WEBVTT NOTE This file was generated by Descript 00:00:00.870 --> 00:00:06.600 Welcome to Resilience Talk hosted by Paul Spencer of Second Nature Solutions. 00:00:07.020 --> 00:00:07.860 Let's dive in. 00:00:09.241 --> 00:00:11.551 Paul Spencer: You know, ownership is not for everybody. 00:00:12.031 --> 00:00:16.921 So we're talking about the ownership series today, but there's some of us 00:00:16.951 --> 00:00:23.161 who would not enjoy owning an asset, especially something like a business. 00:00:23.641 --> 00:00:26.521 It's too complicated, it's too stressful. 00:00:26.521 --> 00:00:28.831 Um, I don't get it. 00:00:29.371 --> 00:00:31.381 I'd rather just go to work. 00:00:31.771 --> 00:00:34.171 Uh, I enjoy the job that I have. 00:00:34.171 --> 00:00:36.301 I enjoy the people I work with. 00:00:36.841 --> 00:00:45.961 I enjoy the things that I do, and I don't want the extra added pressure and thought 00:00:45.961 --> 00:00:52.741 process, the extra knowledge needed in order to run the business as well. 00:00:53.071 --> 00:00:56.881 And I think that that's okay, and that's, that's a given, that's a fact. 00:00:57.391 --> 00:01:01.411 Um, so there are lots of people who enjoy. 00:01:02.056 --> 00:01:05.206 The dream of owning a business. 00:01:05.866 --> 00:01:13.936 Um, but once they get into it and they start to understand the, the thousands 00:01:13.996 --> 00:01:22.636 of steps in order to do that, um, they tend to, um, resort or revert back 00:01:22.726 --> 00:01:28.546 to the comfort of their own, um, work lifestyle, which is not a bad thing. 00:01:28.546 --> 00:01:29.601 You know, I used to teach a class. 00:01:30.856 --> 00:01:32.956 Here in Cincinnati for entrepreneurs. 00:01:33.496 --> 00:01:39.946 And, uh, these were for people who had really never even owned a business, um, 00:01:40.126 --> 00:01:44.656 or had created any kind of entrepreneur experience, but they had ideas. 00:01:45.136 --> 00:01:49.846 And that course was over a course of nine weeks and. 00:01:50.461 --> 00:01:57.121 A lot of it was really digging into the idea, uh, having to understand costs 00:01:57.121 --> 00:02:03.751 of goods sold, how having to understand the price ratio and the expense ratio, 00:02:04.021 --> 00:02:08.911 and how are you gonna actually make money if you sell this thing for $10? 00:02:09.766 --> 00:02:10.786 What's your profit? 00:02:10.876 --> 00:02:14.146 If you send it for a hun, sell it for a hundred dollars dollars. 00:02:14.356 --> 00:02:15.286 What's your profit? 00:02:15.496 --> 00:02:17.086 Who's your ideal customer? 00:02:17.656 --> 00:02:22.786 All of those things over the course of say, um, not even 00:02:22.786 --> 00:02:24.406 halfway through the nine weeks. 00:02:24.916 --> 00:02:32.416 Uh, you could just see, you can sense that this is a lot my idea, which is, 00:02:32.656 --> 00:02:35.116 uh, for the most part, good ideas. 00:02:35.596 --> 00:02:38.716 Um, don't even pass the muster of. 00:02:39.466 --> 00:02:43.606 Making a business around it or my idea is too complex. 00:02:43.636 --> 00:02:47.836 I don't know how I could get money or just like what I said before, the 00:02:47.836 --> 00:02:53.416 complexity and the knowledge and the back office pieces in order to get this 00:02:53.416 --> 00:02:56.146 thing to run is just too much for me. 00:02:56.566 --> 00:02:57.526 And that's okay. 00:02:57.586 --> 00:03:00.046 And the reason why I bring this up is because. 00:03:00.361 --> 00:03:06.601 That ownership is a unique thing and it takes, um, unique people 00:03:06.961 --> 00:03:11.041 to go ahead and dive in, create a business, run a business. 00:03:11.041 --> 00:03:15.151 So there's another concept called the entrepreneur versus the intrapreneur, 00:03:15.601 --> 00:03:19.171 and the entrepreneur is that visionary who starts something from scratch. 