Hey everyone,
Most businesses fail because they try to do too much.
Spirit Halloween built a $600 million empire by doing the opposite. They sell costumes for exactly 6-8 weeks per year, and nothing else.
And they beat giants like Walmart, Amazon, and Target at their own game.
Why?
Because constraints create competitive advantage.
Let’s dig in.
My free lecture this Wednesday: Proven Strategies for Business Buyers
I’m talking with Acquisition Lab co-founder Chelsea Wood, who’s worked with hundreds of business buyers — so she’s an expert on what strategies actually work to find deals, get seen, run diligence, and more.
100% free, plus plenty of time for Q&A. RSVP here to put it on your calendar!
A micro-recap of Spirit Halloween (I made a video of their whole story here):
In 1983, a guy saw a costume shop with a line out the door, open just one month a year. He took that idea and ran with it. Today, they operate 1,500+ locations and sell one out of every six Halloween costumes in America. Crazy!
But they couldn’t have gotten there by trying to be an “everything store”.
Their extreme focus gave them a structural advantage that bigger, better-funded competitors couldn't match.
Here are 3 upsides to extreme focus in your business.
Your "limitation" might be your moat
Spirit Halloween only operates 6-8 weeks per year. That constraint meant they needed to hone a special set of skills:
Negotiating ultra-short-term leases (3 months or less)
Sourcing inventory in massive quantities (orders of 15,000+ units)
Hiring & training thousands of seasonal staff
Creating theatrical in-store experiences that change annually
Spirit is purpose-built from the ground up. 10,000 square feet of Halloween. Wall-to-wall selection. 25 types of fake blood.
Compare that to Party City, which tried to own every holiday year-round. They had to carry inventory for birthdays, anniversaries, Christmas, New Year's. (And now they’re bankrupt.)
The takeaway: What feels like a weakness in your business can be your edge.
Are you serving only one narrow customer segment? That means you can build features that nobody else offers.
Does geography constrain you? That creates local relationships and knowledge that competitors can't match.
Are you limited to a specific season or category? You can dominate it completely.
Look at your most significant constraint and ask: How could I turn this into something my competitors can't replicate?
TOGETHER WITH HIGHLEVEL
HighLevel is the all-in-one CRM that runs your emails, texts, funnels, and more — all in one place.
Think of it as the Swiss army knife for small businesses.
Right now, my readers can get an extended free trial for 30 days by signing up at gohighlevel.com/michaelgirdley.
Already a user? Get a free trial of our Unlimited or SaaS PRO tiers.
Scale isn’t just size.
I actually ran a few Halloween stores in the early 2000s. I had to get my stock from a warehouse in Kansas.
But since Spirit could bulk order for hundreds of stores, they went straight to the manufacturers and paid 30-40% less. I never stood a chance, price-wise.
The question for your business: What gets dramatically cheaper at scale?
Maybe it’s fake blood. Perhaps it’s marketing spend. Technology. Shipping rates.
Calculate your unlock number. Then get there deliberately.
It could be opening more locations. Or it could focus on fewer SKUs to increase volume per item. It could be finding the right partner to combine purchasing power.
Build experiences Amazon can't ship
If you’re selling mass-produced physical products, Amazon can probably undercut your price.
But Spirit survived, because they doubled down on the stuff Amazon couldn’t compete on.
Fitting rooms to try things on. Staff who are Halloween-crazy. Crazy in-store installations to make shopping an event.
They made it about the experience, not the convenience.
Apparently this year’s theme was “Carnevil” — but let’s be real, the theme is always “plastic skeleton”
So ask: What can your business do that Amazon can’t?
Do more of that.
And if you want some inspiration, check out a Spirit Halloween.
Join 100+ operators at the event that sold out last year.
Holdco Conference 2026 is where serious multi-business owners go to learn and connect. Feb 9-12 in Sundance, Utah.
“Hands down the most actionable conference I’ve ever been to.”
“It’s incredible how much network value is in these rooms.”
“THE place to learn about running and successfully operating a HoldCo. [...] I also made a ton of friendships I hope to cultivate for a long, long time.”
“The caliber of people is fantastic.”
Tickets are all-inclusive: conference, skiing, spa, room, meals.
3 things from this week
Appetizer: On the pod this week, we looked at a business selling ghost hunting gear. Could be a fun acquisition for someone who’s got an audience and wants to make ghost hunting videos, but… I’ll pass.
Main: I don’t mention it much these days, but did you know I have a bunch of free business tools and templates here? All stuff I’ve used in my businesses. Hope it helps!
Dessert: The Spirit model reminds me of another seasonal business that nailed focus: Christmas tree lots. Same principle — temporary locations, extreme specialization, scale advantages in sourcing. Pattern recognition is everything.
What constraint in your business could you turn into a competitive advantage? Hit reply and tell me.
Thanks for reading!
Michael
How can I help?
🌎 STAFFING → Hire with Near. Fortune 500-level talent, at prices any business can afford.
⛷️OWNERS → HoldCo Conference 2026. Where business owners meet, learn, scale and grow at a stunning Utah resort. Feb 9-12.
💡Q&A → I host regular free lectures on all things business. Coming up:
Oct 29 — Buying a Business in 2026 w/ Chelsea Wood of Acquisition Lab
Nov 13 — Buy vs Build vs Franchise w/ Connor Groce
Dec 11 — Year-End Tax Savings for HoldCos w/ Mark Edler
Jan 9 — How to Build Winning Remote Teams w/ Franco Pereyra
💸BUYING A BUSINESS → Acquisitions Anonymous. Podcast where we break down businesses for sale… 430+ episodes in!
Not subscribed? Subscribe!