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Must HaveNice to Have
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Quantitative metrics
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EarningsMin. USD 10K TTM / SDE
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Sufficient budget to replace outgoing team members
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Margins> 25% profit margin
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Selling priceUSD 10 - 50K
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4 x TTM / SDE multiple or less
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Cash flowPositive from day 1
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Stable over time
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GrowthRevenue trending up
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Single digit churn
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Revenue not seasonal
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Qualitative metrics
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Business modelStrongly or exclusively digital
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Digital marketing a key lever for growth (esp. paid ads, email)
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Clear and straightforward way of making money
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Good standalone business, not simply because it complements our portfolio
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Diverse client base and revenue channels (to recession-proof)
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Analogous or similar to our current porftolio business models
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TeamHas established SOPs
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Existing team in place
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AudiencesCustomers overlap our existing audiences. Including:
- Online creators
- Online freelancers
- Online marketers
- Digital entrepreneurs
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VerticalsLong term growth expected in the industry
"a business that will be around in 10 years"'
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Minimal threats from technological or competitive obsolescence
"a business that can reinvent itself"
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"We want to sell shovels"
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Preferably overlaps our current verticals. Including:
- Online marketing
- Wordpress plugins
- Online courses
- B2B online services
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MarketingDiverse traffic sources
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Existing success with paid traffic
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Passionate, high value customer base
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Decent email list
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What we find interesting right nowWordpress plugins
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Productized services
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Digital products
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Online courses
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SAAS (if not overpriced)
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Productivity tools for businesses
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Recurring revenue businesses
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Marketing tools (email marketing, PPC marketing, SEO marketing)
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AI tools (if revenue model is proven)
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What past success looks like1. Buying directly from solo founders
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2. B2B services (WP plugins, SEO services)
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3. Bootstrap side hustles (online courses, digital products)
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Failure criteriaNot reliant on a single platform (Amazon FBA, Google SEO, etc.)
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Not bricks and mortar
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Not content / affiliate site
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Not e-commerce
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