What evidence do you have of the exponential pareto principle? The relationship of it to global wealth % with the suggestion that the top 1% is underpaid seems a bit of a stretch here.
I agree with the larger point the wealth inequality will increase but I don't believe the math here cant be supported by a derivative of a nebulous concept.
Is it your view that it is going to keep getting worse? As in the people addicted to quick dopamine hits and 'fast money'. Meaning that competition will get "easier" because there's less serious people? I think this is implied in your post but I'm kinda new here.
any new software tools that you have been testing or excited about?
surprisingly I have been getting a lot of value out of going all in on Microsoft apps and having them work together. all your company data + copilot has been pretty great.
This is interesting -- before I've seen you guys heavily advising to build your own business -- now it feels like an endorsement of acquisition. If you guys are going to endorse more of the search fund / acquisition through entrepreneurship model and need someone who can write about it let me know! I'm very much in that space :) but I'm far more likely to look at non-online businesses, not sure if that fits your ethos
of course! but my argument is that theres a lot of people who can make really good money buying high quality businesses for 3-5x EBITDA and using leverage + investor money to do it while still owning up to 80% of the biz. its an extraordinary path to wealth creation that gets missed in the narrative of "you have to bootstrap a wifi biz" -- esp when you use the title "the solo PE agent" -- the acquisition entrepreneur is the bread and butter of solo PE agency
I know your whole thing is to be sassy and tongue in cheek about stuff... but normally you also have data supporting you. In this case the data really doesn't support you. Read the stanford search fund study and you'll see that there are lots of people who successfully make millions of dollars doing leveraged buyouts of SMBs every year https://www.gsb.stanford.edu/gsb-box/route-download/618926
one thing i find very interesting in the opening paragraph is the negative attitude towards grifters: "If you offer someone a large number for a 12 month period in exchange for giving up everything they built up in terms of Long Term Value of the customer they will sign the dotted line." - correct me if im wrong but this sounds no different than exiting a business for a large-chunk and then "starting over" which has been a main preaching of yours for as long as ive read. what's different for them? is that just an ethics/morals dilemma that you dont agree with? are they not simply taking the up-front payment and then hoping to be able to capitilize on that more than the slow-grind growth?
ok fair enough, but point remains, what makes grifters any different for taking lump-sum payment and believing they can use that to advance forward even if its in a completely new capacity?
Actually if you're real sharp you'd now know the ideal software tool to build based on this theory alone hahaha! Someone will read this comment and get it
I’ve acquired 2 poorly run companies this year: 1 in a niche I operate in and one I did not until recently. Same skills and operations apply to lean them out, establish good processes and systems and make them profitable.
I’m a complete novice with these concepts. Is there a market for people who lack the $$$ to act as a solo PE but can locate and bring opportunities to interested buyers?
I’m trying to do this for my PR agency which is quickly going extinct. Hacking and learning as I go to use AI tools to implement and manage content marketing and social media marketing stacks for clients instead. Better I figure this out now than find myself wondering why leads have dried up a few years down the road (ie no need for PR if articles are generated by AI).
Isn't PR agency just about how high quality the contacts are? IE. doesn't matter if you can get an article in CNBC but you're huge if you can get a tweet from Taylor Swift?
Contacts help, tweets from megastars help, but most of my clients are B2B tech companies so it's more about thought leadership, educating the market place, populating Google with high value articles when people search their brands, etc.
"you’ve got less time than you think". im fucked. onwards to unfucking myself
The good news is that you can't do anything about the past so time to move on
you've got less time than you think BUT its never too late to get started
This was a banger 🎯
What evidence do you have of the exponential pareto principle? The relationship of it to global wealth % with the suggestion that the top 1% is underpaid seems a bit of a stretch here.
I agree with the larger point the wealth inequality will increase but I don't believe the math here cant be supported by a derivative of a nebulous concept.
Is it your view that it is going to keep getting worse? As in the people addicted to quick dopamine hits and 'fast money'. Meaning that competition will get "easier" because there's less serious people? I think this is implied in your post but I'm kinda new here.
Yeah for sure. People are too busy chasing the next shiny object, none of which work
any new software tools that you have been testing or excited about?
surprisingly I have been getting a lot of value out of going all in on Microsoft apps and having them work together. all your company data + copilot has been pretty great.
open to everyone in the community answering this.
thanks
BTB recently reposted some BowTiedSystems stuff for a full "Sales" stack. Would be worth looking into.
