Nikonomics - The Economics of Small Business

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Chelsea Wood (https://x.com/SMBChelseaWood), co-founder of Acquisition Lab, the premier business buying accelerator. Chelsea partnered with Walker Deibel, author of "Buy Then Build." Since its inception, the Acquisition Lab has guided over 800 people, with nearly 200 successfully acquiring their first business.

In this episode, we discuss why seller financing isn’t always a safe strategy, the dangers of oversimplifying business advice on social media, and why not everyone should buy a business. Chelsea also highlights the importance of due diligence and how to assess the quality of earnings. 

Questions this Episode Answers:

• Why isn't seller financing always a safe strategy?
• What should be considered before buying a business?
• What are the pitfalls of oversimplified business advice on social media?
• How does due diligence play a critical role in acquisitions?
• Why is a deep understanding of risk essential when buying a business?

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This week we covered:

00:00 Highlights: Should You Buy a Business?
00:15 Meet Chelsea Wood: Co-Founder of Acquisition Lab
01:23 Chelsea's Career Journey: From Consultant to M&A
05:56 The Leap to Entrepreneurship: Starting Acquisition Lab
06:29 The Impact of COVID-19 on Business Ventures
11:16 The Role of Spousal Support in Business Success
16:57 Inside the Acquisition Lab: Structure and Services
23:00 The Risks of Seller Financing in Business Acquisitions
26:32 The Importance of Cash Flow Management
27:07 Challenges of Doubling Revenue in Healthcare
28:09 The J Curve and Cash Reserves
28:44 The Reality of Buying a Business with No Money Down
29:01 Understanding Working Capital and Access to Credit
29:29 Personal Stories and Risks of Business Ownership
34:01 Assessing Your Risk Profile
40:09 Experience and Skills Needed for Business Ownership
41:53 The Importance of Due Diligence
53:02 Mental Health and Financial Stress in Business Ownership
55:17 Conclusion and Contact Information

Join me, Nik (https://x.com/CoFoundersNik), as I talk with Mark Brooks (https://x.com/markbrooks), the Managing Director of Permanent Equity, a unique investment fund founded by Brent Beshore. With 16 businesses and 900 employees, Permanent Equity uses a 30-year fund model and focuses on debt-free acquisitions, which goes against the grain in private equity. We discuss how they identify unique metrics for each business, incentivize operators without using EBITDA, and manage post-sale relationships. 

Questions this Episode Answers:

• What is Permanent Equity’s unique 30-year fund model?
• Why does Permanent Equity pursue debt-free acquisitions?
• How do they identify key metrics for each business?
• Why don’t they incentivize operators based on EBITDA?
• How do they approach post-sale seller relationships?

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This week we covered:

00:00 Highlights
00:19 Welcome to Nickonomics
01:15 Interview with Mark Brooks
02:00 Understanding Traditional Private Equity
05:27 Permanent Equity's Unique Approach
07:44 Incentive Alignment and Cash Flow
08:44 Newsletter Promotion
09:14 Challenges with Incentive Alignment
11:04 Structuring Purchases and Keeping Owners Onboard
14:38 Value Proposition and Legacy Considerations
17:29 Operational Support and Back Office Functions
23:02 Metrics and Day-to-Day Operations
25:59 Understanding Leverage Points in Business
26:40 Key Business Metrics Categories
27:45 Dogmatic vs. Flexible Business Approaches
28:24 Industry-Specific Metrics and Opinions
29:42 Tracking Metrics and Reporting
31:17 Managing a Portfolio of Businesses
33:19 Delegation and Business Growth
39:33 Characteristics of Successful Companies
45:06 Advice for Entrepreneurs and Personal Reflections

Join me, Nik (https://x.com/CoFoundersNik), as I introduce something new on Nikonomics. My best friend and business partner, Chris (http://tkopod.co/p-x), and I have a discussion every Friday called HoldCo Bros, originally released only on his podcast, we brainstorm ideas and go completely off the wall. It’s basically the same conversations we’ve been having for the last 20 years - random, sometimes inappropriate, but always packed with actionable advice.

In this episode, we talk about pricing, transparency, and lead generation. We explore the idea of a car negotiation as a service and how to leverage virtual assistants to secure the best car deals. We also discuss creating products for business owners and how to find and capitalize on distressed business opportunities. Additionally, we discuss the custom home building industry, and Chris shares his advice based on his own experience.

