The Old Man River Path to Wealth: Building a Durable Remote Local Business

The Power of Remote Local Businesses

Neil Perk, founder of Made This, has built a fascinating business model that combines the best of both worlds - a local service business that can be run remotely from anywhere. His company provides cleaning services in Los Angeles, but Neil operates it while traveling the world. He's taken things a step further by franchising his model to aspiring entrepreneurs.

The Law of 1000 Hours

One of Neil's key insights is what he calls the "law of 1000 hours" - the idea that it takes about 1000 dedicated hours to see meaningful success in a new business venture. This provides a tangible framework for aspiring entrepreneurs to understand the level of effort required.

Neil emphasizes the importance of compressing time by:

1. Paying for coaching/consulting from those who have already succeeded
2. Making "$500 phone calls" to industry experts
3. Front-loading effort in the early stages of the business

He notes that the hours invested at the beginning of a business are not equal to hours invested later - early effort compounds and accelerates growth.

Overcoming the Entrepreneurial Struggle

Even with a proven model, the entrepreneurial journey is rarely smooth sailing. Neil shares his own struggles in the early days of franchising Made This:

"I see all these people selling remote cleaning courses crushing it...and I think I've grinded so much, I have two franchises to show for this and I was about to shut down...I was about to tell them like hey guys I'm not going to do this anymore."

He credits his mastermind group and coaches for encouraging him to persist. Shortly after, they signed 8 new franchises and have now grown to 30.

This highlights the critical importance of community, accountability, and support systems for entrepreneurs. The mental game is often the hardest part.

The Franchise Model

Neil breaks down the key components of the Made This franchise offering:

• $39,000 initial fee (soon increasing to $45,000)
• 6% ongoing royalty on revenue
• Additional small fees for shared marketing and tech expenses
• 50-70k total investment required to get started

The franchise provides:

• 8 weeks of "Made This University" training
• Operations manual and playbook
• Tech setup and ongoing support
• Marketing assistance
• Community of other franchisees

Neil emphasizes that they are very selective in who they accept as franchisees, looking for:

1. Hustle and work ethic
2. Realistic expectations
3. Cultural fit with the Made This community

Out of nearly 4,000 applicants, they've only accepted a small fraction who fit their criteria.

The Benefits of "Boring" Businesses

While a cleaning business may not sound as exciting as a high-tech startup, Neil makes a compelling case for the benefits of focusing on proven, durable business models:

"What's more likely to last the next 25 years - an AI consulting startup you just created or a cleaning company? Probably a cleaning company, right? It sounds more boring, but when you build it once, it could actually last for a very long time."

He notes that his original LA location has been running for 11 years now, requiring minimal ongoing involvement from him. This allows him the freedom to travel and pursue other interests while still generating significant income.

The Old Man River Path to Wealth

Neil's approach aligns closely with what the podcast hosts call the "Old Man River" archetype of wealth building:

• Focus on a proven, durable business model
• Build it up over many years
• Generate consistent cash flow
• Find ways to step in and out of day-to-day operations
• Use excess capital and knowledge to find adjacent opportunities

This path may not be as glamorous as chasing the next big tech idea, but it's a reliable way to build lasting wealth and freedom.

Key Takeaways for Aspiring Entrepreneurs

1. Don't underestimate "boring" business models - cleaning, landscaping, home services etc. can be highly profitable and durable.

2. Front-load your effort in the early stages of a business - those initial hours compound over time.

3. Seek out mentors, coaches and community to push through the inevitable struggles.

4. Consider franchising or licensing as a way to scale a proven local business model.

5. Build a business that allows for remote operation to maximize lifestyle flexibility.

6. Focus on making good decisions rather than just working long hours as your business matures.

7. Find excitement and fulfillment outside of your business - "If you want excitement, go learn to surf."

8. Look for opportunities adjacent to your core business rather than starting unrelated ventures.

9. Be willing to put in 1000+ focused hours before expecting meaningful results.

10. Recognize that building a successful business takes time - overnight success stories are rare.

By following the "Old Man River" path of building a solid, cash-flowing business over many years, entrepreneurs can create lasting wealth and freedom without needing to chase the next big thing. It may not be glamorous, but it's a proven path to success for those willing to put in the work.

Article created from: https://www.youtube.com/watch?v=lC5_bS9nWBY