In this episode, I, Nick McLean, shed light on the art of selecting winning companies in the private equity landscape. No fluff, no schemes, just straight business insight from my almost two decades of experience.
If you've ever wondered where to channel your investments in the multi-faceted world of business, you're in the right place. I'm not your typical internet guru; I'm a seasoned private equity veteran sharing real, hard-earned knowledge.
We're also diving deep into a tier list of various industries and business models — dissecting the best from the not-so-great. I'll explain why insurance brokerage sits at the top in the S category and why certain cyclical businesses might not be worth your bet.
Discover why I place high value on subscription-based revenue models, essential services, and the attractiveness of convenience-focused businesses like drive-through coffee shops.
We'll also explore the scalability of different business models, understand the attractiveness of industries like specialized manufacturing with high barriers to entry, and see why multilevel marketing companies may not make the cut.
Drawing inspiration from Michael Porter's competitive strategy theories, I share insights into industry profitability and my personal take on what makes a sector appealing for investment and many more.
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🚀 Ready to transform your investment strategy? Let's chat in the comments, and be sure to subscribe for the real deal in business investment tips. Join the journey to informed, strategic, and profitable investing!
📝 Timestamps:
00:00 Intro
00:42 - Insurance Brokerage
02:20 - Drive-Thru Coffee Shop
03:31 - Dental Offices and Landscape
05:03 - Construction
06:27 - Marketing Firms
07:35 - Multi-Level Marketing
09:15 - Competitive Strategy by Michael E. Porter
09:31 - Five Forces That Govern Competition by Michael Porter
09:44 - Highly Specialized Manufacturing
11:22 - Franchising
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You can contact us here:
🐣 twitter.com/4pillarsinvests
💼 www.linkedin.com/company/four-pillars-investors
🖥️ www.fourpillarsinvestors.com
📧 nmclean@fourpillarsinvestors.com
🔎🔎 More about Nick McLean from Four Pillars:
Background: Operations management with an emphasis on Lean manufacturing; strategy development and execution; and mergers and acquisitions (M&A).
Which of the Four Pillars does Nick identify most closely with? ''Servant leadership. I consider one of the primary roles of a manager/leader to be to help those around you be more successful and to develop as individuals. When I think of myself as a leader, I am more interested in granting and sharing authority than hoarding it.''
🏛️ More About FOUR PILLARS:
Four Pillars is a company built on a strong foundation of shared values and a commitment to long-term ownership of small businesses. Their approach is centered on purchasing and operating these businesses while providing support and collaboration without becoming a burden. They work closely with company management, aiming for shared success and sustainable growth.
Guided by their core values, Four Pillars views success as a journey filled with challenges and opportunities. Their values serve as a compass to navigate difficult decisions, whether they pertain to ethics, strategy, operations, or new challenges. They are relentless advocates for the common good, ensuring that every decision is made in the best interests of their portfolio companies and investment partners.
Four Pillars stands out with their creative positioning approach, employing informed and agile strategic planning to leverage the unique strengths and advantages of each company they invest in. They capitalize on key differentiators and foster an entrepreneurial spirit within their team and the companies they serve.
Four Pillars' values, or pillars, guide their personal and professional decisions. The first pillar emphasizes the importance of strong relationships as the cornerstone of success, built on trust and a commitment to doing what is promised. They challenge the status quo with a critical and objective approach, identifying areas for improvement while recognizing and preserving what works well. Servant leadership is central to their philosophy, with a focus on teamwork, collaboration, and shared decision-making. Lastly, persistence defines their character, driving them to overcome obstacles, close deals, and manage businesses for long-term success.
