b%E1%BA%A1ch0933
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Hey all, I posted part 1 of the guide last week. Y'all liked it, so I've decided to create part 2.
If you haven't read part 1, start there as it provides helpful context.
Now that you know what 'good' business ideas look like, let's talk about how to go find them.
The first tactic I'll share isn't sexy. But, it's quite effective for finding macro-trends that support business ideas.
We're going to use Annual Reports(.com) and read through company's 10Ks to find data.
(I almost put myself to sleep just writing that)
Admittedly, annual reports are long... like really long.
Luckily, there are 4 sections that typically contain the most insights:
Let me give you an example:
If you're doing this with me (you can find this free online), the first thing you'll notice is that their annual report is 184 pages... that's a novel.
But if we use our frameworks, we cut the reading time down to about 20min.
Note: You can also use AI to help find key points.
Here are a few things I noticed:
Looking through these reports helps you understand macro-trends that you can use to build businesses. That's the point I'm trying to make.
TL;DR: Using Annual Reports you can find company's 10Ks and understand marco-trends for an industry. These trends can help you find business opportunities.
Thanks for reading - I'll be back next week with the next tactic!
PS If you want more legit business ideas, just check out my profile - I post regularly about them.
If you haven't read part 1, start there as it provides helpful context.
Now that you know what 'good' business ideas look like, let's talk about how to go find them.
Tactic #1: Reverse Engineering Businesses
The first tactic I'll share isn't sexy. But, it's quite effective for finding macro-trends that support business ideas.
We're going to use Annual Reports(.com) and read through company's 10Ks to find data.
(I almost put myself to sleep just writing that)
Admittedly, annual reports are long... like really long.
Luckily, there are 4 sections that typically contain the most insights:
- Financials
- Competition
- Marketing Strategy
- Risks
Let me give you an example:
Auto Zone's 2023 Annual Report
If you're doing this with me (you can find this free online), the first thing you'll notice is that their annual report is 184 pages... that's a novel.
But if we use our frameworks, we cut the reading time down to about 20min.
Note: You can also use AI to help find key points.
Here are a few things I noticed:
- Financials: A large portion of Auto Zone's revenue comes from repair garages and service stations and has held steady for many years.
- Competition: This year specifically, their auto parts division is struggling against online retailers offering more affordable products.
- Risks:
- Hiring and training quality people is pivotal to their business. Each year it's harder to find good employees and train them effectively.
- Cars are lasting longer and people are upgrading less. They are struggling to provide parts for cars older than 7 years and losing money because of it.
- Car servicing and repairs is a resilient business that people will always want/need. Can we make the experience better for customers?
- When I think of car parts shopping, I often don't think online - consumers' behaviors may be shifting.
- How can we help auto parts/repair companies train their employees faster?
- Can we deliver a solution for the customers who have cars older than 7 years?
- Uber for Repairs: Half the reason I don't get my car serviced regularly is that I can't find the time to drop it off and pick it up. You could create the Uber for car repairs - someone picks up your vehicle and drops it off when it's done. You never leave your house. You can sell this service to auto repair shops as a platform.
- AI Auto Repairs: Using AI, develop a platform that quickly diagnoses the issues with the car and walks employees through how to fix it.
- Niche Auto Parts Store: There appears to be an opportunity to offer niche auto parts for cars older than 7 years. You could create an online marketplace specifically for Classic Auto-Parts.
- Auto Parts Price Comparison Platform: Create a website that aggregates all the places where auto parts are sold and suggests the one with the best price. Make money via affiliate commissions.
Looking through these reports helps you understand macro-trends that you can use to build businesses. That's the point I'm trying to make.
TL;DR: Using Annual Reports you can find company's 10Ks and understand marco-trends for an industry. These trends can help you find business opportunities.
Thanks for reading - I'll be back next week with the next tactic!
PS If you want more legit business ideas, just check out my profile - I post regularly about them.
