I Discovered the Best Businesses to Start in 2025 ($1M Potential)
In this episode of the Growth Stacking Show with Dan Martell, the host explores profitable emerging business models with the potential to generate $1 million in revenue by 2025. Martell emphasizes high gross margin opportunities, highlighting promising sectors like AI automation agencies (70-80% margins), virtual reality training (60-70% margins), and AI-first SaaS (80-90% margins).
Martell delves into an array of innovative business ideas, including chat sales agencies, personal branding agencies, ghostwriting services, virtual assistant placement, gamified learning platforms, and AI-powered automation solutions. He underscores the importance of leveraging emerging technologies like AI and virtual reality to create customer-centric business models poised for long-term profitability.
This is a preview of the Shortform summary of the Mar 7, 2025 episode of the Growth Stacking Show with Dan Martell
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1-Page Summary
High Gross Margins for Future Profitability
The host, Dan Martell, suggests focusing on high gross margin businesses for promising investment opportunities and future profitability.
Gross Margin Details
Martell outlines a range of potential gross margins for various agencies:
- 40-50% for chat/personal brand agencies
- 50-60% for ghostwriting/virtual assistant agencies
- 60-70% for virtual reality agencies
- 70-80% for AI automation agencies
Emerging Business Models and Ideas
Martell highlights lucrative emerging trends in chat sales, personal branding, ghostwriting, virtual assistants, virtual reality training, gamified learning, AI automation, and AI-first SaaS.
Chat Sales Agencies (40-50% Margins)
Utilize AI-integrated CRM tools to handle high chat volumes efficiently. Target industries like roofing and solar. Use performance-based pricing.
Personal Brand Agencies (40-50% Margins)
Help influencers grow personal brands through referrals. Use pay-for-performance models with those who have the "it factor."
Ghostwriting Agencies (50%+ Margins)
Require upfront payments. Specialize in a niche and build expertise through stages/podcasts.
Virtual Assistant Placement (Pay When Value Added)
Charge clients only when virtual assistants provide value. Offer guarantees to build trust.
Virtual Reality Training (60-70% Margins)
Provide VR training solutions for enterprise clients, support and hardware financing.
Gamified Learning Platforms
Pre-sell gamified learning platforms to enterprises with freemium user acquisition models.
AI Automation Agencies (70-80% Margins)
Integrate AI to automate high-value processes through partnerships.
AI-First SaaS (80-90% Margins)
Resolve problems using AI in industries ripe for automation.
Focus On High Margins and Leveraging Emerging Tech
Martell emphasizes high gross margin models like AI-First SaaS (80-90%) and virtual reality training agencies (60-70%) for long-term profitability. He underscores leveraging emerging technologies like AI and virtual reality to create innovative, customer-centric business models.
1-Page Summary
Additional Materials
Counterarguments
- High gross margins do not guarantee future profitability; they must be sustainable and accompanied by sound business practices.
- Gross margin percentages can fluctuate significantly based on market conditions, competition, and operational efficiency.
- Focusing solely on high-margin businesses might lead to missed opportunities in lower-margin industries with high volume or growth potential.
- Emerging trends can be unpredictable, and what seems lucrative today may not be sustainable or could become quickly saturated.
- AI and VR technologies require significant investment, and not all businesses may have the resources or expertise to leverage them effectively.
- High upfront costs and the rapid pace of technological change can make investments in high-tech areas like AI and VR risky.
- The success of AI-first SaaS and other high-margin models often depends on the ability to continuously innovate and stay ahead of competitors.
- The emphasis on high gross margins might overlook the importance of other financial metrics, such as net profit margin, cash flow, and return on investment.
- The effectiveness of AI-integrated tools and automation can vary greatly depending on the complexity of the tasks and the quality of the AI algorithms.
- The pay-for-performance and value-added pricing models can be challenging to implement and may not align with all client expectations or industry standards.
- Specializing in a niche for ghostwriting or other services can limit market size and scalability.
- Pre-selling gamified learning platforms or other products can be risky if the final product does not meet customer expectations or is delayed.
- Leveraging emerging technologies requires a deep understanding of customer needs and may not always lead to customer-centric solutions if not executed properly.
Actionables
- You can explore investment opportunities by analyzing the gross margins of local startups in emerging industries.
- Start by researching startups in your area that are involved in industries like AI automation or virtual reality. Look for their financial summaries, which are often shared during funding rounds or on their websites, to understand their gross margin potential. This will give you a sense of which companies might be promising investment opportunities based on the industry benchmarks provided.
