Nikonomics - The Economics of Small Business

Latest Episodes:

104 - Why a Talent Partner is Key to Your Company's Growth with Kelie Morgan Jan 06, 2025

Show notes

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Join me Nik (https://x.com/CoFoundersNik) as I sit down with Kelie Morgan (https://x.com/keliemorgan), founder of 10th Street Talent, an executive recruiting firm that spun out of Permanent Equity, to discuss how she built her company and how it operates. Kelie shares her journey from being a stay-at-home mom and part-time fitness instructor to becoming a leader at a family-owned fitness center, then joining Permanent Equity and eventually launching 10th Street Talent. Kelie describes how the company is more of an internal talent partner than an external service provider, and that it focuses on finding transformational leaders for small to medium sized businesses in growth mode. She also explains how they utilize AI and other innovative strategies to improve the talent search process.

In this episode, we explore the genesis of 10th Street Talent and their unique approach to executive search, which involves a highly collaborative, strategic process to find the best talent for their clients. Kelie also talks about the importance of a "white glove" service and building a team focused on client fulfillment.

Questions this Episode Answers:

How did 10th Street Talent evolve from an internal talent solution at Permanent Equity to a standalone executive recruiting firm?
What does it mean to be a "talent partner" and how does that differ from traditional executive search firms?
How does 10th Street Talent use AI and other innovative tools to enhance its search process and find the best talent?
What is the ideal client profile for 10th Street Talent, and what is their service model?
What does the financial structure of 10th Street Talent look like and what is Kelie's vision for the future of the company?

103 - Is Consistency Overrated? Content, Wins & Losses, Investments, & Our 2024 Business Lessons with Chris Koerner Jan 03, 2025

Show notes

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Join me, Nik (https://x.com/CoFoundersNik), and my business partner Chris Koerner (https://x.com/mhp_guy), as we dive into another episode of HoldCo Bros! We talk about our absolutely transformative 2024. It was a year of big wins and some pretty big fails, and we're breaking it all down. Is consistency overrated when it comes to content? We're debating that and more!
We discussed the world of content creation, going from cringe to building an audience of over a million people across multiple platforms. We explore how short-form video is like a lottery ticket - a small investment that can change everything. We also discuss how building an audience can create new opportunities, such as launching our vending machine business that already did over $200k in sales, as well as getting into some unsexy but profitable businesses. Of course, we're also talking about some tough lessons learned from our crypto business and other ventures that didn't work out. Plus, we're sharing our exciting plans for 2025.

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

Enjoy the conversation!
__________________________
Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
__________________________
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Spotify: https://tinyurl.com/5avyu98y
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YouTube: https://tinyurl.com/nikonomicsYT
___________________________
This week we covered:
00:00 Reflecting on a Chaotic Year
01:22 Quitting the Job and Embracing Entrepreneurship
02:31 The Power of Content Creation
03:59 Building an Audience and Exploring Opportunities
05:33 The Impact of Short Form Video
07:46 Turning Ideas into Reality
15:14 The Value of Consistency and Passion in Content
23:49 Exploring the Fun of Reporting
24:22 Big Wins and Validations
26:42 Building a Sales Team
29:05 Launching Repeat Leads
30:20 Investing in Communities and Businesses
37:25 Challenges and Failures
42:58 Looking Forward to 2025

102 - EBITDA vs. SDE: What Every Business Buyer Needs to Know with Dennis Unrein Dec 30, 2024

Show notes

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Join me Nik (https://x.com/CoFoundersNik) as I sit down with Dennis Unrein (https://x.com/dennis_unrein), a micro VC and SMB-focused investor, to discuss the evolving world of micro private equity and self-funded searchers. Dennis shares his journey from JP Morgan to launching Private Ventures Group (PVG), a firm that helps high-net-worth investors and family offices tap into private markets. We break down concepts like SPVs (Special Purpose Vehicles), the difference between EBITDA and SDE, and how to use media-driven strategies to find compelling deals.

In this episode, we also explore the growing trend of acquiring businesses in niche industries like elderly care and telecommunications testing, and why investing in retiring baby boomer businesses offers unique opportunities.

Questions this Episode Answers:

What is a self-funded searcher, and how does it differ from a traditional search model?
How do SPVs simplify investments and deal flow for small businesses?
Why are retiring baby boomer-owned businesses a goldmine for acquisitions?
How can SDE and EBITDA metrics guide smart business purchases?
What are the best industries to invest in right now for small-scale private equity?

