Well I was looking for inspiration to write something and there it was…right on the nappy on my tray table. Keep it simple stupid = if it doesn’t make sense on a napkin it probably is a load of farse. I love telling my father in law about companies I’m evaluating. The interactions go something like this: “Michael, I’m looking at this software company that’s using IoT to pick up movements of people inside of space to diagnose how people use the space and then they can sell that data captured to real estate decision makers…” I’ll generally justify it with a few more sentences and explanations. He’ll stare at me and say something like, “how do they make money and how much does it cost to make? How profitable is it? What’s it worth?” I then go on a jog to explain that they’re in high growth mode (not profitable), the biz model is selling sensors + a recurring software fee that operates at a healthy margin and then explain that the company is worth ??x it’s revenue. He then questions me. “But it’s not profitable so why is it worth that?” and around we dance. Me, the young, blissfully naive and overly optimistic 31 year old and him, the 70 year old, wise, successful, deeply experienced business man. He likes hard asset businesses and I like visionary leaders. He likes to see balance sheets, I like to hear stories of a brighter future. He’s the foil of pragmatism to my sweeping excitement. We both have our scars.
Napkin Sketchs
Napkin Sketchs
Napkin Sketchs
Well I was looking for inspiration to write something and there it was…right on the nappy on my tray table. Keep it simple stupid = if it doesn’t make sense on a napkin it probably is a load of farse. I love telling my father in law about companies I’m evaluating. The interactions go something like this: “Michael, I’m looking at this software company that’s using IoT to pick up movements of people inside of space to diagnose how people use the space and then they can sell that data captured to real estate decision makers…” I’ll generally justify it with a few more sentences and explanations. He’ll stare at me and say something like, “how do they make money and how much does it cost to make? How profitable is it? What’s it worth?” I then go on a jog to explain that they’re in high growth mode (not profitable), the biz model is selling sensors + a recurring software fee that operates at a healthy margin and then explain that the company is worth ??x it’s revenue. He then questions me. “But it’s not profitable so why is it worth that?” and around we dance. Me, the young, blissfully naive and overly optimistic 31 year old and him, the 70 year old, wise, successful, deeply experienced business man. He likes hard asset businesses and I like visionary leaders. He likes to see balance sheets, I like to hear stories of a brighter future. He’s the foil of pragmatism to my sweeping excitement. We both have our scars.