3 Blue Collar Side Hustle Ideas From A $40M Founder - My First Million Recap

Podcast: My First Million

Published: 2024-01-01

Duration: 1 hr 7 min

Guests: Sam Ratner

Summary

Sam Ratner discusses his journey from dropping out of college to selling a sports betting company for $40 million in 18 months and explores unconventional business ventures like riverboat casinos and snow plowing.

What Happened

Sam Ratner, who sold his sports betting startup to Fubo TV for $40 million at 23, shares his early experiences in entrepreneurship, including running a snow removal business in high school that generated $50,000-$60,000 each winter. Leveraging his online poker background, he dropped out of college to build his company, overcoming initial financial hurdles by using credit cards and working from unconventional spaces like Starbucks and Lifetime Fitness.

After the sale, Ratner invested heavily in the stock market and explored various business ventures, including purchasing a riverboat casino. Despite the potential of turning it into a profitable entertainment venue, he faced significant challenges with licensing and operating costs.

Ratner also considered investing in a vending machine business in Lewiston, Idaho, which was uniquely profitable due to the area's lack of grocery and convenience stores. The business was valued at $4-5 million with annual cash flows of $1-1.3 million, but Ratner ultimately decided against it due to the need to relocate.

Another venture Ratner explored was a water taxi service at Lake of the Ozarks, generating $1.2 million annually during the summer. Contemplating expansion to other lake towns, he decided against it after evaluating the scalability of the business model.

In addition to these ventures, Ratner is working on a new company, Showroom, which aims to enhance online shopping by using AI to understand and communicate product details better. The platform has a substantial waiting list and partnerships with merchants offer revenue shares ranging from 5% to 20%.

Ratner shares his investment philosophy, emphasizing the importance of aligning with consumer needs and never pitching twice to investors, believing that genuine interest is apparent immediately. He also highlights the potential he sees in niche markets, using the metaphor 'the value is in the duck calls' to describe untapped opportunities.

Key Insights