Enjoy the conversation!
__________________________
Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
__________________________
MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribe
Spotify: https://tinyurl.com/5avyu98y
Apple: https://tinyurl.com/bdxbr284
YouTube: https://tinyurl.com/nikonomicsYT
___________________________
This week we covered:
00:00 Understanding Investment Metrics: SDE, Cashflow, and EBITDA
02:55 Navigating the Micro VC and SMB PE Landscape
05:47 The Shift to Self-Funded Searchers
09:07 Exploring the Self-Funded Searcher Model
11:54 Differentiating Between SDE and EBITDA
15:08 Demystifying Special Purpose Vehicles (SPVs)
21:05 Understanding Investment Entities and K-1 Partnerships
22:58 The Financial Burden of Self-Funded Searchers
24:24 Equity Structures in Self-Funded Searches
26:44 Navigating Debt and Equity in Business Acquisitions
29:40 The Risks of Operator Dependency in Self-Funded Deals
31:58 Building Deal Flow Through Content Creation
34:54 The Two and Twenty Model Explained
36:23 Advisory and Investment Strategies in SMBs
38:49 Identifying Opportunities in the SMB Space

101 - Robot Lawnmowers, Christmas Tree Business & Monetizing Email Lists with Chris Koerner Dec 27, 2024

Show notes

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨
Join me, Nik (https://x.com/CoFoundersNik), and my business partner Chris Koerner (https://x.com/mhp_guy), as we dive into another episode of HoldCo Bros! Chris and I have generated over $100 million across our companies, and every week we get together to brainstorm new business ideas and share insights into our businesses.
This week, we talk about starting a Christmas tree rental service with delivery and pickup, acquiring tree lots from landscaping companies, and buying into this type of seasonal business. We also discuss robot lawn mowing and cleaning services, how you can help small businesses monetize email lists, and a business owner accountability platform to help entrepreneurs stay on track.

Chris's YouTube: http://tkopod.co/p-yt
Questions this Episode Answers:

How can you start a Christmas tree rental business with recurring revenue?
What’s the process for acquiring tree lots or buying into seasonal businesses?
How can you create a profitable robot lawn mowing or cleaning service business?
What are the steps to starting a business that helps small businesses monetize email lists?
How can you launch an accountability platform to support business owners?

100 - How The Tuttle Twins Sold 6 Million Books Teaching Kids About Entrepreneurship, Freedom & More with Connor Boyack Dec 23, 2024

Show notes

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨
Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Connor Boyack (https://x.com/cboyack), the creator of the Tuttle Twins (https://tuttletwins.com) and president of the Libertas Network. Connor shares how he turned a simple idea into a $15M nonprofit, selling over 6 million books and building a media empire. We talk about the challenges of running a mission-driven business, creative fundraising models, and why teaching economic principles to kids is more important than ever. Whether you're curious about publishing, nonprofits, or scaling a big idea, this episode is packed with actionable insights.

Questions this Episode Answers:

How did Connor scale the Tuttle Twins from an idea into a $15M nonprofit?
What makes Tuttle Twins a unique business within the nonprofit model?
How can entrepreneurs create a mission-driven business and still be profitable?
Why is teaching kids about economics and entrepreneurship so impactful?
What are the challenges and advantages of running a nonprofit media enterprise?

Enjoy the conversation!
__________________________
Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
__________________________
MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribe
Spotify: https://tinyurl.com/5avyu98y
Apple: https://tinyurl.com/bdxbr284
YouTube: https://tinyurl.com/nikonomicsYT
___________________________
This week we covered:
00:00 Highlights_The Rise of Tuttle Twins
03:02 Navigating Nonprofit and For-Profit Dynamics
05:54 The Mission-Driven Approach
08:46 The Impact of COVID-19 on Sales
12:09 Realizing the Power of Media
15:00 Overcoming Supply Chain Challenges
17:48 Entrepreneurial Journey and Lessons Learned
24:20 The Struggles of Early Entrepreneurship
25:49 Transitioning to Nonprofit Work
28:11 Financial Growth and Challenges
30:04 Revenue Streams and Business Models
32:56 The Nonprofit vs. For-Profit Mindset
35:51 Creating Wealth in Nonprofits
39:41 The Future of Libertas Network

99 - How To Start A Business With No Money: College Tuition Negotiation, Local Concierge & More with Chris Koerner Dec 20, 2024

Show notes

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨
Join me, Nik (https://x.com/CoFoundersNik), and my business partner Chris Koerner (https://x.com/mhp_guy), as we dive into another episode of HoldCo Bros! Chris and I have generated over $100 million across our companies, and every week we get together to brainstorm new business ideas and share insights into our businesses.
In this episode, we explore college tuition negotiation and how to offer it as a service to save thousands for families and build a profitable business. Next, we talk about the idea of a local concierge service, catering to parents of college students, especially at SEC schools. It’s like an insurance policy for peace of mind. Finally, we discuss creative solutions for dead inventory, transforming surplus stock into revenue-generating opportunities.

