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Which kind of business brings in more money- Distribution led or Consumer led business? And which one to choose if one has almost no capital to start the business?

Anonymous

Anonymous 1

Hey I am on Medial • 2m

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.

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