Chris's YouTube: http://tkopod.co/p-yt

Chris's Podcast: http://tkopod.co/p-all

Questions this Episode Answers:

• What strategies can help you capitalize on distressed business opportunities?
• How can pricing and transparency improve your business?
• What makes the custom home building industry unique?
• How do you generate and sell high-ticket leads for home services?
• What are the best ways to create products that solve real problems for business owners?

___________________________

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This week we covered:

00:00 Highlights
00:20 Introduction and Recap 
01:14 The Cost Transparency Idea
04:20 Implementing the Idea with VAs
06:19 Expanding the Concept to Other Industries
09:01 The Car Buying Experience
14:51 Scamming the Scammers
15:41 AI in Business
26:52 The Art of Prompt Engineering
27:52 Prompt Hacks and Real-Life Examples
28:52 Contextualizing AI Prompts
30:02 Funny Anecdotes and AI Evolution
31:19 Silicon Valley Business Ideas
34:46 E-commerce Success Story
36:32 Buying Distressed Businesses
41:34 Creative Marketing Strategies
47:17 Conclusion and Final Thoughts

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Antonia Patero (https://x.com/antonia_mdprjct), founder of MADD Project, a commercial real estate development management company. Antonia shares her journey from architecture to development and explains how her firm handles everything from concept to completion for large-scale commercial projects. In this episode, we discuss how development fees can misalign incentives and why understanding market data and financial structuring is crucial before engaging a design team. 

Questions this Episode Answers:

• What is the transition from architecture to development like?
• How do development fees work in large-scale projects?
• Why can misalignment of incentives be an issue in real estate?
• What role does market data play in successful development projects?
• How can developers better structure projects for investors?

___________________________

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This week we covered:

00:00 Highlights
00:44 Meet Antonia Botero: From Architecture to Development
01:27 Understanding Development Fees and Market Data
02:00 Comparing Commercial and Residential Projects
03:08 The Role of an Architect in Development
04:55 Market Analysis and Financial Structuring
07:10 Antonia's Career Journey and Starting Mad Project
10:44 Economic Incentives and Development Fees
20:35 The Million Dollar Team Dilemma
20:43 The Value of Project-Based Hiring
20:56 Challenges of In-House Teams
21:24 The Better Model for Managing Fees
22:59 Starting a Company in 2017
25:05 Navigating COVID-19 Challenges
26:58 Customer Acquisition Strategies
27:45 The Importance of Word of Mouth
30:25 Managing Projects Across the Country
32:23 Rapid Fire Questions
36:21 Final Thoughts and Contact Information

I sit down with John Maher, founder of The Victorian Group, a lead generation agency specializing in private wealth advisors and lenders. John’s story is a rollercoaster - by 18, he was featured in Forbes, and by 21, he hit rock bottom. Now, in his mid-20s, he’s rebuilt and is running a $600,000-a-year agency with 50-60% net margins.

In this episode, John opens up about the tough lessons learned along the way, the challenges of marketing in highly regulated industries, and how he navigated both personal and professional setbacks. 

Questions this Episode Answers:

• How did John go from being featured in Forbes to rebuilding a $600K agency?
• What are the biggest challenges of marketing for private wealth advisors?
• How did John achieve 50-60% margins in a highly regulated industry?
• What are the key lessons in turning failure into opportunity?
• How can you build a resilient business despite major setbacks?

___________________________

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This week we covered:

00:00 Highlights
00:32 The Downside of the Upside
00:59 Introducing John Mayer and the Victorian Group
01:53 A Journey of Mentorship and Investment
05:00 Overcoming Personal Struggles
07:13 Rebuilding and Seeking Investment
09:53 The Pitch and Early Challenges
16:58 The Daily Grind: Overcoming Challenges
17:14 Strategizing for Success: Distribution and Resources
17:37 Life Changes and Future Prospects
17:56 Equity and Business Model Evolution
18:12 The Reality of Entrepreneurship
19:21 Understanding Ideal Client Profiles (ICP)
20:28 Lead Generation Strategies
23:06 Cost of Customer Acquisition
24:27 Lending Side of the Business
30:00 High Net Worth Financial Services
34:39 Rapid Fire Questions
36:27 Final Thoughts and Contact Information

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Hunter Durham (https://x.com/huntercdurham), an entrepreneur who went from running a successful $7 million company to filing for bankruptcy. Hunter shares the lessons learned from his company, Furniture USA Distribution, which collapsed due to customer concentration on a major client and poor cash flow management.

