Identifying the Best Businesses to Start Before 2026: A Strategic Approach
Are you contemplating which business ventures are truly worth your time and capital as we approach 2026? Making an informed decision is paramount for aspiring entrepreneurs and seasoned business owners alike. The video above offers a critical look at various business models, categorizing them based on four crucial criteria: speed to first dollar, ease of learning, long-term profitability, and potential for future sale. This comprehensive analysis expands on those insights, providing a detailed guide to help you strategically choose a path towards significant wealth creation.
The journey to building a successful enterprise often begins with evaluating the landscape of opportunities. It is essential to understand that not all business ideas are created equal, especially in a rapidly evolving market. Some models are positioned for explosive growth, while others are identified as potential time-wasters or even outright scams. This strategic review will unpack the speaker’s expert ratings, offering a deeper perspective on each category and emphasizing the core principles that dictate entrepreneurial success.
The Foundational Criteria for Business Success
Before diving into specific business types, it is important that the methodology used for evaluation is understood. The speaker, drawing from experience building seven multi-million dollar companies and coaching hundreds of business owners, established four key criteria. Firstly, how quickly can revenue be generated? This “speed to first dollar” is critical for initial traction and sustainability. Secondly, the “ease of learning” refers to the accessibility of knowledge and skills required to operate the business effectively. A steep learning curve can deter many potential entrepreneurs, however, a rewarding business often demands dedication to skill acquisition.
Thirdly, the “long-term profitability” of a business model is assessed. This criterion considers not just immediate earnings but also the potential for sustained, high-margin revenue over time. Businesses that offer exceptional profit margins are generally favored for their potential for wealth accumulation. Finally, “sellability in the future” is a forward-looking metric. An entrepreneur’s ability to build an asset that someone else would want to acquire is a mark of true business acumen. This distinguishes a valuable enterprise from a high-paying job where the owner must constantly be present.
S-Tier: No-Brainer, Start Now
Real Estate: The Enduring Wealth Builder
Real estate is consistently identified as a cornerstone of wealth creation, with the majority of wealth in the U.S. having been generated through its appreciation and income streams. It is often regarded as a “no-brainer” for those seeking long-term financial security. While it may not offer the quickest path to a “first dollar” in the traditional sense, its multiple avenues for profit make it incredibly compelling. Cash flow can be realized monthly through rentals, significant tax advantages are often provided, and the underlying asset typically appreciates over time. Furthermore, the ability to leverage capital for substantial returns is a powerful draw for investors.
Software Development: High Margins, Recurring Revenue
Although not explicitly ranked in the video’s initial list, software is highlighted as a top-tier business model, with the speaker allocating 98% of his own time to it. Its inclusion in the “no-brainer” category is justified by several factors. Software can now be developed rapidly, often using AI-powered no-code platforms. The business model is typically characterized by recurring subscription revenue, providing predictable income streams. Profit margins are remarkably high, frequently reaching 97%, making it exceptionally lucrative. Moreover, software companies are highly valued, often commanding some of the highest multiples of profit when acquired, signifying strong future sellability.
A-Tier: Worth It, But Business Acumen is Key
AI Automation Agency: Riding the Tech Wave
The AI Automation Agency is considered a highly promising venture, largely due to the explosive demand for AI-driven solutions. The “speed to first dollar” is exceptionally fast, as businesses are actively seeking ways to integrate AI. Learning the necessary skills is also relatively straightforward, with numerous resources available. Profitability is currently immense, as the market is underserved and the value provided is high. However, the long-term sellability can be challenging unless robust systems and client relationships are established, but its development is considered a superior meta-skill compared to online training, due to its foundational relevance in the future economy.
Coaching and Online Courses: Monetizing Expertise
For individuals with specialized knowledge or a proven track record of helping others achieve results, coaching and online courses present a highly profitable business model. Revenue can be generated very quickly, as expertise is immediately valuable. The learning curve for setting up such a business is often seen as simple, with many overcomplicating the process. Profitability is a major draw, with digital information products boasting profit margins of around 97%, as production costs are minimal after the initial creation. While not always easily sellable as an entity, the skills developed in creating and marketing information products are highly transferable “meta-skills” that can compound entrepreneurial success across various ventures.
