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🔑 Key Takeaways

  1. When seeking advice, ask specific questions and clearly communicate your expectations. Implement the advice given and show appreciation by demonstrating how it has positively impacted your journey.
  2. Andrew Wilkinson's company, Tiny, focuses on acquiring majority stakes in profitable and sustainable businesses that have been around for 5 to 10 years, generating double-digit millions in revenue. They prioritize strong profit margins and reinvest their free cash flow to expand their portfolio.
  3. Inspired by Warren Buffett, founders created a faster and simpler process to acquire internet businesses, allowing for quick decisions and avoiding frustrating negotiations, while also emphasizing the importance of assessing a business's value and individual goals before selling.
  4. Andrew Wilkinson's success lies in his cautious and disciplined financial management, recognizing the challenges of scaling a business and staying skeptical of exponential growth while prioritizing ROI. His proactive measures during the COVID-19 crisis demonstrate the importance of prudent risk management and adaptability.
  5. Taking early precautions, staying informed, and empowering capable individuals can help mitigate potential risks and ensure stability in both personal and professional life.
  6. Delegating responsibilities and building a reliable team is crucial for entrepreneurs to unlock new levels of success and achieve personal freedom, leading to greater business growth.
  7. Questioning the stories we tell ourselves can lead to personal growth, new opportunities, and a more fulfilling and successful path in life.
  8. Independence from intermediaries, organic user growth, diverse monetization opportunities, and investment in R&D contribute to the success and growth potential of a business.
  9. Canada offers tax credits, lower labor costs, and a favorable exchange rate, making it an appealing choice for businesses seeking to invest in research and development while minimizing expenses.
  10. Job boards can be highly profitable by catering to specific niches, building a strong community, and generating high traffic through targeted audiences and advertising opportunities.
  11. Job board owners must identify a specific niche, adapt to changing trends, and consider alternative solutions like "no code" platforms to remain successful in the ever-evolving job market.
  12. With no code tools, entrepreneurs can quickly build viable businesses, generate revenue, simplify existing businesses, and create sustainable ventures by leveraging capable operators and efficient execution.
  13. Andrew Wilkinson's approach to success is to surround himself with competent operators and CEOs, recognize the importance of asset-light businesses, and have a willingness to adapt and improve existing ventures.
  14. Andrew Wilkinson emphasizes the importance of a conservative financial approach and diversifying business ventures. He sees subscription-supported podcasting as a promising avenue for growth.
  15. Podcasters can capitalize on the trend of personality-driven podcasts by offering premium content to dedicated fans through private feeds, allowing them to generate additional revenue and build successful businesses.
  16. Identifying whether you're naturally inclined towards being a capital allocator or an operator is essential for finding fulfillment and achieving success in your entrepreneurial journey.
  17. Prioritize self-care and embrace unique experiences to live life to the fullest, even if it means taking unconventional risks.
  18. Saunas offer numerous health benefits, require minimal setup, and can even be the size of a wardrobe. Consider incorporating sauna therapy into your daily routine for improved physical and mental health.

📝 Podcast Summary

The importance of asking for advice effectively

When seeking advice, it's important to ask the right questions and set clear expectations. Many people make the mistake of asking for validation or permission instead of genuine advice. Jordan Harbinger emphasizes the need to be intentional and explicit in detailing what you need from the person you're seeking advice from. It's not enough to just ask for encouragement or a general opinion. Additionally, implementing the advice given and showing the other person how their guidance has been applied in a specific way is crucial. This approach can lead to career-changing results. By listening to Jordan Harbinger's podcast and understanding the importance of asking for advice effectively, anyone can benefit regardless of where they are in their journey.

Building a Profitable Portfolio with Sustainable Businesses

Andrew Wilkinson's company, Tiny, is a long-term holding company for profitable and simple internet businesses. They focus on acquiring majority stakes in businesses that have been around for 5 to 10 years and are not interested in flashy or trendy ventures like drones or AI. Tiny owns a variety of businesses including design firms, Shopify apps and themes, job boards, SaaS businesses, and podcasting companies. Andrew started with MetaLab, a product design agency, and expanded from there, acquiring and starting other businesses. Tiny's empire currently generates double-digit millions in revenue and they prioritize businesses with strong profit margins, reinvesting their free cash flow to acquire more businesses.

Simplifying the Process of Selling Internet Businesses

The traditional process of selling businesses can be extremely time-consuming and frustrating, especially when dealing with private equity firms. The founders of this internet business found that the lengthy negotiations, complicated financial terms, and months of due diligence were absurd and miserable. Inspired by Warren Buffett's quick and efficient deal-making approach, they decided to create a simpler and faster process for acquiring smaller internet businesses. This resonated with founders who wanted to make quick decisions and avoid being dragged through the mud of renegotiations. However, it's important to consider the staying power and potential risks of a business before determining its value. Ultimately, the decision to sell or hold a business should depend on individual goals and circumstances.

