SMB Twitter has been on fire recently with tons of great threads of stories, lessons, and operating advice.

All of these folks are must-follows in this little SMB community of ours.

Here's a few of my recent favorites, let me know if I missed any. (I'm 100% sure I did)
@joshuamschultz had an amazing one this morning on the power of getting to know your team, especially in the first 100 days.

@WilsonCompanies released some of his operating playbook yesterday in this fantastic thread. Just so happens we're recording a podcast today, let me know if you want me to ask him anything specific!

@dealpostclose had a great thread on handover items after an acquisition with tons of nuance and detail. Required reading for any acquirer.

I could put any one of a dozen threads by @StrongpointRich, but this was a great one that stood out to me recently about productive vs non-productive costs.

@BrentBeshore talked about all the risks and challenges in buying small companies. This is no picnic read!

Another one by @joshuamschultz on handling a "line down" situation with a customer and taking the heat for shortcomings in the business.

Thank you all for sharing your advice, stories, and thoughts so freely and openly on here. It's incredibly helpful!

Please let me know if I missed any! There was a huge flurry of great Tweets over the last 2 weeks from SMB Twitter and I don't want to skip over any of them.

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More from @aebridgeman

6 Jan
Have any searchers been funded via something like @earnestcapital's Shared Earnings Agreement (SEAL), rather than a traditional search investment?

The SEAL pays a % of owner earnings up to a cap multiple (2-5x investment) and converts to equity in a cap raise.

Could it be used?
The two (SEAL & Trad search) feel pretty similar, but the SEAL would continue paying the investor even if the search failed.

The failed searcher would pay a % of income up to a cap multiple, reducing the "go-to-0" risk to the investor of giving them capital in the first place.
If the search succeeded, the SEAL's % of owner earnings would repay quickly.

Perhaps there are two cap multiples, one for a failed search (say 1.25x) and one for a successful search (3x) to keep incentives aligned without burying a failed searcher in unmanageable debt.
Read 8 tweets
28 Sep 20
Search Fund Advice Megathread:

In my searcher survey I asked searchers for their one piece of advice to prospective searchers. This thread is 29 pieces of advice current searchers and operators shared and I hope you find immense value in their perspectives.

Enjoy below 👇🏻
1. I don't have advice, just my opinion: I try to take alignment over convenience.
2. It’s hard but rewarding. Make sure your family understands the project.
Read 37 tweets
8 May 19
1/ Not sure how many of you have heard of Edelweiss Holdings (permanent capital co) and Anthony Deden, I had but had not seen this interview with @realvision until @amellis_84 sent it to me.

He said it would "blow my mind" and he was right! Takeaways:

2/ @amellis_84 has a Deden quote on his site which I liked so much I added it to mine. Describes "Think Like an Owner" perfectly:

"I think that one of the things that is missing, and one of the things I have discovered is that there's a substantial distinction between people...
3/ ...who are investors and people who are owners in businesses. An owner in a business is far more interested in his survival, in the first instance, than its necessary monetary value. No owner of a business wakes up every morning asking himself what he's worth."
Read 11 tweets

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