Agency to SaaS Evolution

Andrew Wilkinson shares how he evolved from running an agency to building multiple businesses through systematic reinvestment of profits. His strategy focused on converting service business income into product companies and later, acquiring existing businesses.

Core Strategy

• Started with an agency making a few hundred thousand in revenue
• Implemented 80/20 (later 90/10) profit reinvestment strategy:
  • 80% of profits went to starting new businesses
  • 20% kept for living expenses
• Reinvested monthly, using whatever was left in bank account after operating expenses

Results & Evolution

• One business sold for $7M, producing $600-700k annual profit
• Shifted strategy from starting to buying businesses after 7 years
• Current portfolio collectively worth over $1B
• Owns diverse businesses including:
  • Digital service companies (MetaLab)
  • Physical products (AeroPress)
  • Restaurants and bakeries
  • Platform-dependent tech businesses

Investment Philosophy

• Focus on businesses that can persist long-term (20-30-40 years)
• Target companies similar to established models (like Accenture)
• Emphasis on digital transformation services
• Look for businesses with staying power, even if competitive advantage might change