The business me:
I started in Tech in 1993 and Ops in 1998. I don't think there is a scenario, issue or major business endeavor I haven't had to work through or deliver.
I specialize in growth and scale oriented businesses: experienced from startup to $250m in ARR.
Worked for
If you want to make $400k a year as a business owner you'll most likely have to build a multimillion dollar business, somewhere in the $3-8m in revenue range.
Of course this varies wildly across business types, but did you know the average small business owner in the US income
@alexforbes__
Guys like that will always circle back to use good vendors. Maybe you can strike a deal to expand your shop, get him to invest, and get 100%. Maybe offer up exclusivity... for a price of course. The cost for him to invest and scale up could mean years for him to recoup and delays
@DonMiami3
Appreciate the point of view.
Although different today, I believe if you read American sentiment throughout the history of the country the same narrative repeats.
Capitalism and democracy are necessary as a pair but a very tough mix.
“Remember, democracy never lasts long. It
@ClintFiore
98% of the advisors out: the game plan is to put it into products, evaluate annually and wait. While collecting their 1.5-2%.
The get paid regardless of performance, and this is the problem.
Due to this, I trade my own, and family, funds today. In about 2 hours every 3 months,
@LeadershipAcad1
If you don't have a policy, nothing. If you want to act, you write a policy and have everyone sign it. Then the next issue you can resolve is according to policy.
@realEstateTrent
My 2 cents on how to deal with HVAC replace requirements and lease negotiation.
Inspect the units prior to lease signature and if you have to replace a unit negotiate a prorated replacement cost based on % of occupancy time vs anticipated life of the unit.
I was hired to assist with a $300m Public Co turnaround, which unexpectedly turned into a winddown and divestiture.
In what turned out to be a pretty shitty scenario, I learned a lot and was asked to fire the man who hired me by the CEO and Chairman.
Lessons Learned:🧵👇
1/14
@c_gro
I am a bit perplexed.
Honestly can't believe an applicant would even bother. Are you sure you're looking for a CEO, or is it an entry-level CEO, or an operator maybe?
700 applicants, 6 "all-stars," and you want a solution pitch to make a decision?
Experience tells me the
@TRUmav
Interesting take. I believe the following outcome will happen:
1. Fast food will become a pure metric-driven business for those who work there. You will be fired if you don't produce (think In & Out; they have paid above-average wages for years to get that benefit specifically).
A mentee of mine just received a $10m for 70% of his seed stage company. They have a proof of concept developed, no customers.
What would you advise them to do?
@svpino
Worst part is that the client doesn't really understand what they have asked for until you show them the finished job.
Then they start with well, not exactly what I was thinking...
And the estimation process starts over...
And over...
For every change order...
Forever
@mhp_guy
I see a little favoritism in this post!
But, I disagree. They are currently a hype fad. Sorry to say, but the same playbook as many before them, and all have gone the same way.
Margins are mostly good (10-15% average) the product is good (I dig them), imo most local bakeries
If you have started a business from scratch, I mean an idea, excluding incentives (like a friend/college with an opportunity if you start), how long did it take you to get to your first $500k in revenue?
I'll start. The four companies that I have started from ground up, it took
@UjwalVelagapudi
@c_gro
Its short term thinking and will yield short term results.
A CEO is your leader and visionary. CxO hiring is based on proven capabilities, track record, cultural fit, and alignment. CEOs build the company, if you need to know how they think you ask them.
If you need to test
@dekidisreddy
@unusual_whales
And it's still wrong. Lawyers for years have been using templates and generative solutions for docs.
Anyone using AI to generate their own docs (They do this without AI today) who doesn't understand, and doesn't have a lawyer review completed, will even more so need a lawyer.
After digesting a bunch of financial news, and having a ton of SMB conversations, over the last 4 months I'm starting to get a lot of '99 and '07 end of upswing vibes. Which means we are early in the cycle.
