Back to bid-niz. As I was having dinner with some start-up folk a few weeks back, I got to thinking about where talent flocks. Typically talent doesn’t always flock to just where the money is. Talent will flock to what’s sexy and has money. This means that markets, where there is currently money to be made, are very likely to be under-served.
There is disproportionate value in unsexy markets.
Think about all the badly run mid market businesses out there in unsexy markets that haven’t changed much in the past 15 years. No talent wants to work in the plastic injection molding bath tub industry. But that means there’s some guy with a facility in China pumping out these walk-in tubs for old people out at $65 bucks a pop and selling them at $800 and making 25mm per year with no competition. Not bad.
Think about all the talent flocking to tech startups trying to vie for all the VC money and all those consumers. They don’t call tech a competitive scene for nothing.
So maybe you should think about a less sexy market, where, for some reason you have an in, a leg up, an odd connection or a random talent to start your next venture.