00:03:20.296 --> 00:03:25.216 They take the idea, they have the drive, they have the initiative, and 00:03:25.216 --> 00:03:27.496 they're, they're really risk tolerant. 00:03:27.616 --> 00:03:29.356 They're, they're very risk tolerant. 00:03:29.356 --> 00:03:32.991 They're willing to step out there and, um, and lose. 00:03:34.111 --> 00:03:35.641 They're more than willing to lose. 00:03:35.731 --> 00:03:36.931 Do they accept losing? 00:03:36.931 --> 00:03:38.611 No, they do not accept losing. 00:03:39.241 --> 00:03:41.041 And that's where the drive comes in. 00:03:41.341 --> 00:03:44.761 And those people, um, are very good at what they do. 00:03:45.031 --> 00:03:47.611 They can drive the business through. 00:03:48.211 --> 00:03:52.741 And those are typically the founders of, of these family owned businesses. 00:03:53.596 --> 00:03:54.946 That's who they are. 00:03:55.396 --> 00:03:59.026 The second generation, what I've come to find are the intrapreneurs 00:03:59.026 --> 00:04:04.336 and the intrapreneurs are, uh, still very open-minded, very innovative, 00:04:04.906 --> 00:04:09.286 um, but they don't really have the desire or maybe even the personal 00:04:09.286 --> 00:04:11.866 makeup to go start their own thing. 00:04:11.956 --> 00:04:13.606 They're not gonna start it from scratch. 00:04:13.666 --> 00:04:18.076 They may not have the drive, uh, that mom or dad had, and they may not have the 00:04:18.076 --> 00:04:20.506 makeup for it, but they're really good. 00:04:21.181 --> 00:04:25.831 Uh, succeeding their mom or dad or maybe aunt, uncle, right. 00:04:26.101 --> 00:04:32.491 Coming in and taking the president's seat and really growing the business, 00:04:32.491 --> 00:04:34.471 really innovating the business. 00:04:34.771 --> 00:04:36.451 And they're really good at that. 00:04:36.451 --> 00:04:37.771 And that's an entrepreneur. 00:04:37.951 --> 00:04:41.551 So I think that's also interesting to be thinking about as well as, 00:04:41.971 --> 00:04:46.771 uh, yourselves and those around you, your friends and family, sons, 00:04:46.771 --> 00:04:50.491 daughters, nieces, nephews that, uh. 00:04:51.241 --> 00:04:52.351 To have that in mind. 00:04:52.591 --> 00:04:56.521 Some are geared for owning, some are not. 00:04:56.851 --> 00:05:02.551 Some are geared for founding entrepreneurs and some are geared for innovating and 00:05:02.551 --> 00:05:07.771 taking what's already there and innovating and, and compounding on top of that. 00:05:08.131 --> 00:05:11.941 So anyway, thought that was a, uh, helpful context for what we're talking 00:05:11.941 --> 00:05:13.441 about with the ownership series. 00:05:13.861 --> 00:05:15.481 And we're in the middle of. 00:05:16.141 --> 00:05:19.921 Uh, we're on the back end of the evaluations that we've been talking about. 00:05:19.921 --> 00:05:21.091 There's eight of them. 00:05:21.361 --> 00:05:23.881 We're gonna be talking about the sixth one today. 00:05:24.031 --> 00:05:30.751 And just as a review, we have financial performance growth, potential key 00:05:30.751 --> 00:05:38.011 dependencies, recurring revenue right to win, corporate structure, key 00:05:38.011 --> 00:05:40.286 management and owner involvement. 00:05:41.431 --> 00:05:45.901 So last week we talked about, um, the recurring revenue aspect. 00:05:46.291 --> 00:05:49.171 Today we're gonna talk about Right to Win. 00:05:49.741 --> 00:05:54.811 And Right to Win is essentially, uh, the phrase is, how well differentiated 00:05:54.811 --> 00:06:00.061 in the business is the business from competitors, right within your industry. 00:06:00.481 --> 00:06:05.731 And, uh, basically what that means is, uh, how well known are 00:06:05.731 --> 00:06:08.851 you in your industry and, uh. 00:06:09.961 --> 00:06:14.971 From a quality perspective, from a relational perspective, uh, 00:06:15.001 --> 00:06:19.141 that they're going to pick you versus somebody else, right? 