Operating a profitable business can be challenging when competing against venture capital-funded businesses that prioritize rapid growth over immediate profitability. The speaker learned this lesson through personal experience when starting a project management software business, only to realize that he was entering a hyper-competitive market where capital mattered. Despite having a profitable agency, he underestimated the impact of competing with venture-funded businesses, ultimately losing ten million dollars in the venture world. As a result, the speaker now focuses on businesses where he can predict the outcome with reasonable certainty and avoid competing with venture capital. He prefers to pursue less risky ventures that do not require massive amounts of capital, focusing on 'boring' yet reliable businesses that allow him to operate without the pressures of competing with venture-funded companies.
My guest is businessman and investor Andrew Wilkinson, who has made a successful career out of channeling his entrepreneurial spirit, but he knows that sometimes that energy can be a double-edged sword.
We discuss the lessons learned acquiring 40 companies, why he struggled to find happiness and what changed, mimetic desire, competing with venture-backed companies, hiring and firing CEOs, getting back up after million dollar mistakes, and so much more.
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