Portfolio of Small Bets

A strategy focused on buying and operating multiple small, profitable businesses instead of pursuing high-risk startups or unicorns. This approach prioritizes steady income over massive scale.

Core Philosophy

• Most people shouldn't try to build the next Facebook
• Focus on meeting basic needs (Maslow's hierarchy) rather than changing the world
• Treat business acquisitions like buying stocks - build a diversified portfolio
• Target realistic income goals ($200k-$1M/year) through multiple small businesses

Acquisition Strategy

• Buy existing businesses rather than building from scratch
• Look for businesses with:
  • 2-3x profit multiple for purchase price
  • Existing customer base
  • Potential for revenue growth
• Target retiring owners (often can get 1.5x multiple)

Types of Businesses to Consider

• PO Box rental stores
  • 1,000 boxes at $15/month average
  • Avoid UPS/FedEx competition (200 boxes)
  • Customer acquisition through:
    • PPC advertising
    • Local mailings
    • Neighborhood promotions
• Other examples mentioned:
  • Plumbing companies
  • Laundromats
  • Lawn care businesses
  • Cleaning services
  • Professional services

Operating Model

• Don't personally operate the businesses
• Place operators or managers to run day-to-day operations
• Focus on portfolio management rather than individual business operations
• Diversify risk across multiple small businesses

Key Benefits

• Lower risk than traditional startups
• Steady, predictable income
• Less pressure to scale massively
• More realistic path to financial freedom
• Better work-life balance
• Diversified income streams