- Consider starting a side hustle that aligns with high gross margin services by offering to manage social media accounts using AI tools.
- Even without deep expertise, you can use AI-powered social media management tools to offer services to local businesses or influencers. These tools often come with tutorials and are designed to be user-friendly, allowing you to create efficient campaigns that can improve engagement and sales for your clients.
- Engage in online courses or webinars focused on AI and virtual reality to understand how these technologies can be applied to customer-centric business models.
- Look for free or low-cost educational resources that explain the basics of AI and virtual reality. This knowledge can help you ideate how these technologies can enhance customer experiences in various sectors, potentially sparking a business idea or allowing you to consult for companies looking to innovate in these areas.
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Future Profitable Business Models and Industries
The host highlights that businesses with high gross margins offer promising investment opportunities and suggests focusing on these for future profitability.
Host Suggests Focusing On High Gross Margin Businesses
The host provides details on various industries to consider and their potential gross margins, indicating the profitability of each type of agency.
Gross Margin Details: 40-50% For Chat/Personal Brand Agencies, 50-60% For Ghostwriting/Virtual Assistant Agencies, 60-70% for Virtual Reality Agencies, 70-80% For AI Automation Agencies
The host outlines a range of gross margins for various agencies based on the industry they operate in. Chat and personal brand agencies are suggested to have gross margins between 40-50%. This is followed by ghostwriting and virtual assistant agencies with slightly higher margin ...
Here’s what you’ll find in our full summary
Future Profitable Business Models and Industries
Additional Materials
Counterarguments
- High gross margins do not guarantee overall profitability; net margins and other financial metrics are also important.
- Focusing solely on gross margins might lead to overlooking industries with lower margins but higher volume or scalability potential.
- Gross margin percentages can vary widely within industries, and not all chat or personal brand agencies may achieve the 40-50% range.
- The success of ghostwriting and virtual assistant agencies may depend on factors beyond gross margins, such as quality of service and client retention.
- Virtual reality agencies, while innovative, may face significant upfront costs and market adoption challenges that could affect profitability.
- AI automation agencies may have high gross margins, but they also ...
Actionables
- You can analyze your current investments or savings to identify if they align with high gross margin sectors. Start by reviewing your portfolio and comparing the sectors you're invested in with the industry averages for gross margins. If you find a mismatch, consider reallocating funds to sectors with higher gross margins, like technology or healthcare, which typically have higher margins than industries like retail or food service.
- Consider starting a side hustle in a high gross margin industry that doesn't require specialized skills. For example, if you have a knack for social media or writing, you might start offering consulting services for personal branding or content creation. Use online platforms like Upwork or Fiverr to connect with potential clients, keeping overhead costs low to maintain a high gross margin.
- Educate yourself on the basics of AI and virt ...
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Business Ideas and Implementation
Emerging business trends highlight opportunities in the realms of chat sales, personal branding, ghostwriting, virtual assistant placement, virtual reality training, gamified learning, AI automation, and AI-first SaaS. Each area presents unique strategies for success and profitability.
Chat Sales Agencies
Chat sales agencies are experiencing lucrative growth with gross margins around 40 to 50%. Representatives can earn over a million dollars through chat by targeting burgeoning industries such as roofing, solar, and consulting. To engage audiences effectively, it's crucial to utilize CRM tools capable of handling high volumes of chat and integrating AI to manage conversations efficiently. Moreover, performance-based payment models align agency incentives with client outcomes, ensuring focus on tangible results.
Personal Brand Agencies
Future commerce will rely heavily on the trust of personal brands. Personal brand agencies, with margins similar to chat sales, help influential individuals expand, define, and grow their brands. They adopt pay-for-performance pricing, working with individuals who possess the "it factor." Agencies grow through referrals, and Dan Martell stresses doubling down on winners to maximize success.
Ghostwriting Agencies
In response to the high demand for content creation, ghostwriting agencies are advised to require upfront payments, targeting at least 50% before work begins. Specializing in a niche and becoming the go-to ghostwriter in that space, alongside a presence on stages or podcasts, solidifies expertise and attracts clientele.
Virtual Assistant Placement Agencies
Post the popularity of "Buy Back Your Time," virtual assistant placement agencies have thrived. Martell advises charging clients only when virtual assistants add value to the business and emphasizes the significance of a guarantee for placements to build trust.
