1) Build to Sell

Not all your products will succeed.

Focus on profit-first companies

If it can't reach a significant user adoption then sell.

I've seen $300 MRR software sell for $5,000

As long as you break-even consider it a win.

Then reinvest all the additional capital in your next project

You just need one cash-flowing winner.

2) Build a Core Team

Currently the main team at Halation (@halationco) is 3 killers.

A dev, a designer, and me.

Our last company was built & scaled in less than 35 days.

The product has gotten 5 new users every 3 seconds.

We then took what worked (and also what didn't) and then adopt it for the next venture.

This allows us to learn faster than anyone else.

Paired with revenue-based incentive models, I'm convinced this is the best way to build companies.

3) Bring an Operator

This is an area I've still fleshing my knowledge in.

It's unrealistic to be running more than 3 different companies at a time.

This is where bringing a management team (CEO, CTO) comes in.

If you have a rollup of similar companies (e.g. all b2b software) you can have a top management team running all of them.

Similar structures can be found in holding companies like Constellation Software.

4) Share the Winnings

I’m very much a ‘if I win, we win’ typa guy.

And I've seen a couple way to redistribute profits.

But the most popular is the dividend model

Essentially the cash flow from the companies is given to the shareholders every quarter.

5) Hold or Sell

Not all companies you own need to exit.

Some are cash-cows that grow 50% a year.

If you don't need immediate liquidity —just hold them.

Or take the cashflow to reinvest into new ventures

🧪 This is going to be my place in my newsletter where I can run some fun audience experiments

REPLY to this newsletter with the answer to: ‘what’s your end goal in life’.

That could be in terms of net worth, it could be terms of job/family. Honestly whatever first comes to mind. Interested in hearing some responses, and will share some common answers on the next newsletter!

Also, the most voted topic from the last experiment ended up being:
‘How to Reverse Engineer an Exit / How to Sell Companies’

So that will be the topic for the next issue :)

Looking for more? I gotchu!

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3. Want to read more?: check out my Curated X (Twitter) threads here.