Fish Where VCs Don't Go

Fish where the fish are, but avoid crowded waters where the commercial trawlers operate. Andrew Wilkinson's approach to identifying profitable business opportunities centers on finding niches with less competition but genuine customer needs.

Finding the Right Business Opportunity

• Look for markets that are overlooked but profitable

  • "Fish where the fish are" - find small fishing holes with lots of fish and little competition
  • Competition equals lower margins - the more competitors, the lower your prices must be
  • Boring businesses often have less competition and higher margins

• Avoid markets where others have repeatedly failed

  • "The biggest mistakes I've made have been going into business models where other people have repeatedly failed and thinking I can do this better"
  • If there are "dead bodies" in a space, there's likely a fundamental business model problem
  • Example: Losing $10M competing with venture-backed Asana in project management

• Start with simpler businesses where you can get immediate positive feedback

  • For first-time entrepreneurs, don't try to "deadlift 300 pounds" on day one
  • Begin with businesses that provide quick wins to build confidence and experience
  • Example: Starting with a web design agency that was immediately profitable

Identifying Valuable Business Models

• Look for businesses with protective "moats":

  • Strong brands that give pricing power (like Coca-Cola, Tylenol)
  • Network effects where each additional user makes the product more valuable (Letterboxd, social networks)
  • High switching costs (though less desirable from a consumer perspective)

• Find businesses that are hard to mess up

  • Seek businesses that will continue to grow naturally if you don't interfere
  • Avoid businesses held together with "dental floss and duct tape"
  • Look for stable, resilient business models with happy customers and employees

• Consider the lifestyle implications of different business models

  • Restaurants and retail often create demanding jobs with thin margins
  • Software and digital businesses can scale with fewer operational complexities
  • Ask: "Is this creating a business or just a job for myself?"

Bootstrapped vs. Venture-Backed Approach

• Bootstrapped businesses can still grow large ($300M+ revenue)

  • The key difference is tolerance for burning money
  • Bootstrapped businesses can succeed by choosing the right markets with natural growth

• Venture capital is necessary when:

  • You need significant upfront capital before generating revenue
  • You're entering highly competitive markets requiring rapid scaling
  • Your "big hairy audacious goal" requires massive resources

• Smaller markets can be perfect for bootstrapped businesses

  • Too small for VCs to care about (under $25M revenue potential)
  • Can still provide excellent lifestyle and wealth for founders
  • Example: Things app competing successfully in its niche despite Asana's dominance