Ty Optimize

Updated 😂

I’ll admit, sometimes I wonder if buying a biz would have been better than starting one. Here’s some quick thoughts now that I’m 7 months in. 1. Whether you buy or build, it’s not going to be easy. If you’re buying a biz that’s doing under $500k SDE, chances are there are a lot of systems that will need to be built or revamped. Obviously starting something, you’ve got to build everything. But the freedom to build something exactly how you want is kind of nice. 2. Most days, I appreciate being in the field and working. Starting from the ground up has helped me learn more in 8 months than I imagine I ever could have buying something. I understand the clients better for sure. 3. There’s always hidden risks in buying a business. A pavement company relatively recently was sold near me. Because I’m in the industry though, I know that the owner is really good friends with two other asphalt companies. You better have a nice earnout, otherwise I bet a lot of business is going to funnel to his friends. 4. Equipment can get expensive, and there’s a lot that I wish I could get. This is one big benefit of buying a business, where you’re getting it all, and at SBA rates. 5. The grass is ALWAYS greener. Some days I wish I could work 12 months of the year, instead of having a seasonal one that means no income for 4 months. Most of the time I’m grateful for it. We’re having a great April. Part of that is I’ve been aggressively quoting. Some days I wish I had better margin and fewer jobs. There’s always something that can be better, or some jealousy of others you can have. 6. Extreme ownership is vital. Everything comes back to me. Whether I’m starting a business or buying one, it’s success is up to me. 7. Buying a business allows you to move faster. You ideally have cash flow and working capital that allows you to make big moves. Bootstrapping, I’m at the constraint of cash flow. 8. All in all, I still think building is better than buying. Starting one, I can choose the industry and geography. The world is at my fingertips. With buying, my options are much more limited. You’re competing against family offices and private equity. I don’t know how people sleep at night with $5m in debt. Multiples are crazy, where any good company you can buy, you're paying 4-5x. Start one and you can sell at that multiple instead.

Geno Auriemma waited to get his hug from Dawn Staley 😅 Two of the all-time greats 👏