Lots of areas (markets, treasuries, real estate and business valuations
@NiklausFuller
Depends on what you want to use it for. Banks, Google Business listings won't use a PO box and many mailbox places also get the X.
They want a "physical address", so you can opt for a shared workspace that host a mailbox for you like Regus or Tailored spaces, or a virtual
@mhp_guy
Electric mowers kind of suck, but I haven't had a e-riding mower. The last riding mower I had was a twin blade John Deere yard tractor and it was virtually maintenance free for 5 years.
I've never bought an SMB. I've built 5, sold one of my own, and been involved in several other large Co sales/divestitures.
I've gone through DD and been involved in a few large $20m+ M&A deals through W2 work.
Does this give me street cred in the SMB buy-sell Twitter circuit?
Starting a longish term project and need a good business editor. Does anyone have any recommendations?
If you are one, please DM me, and include some material links I can review.
Thanks.
@Codie_Sanchez
Starting and running an smb doesn't teach you how to think as much as it does how to act.
Entrepreneurship and small biz experience doesn't translate to professional management and big biz.
An MBA... Or education is necessary fills those gaps.
@SMB_Attorney
IMO the answer/model exists in big law.
Roll-up by creating partners with fiduciary responsibilities, absorb their business, issue shares in new co. They can retire or leave, or get shoved out when milestones are hit/missed.
I don't think there is any creative way to do it
@STLChrisH
Chris this is great material for folks thinking about growing past $10m. The org structure and roles are significant infrastructure investments.
Can you do the same for quick comparison for tech and governance? Kind of the trifecta imo.
Thanks for sharing.
My car battery died yesterday.
The dealership wanted $250 for a new battery + replacement.
AutoZone wanted $300 for a new battery + replacement.
Instead of paying them — I watched a YouTube video and learned how to replace the battery myself.
I went to the dealership and
@Tortoisehead
That's actually pretty good compared to a lot of people who have been married only once, have kids, and in the same job 20+ years.
Be proud of what you have.
@rohindhar
I'm pretty sure it is the inability to manage the jobs they sold and are working on.
They default to silence when communication is way more productive. T
IMO they simply don't want to make up the excuses and explain themselves for not delivering/being available.
Way too many folks saying go buy a HVAC or Plumbing Cos who have never done either job.
Gross margins for these businesses are on average 15-30%. Average pay for a plumbe/HVAC employee is $56k.
Folks buying and scaling can't find employees.
If trained, go start one!
@sweatystartup
The process is always clunky due to the design phase. This is the problem for this type of company.
Best I've seen is applying Agile and process sprints to the entire process from sale through delivery.
@MattPaulsonSD
Yeah, angel investing isn't for the faint of heart. It appears that the frequent "winners" have 100s of deals and connections to venture networks... "inside baseball".
I'm like 2 for 30 and haven't done any return calcs 😅
I was once paid $70k plus 2% equity to write a business plan for a lawyer turned entrepreneur.
That plan was used to raise $3m from two investors. The lawyer ran out of funds in two years (typically what happens when you pay someone else to write your plan).
I should have
@jcolesimpson
With that feedback I'd be cautious about making changes. Most times new systems add overhead and roi on that overhead can mean years of use. Basically use caution and make sure you're not too early.
Still feeling new to X/Twitter and its SMB crowd, I wanted to share a few accounts I enjoy catching up on daily.
It's a mix. Definitely, folks are doing good work and sharing related.
I follow just over 400. Here are my top 20 in no particular order.👇
I'm about to start a pro bono engagement with a delightful human on the ropes in his 12-year-old home remodeling contracting Co.
Currently fighting to survive or go BK. He has gone all in already. Basically, business was shrinking quickly, he kept investing, and probably the
I need to get the same talking heads out of my For You feed, it's exhausting. I follow over 500 and it's the same 30 all the time!
My tastes are super eclectic, and I love to learn new things. Please make some recommendations,👇🙏
@SecretCFO
I've got a few to share. Once hired to do a turn around, $300m firm, 6 months it turned into a wind down and divestiture.
