Starter Story - Small markets, big profits

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And now, let's dive in: 

Small markets, big profits

Last week, we discovered a relatively small local newsletter (20K subs) that had raised $1M and was later acquired by the media company 6AM City.n All in less than three years.

This is one of the many examples confirming that focusing on a local market can be highly profitable.

You don’t need to target a global audience to make money.

In fact, keeping it local has some advantages:

(1) Lower competition and easier market penetration: Especially if they offer unique or specialized products or services. The above newsletter was able to thrive because media outlets are moving away from local news, leaving people interested in them without barely any choices left.

(2) Stronger customer relationships and loyalty: This can lead to higher customer loyalty, repeat business, and positive word-of-mouth marketing, which can be more effective than expensive advertising campaigns.

(3) Better understanding of local needs and preferences: This knowledge can be used to tailor products and services to meet better local demand, resulting in higher sales and customer satisfaction.

(4) Opportunities for community involvement and brand reputation building: It’ll provide you with opportunities to become involved in the community and build a strong brand reputation. This can lead to increased brand recognition, customer loyalty, and referrals.

Here are some real-life examples of people printing money thanks to their success in a local market:

$100K/mo marketing agency

These days, it seems kinda silly not to go on Fiverr or do cold outreach to essentially every person in the world through social media when you offer a service that can be delivered completely online.

This founder took the opposite route, and he’s just focusing on local companies.

By taking this approach, he’s been able to grow the company from a college side hustle to a business that makes over $1M per year.

$2K/mo planning sleepovers

This is a genius business idea. If you’re a parent or around kids, you know there are never enough activities to plan for them. 

This service becomes intrinsically viral since 10-15 children attend each event. Prepare take-home gifts for them so their parents can have your information.

$30K/mo food tours

Another great way to capitalize on your local market knowledge. Put together the best of something and showcase it to visitors.

Food is great because there are good places to eat everywhere, and it’s something everyone enjoys.

The best part about this business? It got started with just $3K and got the first customer in just 3 days.

$15K/mo niche coworking space

This founder spotted a local need: E-commerce entrepreneurs need some specific services as soon as they pick up some traction. And setting up everything (storage, printers, supplies, etc.) takes time and can be expensive.

The proof of its success? They’re on track to make $20K monthly with just one employee.

$230K/mo residential waste service

A business that started with the founder’s van and a small loan is now making over 7 figures per year even though they just operate in a small market.

One of the strategies they’ve leveraged is to get involved in the community by sponsoring sports teams and donating to local non-profit organizations.

$8K/mo car detailing service

One more type of business that can get started with very little money. In this case, $500 for basic supplies, but you can probably can spend even less than that.

These kids share some great ways to get a local business off the ground and land your first customers. Plenty of trial and error, and a final successful strategy that’s taking them to make $15K per month in sales.

$50K/mo food truck

Started with a $2,700 truck that the owner purchased on Craiglist, this egg rolls truck has grown into a super profitable business.

A great piece of advice from the founder is to get customers' contact details and build a database you can hit, so you don’t have to rely solely on the people walking in front of your business. 

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Quick hitters

Going from $500 to $10K/month in 3 years. And while traveling and sailing the world! How? By leaving agency work behind and moving to a SaaS business model. This interview is an absolute masterclass on onboarding, pricing, and marketing.

This escape room yields $12M per year. They successfully capitalized on the marketing opportunities that the experience economy brings with: “selfie spots” (!) and Groupon (!!!).