My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Build acquisition-based holding company from profitable agency cash flows
Service business owners with 40%+ margins looking to scale beyond trading time for money
10-15 years to meaningful scaleWhat Success Looks Like
$600M+ market cap holding company with diversified portfolio, minimal equity dilution, consistent cash generation from original agency funding acquisitions.
Steps to Execute
Build profitable agency with 40%+ margins (15+ years consistency)
Hire CEO for agency to remove yourself from operations
Use agency profits instead of typical startup expenses (no ball pits/status spending)
Start acquiring complementary businesses using debt financing when possible
Create 'platforms' by buying multiple businesses in same category
Take dividends regularly while reinvesting for growth
Focus acquisitions on 2-3 major companies that drive bulk of value
Checklist
Inputs Needed
- Profitable core business generating consistent cash
- Management team to run original business
- Deal flow pipeline and evaluation criteria
- Legal/financial infrastructure for acquisitions
- Patient capital approach (vs startup mentality)
Outputs
- Diversified revenue streams reducing single business risk
- Regular dividend distributions from profits
- Scalable acquisition platform
- Eventually public company with institutional backing
Example
“Start web agency in 2008, grow to $60M revenue by 2023 with 40% margins. Use $20M+ annual profits to acquire Dribbble, multiple smaller agencies, job boards, and creative tools. Go public at $600M valuation with <$10M total equity invested.”
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