How to start a Holding Company

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Nov 20, 2024

In this discussion, Michael Girdley, Chairman and CEO of Girdley Enterprises, reveals the art of structuring holding companies. He breaks down the various types of HoldCos—ranging from roll-ups to conglomerates—and emphasizes the freedom they offer entrepreneurs to diversify risks and create their ideal lifestyles. Michael shares his seven-step framework for starting a HoldCo and the low-cost technology that makes incubating new businesses accessible. Tune in for insights on leveraging passions and optimizing happiness through strategic investments!

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INSIGHT

HoldCo Strategy

HoldCos offer a unique entrepreneurial strategy, diverging from the traditional owner-operator model.
A HoldCo owner orchestrates multiple businesses without running daily operations.

ADVICE

Passion-Driven HoldCos

Align your HoldCo with your passions, creating a fulfilling work-life integration.
Design your business world to serve your lifestyle, not the other way around.

ADVICE

Legal and Tax Advice

Consult legal and tax professionals when structuring your HoldCo.
Overcomplication is common; keep it simple initially.

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In this episode, I am joined by Michael Girdley, Chairman and CEO of Girdley Enterprises, as we discuss how to build a HoldCo. Michael shares his frameworks and best practices for structuring HoldCo’s.

Episode Timestamps:
00:00 Intro
02:25 What is HoldCo
07:22 Types of HoldCo
09:45 Why go HoldCo
12:56 Types of HoldCo Pt 2
15:27 Frameworks for structuring your HoldCo
19:16 7 steps of starting a HoldCo
23:47 Why HoldCo’s are awesome
36:12 HoldCo’s are antifragile
43:16 Make sure HoldCo’s are right for you
45:16 HoldCo Conference

1) What's a Holdco?
It's owning multiple businesses but not running any of them day-to-day.
Think Warren Buffett lite - you're the maestro orchestrating a portfolio of companies.

2) Why go Holdco?
• Diversify risk
• Create asymmetric bets
• Design your ideal lifestyle
• Leverage your passions
Girdley: "I tap dance to work every day, even when things are sucky."

3) Types of Holdcos:
• Roll-up (same biz, diff locations)
• Platform (related businesses)
• Pure Holdco (unrelated businesses)
• Conglomerate (big daddy version)
Pick your flavor based on your interests & expertise!

4) How to start your Holdco journey:
1. Have a plan
2. Define your goals
3. Design your org structure
4. Consult lawyers & tax pros
5. Build your all-star advisory team
6. Execute & iterate
7. Optimize for happiness!

5) The secret sauce? 🤫
• Low-cost tech makes it easier than ever to incubate new businesses.
• Girdley: "You can do that same business they built off the ground for a few $1000"
• Asymmetric bets FTW!

6) Centralize or nah?
• Depends on your asset types & personal strengths.
• Girdley keeps it "radically decentralized" - know thyself!
• "Don't try to do things that I know I suck at."

7) Who's it for?
Not everyone! But if you:
• Love variety
• Hate micromanaging
• Want to build long-term wealth
• Crave a custom-designed career
...Holdco life might be your jam!

8) Ready to dive in?
Start with ONE successful biz, then expand.
And if you're serious, check out Girdley's Holdco conference in Utah next spring!

Want more free ideas? I collect the best ideas from the pod and give them to you for free in a database. Most of them cost $0 to start (my fav)

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FIND MICHAEL ON SOCIAL
Michael Girdley’s Website: https://www.girdley.com/
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LinkedIn: https://www.linkedin.com/in/michaelgirdley/
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