I have a theory I call the "Chicken Theory."

According to the Chicken Theory, you should always order the less desirable meat (chicken, pork chop/loin, etc) at a restaurant and avoid the high end meats like steak or salmon.

Let me explain... (relates to SMB, promise)
Steak and salmon sell themselves.

There's not much incentive for the chef to spice things up as customers will buy that meal almost regardless of how well it's prepared or seasoned.

This results in a bland steak/salmon that lacks great flavor.
But unless you're making chicken wings, less desirable meats like chicken and pork need to be "pitched" to make it onto someone's plate.

Chicken needs to be marinated, sauced, stuffed, breaded, or seasoned in some unique way to make it an attractive option for customers.
As a result, the chicken entrée tends to be more flavorful and enjoyable than the comparable steak entrée.

Today if given both options, I'll order the chicken over the steak and I end up more satisfied than not with the results.
Owning a SMB is not the steak on the proverbial life menu, as @StrongpointRich, @SullyBusiness, @NickHaschka, and more can attest.

But they, and every podcast guest of mine, often find SMB ownership long-term to be more fulfilling and fruitful than more traditional W2 careers.
Order the chicken!

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More from @aebridgeman

21 Jul
Want to start a podcast?

I'd love to help, it's easier and cheaper than you think, and I think podcasts are a fantastic way to advance your career.

Here's a thread on the equipment you'll need, software and services I use, and some general tips for running a podcast.
Starting off with equipment. You'll obviously need a microphone, I use the ATR2100.

They're easy to use, sound great, and are durable. I put both of mine in the washing machine after my first episode and I've continued to use them ever since.

They are the Honda Civics of mics.
For recording you have two basic options. Direct cable from your mic to your laptop OR cable to a mobile recorder.

I use a mobile recorder with XLR cables as the quality is slightly higher and I don't have to be distracted by a laptop if I record in-person.
Read 17 tweets
29 Apr
Standing out when reaching out to a potential seller is really hard, and become harder.

BUT there are many creative ways to find sellers and stand out to them that not many folks are trying.

Here are 8 creative ways to find potential sellers.

Long thread! 🧵
1) Industry podcasts.

Many industry podcasts are hosted by owners in that industry. Reach out to them! Podcasters are flattered when you reach out interested in learning about them and their show.

Ask for advice, industry knowledge, and if they're selling their business?
Perhaps even offer to sponsor their show with a message that you're looking to acquire companies in their industry?

Run the ad for 3 months and see how it goes.

Sponsor that industry's top 5-10 shows.
Read 12 tweets
9 Mar
@MikeBoyd shared the playbook on @RealVision to preserve and grow generational, family wealth.

And it was awesome! Mike has been superbly building this guide with The Business of Family podcast.

Here are my notes from the conversation: (long thread)

100+ year old companies are very rare.

Most family wealth is lost by the 4th generation as the family outgrows the wealth and fails to build structures to keep that wealth alive.
Only 30% of intergenerational wealth survives the 1st gen to the 2nd gen.

12% to the 3rd.

3% the 4th.

"Shirt sleeves to shirt sleeves in 4 generations."

Today, 80% of wealth is "new money." Many families today don't know how to steward wealth.
Read 13 tweets
25 Feb
Looking for a company to acquire? Don’t start a search fund, start a podcast.

You’ll get proprietary deals, build industry expertise and credibility, and pay for your search.

Here’s how (long thread!):
Nearly all searchers today start by building email lists and collecting names and phone numbers.

Nothing wrong with that, but it’s becoming a harder channel to make yourself stand out to a seller.
So why start a podcast? Build a new way to get in front of potential sellers.

Instead of you approaching them, make them come to you.
Read 20 tweets
6 Jan
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!

Read 8 tweets
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

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