5 ms·

What's the catch with this, I wonder? If it's so easy to cash out, what does that mean for the price at which you cash out? How does Tiny manage to stay non-in

by s_Hogg 5y ago

What's the catch with this, I wonder? If it's so easy to cash out, what does that mean for the price at which you cash out? How does Tiny manage to stay non-interventionist as they claim? It's interesting but I think there has to be more than what's pointed out here going on

umvi 5y ago
The catch is that your business has to be in pretty darn good shape. They won't just buy any company, you have to prove it is stable, profitable, and growing.
- quickthrower2 5y ago
  I imagine it has to be something that another company can generically understand and take over. A startup where the founders deep domain knowledge / connections is the key - that domain knowledge / connections go when the founder leaves.
  - s_Hogg 5y ago
    If that's the case then why are they ok with the founder leaving? I don't think this is a scam or anything, I just wish I understood the mechanics of how their business works better than I do
    - Nevermark 5y ago
      They are going to expect that the founder can leave a functional company. A company that requires them to build a leadership team or hire replacement talent to maintain doesn't sound like what they are looking for. If needed, the founder should do that first.
    - HeyLaughingBoy 5y ago
      By the time the business is "stable, profitable and growing" the founder is likely far less important than in the beginning. There have to be processes in place to manage the business's day to day operations, and a good management team that looks to the future. You can't maintain a business at that level while still being dependent on a single person so the business at the time of sale has to be capable of continuing on without that person present.
      - quickthrower2 5y ago
        You might be relying on the top person for the “growing” part even if everything else can tick over nicely.
- senectus1 5y ago
  yeah, good for if you want to develop another business but not detatch yourself from that one for example.
- tempestn 5y ago
  I would also have to assume if your business is all those things you're likely going to be leaving something on the table in exchange for the convenience of the process. (Which might be a perfectly rational thing to do when you're ready to exit!)
- bjarneh 5y ago
  > you have to prove it is stable, profitable, and growing. I just cannot imagine selling my business if everything was pointing upwards like that.. but people are different I guess
  - vidarh 5y ago
    It can be stable, profitable, and growing and you might still be burned out, or have an even better idea you want to focus on, or just want a change.
    - bjarneh 5y ago
      True; but from what I've seen it seems most people who start businesses have a very hard time letting them go, even when they are doing badly; but I guess there are circumstances where it makes sense to sell out.
  - TAForObvReasons 5y ago
    The website gives an example: > You've got early employees, investors, or a co-founder who wants to leave or cash out. You want to swap them for a friendly new face who can add value and help you grow the business. This is common in professional groups (like law firms or medical practices) when a partner is looking to retire.
    - bjarneh 5y ago
      Selling out is common; I just hope and think I would not do it, but who knows. I've never been in the position to sell out :-)
      - deleted 5y ago
        [deleted]
      - fragmede 5y ago
        Selling out in other industries is looked down upon (eg former indie musician selling out for a mainstream record contract), but business is, well, business. Better to be honest with yourself that your heart's no longer in it (if it's not), and sell to someone who is.
rglover 5y ago
They're ops guys. Andrew and his partner Chris work off of the Buffet/Munger model used at Berkshire Hathaway. They buy good businesses they think are undervalued and then bring in their ops/logistics experience to (if necessary) install a new team, get any loose ends cleaned up, and then send them on their way (retaining ownership via Tiny). They find ATMs, upgrade their software and case, and then let them run. Over time, if you're good at it (they are), you build a portfolio that is consistently cash flowing vs. a bunch of lottery tickets like the traditional VC model.

by s_Hogg 5y ago

umvi 5y ago

The catch is that your business has to be in pretty darn good shape. They won't just buy any company, you have to prove it is stable, profitable, and growing.

quickthrower2 5y ago
I imagine it has to be something that another company can generically understand and take over. A startup where the founders deep domain knowledge / connections is the key - that domain knowledge / connections go when the founder leaves.
- s_Hogg 5y ago
  If that's the case then why are they ok with the founder leaving? I don't think this is a scam or anything, I just wish I understood the mechanics of how their business works better than I do
  - Nevermark 5y ago
    They are going to expect that the founder can leave a functional company. A company that requires them to build a leadership team or hire replacement talent to maintain doesn't sound like what they are looking for. If needed, the founder should do that first.
  - HeyLaughingBoy 5y ago
    By the time the business is "stable, profitable and growing" the founder is likely far less important than in the beginning. There have to be processes in place to manage the business's day to day operations, and a good management team that looks to the future. You can't maintain a business at that level while still being dependent on a single person so the business at the time of sale has to be capable of continuing on without that person present.
    - quickthrower2 5y ago
      You might be relying on the top person for the “growing” part even if everything else can tick over nicely.
senectus1 5y ago
yeah, good for if you want to develop another business but not detatch yourself from that one for example.
tempestn 5y ago
I would also have to assume if your business is all those things you're likely going to be leaving something on the table in exchange for the convenience of the process. (Which might be a perfectly rational thing to do when you're ready to exit!)
bjarneh 5y ago
> you have to prove it is stable, profitable, and growing. I just cannot imagine selling my business if everything was pointing upwards like that.. but people are different I guess
- vidarh 5y ago
  It can be stable, profitable, and growing and you might still be burned out, or have an even better idea you want to focus on, or just want a change.
  - bjarneh 5y ago
    True; but from what I've seen it seems most people who start businesses have a very hard time letting them go, even when they are doing badly; but I guess there are circumstances where it makes sense to sell out.
- TAForObvReasons 5y ago
  The website gives an example: > You've got early employees, investors, or a co-founder who wants to leave or cash out. You want to swap them for a friendly new face who can add value and help you grow the business. This is common in professional groups (like law firms or medical practices) when a partner is looking to retire.
  - bjarneh 5y ago
    Selling out is common; I just hope and think I would not do it, but who knows. I've never been in the position to sell out :-)
    - deleted 5y ago
      [deleted]
    - fragmede 5y ago
      Selling out in other industries is looked down upon (eg former indie musician selling out for a mainstream record contract), but business is, well, business. Better to be honest with yourself that your heart's no longer in it (if it's not), and sell to someone who is.

rglover 5y ago

They're ops guys. Andrew and his partner Chris work off of the Buffet/Munger model used at Berkshire Hathaway. They buy good businesses they think are undervalued and then bring in their ops/logistics experience to (if necessary) install a new team, get any loose ends cleaned up, and then send them on their way (retaining ownership via Tiny). They find ATMs, upgrade their software and case, and then let them run. Over time, if you're good at it (they are), you build a portfolio that is consistently cash flowing vs. a bunch of lottery tickets like the traditional VC model.