In this episode, we explore the dangers of scaling too fast, managing a business's financial health, and why diversifying your customer base is critical. We also dive into the emotional toll of facing bankruptcy and how to recover from it.

Hunter’s transparency about his failures and successes makes this episode a powerful reminder that entrepreneurship isn’t always a smooth road. 

Questions this Episode Answers:

• How did Hunter grow Furniture USA Distribution to $7 million in revenue before its collapse?
• What are the dangers of relying on one major client for business revenue?
• How can entrepreneurs avoid scaling too fast and protect their businesses?
• What are the best ways to manage cash flow and customer risk?
• How does bankruptcy affect an entrepreneur emotionally, and what are the next steps after hitting rock bottom?

___________________________

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This week we covered:

00:00 Introduction and Welcome
01:23 The Bankruptcy Story
02:26 Hunter's Business Background
04:17 Early Career and Sales Experience
05:21 Life at Facebook
07:15 Transition to Entrepreneurship
14:14 Launching the Agency
18:04 Acquiring the E-commerce Business
23:16 Acquisition and Customer Concentration
24:34 Cashflow Challenges and Terms
26:06 Navigating Debt and Receivables
30:20 Facing Bankruptcy
37:58 Lessons Learned and Moving Forward
44:48 Rapid Fire Questions

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with the OG of parody and ghostwriting, Charlie Light (https://x.com/CharlieWRich). In 2020, Charlie launched the John W. Rich parody account during the pandemic. What started as a fun outlet turned into a thriving business, gaining 200,000 followers and generating $44,000 per month ghostwriting for other accounts by 2022.

In this episode, you’ll learn how Charlie experimented and pivoted his way to success, scaling beyond his meme account. We discuss why simplicity in communication is an entrepreneurial superpower and how Charlie navigated the challenges of monetizing parody content. Get ready for some laughs, valuable business insights, and a deep dive into the unexpected world of Twitter-based businesses.

Charlie's parody account: https://x.com/cokedupoptions

Questions this Episode Answers:

• How did Charlie turn a parody Twitter account into a $44,000/month business?
• What key traits helped Charlie scale his business beyond memes?
• How can entrepreneurs leverage humor in serious content to engage their audience?
• Why is simplicity crucial in communicating business ideas effectively?
• What challenges come with monetizing a parody account, and how did Charlie overcome them?

___________________________

Leave us a review on Apple Podcasts or Spotify and you could WIN $100!!
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This week we covered:
00:00 Highlights & Introduction 
01:27 Guest Introduction & Background
01:41 Creating the John W. Rich Parody Account
03:07 Turning a Hobby into a Business
05:32 Challenges and Successes in Monetization
06:26 The Art of Writing and Comedy
18:40 Favorite Formats and Inspirations
21:37 The Fascination with Guru Accounts
22:05 The Rise of Coffeezilla
22:41 Monetizing Social Media Accounts
23:13 Selling the John W. Rich Account
23:33 Challenges of Running a Parody Account
25:14 The Value of Niche Content
29:18 Real-Life Interactions and Recognition
33:41 Rapid Fire Questions and Reflections

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Kirk Newcombe (https://x.com/KirkNewcombe), Founder of TorchPX and a former Search Fund Operator. Kirk managed and grew an 8-figure custom swimming pool business with 150 employees in the Hamptons. He shares how he developed a custom solution for managing data across five different service lines, which ultimately inspired him to launch TorchPX, a technology consulting company focused on AI-enabled workflow optimization and automation.

In this episode, you’ll hear how Kirk used AI and automation to reshape his business, handle real-time KPIs, and why these technologies are now crucial for “sweaty” businesses like construction, pool services, and more.

Questions this episode answers:

• How did Kirk grow his pool business to 8 figures?
• How can AI and automation help with workflow optimization?
• What are the real-world applications of AI in traditional businesses?
• How can business owners implement technology to manage real-time data?
• What inspired Kirk to launch TorchPX and shift into consulting?