00:06:19.411 --> 00:06:25.681 And so one of the, uh, easy ones to think about with that is Coke, right? 00:06:26.521 --> 00:06:32.671 Um, we all know what a Coke is, but sometimes we say, do you have a Coke? 00:06:32.701 --> 00:06:35.726 And really what we mean is, do you have a soda or do you have pop. 00:06:36.301 --> 00:06:36.571 Right. 00:06:37.081 --> 00:06:38.431 I know that's a whole thing. 00:06:38.491 --> 00:06:39.841 Soda or pop, right. 00:06:40.261 --> 00:06:44.011 And, uh, so Coke is well differentiated. 00:06:44.011 --> 00:06:45.151 It has a right to win. 00:06:45.181 --> 00:06:50.581 It's probably much easier to go and sell, uh, a Coke product than it is, 00:06:50.821 --> 00:06:52.771 uh, a different kind of soda product. 00:06:52.771 --> 00:06:54.751 And those are, those are different markets, right? 00:06:55.231 --> 00:06:57.661 So anyway, when we're, when we're thinking about Right to 00:06:57.661 --> 00:07:05.011 win from a buyer's perspective, um, having that differentiation. 00:07:05.521 --> 00:07:07.621 Adds value to my asset. 00:07:08.131 --> 00:07:12.541 And so we, I tend to think about this in as a blue ocean strategy. 00:07:12.541 --> 00:07:16.411 So if we think about when we're talking about recurring revenue from, from last 00:07:16.411 --> 00:07:18.901 time, I like the divergent thinking. 00:07:19.321 --> 00:07:22.051 Um, when we talked about all those different categories, 00:07:22.051 --> 00:07:24.076 consumption, um, comes to mind. 00:07:24.886 --> 00:07:28.456 Um, organizational, um, comes to mind licensure. 00:07:28.936 --> 00:07:32.386 All of those things are more divergent thinkings because you may not be 00:07:32.386 --> 00:07:37.186 in consumables, you may not be in a licensing, a traditionally licensing 00:07:37.456 --> 00:07:41.926 industry, but when you throw those things all on the board and you put 00:07:41.926 --> 00:07:46.186 those ideas together, you may be able to find something that's a consumable 00:07:46.396 --> 00:07:50.236 or something that we can license, or both within our industry, within 00:07:50.236 --> 00:07:51.451 our products, within our services. 00:07:52.261 --> 00:07:53.491 So this is very similar. 00:07:53.641 --> 00:07:56.131 Blue Ocean strategy is another divergent thinking. 00:07:57.886 --> 00:07:59.206 Series of books that are out there. 00:07:59.206 --> 00:08:01.456 I think they're, uh, very interesting. 00:08:01.786 --> 00:08:06.016 Uh, but when we're in a Blue Ocean strategy, which basically says that, 00:08:06.496 --> 00:08:12.646 um, and we'll use Coke again as, as a, um, uh, beverage industry. 00:08:13.146 --> 00:08:16.116 Everybody's over here and they're selling six packs. 00:08:16.116 --> 00:08:18.516 They're selling, selling 12 ounce cans. 00:08:18.936 --> 00:08:21.396 Um, they're selling them in the grocery store. 00:08:21.636 --> 00:08:23.526 They're at a certain price. 00:08:23.916 --> 00:08:27.336 Um, that's the industry, that's what they would call the red ocean. 00:08:27.336 --> 00:08:28.656 That's where everybody plays. 00:08:28.896 --> 00:08:34.266 Blue Ocean says, um, can I sell them as leaders? 00:08:34.386 --> 00:08:34.716 Right? 00:08:34.896 --> 00:08:36.726 Can I sell them in small? 00:08:37.126 --> 00:08:40.936 Um, smaller sizes, can I sell them in bulk? 00:08:41.266 --> 00:08:47.476 Um, can I find a market that is not already existing within the red ocean? 00:08:47.956 --> 00:08:50.266 So you can, you can play with all the factors there. 00:08:50.266 --> 00:08:53.476 There's price, uh, there's convenience, right? 00:08:53.476 --> 00:08:55.936 There's size, there's accessibility. 