Andrew Wilkinson's Cautious Approach: A Recipe for Success

Andrew Wilkinson's cautious approach and focus on disciplined financial management have been key factors in his success as an investor and business owner. He acknowledges the challenges of scaling a business, recognizing that growth becomes increasingly difficult as the numbers get larger. Despite being aware of the potential limitations of exponential growth, he remains skeptical and always considers the return on investment. Additionally, Andrew's early recognition of the COVID-19 crisis and proactive measures to protect himself, his family, and his businesses highlight his prudent nature. This cautious mindset, combined with a focus on cost-cutting and preserving financial resources, has helped his companies weather the storm and remain relatively unaffected by the pandemic. Overall, Andrew's approach exemplifies the importance of thoughtful risk management and the need for adaptability in uncertain times.

Andrew Wilkinson's Proactive Approach: Preparing for Risks and Protecting Personal and Professional Life.

Andrew Wilkinson's proactive approach in taking precautions and preparing for potential risks, such as the spread of a serious global pandemic, has proven to be beneficial for both his personal and professional life. Despite initial skepticism from others, including his wife, Wilkinson's early actions allowed him to avoid the panic and scramble that many faced when the situation unfolded. His focus on staying informed, being prepared, and implementing measures not only ensured that his household had the essentials, but also protected his business interests and the livelihoods of his employees. By delegating responsibilities to capable CEOs and maintaining open communication channels, Wilkinson was able to maintain a successful and hands-off approach, further emphasizing the importance of trusting and empowering the right individuals within a company structure.

The Power of Delegation in Entrepreneurship

Successful entrepreneurship requires effective delegation. Initially, many entrepreneurs struggle with trusting others to handle different aspects of their business, such as support or sales. This fear often leads to the belief that they must do everything themselves, limiting the growth potential of their company. However, by hiring the right people and delegating responsibilities, entrepreneurs can unlock new levels of success. This transition may involve making mistakes and hiring the wrong individuals initially, but it is important to persist in finding the right team members. Once the right people are in place, entrepreneurs can witness their business expand and thrive, even exceeding their own capabilities. By delegating tasks and incentivizing their team, entrepreneurs can enjoy more personal freedom and focus on higher-level strategic planning, ultimately leading to greater business success.

Challenging Our Self-Imposed Limitations

It's important to question the stories we tell ourselves. Both Andrew Wilkinson and Shaan Puri realized that they were holding onto false narratives that were causing unnecessary stress and limiting their potential. By examining their beliefs and challenging the stories they were telling themselves, they were able to find new opportunities and make positive changes. This lesson can be applied to various aspects of life, whether it's in business or personal relationships. It's crucial to question the narratives we create and consider alternative perspectives. By doing so, we can break free from self-imposed limitations and create a more fulfilling and successful path forward.

Building a self-sufficient and thriving business like New Zealand

A successful business should aim to be like New Zealand. Just like New Zealand is independent and self-sufficient, a business should strive to be free from intermediaries and have a fully self-sufficient society of customers. Dribbble, the largest social network for designers, is a prime example of this. It has a massive community of dedicated users who come to the site organically, without relying on Google or Facebook for traffic. This gives the business the freedom to explore unlimited monetization opportunities, just like opening various attractions in a museum. With the right respect and offerings, such a business can thrive. Additionally, investing in R&D is crucial to stay ahead of the game and seize future opportunities. Dribbble's success has been driven by reinvesting in research, development, and future growth. Looking forward, the company's CEO predicts that Dribbble will be ten times bigger in the next five years.

Incentives for R&D in Canada

Canada offers several incentives to encourage businesses to invest in research and development (R&D) projects. The government provides tax credits called shred (Scientific Research and Experimental Development) credits to companies that spend money on R&D activities. These credits can be quite substantial, ranging from 15% to even 40% of the expenses incurred, depending on the scale and nature of the business. Additionally, Canada also benefits from currency arbitrage, where salaries are generally cheaper compared to cities like San Francisco and New York, and the exchange rate between the US dollar and Canadian dollar provides an advantage. Moreover, the Canadian healthcare system eliminates the need for companies to provide extensive medical benefits, further reducing costs. These factors combined make Canada an attractive destination for businesses looking to optimize their expenses while investing in innovation.

The Potential for Profitability in Job Boards

Job boards can be highly profitable businesses if they have a specific niche, strong community, and high traffic. Job boards operate on a simple model, where they provide a list of job opportunities within a particular field or industry. Andrew Wilkinson's company, Tiny boards, owns a successful job board called weworkremotely.com, which focuses on remote job opportunities. By acquiring this job board, they gained a significant source of revenue, as job boards mainly generate income by selling links to job listings. Despite the decline of traditional newspaper classifieds, job boards have thrived in the digital era and offer great potential for profitability through targeted audiences and advertising opportunities.

The Challenges and Opportunities of Job Boards in a Changing Landscape

Job boards can be highly profitable if they have a captive audience, but without that audience, they can be challenging businesses. The key is to tap into a specific niche or market where demand is high. Additionally, as social platforms like Facebook and LinkedIn continue to expand and add job search features, the longevity of traditional job boards may be in question. Therefore, diversification and adaptation are crucial for job board owners to stay relevant. Another noteworthy trend is the rise of "no code" platforms that allow individuals to easily build software applications without extensive coding knowledge. This opens up opportunities for entrepreneurs to create their own businesses and solve common frustrations, such as the slow development process.