Chris's YouTube: http://tkopod.co/p-yt
Questions this Episode Answers:

How can you turn college tuition negotiation into a profitable service that solves a major financial pain point for families?
What makes the "Dean's List" local concierge service a unique business opportunity for targeting parents of college students?
What are the best strategies for turning dead inventory into a thriving revenue stream?
Why are niche services like these great opportunities for first-time business owners?

Enjoy the conversation!
__________________________
Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
__________________________
MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribe
Spotify: https://tinyurl.com/5avyu98y
Apple: https://tinyurl.com/bdxbr284
YouTube: https://tinyurl.com/nikonomicsYT
___________________________
This week we covered:
00:00 Highlights
00:35 Introduction: The Untapped Potential of Negotiating College Tuition
01:33 Exploring the Concept: Why Isn't Tuition Negotiation More Popular?
03:14 The Business Opportunity: Tuition Negotiation as a Service
05:28 Strategies for Negotiating Tuition
11:12 Case Study: A Friend's Apparel Business Venture
17:45 Creative Ideas for T-Shirt Designs
19:00 The Success Story of 'God is Dope'
20:17 Marketing Strategies for T-Shirt Brands
23:59 The University Concierge Service Idea
30:20 Evaluating Business Ideas: Marry, Date, or Kill
33:46 Conclusion and Final Thoughts

98 - How to Start and Scale an ATM Business: From 3 to 900 Machines ($180k/Month) with Mitchell Sorkin Dec 18, 2024

Show notes

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Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Mitchell Sorkin, aka “The ATM Guy” (https://x.com/Mitchell_Sorkin), to talk about the world of ATM businesses. Mitchell shares his journey from e-commerce and software to acquiring 900 ATMs and building a business generating $180,000/month in revenue. We talk about what makes ATMs such a scalable opportunity, how to negotiate deals on ATM routes, and the challenges (and opportunities) of working with merchants and managing capital instead of people. If you’ve ever wondered how the ATM business works or wanted a low-labor, high-margin venture, this episode is for you.

Questions this Episode Answers:

How does the ATM business model work, and what are the revenue streams?
What does it take to scale an ATM portfolio from a few machines to hundreds?
How do you negotiate and evaluate deals on ATM routes?
What are the biggest challenges in the ATM industry, and how do you overcome them?
Why is managing capital often easier than managing people in small businesses?

00:00 - Introduction to Nikonomics and Mitchell the ATM Guy
01:32 - The Basics of the ATM Business
02:07 - Scaling the ATM Business: From 3 to 900 Machines
04:06 - Revenue and Scale of the ATM Business
05:38 - Deep Dive into "Own and Load" vs. "Processing"
07:31 - Negotiating Buy Rates and Revenue Streams
09:25 - The Role of ISOs in the ATM Business
11:07 - Mitchell's Background and Motivation
13:42 - The Economics of an Individual ATM
15:09 - Valuing ATM Portfolios
15:57 - Net Income and Cash Flow
17:46 - Pros and Cons of Different Loading Methods
19:24 - Cash Flow and Valuation Multiples
22:20 - Profit Margins and Risks
24:52 - Useful Life of ATMs and Depreciation
25:28 - Bitcoin ATMs
27:13 - Growth Strategy
28:10 - Marketing Strategies
29:22 - The Power of Google Business Profiles
30:32 - Rapid Fire Questions
37:56 - Conclusion and How to Find Mitchell

97 - You DON'T Need to Be a FOUNDER to Be SUCCESSFUL (Here's Proof!) with Emily Holdman Dec 16, 2024

Show notes

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨
Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Emily Holdman (https://x.com/emilyleldridge), managing director at Permanent Equity. Emily shares her journey from journalism and economics to becoming a leader in acquisitions with a no-intention-to-sell philosophy. In this episode, we focus on intrapreneurship - the art of being entrepreneurial within a larger company, and why it’s a viable but often overlooked path to success. We discuss how Emily evaluates businesses, creatively solves problems in deal-making, and balances risk and opportunity while thriving in a non-founder role. If you’ve ever wondered how to make an impact without starting your own business, this episode is packed with insights you can’t miss.

