Thread by @NeelBParekh

Some biz models are better than others to be run "remotely".

Here are 3 categories of LOCAL business models which you can run from anywhere in the world.

//QUICK THREAD//

✅ Core Concept -

ANY local business can be remote, even a McDonald's. You just need enough money to hire a manager and team.

However, some businesses models are better than others for the “remote local” model if you don’t have investor-level money 👇

🏆 Sweet Spot For The Remote Local Model🏆

✔️ Your team dispatches to the job site, NOT your location.
✔️ Not capital intensive (unless you have the capital to build yourself a barrier to entry)
✔️ No big office space needed
✔️ If you have $$, any local biz with mgmt team

✅ Home Services -

Pest control, window washing, HVAC, maids, painting, etc

🚀 Pros: competition is lower tier. 45% of local businesses don't even have a website! (true stat by CNBC/SurveyMonkey Small Business Survey)

🚫 Cons: labor to manage, potential lower barrier to entry

👉 The key for this niche is to ensure that the technician can go straight to the job site and that you don't need to store a ton of supplies.

Think through which service business models are conducive for this....there are A LOT.

✅ “Real Estate” play businesses -

Car washes, laundromats, vending machines, mailbox rentals, etc

🚀 Pros: more “passive”

🚫 Cons: expensive to buy/start (car washes can go for 5-7x EBITDA)

@codiesanchez talks a lot about these types of business models

@CodieSanchez ✅ Larger biz with managers in place / investment plays -

🚀 Pros: established cash flow ($300K+ EBITDA), SBA lending is easier

🚫 Cons: need more $$ to acquire, need to know what you’re doing

See my Buy vs Build Thread here:

https://twitter.com/NeelBParekh/status/1466164775344390155?s=20

@CodieSanchez I personally love the home services niche (yes, I'm biased)

✔️Not capital intensive
✔️It's in HUGE demand now with everyone WFH, and has no signs of slowing down
✔️Competition typically doesn't know what they are doing
✔️Highly fragmented = big time VC/PE money doesn't want in

@CodieSanchez Hope you enjoyed. Follow me @neelbparekh for more content like this.

I have a podcast called The Remote Local Podcast (beremotelocal.com), where we talk about everything at the intersection of entrepreneurship and travel.

✌️