Andrew Wilkinson, Tiny // From Barista to Billionaire, Building The Internet's Berkshire Hathaway & Munger's Mental Models
Jan 14, 2021
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Andrew Wilkinson, co-founder of Tiny, shares insights on his approach in building the 'Berkshire Hathaway of the internet' inspired by Warren Buffet + Charlie Munger. Topics include mental models like inversion, types of entrepreneurs, hiring key employees, importance of incentives, and aligning employees around a shared vision.
Inversion is a powerful tool for setting anti-goals, helping entrepreneurs gain clarity on what to avoid for better decision-making.
Tiny aims to become the 'Berkshire Hathaway of the internet' by acquiring a diverse range of businesses and recently taking WeCommerce public through a unique reverse takeover.
Matching CEOs with the right entrepreneurial type, such as scalers and remixers, is crucial for optimizing business growth and sustaining long-term success.
Deep dives
The Value of Inversion in Setting Anti-Goals
In the podcast episode, the concept of inversion is highlighted as a valuable tool for setting anti-goals. The speaker shares an example of how they sat down with a partner to identify their worst possible day, listing all the aspects they dread, such as being stuck in meetings, traveling, and not having time with family. By focusing on what they want to avoid, known as anti-goals, they gained clarity on what to steer clear of, making their lives better. This approach is underscored with a quote from Munger about avoiding pitfalls to prevent unnecessary difficulties.
Building a Unique Company Portfolio and Going Public
Andrew Wilkinson, the co-founder of Tiny, discusses the company's approach to acquiring a diverse range of businesses, including Dribble, Metalab, and WeCommerce. By creating a portfolio of over 30 companies bringing in $100 million in annual revenue, Tiny aims to emulate the idea of a 'Berkshire Hathaway of the internet.' Wilkinson explains their recent milestone of taking WeCommerce public through a unique reverse takeover in Canada, highlighting the strategic decision to capitalize on the growth potential of the Shopify ecosystem and attract more investment for future acquisitions.
Identifying Types of Entrepreneurs and Effective Hiring Practices
Wilkinson elaborates on the four types of entrepreneurs: innovators, remixers, scalers, and optimizers. He recognizes himself as a scaler and remixer, emphasizing the importance of delegating roles based on these entrepreneurial types for efficient business growth. In hiring CEOs, Wilkinson seeks individuals who align with the role, emphasizing past experience in a similar capacity and ensuring motivation and fit with the job offered. By matching CEO roles with the right entrepreneurial type, Tiny aims to optimize business operations and sustain long-term growth.
Effective Scaling Strategies
To scale a business successfully, the podcast discusses the importance of bringing in experienced individuals who have a proven track record in scaling businesses. The focus is on finding executives who have previously achieved the desired growth and can align their success with the company's success. By incentivizing experienced individuals with opportunities for growth, such as taking on larger roles like from VP to CEO, the podcast emphasizes the need to offer enticing prospects to align incentives.
Strategic Incentives and Efficient Hiring
The podcast explores the significance of incentives in driving desired behaviors within a company. It mentions the importance of tailoring incentives based on the role, with a focus on measurable results for sales and marketing roles, while avoiding over-incentivizing to prevent unsustainable practices. Additionally, the discussion delves into efficient hiring practices, highlighting the benefits of working with skilled recruiters to identify suitable candidates and conducting thorough background checks to ensure cultural fit and avoid potential issues. By aligning incentives and hiring practices strategically, businesses can foster growth and success.
Andrew Wilkinson is the co-founder of Tiny. He owns 30+ companies, including Dribbble, Metalab, Girlboss & Castro. Collectively, these businesses bring in $100mil+ in annual revenue.
Andrew took WeCommerce public the week of this interview, with the most recent market cap hitting $800mil Canadian dollars (Jan 2021)
He's a leading expert in buying, starting & growing online businesses.
