Acquiring Minds From Startup Founder to Buying a Small Business
Aug 24, 2023
Former startup founder Tim Ericson shares his experience transitioning to buying a small business and his plans to double the business. He discusses his journey from a VC-backed startup founder, his vision to grow the business remotely, and his search for a remote-friendly business. Tim also highlights the importance of community in the Techstars accelerator program and the value of managing employees during the acquisition process. Additionally, he explores the business models of long-term leasing and short-term rentals, the advantages of remote operations, and the contrasting differences between VC startups and small business acquisitions.
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Zagster Founding and Exit
- Tim Erickson founded Zagster, a bike-sharing startup, in 2007.
- After 13 years and raising $40 million in VC funding, he sold it to Superpedestrian in 2020.
Dockless Bike Share Failure
- Dockless bike-sharing programs disrupted the market with cheap bikes and no city permits.
- These programs ultimately failed due to lack of regulation and coordination, unlike docked programs.
Inspiration for Acquisition
- After exiting Zagster, Tim explored consulting and was inspired by a friend's acquisition of a van rental business.
- This led him to read "Buy Then Build" and sparked his interest in SMB acquisition.