My First Million - Episode: $1M+/yr Local Businesses Hidden in Plain Sight

Release Date: May 12, 2025
Host/Authors: Sam Parr and Shaan Puri
Podcast Description: Sam Parr and Shaan Puri brainstorm new business ideas based on trends and opportunities in the market, often featuring famous guests to collaborate on innovative concepts.

Introduction to Hidden Local Million-Dollar Businesses

In this episode, Sam Parr and Shaan Puri delve into the world of local businesses that generate over a million dollars annually yet remain largely under the radar. They explore how these businesses thrive by offering beloved services, efficient scaling, and minimal marketing efforts. The conversation is rich with practical examples, insightful analysis, and actionable business strategies.

1. Kids Dance Studio: A Case Study in Local Success

Timestamp: [00:39] - [03:45]

Sam and Shaan discuss a local kids' dance studio that has scaled to three locations, generating approximately $1.25 million in annual revenue. The studio's business model relies on recurring monthly memberships, seasonal recitals, uniform sales, ticket sales, and photo packages.

Notable Quote:

Sam (00:39): "She's been doing it for, like, 25 years now. She's an institution locally, has a great community of people around her and. And, you know, is making people happy, making families happy."

Key Insights:

• Recurring Revenue: Monthly memberships provide a steady income stream.
• Event-Based Sales: Seasonal recitals and ticket sales significantly boost revenue.
• Minimal Marketing: The annual shows serve as effective marketing tools, attracting more members organically.
• Operational Efficiency: With seven teachers managing three locations, the studio maintains healthy profit margins.

2. Goldfish Swimming Classes: A $600 Million Franchise

Timestamp: [04:54] - [06:49]

The hosts highlight Goldfish Swimming Classes, a children's swim class franchise estimated to generate around $600 million annually with approximately 3,000 locations nationwide. The core appeal lies in providing affordable, convenient swim instruction for kids, tapping into a consistent demand.

Notable Quote:

Shaan (06:18): "They have some really cool stuff going on with AI and call centers. So there's like AI tools that will change the accent of the person."

Key Insights:

• Franchise Model: Rapid scaling through franchising has allowed Goldfish to dominate the market.
• Technology Integration: Utilizing AI to streamline operations and enhance customer interactions.
• Consistent Demand: Swim classes are a perennial service with continual demand from parents.

3. iBuyFax and Amish Businesses: Bridging Tradition with Technology

Timestamp: [06:49] - [16:45]

Sam introduces a unique business catering to the Amish community: iBuyFax.com. This service allows Amish-run businesses to communicate and handle transactions without violating their religious constraints against certain technologies. By converting emails to faxes, Amish entrepreneurs can maintain their traditional values while engaging in modern commerce.

Notable Quote:

Sam (08:27): "There is this definitely of providing value. This is it."

Key Insights:

• Niche Market: iBuyFax addresses a specific need within the Amish community, ensuring a steady customer base.
• Cultural Sensitivity: Understanding and respecting the Amish’s technological restrictions fosters loyalty and trust.
• Scalability Potential: With an Amish population of approximately 400,000, even a small percentage adoption can result in substantial revenue.

4. Lap of Love: Dominating the Pet Euthanasia Market

Timestamp: [16:45] - [19:17]

Lap of Love is showcased as a leading service in pet euthanasia, offering in-home euthanasia services. With a reported 10,000 customers per month and charges ranging from $500 to $1,000, the company has positioned itself as a compassionate and necessary service, capturing significant market share with minimal competition.

Notable Quote:

Shaan (18:24): "It's a really good way to be like there are two paths. You keep your same job, your salary, all that stuff. One is a certain lifestyle, one is another."

Key Insights:

• Essential Service: Despite the emotional toll, the necessity of the service ensures consistent demand.
• Market Leadership: Dominating local search results and Yelp pages helps Lap of Love maintain its market position.
• Scalable Model: By partnering with local vets and standardizing practices, the business can efficiently scale while maintaining quality.

5. Taro: Revolutionizing Phone Ordering for Restaurants

Timestamp: [19:18] - [24:19]

Taro, a $100 million company, streamlines phone orders for Chinese sushi and pizza restaurants by routing them to call centers in the Philippines. Initially relying on human agents, Taro has integrated AI to enhance efficiency, reducing costs, and increasing profitability.

Notable Quote:

Shaan (21:03): "It's like the Adidas of online phone ordering."

Key Insights:

• Cost Efficiency: Offering services at 10% below traditional labor costs attracts a vast number of restaurants.
• AI Integration: Implementing AI for routine tasks reduces the need for a large workforce, boosting profit margins.
• Market Penetration: Serving 3,000 local restaurants across the U.S. signifies strong market acceptance and scalability.

6. Owner.com: Empowering Restaurants with Comprehensive Tech Solutions

Timestamp: [24:19] - [43:19]

Owner.com is highlighted as an all-in-one technology platform for restaurants, helping them manage online orders, improve SEO rankings, and reduce reliance on third-party services like DoorDash. By consolidating multiple tools into a single system, Owner.com offers restaurants increased revenue and operational efficiency.

Notable Quote:

Sam (28:38): "If you're running a business and you want to grow faster, you want to grow better, you want to be more organized, check it out. HubSpot.com."

Key Insights:

• All-in-One Solution: Simplifying operations by offering integrated tools reduces complexity for restaurant owners.
• SEO Mastery: Helping restaurants rank higher on search engines drives direct orders, cutting down on costly commissions to third-party platforms.
• Customer Success Stories: Convincing case studies demonstrate tangible benefits, boosting credibility and attracting new clients.

Insights and Conclusions

Throughout the episode, Sam and Shaan emphasize the value of identifying under-the-radar local businesses that solve specific problems effectively. Key takeaways include:

• Niche Focus: Targeting specific markets or communities can lead to substantial revenue without the need for vast marketing budgets.
• Scalability: Efficiently scalable business models, whether through franchising, technology integration, or streamlined operations, are crucial for achieving multi-million dollar revenues.
• Value Proposition: Providing clear, compelling value propositions that address immediate needs ensures customer retention and business growth.
• Minimal Marketing Necessities: Leveraging existing customer bases and word-of-mouth can be more effective and cost-efficient than traditional marketing strategies.

Final Quote:

Shaan (16:36): "This is another one of those services where it sucks, but it's incredibly necessary."

This episode serves as an insightful exploration of successful local businesses that achieve impressive revenues through strategic operations, niche targeting, and delivering essential services. Listeners gain valuable lessons on identifying and capitalizing on hidden market opportunities, demonstrating that substantial success can be achieved without grand innovations, simply by providing services that people love and scaling them smartly.