00:08:56.206 --> 00:08:59.146 All those different things start to play out, and you might, 00:08:59.326 --> 00:09:00.826 you might reduce the cost. 00:09:01.366 --> 00:09:05.086 So let's say you're a premium brand over here, and this happened actually, 00:09:05.086 --> 00:09:06.856 I think with Revlon, with p and g. 00:09:07.276 --> 00:09:12.706 Uh, they had a high-end, uh, brand and, uh, and I could be wrong 00:09:12.766 --> 00:09:15.286 with the, with actually brand, but it's just a makeup brand. 00:09:15.436 --> 00:09:19.576 And they started putting those more into, say, Walgreens and 00:09:19.576 --> 00:09:23.116 CVS at a lower cost, lower price. 00:09:23.536 --> 00:09:25.846 And what they did is they changed the market. 00:09:25.846 --> 00:09:26.446 It was in. 00:09:26.716 --> 00:09:28.606 And so more people would would buy those. 00:09:28.606 --> 00:09:30.526 And so that's a blue ocean strategy. 00:09:30.796 --> 00:09:35.956 So anyway, you can start to think about how I play the game a little differently 00:09:36.166 --> 00:09:40.876 than my current industry, my current competitors, or what the buyers in my 00:09:40.876 --> 00:09:45.946 industry tend to think of, and I'll do it a little differently and why I'm gonna 00:09:45.946 --> 00:09:51.286 do it a little differently, is because they actually want or would prefer. 00:09:51.781 --> 00:09:55.831 The different way of engaging, the different way of purchasing, uh, than 00:09:55.831 --> 00:09:57.751 what's in the traditional, uh, industry. 00:09:57.871 --> 00:10:01.801 So anyway, blue ocean strategy, there's reputation, right? 00:10:01.861 --> 00:10:03.901 So you don't have to be Coke. 00:10:04.141 --> 00:10:05.401 You can still be a small business. 00:10:06.526 --> 00:10:10.966 But have a great, excellent reputation within your industry and within your 00:10:10.966 --> 00:10:13.996 customer base, and they like you, right? 00:10:14.326 --> 00:10:16.876 Um, and that's the customer experience part as well. 00:10:16.876 --> 00:10:21.376 So you have a high reputation, you may have a awesome customer experience that 00:10:21.376 --> 00:10:25.966 is much different, uh, than the current industry or the standards of the industry, 00:10:26.356 --> 00:10:27.916 and that gives you a right to win. 00:10:28.246 --> 00:10:33.046 There's a lot of, uh, around innovation, which can give you some right to win. 00:10:33.256 --> 00:10:33.466 Um. 00:10:34.156 --> 00:10:37.426 Aspects, which is, Hey, we're moving the ball, we're doing things a 00:10:37.426 --> 00:10:41.716 little differently, and it's matching up with a market in a better way 00:10:41.746 --> 00:10:43.516 than the way we used to do things. 00:10:43.516 --> 00:10:43.786 Right? 00:10:44.026 --> 00:10:46.756 These are all different components of Blue Ocean strategy. 00:10:47.116 --> 00:10:49.156 Um, so do you stand out? 00:10:49.426 --> 00:10:51.376 I think this is also very interesting. 00:10:51.376 --> 00:10:55.816 My, I have a friend, um, up in Calgary, um, he's a sales coach. 00:10:55.816 --> 00:10:58.396 His name is Sean Case, uh, Casemore. 00:10:58.756 --> 00:10:59.956 You would, you would enjoy him? 00:10:59.956 --> 00:11:00.166 I would. 00:11:00.226 --> 00:11:00.916 I, uh. 00:11:00.991 --> 00:11:02.701 I recommend you look him up. 00:11:03.091 --> 00:11:07.441 Uh, he's got awesome, really cool clips, especially for the sales folks out there, 00:11:07.891 --> 00:11:11.281 um, on disparate sales messaging tactics. 00:11:11.311 --> 00:11:12.091 Uh, it's really good. 00:11:12.091 --> 00:11:13.141 He does a really awesome job. 00:11:13.471 --> 00:11:15.421 Anyway, he says this, and I'm gonna read it. 00:11:15.871 --> 00:11:21.751 Most salespeople leave the same impression as everyone else. 00:11:22.441 --> 00:11:27.606 They're polite, they're pleasant, but they're also forgettable. 00:11:28.596 --> 00:11:29.416 And then he asks. 00:11:30.136 --> 00:11:31.276 Are you forgettable? 00:11:31.846 --> 00:11:35.566 And I think that's really interesting and, and he has a way of thinking 00:11:35.566 --> 00:11:39.076 about, no, it's not saying we're not polite and we're not pleasant. 