A key piece of knowledge in business is to know is the three Classes of Industry: Class One: Natural Resources, Resources, Currencies, and Banking Class Two: Products – Manufacturing and distribution of products Class Three: Services It is much harder to build a billion-dollar business in Service-related industries than in Manufactory-related industries.
The biggest problem in service-related industries is not having training systems in place to keep training staff to keep the quality of the services delivered maintained, so they are much harder to scale.
FIRST CLASS of INDUSTRY—RESOURCES Let's look at the First Class of Industry. Up until the Internet was developed, the wealthy elite had for many 100s of years targeted this First-Class Industry. They targeted many resources that held the most value or that the majority of the planet depended upon. First Class of Industry would include:
Diamonds and precious stones
Gold, Silver, and precious metals
Iron Ore, Lead, Copper, etc.
Oil, Natural gas
Currencies, Banking, etc.
SECOND CLASS of INDUSTRY—TANGIBLE ITEMS The start-up costs of manufacturing today can be a lot less as you often can find a company that can manufacture your product for you in China or other countries. With the internet and fulfillment centers around the country already established, the marketing and distribution of tangible items have become a lot easier, and much more economical. You will be amazed how many people have moved into selling tangible items rather than going through all the effort of starting a service-related business. In 2020 many service-related businesses had to close their doors, and I know a few that moved to selling products online and are now making a killing.
THIRD CLASS of INDUSTRY—SERVICES
When you train others on your successful actions, you will come up with bright ideas of how to expand your business. This is a natural law. When you hang onto your knowledge and resist passing it on to others, you stop the natural flow of expansion without realizing it.
When you understand the Three Classes of Industry, you have to realize it is much easier to scale a business that sells tangible items of some kind rather than delivering services. More people get into Service-related businesses because their initial investment to get started is much less than designing and manufacturing tangible items.