___________________________

Leave us a review on Apple Podcasts or Spotify and you could WIN $100!!
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Every week I will pick a random listener who left a review to GET PAID!
___________________________

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___________________________

This week we covered:

00:00 Introduction to High-End Pool Business
00:29 Welcome to Nickonomics
00:36 The Most Important Metric in Business
01:11 Meet Kirk Newcombe of Torch PX
02:19 From Tech to Pool Business
03:02 Challenges in Pool Business Operations
05:57 Tech Solutions for Business Integration
12:54 Custom Metrics for Business Efficiency
14:49 Decision to Start a Consulting Company
17:30 The Reality of AI in Technology
17:49 Challenges in Building Enduring Software Products
18:20 The Shift Towards Services in Business
18:26 AI's Role in Business Strategy
20:08 Introduction to TorchPX
20:36 Client Engagements and Roles
21:42 Building Custom Solutions for Clients
22:36 Acquiring Customers and Search Fund Experience
26:23 Reflections on Business and AI
29:18 Personal Insights and Advice
30:35 Conclusion and Final Thoughts

Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Lauren Rothlisberger (https://x.com/lcrothlisberger), a successful entrepreneur managing 350 self-storage units across three properties, generating $300,000 annually. Lauren shares her story of starting in residential real estate, transitioning to commercial self-storage, and how she convinced a seller to finance her first deal. 

In this episode, you’ll learn how to use a value-add strategy in real estate, why focusing on a local market gives you an edge, and how Lauren balances running her business while navigating the complexities of property management. 

Questions this episode answers:

• How did Lauren transition from residential to commercial real estate?
• What is a value-add strategy in self-storage?
• How can focusing on a local market give you a competitive advantage?
• How did Lauren convince a seller to finance her first deal?
• What are the biggest challenges in managing 350 self-storage units?

___________________________

Leave us a review on Apple Podcasts or Spotify and you could WIN $100!!
Screenshot it, send it to us, and you will be automatically entered to  WIN $100!

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Apple: https://tinyurl.com/bdxbr284

Every week I will pick a random listener who left a review to GET PAID!
___________________________

YouTube: https://tinyurl.com/nikonomicsYT
___________________________

This week we covered:

00:52 Meet Lauren Roethlisberger: Self Storage Entrepreneur
01:44 Understanding the Self Storage Business
03:48 The Appeal and Challenges of Self Storage
07:54 Operational Insights and Team Structure
08:30 Geographical Focus and Market Strategy
13:09 Financials and Revenue Breakdown
19:51 The Dumpster Rental Business
22:09 Understanding Lifetime Value and Churn
23:58 First Purchase Journey
25:57 The Appeal of Self Storage
29:00 Valuing Self Storage Businesses
33:27 Advice for Aspiring Investors
38:07 Rapid Fire Questions
41:59 Conclusion and Final Thoughts

Join me, Nik (https://x.com/CoFoundersNik), as I talk with Justin Donald (https://x.com/jwdonald1), bestselling author, real estate investor, and founder of The Lifestyle Investor. Justin has helped countless entrepreneurs achieve financial freedom through smart investing strategies and has built a nine-figure investment portfolio, including over 1,500 mobile home park pads, investments in dog training companies, and an early stake in Orange Theory. We cover how Justin transitioned from being an employee to creating a multi-million dollar empire, with a business model generating over $400K per month.

In this episode, we also explore Justin’s lifestyle investment philosophy, the mindset shifts necessary to achieve financial freedom, and how frustration can be turned into a driving force for success. Justin shares why he invests up to $500K per year in masterminds and the role these high-value networks have played in his journey.

Questions this episode answers:

• How did Justin Donald turn his side hustle into a nine-figure portfolio?
• What is Justin’s lifestyle investment philosophy, and how can it lead to financial freedom?
• What strategies can help generate passive income and scale a business?
• How can frustration fuel entrepreneurial success?
• How do high-value masterminds contribute to wealth-building and growth?

___________________________

Leave us a review on Apple Podcasts or Spotify and you could WIN $100!!
Screenshot it, send it to us, and you will be automatically entered to  WIN $100!

Spotify: https://tinyurl.com/5avyu98y

Apple: https://tinyurl.com/bdxbr284

Every week I will pick a random listener who left a review to GET PAID!
___________________________

YouTube: https://tinyurl.com/nikonomicsYT
___________________________

This week we covered:
00:43 The Value of Networking and Masterminds
01:34 Welcome to Nikonomics
01:58 Interview with Justin Donald Begins
04:01 Justin's Early Career and First Investments
08:52 Transition to Real Estate Investments
12:03 Balancing Business and Real Estate
16:41 Achieving Financial Freedom
24:23 Personal Reflections and Future Plans
25:51 Back to the Show
25:52 Achieving Financial Freedom
27:35 Real Estate Investments and Growth
29:00 Business Ventures and Success Stories
32:35 The Power of Masterminds
44:06 Investing in Yourself
47:15 Rapid Fire Questions
50:02 Conclusion and Final Thoughts