00:11:39.076 --> 00:11:42.076 Doesn't mean that we go in rude and obnoxious. 00:11:42.346 --> 00:11:42.676 Right? 00:11:42.856 --> 00:11:46.246 But you have to differentiate yourself from. 00:11:46.846 --> 00:11:51.796 Your customers from others, from just people, individuals, uh, so that 00:11:51.796 --> 00:11:55.486 you're not forgettable, especially in the sales side, but also just 00:11:55.486 --> 00:11:58.246 as a brand and as a business is. 00:11:58.366 --> 00:12:02.266 If, if you walk in the room and they like being around you, you're 00:12:02.266 --> 00:12:06.111 polite and pleasant, but you haven't left them any value or any reason 00:12:06.371 --> 00:12:10.216 for them to remember you, then the question is, is are you forgettable? 00:12:10.426 --> 00:12:11.956 Do you stand out? 00:12:12.991 --> 00:12:18.001 Um, so when we think about other right to win, there's ip, um, 00:12:18.061 --> 00:12:20.131 which we think about processes. 00:12:20.131 --> 00:12:25.051 So when we have our processes in place, um, and the way we do 00:12:25.051 --> 00:12:30.146 things, um, that is a, that is, that has high value to the buyer. 00:12:30.721 --> 00:12:33.421 It's, uh, well established, well-established, well-known, 00:12:33.421 --> 00:12:36.061 transparent and reproducible. 00:12:36.091 --> 00:12:38.761 Meaning I could come in own the business. 00:12:38.791 --> 00:12:39.271 I could have. 00:12:39.931 --> 00:12:43.951 I have confidence that the, the people currently working there and the people 00:12:43.951 --> 00:12:48.961 I'm gonna bring in could run the business because of the maturity and the 00:12:48.961 --> 00:12:51.061 well-documented processes that you have. 00:12:51.991 --> 00:12:56.221 Um, when we think about culture, that's also an ip. 00:12:56.581 --> 00:12:59.941 So you may have a unique culture that would add value. 00:13:00.451 --> 00:13:01.351 Um, you could have. 00:13:01.846 --> 00:13:06.406 Suppliers unique, uh, supply chain management or just 00:13:06.406 --> 00:13:08.626 unique supplier relationships. 00:13:09.106 --> 00:13:10.396 Um, and then of course brand. 00:13:10.396 --> 00:13:14.416 We've already talked about Coke, but right, when you talk about Apple, when 00:13:14.416 --> 00:13:23.386 you talk about Dell, Microsoft, um, Coke, um, Kleenex, Kroger, p and g, right? 00:13:23.386 --> 00:13:27.616 These are brands, they're well-known brands, and uh, just the name 00:13:27.616 --> 00:13:30.031 itself leads to, uh, right to win. 00:13:31.186 --> 00:13:34.906 Um, when we think about, I want to go back to processes real quick. 00:13:35.836 --> 00:13:42.376 The, the value in a process that is well established versus one that's 00:13:42.376 --> 00:13:47.356 not is, um, night and day, right? 00:13:47.626 --> 00:13:53.416 So if you have a business that is running fairly well, but as a 00:13:54.016 --> 00:13:58.996 buyer, if I am coming in and you can't quite explain it to me or. 00:13:59.821 --> 00:14:06.841 Um, physically show me how it works, then, um, I'm gonna, I'm gonna 00:14:06.841 --> 00:14:09.991 reduce the value of your business because it's much, it's gonna be much 00:14:09.991 --> 00:14:12.781 more difficult for me to come in. 00:14:12.781 --> 00:14:17.641 Or maybe if I have, um, uh, a president in mind that I wanna 00:14:17.641 --> 00:14:21.961 bring in, or maybe just in general, I'm just gonna buy the business. 00:14:21.961 --> 00:14:26.971 I'm not gonna switch anybody up, but any one of you could leave because. 00:14:27.511 --> 00:14:32.221 Um, you wanna retire or you really liked the other owner and, and now 00:14:32.221 --> 00:14:33.721 you're gonna go do something else. 00:14:33.871 --> 00:14:35.281 There's a lot of risk there. 00:14:35.731 --> 00:14:40.021 Um, if I'm just relying on the people to run the business, huge, huge difference. 