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1/ 
Trends #0038 — Micro Private Equity
A thread:
•
3 Predictions
•
6 Opportunities
•
4 Key Lessons
•
5 Haters
Trends #0038 — Micro Private EquityA thread:
•
3 Predictions•
6 Opportunities•
4 Key Lessons•
5 Haters
2/ 
Problem
Starting a business is risky. And takes time.
You may spend years seeking product-market fit, building systems and still fail.
ProblemStarting a business is risky. And takes time.
You may spend years seeking product-market fit, building systems and still fail.
3/ 
Solution
Buying businesses helps you save you time, skip years of costly mistakes, fast-forward to product-market fit and focus on scaling.
SolutionBuying businesses helps you save you time, skip years of costly mistakes, fast-forward to product-market fit and focus on scaling.
4/ 
Micro Private Equity Funds
SureSwift Capital ( @SureSwiftCap)
Calm + Capital ( @CalmCapital)
Apollo Black ( @atomicbev)
LTV SaaS Fund
Concrete Capital ( @Nile)
Micro Private Equity FundsSureSwift Capital ( @SureSwiftCap)
Calm + Capital ( @CalmCapital)
Apollo Black ( @atomicbev)
LTV SaaS Fund
Concrete Capital ( @Nile)
5/ Companies
FeedbackPanda ( @feedbackpanda)
RemoteLeads ( @remoteleads_io)
http://NoCode.tech
DeployBot ( @DeployBotHQ)
Taster’s Club
CompaniesFeedbackPanda ( @feedbackpanda)
RemoteLeads ( @remoteleads_io)
http://NoCode.tech
DeployBot ( @DeployBotHQ)
Taster’s Club
7/ Brokers
FE International ( @FEIntl)
Empire Flippers ( @EmpireFlippers)
BuySellEmpire ( @buysellempire)
BrokersFE International ( @FEIntl)
Empire Flippers ( @EmpireFlippers)
BuySellEmpire ( @buysellempire)
8/ Prediction
Third-party tools like Stripe, Google Analytics, Square and Shopify will make it easier to verify metrics.
Buyers will trust by proxy. This makes cursory due diligence easier.
PredictionThird-party tools like Stripe, Google Analytics, Square and Shopify will make it easier to verify metrics.
Buyers will trust by proxy. This makes cursory due diligence easier.
9/ Prediction
More marketplaces will integrate with third-party services and improve the buying experience.
MicroAcquire integrates with Stripe. IndieMaker will add integrations.
PredictionMore marketplaces will integrate with third-party services and improve the buying experience.
MicroAcquire integrates with Stripe. IndieMaker will add integrations.
10/ Prediction
Finding and buying alternative assets, like Spotify playlists and social media accounts, will become easier.
Sites like Swapd make this possible.
PredictionFinding and buying alternative assets, like Spotify playlists and social media accounts, will become easier.
Sites like Swapd make this possible.
11/ Opportunity
Know your criteria.
Will you buy digital products, B2B SaaS, Micro-SaaS, affiliate sites, FBA businesses, Shopify stores or something else?
OpportunityKnow your criteria.
Will you buy digital products, B2B SaaS, Micro-SaaS, affiliate sites, FBA businesses, Shopify stores or something else?
12/ Opportunity
Know your unique advantage. Build a playbook:
• Raise revenue with conversion rate optimization
• Lower customer acquisition costs by improving SEO
• Lower costs by automating workflows
OpportunityKnow your unique advantage. Build a playbook:
• Raise revenue with conversion rate optimization
• Lower customer acquisition costs by improving SEO
• Lower costs by automating workflows
13/ Opportunity
Buy businesses with similar customers and cross-sell to boost LTV and lower customer acquisition costs.
See Awesome Motive in the WordPress space.
OpportunityBuy businesses with similar customers and cross-sell to boost LTV and lower customer acquisition costs.
See Awesome Motive in the WordPress space.
14/ Opportunity
Build a personal brand for proprietary deal flow.
A few names consistently came up in this thread.
OpportunityBuild a personal brand for proprietary deal flow.
A few names consistently came up in this thread.
15/ Opportunity
Find deals using tools like Growth Ranker, Traffic Opportunities and Product Explorer.
OpportunityFind deals using tools like Growth Ranker, Traffic Opportunities and Product Explorer.
16/ Opportunity
Help others find deal flow:
Micro-SaaS: Source deals from several marketplaces.
Digital Product: See Product Explorer.
Paid Newsletter: See Traffic Opportunities and Website Flipping Newsletter ( @TheWebsiteFlip).
XaaS: Offer deal-flow-as-a-service
OpportunityHelp others find deal flow:
Micro-SaaS: Source deals from several marketplaces.
Digital Product: See Product Explorer.
Paid Newsletter: See Traffic Opportunities and Website Flipping Newsletter ( @TheWebsiteFlip).
XaaS: Offer deal-flow-as-a-service
17/ Key Lesson
Start small and move up in deal size over time.
Key LessonStart small and move up in deal size over time.
18/ Key Lesson
Forget 0 to 1. Go from 1 to N. Save time, reduce risk and “buy” product-market fit.
Key LessonForget 0 to 1. Go from 1 to N. Save time, reduce risk and “buy” product-market fit.
19/ Key Lesson
Build an “audience-first fund” for proprietary deal flow.
Key LessonBuild an “audience-first fund” for proprietary deal flow.
20/ Key Lesson
Assume every business has a price and do cold outreach.
Key LessonAssume every business has a price and do cold outreach.
21/ Haters
“What is micro?”
It’s relative. Let’s say businesses valued under $5 million.
Haters“What is micro?”
It’s relative. Let’s say businesses valued under $5 million.
22/ Haters
“This assumes that I have money.”
Or that you can raise money or get seller-financing. You can reduce some market risk by copying successful businesses. Assuming that there are no strong moats. But execution risk remains.
Haters“This assumes that I have money.”
Or that you can raise money or get seller-financing. You can reduce some market risk by copying successful businesses. Assuming that there are no strong moats. But execution risk remains.
23/ Haters
“Small deals have high transaction costs relative to the deal size.”
Prioritize learning over earning at this stage.
Haters“Small deals have high transaction costs relative to the deal size.”
Prioritize learning over earning at this stage.
24/ Haters
“It’s against terms of service to sell social media accounts.”
Wrap them in an entity and sell the business. Not the account.
Haters“It’s against terms of service to sell social media accounts.”
Wrap them in an entity and sell the business. Not the account.
25/ Haters
“Data provided by sellers can be faked.”
This is a cat-and-mouse game. And may never be solved. Live dashboards from third-parties like Stripe and tools like Phlanx make this easier to spot. Talk to customers and trust your gut.
Haters“Data provided by sellers can be faked.”
This is a cat-and-mouse game. And may never be solved. Live dashboards from third-parties like Stripe and tools like Phlanx make this easier to spot. Talk to customers and trust your gut.
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