Affiliate Marketing: Leverage and Scalability
Affiliate marketing is recognized for its quick path to the first dollar and its ease of learning. This model involves promoting products or services created by others and earning a commission on sales. It is fundamentally about audience building and traffic generation, making it accessible to many. Long-term profitability is robust, as affiliate marketing is a persistent business model that adapts to market needs. While the individual “business” of an affiliate marketer might not be highly sellable, the underlying skills of traffic generation and conversion are invaluable. This business model allows for significant leverage, as entrepreneurs do not need to manage inventory, customer service, or product development.
B-Tier: Decent, But Not for Everyone
Social Media Marketing Agency (SMMA): Organic Content Advantage
An SMMA offers a relatively fast route to earning a first dollar and is considered easy to learn, with abundant online resources. It can provide good profit margins, especially if the owner is actively involved in the work. The distinction is made that an SMMA focused on organic content and community building possesses more defensible value than an agency primarily focused on paid ads. While service-based, an SMMA can be sellable if it offers productized services and moves beyond being solely reliant on the owner’s direct input. Its strategic position ahead of paid ads suggests a preference for organic, long-term relationship building over transactional traffic buying.
Paid Ads Agency: The Challenge of Automation
A paid ads agency can generate its first dollar quickly, particularly for those proficient in sales. The skills required are also relatively easy to acquire through self-study, making it accessible. High profitability is achievable, with some young individuals generating substantial annual revenues. However, the long-term relevance of such agencies is questioned due to advancements in AI and platform automation (e.g., Meta’s self-serve tools). Furthermore, sellability can be an issue if client relationships are monthly and tied primarily to the expertise of the agency owner. The impending automation of ad buying suggests that this industry may become less competitive for human-led agencies in the future.
Web Design Agency: AI’s Inroads
Starting a web design agency allows for a quick generation of first revenue, and the tools are considered easy to learn, especially with the prevalence of templates and no-code platforms. However, its long-term profitability is under scrutiny due to the increasing sophistication of AI. Artificial intelligence is expected to automate much of the web design process, allowing business owners to generate designs directly without human intermediaries. As a service-based business, its sellability is typically low, as it often relies heavily on the individual designer’s skills and client relationships. This makes it a decent starting point but one with potential future headwinds from AI competition.
YouTube Channel: A Long Game with High Rewards
Building a YouTube channel is presented as a demanding endeavor. The “speed to first dollar” is notoriously slow; many creators publish a hundred videos before earning any significant income. While the technical skills are manageable, achieving success requires a unique blend of entertainment, value, and compelling communication. The long-term viability of content creation through video is unquestionable, as it is an indispensable skill in the digital age. Furthermore, a successful, scaled YouTube channel can be incredibly valuable, potentially worth billions, and is highly sellable. However, the difficulty in achieving scale and the significant upfront effort place it in the “decent” category, but behind more direct revenue-generating service businesses like paid ads.
C-Tier: You Could, But Should You?
Virtual Assistant (VA) Agency: Thin Margins, AI Threat
A VA agency offers a rapid path to earning money, acting as a middleman connecting clients with virtual assistants. While easy to learn the operational aspects, profitability is often low due to thin margins. The business is also characterized by demanding clients (“most CEOs are crazy,” according to the speaker) and a high degree of client churn. Critically, the long-term viability and sellability are threatened by AI, which is expected to increasingly automate many tasks currently performed by VAs. The speaker’s personal experience of selling his own VA agency suggests that it is not a sustainable or highly valuable business model in the long run, especially compared to AI automation agencies.
Dropshipping: Reinvention and Competition
Dropshipping is identified as a business model that is not quick to generate its first dollar. It involves finding winning products, which can be challenging in a saturated market, and requires navigating a “sea of sameness.” While product margins can be good if a successful niche is found, the ease of learning is debatable, as continuous reinvention is often required. The sellability of a dropshipping business exists but is often tied to constant adaptation and new product discovery. Many individuals in this space are observed to be selling courses on dropshipping rather than operating successful stores, highlighting the challenges of the model itself. It is considered a lower-tier option compared to more stable business models.