Thanks
https://twitter.com/BowTiedSystems/status/1676685686886260737
This is interesting -- before I've seen you guys heavily advising to build your own business -- now it feels like an endorsement of acquisition. If you guys are going to endorse more of the search fund / acquisition through entrepreneurship model and need someone who can write about it let me know! I'm very much in that space :) but I'm far more likely to look at non-online businesses, not sure if that fits your ethos
Well this assumes you already have the skills. Once you already built one you can see why someone can now scale like a mofo into infinity
of course! but my argument is that theres a lot of people who can make really good money buying high quality businesses for 3-5x EBITDA and using leverage + investor money to do it while still owning up to 80% of the biz. its an extraordinary path to wealth creation that gets missed in the narrative of "you have to bootstrap a wifi biz" -- esp when you use the title "the solo PE agent" -- the acquisition entrepreneur is the bread and butter of solo PE agency
Many funerals will be had for people buying businesses with no experience running a single one hahaha
Wouldn't mind reading that post.
Welp sounds like BTB isn’t interested
You guys are free to buy any biz you like with no experience in the field!
It's just like going into an NBA game after watching youtube videos on how to shoot, pass and defend. Can't go wrong!
I know your whole thing is to be sassy and tongue in cheek about stuff... but normally you also have data supporting you. In this case the data really doesn't support you. Read the stanford search fund study and you'll see that there are lots of people who successfully make millions of dollars doing leveraged buyouts of SMBs every year https://www.gsb.stanford.edu/gsb-box/route-download/618926
one thing i find very interesting in the opening paragraph is the negative attitude towards grifters: "If you offer someone a large number for a 12 month period in exchange for giving up everything they built up in terms of Long Term Value of the customer they will sign the dotted line." - correct me if im wrong but this sounds no different than exiting a business for a large-chunk and then "starting over" which has been a main preaching of yours for as long as ive read. what's different for them? is that just an ethics/morals dilemma that you dont agree with? are they not simply taking the up-front payment and then hoping to be able to capitilize on that more than the slow-grind growth?
No that's not an exit, that's a pull in of all LTV. If you do that you can't sell the biz, so you lose out on the multiple
A buyer would know there is no revenue left.
ok fair enough, but point remains, what makes grifters any different for taking lump-sum payment and believing they can use that to advance forward even if its in a completely new capacity?
What? This is completely different. You're selling out your audience for some sham product like blockfi which means you get maybe 0.5x net income
Instead of selling a real asset with LTV where you'd get 3-4x Net income?
This isn't even remotely close to the same honestly don't know what your question is
Group 1: sells some trash product killing all LTV of customer. Gets maybe 50% boost to net income for one year then it goes down 75%.
Group 2: Sells asset because reached point where it can't scale. LTV is still there brand is still in shape. Gets 400% on net income
How is this even close to the same concept?
my question was moreso if both groups netted +$1m, what's the practical difference. i dont agree with shams/scams either fwiw
i see the point about LTV
Again what do you mean. If you go +50% on net income and that nets $1M it means you're a clown and could have netted +$3-4M at minimum.
The difference is 400% would say that is beyond practical and enters "clown world decision making" territory
Actually if you're real sharp you'd now know the ideal software tool to build based on this theory alone hahaha! Someone will read this comment and get it
ok so opportunity cost would be difference
I was thinking in more absolute terms ($1m net) not relative (+50% net income vs 400%), poorly phrased on my part
Interesting concept (solo PE)... has anyone tried this while working a full time tech sales job? Concerned about time
May or not be going down this path already
I’ve acquired 2 poorly run companies this year: 1 in a niche I operate in and one I did not until recently. Same skills and operations apply to lean them out, establish good processes and systems and make them profitable.
I’m a complete novice with these concepts. Is there a market for people who lack the $$$ to act as a solo PE but can locate and bring opportunities to interested buyers?
Yeah, that would be a service. If you could find poorly run assets people would definitely pay you a finders fee
I’m trying to do this for my PR agency which is quickly going extinct. Hacking and learning as I go to use AI tools to implement and manage content marketing and social media marketing stacks for clients instead. Better I figure this out now than find myself wondering why leads have dried up a few years down the road (ie no need for PR if articles are generated by AI).
Isn't PR agency just about how high quality the contacts are? IE. doesn't matter if you can get an article in CNBC but you're huge if you can get a tweet from Taylor Swift?
Contacts help, tweets from megastars help, but most of my clients are B2B tech companies so it's more about thought leadership, educating the market place, populating Google with high value articles when people search their brands, etc.
Do you have any posts or sources suggesting tool / software stacks to use for online businesses?
Good starting point here: https://bowtiedbull.substack.com/p/spying-on-competitors-ecom
What tool are you using for that time on site analytics?
That one isn't even a tool its just similar web...