The margins of a single restaurant are too thin to justify the operational complexity and stress. Profitability and a sustainable business model emerge only when you scale to multiple locations, allowing you to amortize fixed costs and achieve operational efficiencies.

Unsexy markets like plumbing or law have less competition, higher profit margins, and customers who are more receptive to expertise. This creates an environment for faster growth, akin to driving on an empty road.

Contrary to popular belief, successful entrepreneurs are not reckless risk-takers. They are experts at systematically eliminating risk. They validate demand before building, structure deals to minimize capital outlay (e.g., leasing planes), and enter markets with weak competition. Their goal is to win with the least possible exposure.

Industries widely considered "terrible businesses," like restaurants, often signal opportunity. The high failure rate is usually due to a low barrier to entry and a lack of business acumen among participants. A disciplined, business-first approach in such an environment can create a massive and durable competitive advantage.

When scaling a local service business like a chiropractic office, acquiring existing practices is a more efficient growth path than building new ones from scratch. It's often possible to find owners willing to sell for very little, making it easier to retrofit them into your model.

Fire safety leader API Group's strategy is to sell low-cost, statutorily mandated inspections. This creates recurring revenue and a foot in the door to sell $3-$4 of higher-margin, less-risky repair work for every $1 of inspection, a superior model to chasing large, cyclical installation projects.

Franchising is a different business model focused on systems, training, and brand protection. Before considering it, a founder must first prove their concept is replicable by successfully opening and operating a second company-owned location. This provides the necessary data and validates the model's scalability.

Instead of popular but saturated local services, focus on high-value, overlooked niches. Examples include smart home automation, closet organization, and garage renovation. These markets often have fewer competitors and high-value customers, presenting a significant opportunity.

To build a successful franchise, a business must first prove its model is profitable and repeatable. This requires operating three to five corporate-owned stores to perfect unit economics, training systems, brand voice, and operational simplicity before licensing the model to others.