Hard Times Force Efficiency

Nick Huber believes that business naturally goes through cycles of good times and hard times, and that these difficult periods can actually benefit strong operators by forcing efficiency improvements and reducing competition.

Key Points:

• Business is Naturally Cyclical:

  • There are really good times and harder times in business
  • This is just the natural rhythm of how business works

• Hard Times Force Operational Excellence:

  • You have to buckle up and operate more carefully
  • You're forced to make your business more efficient
  • These pressures lead to necessary improvements you might otherwise avoid

• Competition Gets Washed Out:

  • Hard times eliminate people who can't adapt or operate efficiently
  • The market becomes less competitive as weaker players exit
  • This creates better conditions for those who survive

• Current Market Reality:

  • 2024-2025 are not the same as 2022-2023 for entrepreneurs
  • Many people he knows are making less money now than three years ago
  • The algorithm changed and business got harder
  • People are watching how they spend money more carefully

• Long-term Optimism Despite Challenges:

  • He's genuinely excited about the real estate business over time
  • Less competition now creates opportunities
  • His company is in a good place to take advantage
  • There are deals under contract despite the challenging environment

• Personal Growth Through Difficulty:

  • The stress forced tough conversations but they got through without raising additional capital
  • They successfully refinanced all loans without capital calls to investors
  • Many others had to do capital calls or lost properties entirely
  • This was a "massive win" compared to alternatives