The Power of No Code: Rapid Prototyping, Cost-Effective Growth, and Simplifying Business Complexity

The use of no code tools allows for rapid prototyping and the ability to build real businesses quickly and cost-effectively. It proves the viability of MVP ideas and can generate revenue up to $1,000,000, providing a solid foundation to further develop and scale. No code also presents opportunities to simplify and reduce the complexity and expenses of existing businesses. By acquiring and restructuring such businesses with no code, it becomes possible to create sustainable and profitable ventures that may not have been feasible before. Additionally, public statements and hiring capable operators are key to executing these ideas efficiently. Ultimately, no code empowers entrepreneurs to launch and grow businesses with speed and efficiency.

Andrew Wilkinson's key to success: Recognizing strengths, leveraging talented individuals, and learning from mistakes to build profitable businesses.

Andrew Wilkinson's success lies in his ability to recognize his strengths and limitations. He knows how to spot talented individuals and leverage their skills to build successful businesses. Wilkinson understands the importance of having a network of competent operators and CEOs who can run the day-to-day operations while he focuses on new ventures. He learned from his past mistakes, such as the failed eCommerce store and restaurant, realizing the importance of having asset-light businesses with higher profit margins. Wilkinson's approach is to find existing businesses at scale and make them better rather than starting from scratch. His flexibility and willingness to adapt have been key factors in his entrepreneurial journey.

Lessons Learned from Business Trials and Successes

Andrew Wilkinson has learned valuable lessons through trial and error in business. He has experienced both the success of owning great businesses and the failure of owning poor ones. Despite facing financial struggles in 2008, Wilkinson's conservative approach to finances and a diversified portfolio of businesses have given him peace of mind and allowed him to sleep soundly. Additionally, Wilkinson believes that the monetization of podcasts through subscriptions has immense potential and that the current focus on ads is missing the mark. He sees subscription-supported podcasting as an exciting opportunity for growth, drawing inspiration from a friend's successful Patreon model.

Leveraging Personality-Driven Podcasts for Success and Revenue Generation

There is a growing trend of personality-driven podcasts that have loyal fan bases willing to pay for additional content and access. There are podcasts like Howard Stern that have subscribers who pay a monthly fee for exclusive content. This shows that people are willing to support and pay for podcasts they love. Building on this idea, Supercast has created a platform that allows podcasters to offer premium content through private feeds to their supporters. This model has proven successful, with some podcasters even building businesses without employees solely based on these subscriptions. The key is to provide valuable and exclusive content to the dedicated fans who want more from their favorite podcasts. Sam and Sean should consider implementing features like AMAs, extended interviews, and exclusive insights to attract their super fans and generate additional revenue. While advertisements can still be a part of the public feed, offering ad-free content and special perks through a premium subscription can enhance the podcasting experience for both the hosts and the listeners.

Choosing between Capital Allocator and Operator: Finding Fulfillment in Entrepreneurship.

Choosing between being a capital allocator and an investor, or an operator, ultimately depends on what excites you and aligns with your skills and interests. Some individuals are naturally drawn to investing and value-driven decision making, finding it almost irresistible. They are the ones who connect with books by Buffett, Howard Marks, and Monish Pabrah. On the other hand, there are those who thrive as hardcore operators, enjoying the hands-on process of running and improving businesses. Building scar tissue and experiencing the challenges firsthand is crucial for developing a deep understanding of what makes a good business. Overall, it's about identifying which camp you belong to, whether it's being a capital allocator or an operator, to find fulfillment and success in your entrepreneurial journey.

Embracing Change and Pushing Boundaries

Sam Parr is willing to do unconventional things, like getting a face tattoo, if certain goals are met. He shares his willingness to take risks and push boundaries, even if it means looking "crazy" or "nutty." Sam's attitude reflects a mindset of embracing change and living life to the fullest. Additionally, the conversation highlights the impact of quarantine on people's mental health, with Sam mentioning how he feels like he's going insane. This emphasizes the need for self-care and finding ways to cope with stress, as shown through Andrew's appreciation for his sauna. This exchange reminds us to prioritize our well-being and explore unique experiences.

The Surprising Benefits and Ease of Setting Up a Home Sauna

Saunas have numerous benefits and are becoming increasingly popular. Andrew Wilkinson and Sam Parr discuss their experiences with saunas and highlight how easy it is to set up a sauna at home. Wilkinson emphasizes the physical benefits, comparing it to a 2-hour workout, while Parr mentions the convenience of a sauna the size of a wardrobe. They also mention the endorsement of Dr. Rhonda Patrick, who has spoken about the science behind sauna therapy. The conversation sheds light on the growing interest in saunas and the potential for companies to sponsor podcasts by providing saunas. Ultimately, the discussion highlights the positive impact saunas can have on health and well-being.