Huge suck! But, the learning was invaluable.
I'll post some threads on it. One including being told to terminate the man who hired me by the chairman and
@SMB_Attorney
I'm pretty sure this is a fad as buying and operating is no joke, unless they are owner funders and not operators. Even then it's tough and a long road.
@shawngorham
We are about to see so many companies, in all sectors, that have priced themselves too far out. Deflation pressure is now in play. It's going to be tough times for the easy money folks and for the ETA folks paying high multis.
@coookwithchris
Put that into some good corn tortillas hold closed with a toothpick and deep fry the tacos. When cooled, add some lettuce, cotija, and a spicy salsa!
@DoubleWideCap
I love this type of street intel. So much better then fed reports.
He's smart to move to CDs, also he's going to have a problem with inventory soon. Cash preservation is going to be the SMB game here really soon.
@WilsonCompanies
Having run some large teams I think you'd find it easier to manage if you remove some middle managers. I'd have 5-8 team leads reporting to a single manager.
Also, the cost saving will be significant.
@SecretCFO
Solid thread and I was looking for something to disagree on or change but the fundamentals are there!
Having lead about 5 in the CIO seat. I think this one slide is the key takeaway.
1 & 4 ARE the failure points. Never met a firm that backfills even though they are advised to
Starting to hear stories about economic indigestion.
A more and more common story...
"We are continuing to have cash flow issues. The building we bought and put $800k into was a bad mistake. We are currently $700k in debt, project payments coming in slower. Our plan is to bill
I just left an event where an HVAC business owner expressed the idea that the pricing and boom (boom/bust) are cooling in the home service business, and the cooling off is part of a 20-year cycle.
I found it interesting. What do you make of it?
Owner: all these managers don't know what they are doing.
Me: you mean the ones generating $5m in revenue a year for you? Let them work, we have shit to do, I can't force you out of the weeds.
Spending the day outside, beautiful SoCal day. I think folks forget we are surrounded by mountains. My house is 40 min drive to ski and 40 min to surf.
February is the month to do both in the same day with 70 degree days and sunshine.
Heading out to meet a new connection over coffee or lunch today? A couple simple questions and active listening goes a long way.
For first time business meetups, here are a couple of my favorite questions.
1. Person's name, can you tell me about your business and your
For those business owners out there right now having some issues in your business.
Many times, business gurus will tell you to delegate your issues away. I'm here to tell you today that if you have an important issue, let's say a cashflow issue.
It's time to roll up your
@TripleNetInvest
War raises debt limits, and therefore should increase interest rates, or am I missing something?
High inflation, increases rates and also mitigates national debt.
So, I think I just worked myself into disagreeing.
@mhp_guy
❤️ it. Sounds right.
I feel bad for those get rich quick folks buying in and absolutely horrible for those who scrapped up everything they had 😢
Some will survive and I hope it's the scrappy ones!
Cheers to a rainy Saturday morning in SoCal!
Coffee is made, now to go prep for educating some college students this afternoon. Class in session today, week 11.
Great take.
I spend a lot of my time pushing CEOs and owners back into Ops at $500k, $3m, $5m, $10m. They so badly want to get out of it, and so badly want more.
Working on the business means you need to define what needs to be done and do it, there is no other way.
If you
CEOs of a $10 million business often misunderstand what the role entails at this scale.
And making the transition from $10m CEO to $100m CEO is difficult.
At $10m, a CEO...
Will be wearing many hats. Hiring + Firing, leading team meetings, project planning, making capex
Food for thought.
Most executives making over $200k a year have large teams helping them.
As an SMB owner or solopreneur you will, by yourself, perform 3-5 roles to make the same take home money.
Seeing folks on here making a big mistake thinking that there is a huge amount of money sitting on the sidelines ready to deploy to save the economy and buy cheap deals. This was kind of true back in March, looking backwards.
Truth is, this money has been, and currently is being