Location Independent Value

Sam Rattner shares his perspective on evaluating business opportunities, particularly focusing on the challenges of location-dependent businesses and the importance of finding scalable ventures that don't require personal relocation or compromise lifestyle choices.

Key Points:

• Location-Dependent Business Challenges:

  • Value can be trapped in remote locations (e.g., vending machine business in Lewiston, Idaho)
  • Difficult to scale beyond the original location
  • May require personal relocation to operate effectively

• Business Evaluation Criteria:

  • Must have potential for $1B+ valuation within 5 years
  • Should be scalable across multiple locations
  • Value shouldn't be solely tied to remote or specific locations

• Example: Water Taxi Business

  • Potential exists in 10-12 major lake towns across America
  • More scalable than single-location businesses
  • Could take 5-7 years to reach full potential
  • Passed on opportunity due to timeline constraints

• Investment Philosophy:

  • Look for opportunities that can scale beyond local markets
  • Avoid businesses that require personal presence in undesirable locations
  • Focus on ventures that can grow without geographic constraints

• Decision Making Framework:

  • Consider personal lifestyle impact
  • Evaluate scaling potential across multiple markets
  • Assess whether location dependency can be overcome
  • Factor in time to reach desired valuation

• Key Quote: "The problem with the businesses I've found is that if the value is in the fact that it's remotely located, well then it's difficult because other than finding another Lewiston, Idaho that already has an operating business and has those dynamics of the town relies on it, you can't scale it out."