The Business Inquirer

Share this post

🧐What I Learned Last Week

thebusinessinquirer.substack.com
What I Learned Last Week

🧐What I Learned Last Week

Week ending Friday September 2, 2022

Roman Beylin
Sep 2, 2022
1
Share
Share this post

🧐What I Learned Last Week

thebusinessinquirer.substack.com

What I Learned Last Week curates the most interesting content relating to business acquisitions, operations, entrepreneurship, finance, and more. WILLW is a publication of The Business Inquirer.

Let’s connect: LinkedIn, Twitter, Facebook Group


Hello Friends!

This issue of What I Learned Last Week is brought to you by DueDilio.

DueDilio is a leading online marketplace focused on M&A due diligence.

We connect business buyers, sellers, intermediaries, and private investors with pre-vetted due diligence service providers.

Our large and growing network of verified independent professionals, boutique and mid-size firms, and subject-matter experts specialize in finance, technology, legal, commercial, and other key areas of business diligence.

Submit your project. Review qualified proposals. Hire service provider.


📰 Articles

Rex Woodbury of Digital Native published a really great post on the opportunities that lie in the long tail. The idea here is that capturing many niche markets is much more lucrative than winning a few big ones.

Let’s play a game. Take a look at the two companies below and tell me which is the better business:

Company A: Company A is a content platform founded in 1997. Last year, it did $30 billion in revenue, +18% year-over-year. It has 225 million users and spent $19 billion on content in 2021.

Company B: Company B is also a content platform. It was founded in 2005. Company B also did $30 billion in revenue last year, +46% year-over-year, and has 2.6 billion users—but unlike Company A, Company B didn’t spend money making that content. Instead, users produce content for the platform.

Which is the better business model? You probably answered Company B, which crowdsources content production instead of shelling out $19 billion a year.

Company B is YouTube and Company A is Netflix. They are the two leading content platforms in the world, and both companies did about $30 billion in revenue last year. But they did so with dramatically different business models.

The most relevant example Rex points out is Shopify. Shopify built their business by capturing the long tail of e-commerce merchants…

Distribution of Shopify Stores in USA

The whole post is a great read…

Digital Native
The Long Tail: The Internet and the Business of Niche
This is a weekly newsletter about how tech and culture intersect. To receive Digital Native in your inbox each week, subscribe here…
Read more
9 months ago ¡ Rex Woodbury

— — — — — —

I invite you to visit the Knowledge Center on the DueDilio website. We’re constantly publishing new articles, templates, and due diligence checklists. We write some and others are guest posts.

Here are just a few of the recent additions:

  • Quality of Earnings: What it is and Why It’s Important

  • Negotiating A Purchase of a Business

  • The Comparable Valuation: The Building Block for Every Business Valuation

  • Buying an Online Business: Centurica’s Guide to Due Diligence

  • Pre-LOI Questionnaire

  • How to Structure Your Business Acquisition: An Insiders Guide


🧵 Twitter

Tips on optimizing your search part-time…

Twitter avatar for @glad_cap
James | Gladstone @glad_cap
My playbook for buying a small business while still working a day job:
9:57 AM ∙ Aug 30, 2022
123Likes7Retweets

Great discussion on SBA vs. conventional financing options…

Twitter avatar for @EndresenHeather
Heather Endresen @EndresenHeather
Here's a question we get asked often: "Can I get a conventional loan instead of an SBA loan to acquire this business?" If the business has EBITDA of less than $2 million, the answer is usually: "no" Here's why, and how knowing this ahead of time might help you. 👇
2:58 PM ∙ Aug 30, 2022
186Likes15Retweets

Marketing a local service business…

Twitter avatar for @NeelBParekh
Neel Parekh @NeelBParekh
If you want to build a million-dollar local service biz.... You need to know exactly where to market online. I spoke with the CEO of one of the top home service marketing agencies. Here are 5 marketing tactics that will help you make an extra $10,000 today 💰 🧵👇
3:03 PM ∙ Sep 1, 2022
17Likes4Retweets

