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The real answer depends entirely on your personal skills and connections. I tried building a consumer brand with no prior experience or connections and burned through my savings with nothing to show for it. Later, I started a small distribution company in an industry where I had connections, and it was profitable within months despite requiring more initial capital. The 'right' choice is the one that aligns with your existing advantages and network, not some universal rule.

The highest-returning businesses combine elements of both models by creating proprietary distribution for unique consumer offerings. Think Nykaa in beauty retail or Ola in ride-sharing - they built distinctive consumer experiences delivered through controlled distribution networks. With limited capital, focus on creating a proprietary 'hook' that gives you control over some aspect of distribution, even if you don't own physical assets

you want to build from scratch and no money you want choose consumer led services business

manufacturing

The highest-margin businesses today are ALL consumer-led. Look at software companies with 80%+ gross margins compared to distributors fighting for 15-20% margins. Apple, Nike, Tesla - they've built direct relationships with consumers that allow them to command premium prices. Distribution businesses are race-to-the-bottom commodities with razor-thin margins. If you have limited capital, build a brand that resonates with a specific consumer segment and expand from there.