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We did a podcast with @awilkinson yesterday. He said a few things that are still ringing in my head a day later...
first the background info. Andrew owns something called Tiny ( http://www.tinycapital.com ). They own "wonderful internet businesses", including Metalab, Dribbble, Pixel Union etc..
all in - Tiny companies are worth ˜$100M+. They are digital, profitable, & bought with minimal debt
all in - Tiny companies are worth ˜$100M+. They are digital, profitable, & bought with minimal debt
Now the notable quotables:
"We want to buy New Zealand companies."
New Zealand?
- middle of effing nowhere, nobody paying attention to it
- but quietly growing
- self sufficient (food & energy independent, not dependent on others)
- not at risk of nuclear war
"We want to buy New Zealand companies."
New Zealand?
- middle of effing nowhere, nobody paying attention to it
- but quietly growing
- self sufficient (food & energy independent, not dependent on others)
- not at risk of nuclear war
example of one of his New Zealand business: @dribbble
- a top 1000 site on the internet
- huge community of designers
- profitable
- big companies not trying to kill it / compete
- not dependent on facebook or google for traffic, people type dribbble into the address bar
- a top 1000 site on the internet
- huge community of designers
- profitable
- big companies not trying to kill it / compete
- not dependent on facebook or google for traffic, people type dribbble into the address bar
"I like walking around, sticking my fork into electrical sockets. Learning lessons the hard way"
- today they buy great businesses, and it usually works
- he got there by buying some terrible businesses (eg. nightclub, cat furtniture dropshipping biz with shitty margins)
- today they buy great businesses, and it usually works
- he got there by buying some terrible businesses (eg. nightclub, cat furtniture dropshipping biz with shitty margins)
Observation - he goes headfirst & early into niches:
Previously:
- design (metalab, designernews, dribbble)
- remote work
- shopify platform ecosystem (themes, saas plugins)
Now:
- podcasting (castro, supercast, etc.)
- no code (agency, tools)
Previously:
- design (metalab, designernews, dribbble)
- remote work
- shopify platform ecosystem (themes, saas plugins)
Now:
- podcasting (castro, supercast, etc.)
- no code (agency, tools)
They buy a biz & hire CEOs. This lets them scale to own 10+ companies:
- 1x per month, send us a financial ONLY report (P&L, balance sheet)
- 1x per quarter, send us a SWOT analysis
- If emergency, call me
that's it
- 1x per month, send us a financial ONLY report (P&L, balance sheet)
- 1x per quarter, send us a SWOT analysis
- If emergency, call me
that's it
Once he hit $150k/yr (living in canada, in 2010). He had everything he wanted. Nice house. Nice car. Nice clothes.
Shifted gears. More $$$ wouldn't make him more happy. But less pain== more happy.
for him travel = pain. Hired a salesperson to fly & do sales meetings for him.
Shifted gears. More $$$ wouldn't make him more happy. But less pain== more happy.
for him travel = pain. Hired a salesperson to fly & do sales meetings for him.
So many people "create their own hell". They are succeeding...but hate the day to day(meetings, travel, etc.) doing things they don't enjoy.
Instead, create your own heaven. If you're tired, find other people who love to run, and let them run that part of the marathon.
Instead, create your own heaven. If you're tired, find other people who love to run, and let them run that part of the marathon.
Knows himself well: "I'm great at starting projects. move quick, see things... but I suck at the follow through (operations)"
"I need operators. I need follow through people."
(don't we all
)
"I need operators. I need follow through people."
(don't we all
)
What's the biggest idea in his head right now?
@supercast (paid subscriptions for podcasts)
Podcasts today are shitty businesses (small scale, $ via ads)
He thinks podcasts are like great saas businesses.
- low churn
- growing 20-30%
- small # of very obsessed users
@supercast (paid subscriptions for podcasts)
Podcasts today are shitty businesses (small scale, $ via ads)
He thinks podcasts are like great saas businesses.
- low churn
- growing 20-30%
- small # of very obsessed users
link to the episode - https://podcasts.apple.com/us/podcast/63-andrew-wilkinson-buying-cash-flowing-internet-companies/id1469759170?i=1000470848779
thanks @theSamParr & @awilkinson - lets do it again next month
thanks @theSamParr & @awilkinson - lets do it again next month