Buying a business isn’t the only way to take advantage of the “Silver Tsunami”…

Twitter avatar for @ConnorAbene
Connor Abene @ConnorAbene
I think 50%+ of boomer businesses will shut down instead of selling. If you want to capitalize on this problem, I’ve got 10 ideas for ya: 🧵👇
1:46 PM ∙ Aug 31, 2022
713Likes103Retweets

Some of the pitfalls of seller financing…

Twitter avatar for @lawyer4SMBs
Eric Hsu - SMB Acquisitions @lawyer4SMBs
“Buy a SMB with no money down!!” AKA seller financing. Sounds great, right? Often not. In fact, most of the deals that I’ve seen blown up are seller-financed deals. Here are four surprising reasons no money down, seller-financed deals can be actually bad for business. A🧵
6:20 PM ∙ Aug 28, 2022
22Likes5Retweets

DueDilio recently helped a client get a $1.3M check thanks to the ENC. Here’s what you need to know…

Twitter avatar for @andymackensen
Andy Mackensen @andymackensen
Spoke to a business owner friend of mine who just received a check for $3.7M without doing any work. How? The Employee Retention Credit – a little-known payroll tax credit provided by the U.S. Treasury. Here are the top 5 things you need to know to claim it:
10:23 PM ∙ Aug 18, 2022
77Likes55Retweets

An interesting look at Toast…

Twitter avatar for @jasonlk
Jason ✨2022 SaaStr Annual Sep 13-15 ✨ Lemkin @jasonlk
So SMB SaaS isn't easy High churn and low deal sizes But Toast has made it work. It's now at a stunning $800,000,000 in ARR ... growing almost 60%! 5 Interesting Learnings:
8:02 PM ∙ Aug 27, 2022
319Likes25Retweets

🤔 Thoughts, Events, Other


🛠 Tools & Resources

I want to share some tools & resources that I have found helpful. Please note that some of these may contain affiliate links. This means that I may receive compensation if you sign-up and use them.

Cerebro Capital - Cerebro has a network of 1,500+ lenders who can provide debt financing for your acquisition, refi, etc. $500k minimum.

X5 Deals - Proprietary deal sourcing. They do the outreach and send you relevant, actionable deals directly into your inbox.

BizNexus - Proprietary deal flow, deal aggregator, and exit prep. Local Boston company and I consider the founder (Adam Ray) a friend.

PrivSource - Deal aggregator for lower and middle-market listings.

The Website Flip - a newsletter that sends content sites for sale to your email inbox. They send deals each Wednesday and Friday. 

Kumo - Find every deal in one complete platform. Spend less time sourcing deals and more time closing them. Kumo aggregates 180K+ business listings into one easy-to-use platform.

OpenPhone - The best VoIP phone solution that I have found. I use this for DueDilio. You get a $20 credit if you sign-up.

Eloquens - Knowledge marketplace. I’ve purchased a few templates from them.

Deal Flow Scout - Peer-to-peer deal flow exchange. Free, open, transparent.

Deal Sourcing Guide - A directory I put together of online marketplaces, brokers, DFY deal flow, and more.



That’s all for this issue of What I Learned Last Week!

Help us improve with anonymous feedback. How did you like this issue of the newsletter?

  • 👍 Interesting & relevant

  • 😐 Eh - not sure.

  • 👎 Not interesting or relevant


If you enjoyed reading this newsletter, why not share it?

Share

Let’s connect: LinkedIn, Twitter, Facebook Group


Important Disclaimer: This newsletter is provided for informational & educational purposes only, and should not be relied upon as legal, business, investment, or tax advice. This newsletter may link to other websites and certain information contained herein has been obtained from third-party sources. While taken from sources believed to be reliable, it has not been independently verified. The Business Inquirer makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. References to any companies, securities, listings, investments, or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any business, tax, or investment decisions. Content in this newsletter speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

1
Share
Share this post

🧐What I Learned Last Week

thebusinessinquirer.substack.com
Comments
Top
New
Community

No posts

Ready for more?

Š 2023 The Business Inquirer
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing