Business Lessons and Truths from a 13-Year Entrepreneurial Journey

Background

• 13 years in business
• Sold 9 companies
• Last company sold for $46.2 million
• Current business (Acquisition.com) generates $17 million per month

Key Business Truths

1. Sell to Rich People

• Focus on selling to wealthy clients initially.
• Example: Tesla started with high-end cars (Roadster) before moving to mass market.
• Easier to solve problems for wealthy people because they pay better and have higher expectations.
• Selling to lower-income customers requires high volume to be profitable (e.g., Walmart, Amazon).

2. Lack of Priorities, Not Information

• Problems are easier to solve with clear goals.
• Importance of prioritizing resources effectively.
• Avoid getting distracted by everything; focus on the most critical tasks.

3. Team Competence and Standards

• Teams may not meet your expectations; set higher standards.
• Often, the average talent level in a team is lower than perceived.
• Avoid hiring based on comfort; aim for talent that raises the average team quality.

4. Rules Indicate Poor Talent

• Many rules imply that the team isn't competent enough to self-manage.
• Hire individuals who can elevate the team's performance without needing micromanagement.

5. Focus on Quality, Not Just Growth

• Growth should come from improving quality, not just increasing numbers.
• Example: Chick-fil-A vs. Boston Market. Focus on being better leads to customer demand for growth.

6. Protect Time for Important Work

• Block time for high-leverage tasks and let less critical issues wait.
• Most issues aren’t existential; focus on work that moves the business forward.

7. Building a Brand Takes Time

• Branding is crucial for long-term business value and can provide higher returns on advertising.
• Positive customer experiences are key to building a strong brand.

8. Know Your Inputs and Outputs

• Break down your business processes to the simplest level to identify what drives revenue.
• Understand constraints and how to scale effectively.

9. Avoid Short-term Hacks

• Focus on long-term strategies rather than chasing trends and gimmicks.
• Quality and value creation should be prioritized over quick fixes.

10. Talent Costs More But Yields More

• Investing in high-quality talent can lead to significant returns.
• Talent is often the biggest arbitrage opportunity in business.

11. Address the Big Problems

• Focus on the most impactful issues rather than getting lost in minor details.
• Regularly evaluate the core product/service quality to ensure success.

Conclusion

• Each of these truths reflects the realities of building and sustaining a successful business.
• Emphasize solving high-value problems, prioritizing quality over quantity, and building a strong, competent team.