Labor costs rising globally while automation costs falling
AI enabling flexible automation that can handle product variations
Supply chain disruptions highlighting importance of local production
Winners
- Companies investing heavily in automation infrastructure
- First movers in automated production within categories
- Businesses with engineering talent to build custom automation
- Manufacturers serving high-volume, standardized products
Losers
- Traditional manufacturers relying on low-cost labor
- Companies outsourcing production without control
- Businesses unable to invest in automation infrastructure
- Manual production processes in developed countries
How to Position Yourself
Build automation capabilities as core competency, not just cost-saving
Invest in engineering talent to develop proprietary automation
Apply automation learnings across multiple product categories
Use automation speed advantage to out-innovate competitors
Early Signals to Watch
Example Implementation
“Build dart blaster factory that produces 57 million units per year with no human labor, while competitors like Hasbro still use manual assembly lines, achieving 10x cost advantage”
Related Knowledge
Zuru Tech Automated Housing
Construction industry unchanged for centuries, housing costs far exceed material costs, slow customization, inconsistent
Automated FMCG Brand Incubator
Major FMCG companies have duopolies, deliver low margins to retailers, slow to innovate, dominated by TV advertising
Bullets to Cannonballs Framework
A systematic approach to innovation where you fire small, low-cost 'bullets' (tests) first, then invest heavily in 'cannonballs' (full execution) only when bullets prove successful.
First Principles Manufacturing
Building manufacturing operations from fundamental principles rather than copying industry norms, focusing on materials cost as baseline and automating everything possible.
Build global distribution network by directly contacting every possible buyer
Direct relationships with major retailers globally, orders from multiple countries, established presence in key trade sh
Build billion-dollar business without external capital through radical cost control
Profitable every single month, compounding growth funded by retained earnings, 40%+ net margins, complete ownership rete