Questions this Episode Answers:

What is intrapreneurship, and why is it a viable path to success?
How can you thrive as an entrepreneurial thinker within a larger company?
What strategies does Emily use to evaluate businesses and balance risk?
How can creative problem solving enhance deal-making and acquisitions?
Why might a non-founder role offer unique opportunities for growth and impact?

Enjoy the conversation!
__________________________
Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
__________________________
MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribe
Spotify: https://tinyurl.com/5avyu98y
Apple: https://tinyurl.com/bdxbr284
YouTube: https://tinyurl.com/nikonomicsYT
___________________________
This week we covered:
00:00 Highlights
00:34 Introduction and Background
00:48 Early Career and Internships
01:49 Transition to Permanent Equity
03:49 First Major Acquisition
05:15 Role Evolution and Business Growth
08:06 Navigating the Great Recession
09:51 Curiosity and Problem-Solving
15:58 Professional and Personal Reflections
21:42 Planning for Uncertainty in Business
22:15 The K-Shaped Recovery Post-COVID
23:26 Creativity in the SMB Community
24:42 The Importance of Self-Awareness in Business
29:19 Advice for Aspiring Entrepreneurs
33:50 Evaluating Business Models and Industries
40:33 Perma nent Equity's Future Ventures

96 - Don't Miss Out On The $150 Billion Pet Industry Boom: Ideas You Can Start Today with Chris Koerner Dec 13, 2024

Show notes

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨
Join me, Nik (https://x.com/CoFoundersNik), and my business partner Chris Koerner (https://x.com/mhp_guy), as we dive into another episode of HoldCo Bros! Chris and I have generated over $100 million across our companies, and every week we get together to brainstorm and share insights into our businesses.

In this episode, we explore the idea of using farmers markets as a way to test products, get direct customer feedback, and validate concepts. Then, we talk about the opportunities for creating and coordinating farmers markets, including strategies for scaling and building community. Finally, we talk about the pet piggyback idea - leveraging pets as a niche for innovative business opportunities.

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

Questions this Episode Answers:

How can farmers markets be used to test and validate new products?
What are the business opportunities in creating and coordinating farmers markets?
How can pets be leveraged as a unique angle for niche business opportunities?
What strategies can help scale small community-based ventures?
What insights can entrepreneurs gain from direct customer feedback?

Enjoy the conversation!
__________________________
Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
__________________________
MY NEWSLETTER: https://nikolas-newsletter-241a64.beehiiv.com/subscribe
Spotify: https://tinyurl.com/5avyu98y
Apple: https://tinyurl.com/bdxbr284
YouTube: https://tinyurl.com/nikonomicsYT
___________________________
This week we covered:
00:00 Highlights
00:34 The Quest for Authentic Texas Brisket Jerky
04:02 The Secret Behind McDonald's Coke
06:38 Pizza Oven Business Idea
08:45 Scaling Food Businesses at Farmer's Markets
12:13 Exploring the Farmer's Market Concept
12:35 Building an E-Commerce Platform for Local Markets
14:28 Understanding State Laws for Farmer's Markets
15:14 Pet Industry Insights: A Growing Market
16:24 Leaky Gut in Pets: A Business Opportunity
17:26 Marketing Strategies for Pet Products
18:07 Leveraging Email Lists and Facebook Groups
19:35 Exploring E-Commerce Business Opportunities
22:56 Shopify Marketplace and Business Listings
25:50 Concluding Thoughts and Reflections

95 - How This Entrepreneur Built a $1.2M/Month Outsourcing Empire with Nathan Yap Dec 11, 2024

Show notes

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨
Join me, Nik (https://x.com/CoFoundersNik), as I sit down with Nathan Yap (https://x.com/nathanyap), founder of Support Zebra, to dive into his journey of building a $1.2M MRR business with over 1,000 employees. We talk about scaling an outsourcing company, surviving the 2008 financial crisis, niching down to SaaS and e-commerce, and navigating growth through trust and culture. Nathan shares how he leveraged family connections and international resources to create an innovative customer service solution.

Questions this Episode Answers:

Is outsourcing a viable business model?
What are the challenges of starting and running an outsourcing company?
What are the key factors to consider when choosing an outsourcing destination?
How can businesses effectively manage a remote workforce?
How is AI impacting the future of outsourcing?

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