Virtual Reality Training Agencies
Virtual reality (VR) training agencies are becoming key to industry training. By selling enterprise packages, providing support, and financing client hardware, VR agencies can ensure effective training solutions for businesses in various sectors.
Gamified Learning Platfo ...
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Business Ideas and Implementation
Additional Materials
Counterarguments
- Chat sales agencies may face challenges with market saturation as more businesses adopt chat sales, potentially reducing margins.
- Personal brand agencies depend heavily on the success and reputation of individuals, which can be volatile and unpredictable.
- Ghostwriting agencies might struggle with scalability due to the personalized nature of content creation and the challenge of maintaining quality at scale.
- Virtual assistant placement agencies could be disrupted by advances in AI and automation, reducing the demand for human virtual assistants.
- Virtual reality training agencies may encounter resistance from businesses reluctant to adopt new technologies or due to high initial setup costs.
- Gamified learning platforms could face difficulty proving long-term educat ...
Actionables
- You can explore the potential of chat sales by starting a conversation with local businesses in high-demand industries to understand their customer engagement challenges. Reach out to roofing, solar, or consulting firms in your area and ask about their sales process, noting any gaps or inefficiencies they mention. This will give you insights into how a chat sales service could benefit them and whether there's a market you could tap into, even if just as a referral partner for an existing agency.
- Consider creating a personal brand strategy for a local influencer or professional you admire by researching their industry trends and presenting a tailored plan. Look for someone in your network or community who has the potential to grow their influence. Offer to help them for free or a reduced cost in exchange for being able to use the results as a case study. This hands-on experience can teach you about the industry and could lead to a pay-for-performance partnership.
- If you're interested in writin ...
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High Gross Margins and Leveraging Ai & Virtual Reality
Dan Martell focuses on the potential of AI First SaaS businesses and virtual reality training agencies for profitability through high gross margins and the necessity of using emerging technologies to create innovative business models that provide unique customer value.
Focus On High Margin Models for Long-Term Profit
Martell is passionate about pursuing business ventures with high gross margins, as these can lead to the most profitable businesses to start. He cites AI First SaaS businesses as prime examples, with their gross margins typically ranging between 80 and 90%. This high level of profitability is what makes them particularly attractive.
Detailed Gross Margin Ranges For Business Ideas' Profitability
Martell notes that virtual reality training agencies also boast significant gross margins, usually falling between 60 and 70%. The emphasis on gross margins underlines his belief that good business ideas are characterized by their potential for profitability.
Host Emphasizes Leveraging Emerging Technologies Like Ai and Virtual Reality to Drive Innovative Business Models and Deliver Unique Customer Value
Martell believes that virtual reality is the future, especially in terms of retraining people through distance learning. He underscores the importance of capitalizing on emerging technologies such as AI and virtual reality to foster innovative business models and provide unparalleled customer value.
He elaborates on th ...
Here’s what you’ll find in our full summary
High Gross Margins and Leveraging Ai & Virtual Reality
Additional Materials
Counterarguments
- High gross margins do not guarantee overall business success; other factors such as net profit margin, cash flow, market saturation, and competition are also crucial.
- Focusing solely on high-margin models might lead to overlooking opportunities in lower-margin areas that could offer volume-based profitability or strategic market positioning.
- AI First SaaS businesses and virtual reality training agencies may face scalability challenges, regulatory hurdles, or ethical concerns that could affect their profitability.
- The emphasis on profitability might lead to underinvestment in research and development or customer service, which could harm long-term business sustainability.
- The effectiveness of virtual reality for distance learning may vary across different industries and learner demographics, and it may not be the most cost-effective or practical solution in all cases.
- Relying heavily on emerging technologies like AI and virtual reality could expose businesses to risks associated with rapid technological changes or obsolescence.
- The integration of AI in CRM tools may ra ...
Actionables
- You can explore the profitability of AI and VR by simulating a virtual lemonade stand. Use a free online business simulation tool to create a virtual lemonade stand, incorporating basic AI elements like automated customer interactions. Adjust variables like production costs and pricing to see how high gross margins impact profitability.
- Start a blog to document your journey learning about AI and VR technologies. As you learn, write posts that explain these complex technologies in simple terms. This will not only solidify your understanding but also help you identify potential business opportunities within these fields.
- Engage with AI and VR through consumer-level apps and games to gras ...
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