In season 6 of Shark Tank, the founders of Bombas struck a deal with Daymond John for their high-performance sock brand, which has since made about $1.3 billion in sales – the Tank’s biggest success. If you’re like most of the aspiring founders I meet, you’ve watched the show and thought, “I could do that.”

But that’s exactly why Shark Tank makes my job 10x harder.

The show glamorizes high-risk models like product businesses and tech startups, ignoring the value of your own career experience.

Service vs. Product Businesses: A Quick Comparison

A product business sells tangible goods—think retail or e-commerce—where you create, store, and sell physical items.

A service business, on the other hand, sells a solution—like consulting, freelancing, or personal training—where you offer expertise or skills to solve a problem or need.

While product businesses often rely on inventory, shipping, and manufacturing, service businesses focus on providing value through time, knowledge, or labor without necessarily needing a product.

The underdog of the business world – the humble service business – rarely gets screen time, but I’m about to show you why it should:

Service Biz: The Hidden MVP

This chart breaks down the differences between service and product businesses, but here’s the TLDR:

• Product Businesses = High startup costs and inventory headaches. Takes time to get on its feet.
• Service Businesses = Low overhead and more flexible. Use your existing expertise to start a business with minimal investment RIGHT NOW.

Service businesses have challenges, like scaling and heavy reliance on people, but they’re easier to start than product businesses, which require more time and capital.

Myth Busters

The Tech Trap: Software startups are cool and lucrative, but only with massive capital and technical know-how. The barriers are high, and the risks are even higher. Zuckerberg and Bezos spent years before seeing any ROI.

Drop Drop Shipping: It seems low-risk and passive, but with low margins, fierce competition, and reliance on third-party suppliers, it’s not as hands-off as it seems. Stock issues or order mistakes fall on you, and customer service can be a major time sink.

Restaurant Biz – A Recipe for Stress: Everyone’s opening a restaurant or cafe — perhaps because of a low barrier of entry, but the margins are thin, and failure rates are among the highest for SMBs. High costs, constant competition, and unpredictable factors make it a stressful grind.

Service Business, You Say?

Other business models may be profitable but have plenty of headaches. Starting a service business probably isn't much easier, right? 👀

Wrong.

With low overhead and a simpler learning curve, a service business is generally an easier way to start your entrepreneurial journey.

The Squid Tank: Work Smarter

Shark Tank glamorizes product and tech businesses, but service businesses let you leverage your existing expertise sustainably.

Just ask David and Randy, the founders of Bombas: They went through 137 sock prototypes, spent two years developing them without a cent back, and only got connected to overseas manufacturers through David's godfather, who ran Gold Toe socks in the ‘90s.

So, unless you’ve got a godfather in the same industry as you 😀, I’d suggest starting a business based on your current expertise instead of designing a new pair of socks.