Day Trading and Stocks: High Risk, Not a Business
Day trading and stock investing offer the quickest possible way to generate a first dollar—or lose it. Learning the intricacies of the market is far from easy; it demands intense focus and dedication, often likened to a full-time profession rather than a side hustle. Most people are noted to lose money, failing to consistently beat market benchmarks like the S&P 500. This is fundamentally considered a skill or a highly demanding job, not a business that can be built and sold, as its value is intrinsically tied to the trader’s individual brainpower and continuous presence. Therefore, it is categorized as something one “could” do, but is unlikely to lead to a scalable, sellable asset.
Ghostwriting: Trading Time for Revenue
Ghostwriting offers a quick path to making a first dollar, as clients are readily available for skilled writers. The learning curve is substantial for those who are not naturally strong writers, as true ghostwriting demands more than just basic prose. Profitability is often limited because the business involves selling one’s time, making it difficult to scale beyond individual output. The sellability of a ghostwriting business is virtually non-existent; it is a personal service where the value resides with the writer, not an transferable asset. While not a scam (ghostwriters are often praised for their integrity), it is viewed as a limited business model, particularly with the advent of advanced AI writing tools that will likely pressure the market.
Print on Demand: Limited Infrastructure, Low Sellability
Print on demand allows for a relatively quick first dollar, requiring only a design and a customer. The process is easy to learn, leveraging existing platforms. However, its long-term profitability is limited by the fact that the entrepreneur does not own the underlying infrastructure. This means margins can be squeezed, and control over production is minimal. The business is generally not sellable because it lacks proprietary assets or significant brand equity beyond the designs themselves. It’s often seen as a highly commoditized service, making it difficult to build a lasting, valuable enterprise.
F-Tier: Straight Up Scammy
NFTs and Crypto Projects: A Minefield of Scams
NFTs and crypto projects, once hailed for their “easy first dollar” potential, are now viewed with extreme caution. The landscape has shifted significantly, with a high number of projects having been identified as scams; it is believed that more than 50% of the initial 1,000 NFT projects were merely “money grabs.” The ease of learning is low, as the space is complex and volatile. Long-term profitability is currently uncertain for many, as the market has cooled and regulatory scrutiny has increased. The sellability of an NFT portfolio is highly questionable due to the speculative nature and lack of inherent value in many projects. This category is firmly placed in the “scammy” tier due to its prevalence of bad actors and inherent risks, particularly regarding unregistered securities.
Network Marketing (MLM): The Peril of Business Opportunity Selling
Network marketing, or multi-level marketing (MLM), is largely placed in the “scam” category when it involves selling business opportunities rather than legitimate products for distribution. While some compliant and legal models exist, the industry is often plagued by bad actors who profit by recruiting new members into a tiered compensation structure, rather than through genuine product sales. Numerous legal cases have been brought against such schemes, leading to a negative market perception. The core issue arises when the business model primarily incentivizes recruitment over product movement, creating an unsustainable pyramid-like structure that often leaves participants with significant losses. This model is seen as one to avoid for sustainable and ethical business building.
Franchises: The Reseller Dilemma
Franchises present a controversial discussion point. While many equate owning a franchise with owning a business, the speaker defines a true business as one where product development is controlled by the owner. Under this definition, a franchisee is essentially a reseller of someone else’s business model, acting as a “glorified salesperson.” While it is possible to make significant money, the lack of control over key aspects like product innovation means that one is primarily operating someone else’s system, not building an independent, sellable asset in the truest sense. For those aiming to build long-term wealth through original ventures, buying a franchise is often not the recommended path, though selling franchises (as the franchisor) is a different, more strategic opportunity.
Building Meta-Skills and Sellable Assets
Regardless of the business model chosen, a fundamental understanding of “meta-skills” is critical. These are foundational competencies like copywriting, paid advertising, and AI proficiency that transcend specific industries. Even if a particular business venture does not succeed, the acquisition of these versatile skills will significantly enhance future entrepreneurial endeavors. The ultimate goal, as underscored by this analysis, should be to construct a business that generates independent value. An enterprise should be designed as an asset that can be acquired by another entity, rather than merely creating a high-paying job for the owner that demands their constant presence. Building something that functions autonomously provides genuine financial freedom and long-term security, a crucial consideration for anyone looking to build one of the best businesses to start before 2026.