00:14:40.021 --> 00:14:40.681 Very important. 00:14:41.401 --> 00:14:41.761 Alright. 00:14:42.001 --> 00:14:44.701 Um, so right to win also goes to stickiness. 00:14:45.781 --> 00:14:48.391 So we talked a little bit about this with the recurring revenue. 00:14:49.201 --> 00:14:52.861 Um, do we have an, a cohesive ecosystem like we talked 00:14:52.861 --> 00:14:54.481 about with the Keurig, right? 00:14:54.481 --> 00:14:57.631 You buy the, you buy the machine, you buy the hardware, and then 00:14:57.631 --> 00:15:00.961 now you buy the consumables, which are the cups that go in. 00:15:01.231 --> 00:15:06.451 So if there's another type of cup that doesn't quite fit into the Keurig machine, 00:15:06.901 --> 00:15:08.581 uh, you can't buy those cups, right? 00:15:08.581 --> 00:15:10.321 You have to buy the Keurig cups. 00:15:10.411 --> 00:15:15.121 And then Keurig, I would imagine licenses this particular 00:15:15.121 --> 00:15:16.561 size, or there's some kind of. 00:15:16.891 --> 00:15:18.841 Industry standard and Right. 00:15:18.841 --> 00:15:20.791 And that's creating an ecosystem. 00:15:21.121 --> 00:15:24.871 And that ecosystem could be an external ecosystem, which is just 00:15:24.871 --> 00:15:28.531 what we talked about, could also be an internal ecosystem, which goes 00:15:28.531 --> 00:15:30.871 into more, uh, software systems. 00:15:32.251 --> 00:15:38.101 So you could have, uh, like an ERP system or like what we talked about with 00:15:38.101 --> 00:15:42.691 Epic, with, with healthcare systems, when those systems are in place, those. 00:15:43.051 --> 00:15:47.311 Technology systems, they create an ecosystem around them. 00:15:47.311 --> 00:15:52.141 So you have different, um, applications that connect to them. 00:15:52.471 --> 00:15:56.491 Um, you have different ways of data sharing between them. 00:15:56.971 --> 00:16:01.621 And once you have that kinda ecosystem in place, it's very difficult to, to rip 00:16:01.621 --> 00:16:03.631 out your ERP and put in a different one. 00:16:04.081 --> 00:16:05.161 So that's stickiness. 00:16:05.341 --> 00:16:06.541 You may have partnerships. 00:16:07.036 --> 00:16:07.876 That are sticky. 00:16:07.966 --> 00:16:13.696 Um, and because we have a good partnership with, uh, well-known brands that have 00:16:13.696 --> 00:16:18.556 good ip, they stand out, they have good innovation, great at reputation, that 00:16:18.556 --> 00:16:21.586 also adds value to our business, right? 00:16:21.586 --> 00:16:25.246 Our right to win, um, market share, we've talked about that. 00:16:25.246 --> 00:16:29.416 You could have, you could have large market share or you could have a niche. 00:16:29.821 --> 00:16:35.551 Of a market, which may not be a large market share, but that niche is very 00:16:35.551 --> 00:16:39.451 isolated and very well protected by everything we've already talked about. 00:16:39.931 --> 00:16:45.181 And because of that niche market, you have, uh, a lot of value, uh, a 00:16:45.181 --> 00:16:46.801 high multiple that comes around that. 00:16:46.921 --> 00:16:48.001 And then margins. 00:16:48.301 --> 00:16:52.531 So when we think about, um, multiples, if we're gonna talk about multiples, you 00:16:52.531 --> 00:16:57.481 think about technology, uh, traditionally in the past has a high multiple because 00:16:57.481 --> 00:16:58.951 the margins are just much higher. 00:16:58.951 --> 00:17:05.671 So when we're talking about technology, um, and the ability to, uh, sell that 00:17:05.671 --> 00:17:11.131 ERP or sell that software system, we typically are able to get, uh, a 30%. 00:17:11.716 --> 00:17:13.546 Uh, margin maybe even higher. 00:17:13.666 --> 00:17:16.306 Um, definitely not, nothing below 20%. 00:17:16.906 --> 00:17:21.346 And that gives us a higher multiple than, say, a traditional, 00:17:21.376 --> 00:17:24.046 um, labor type business. 00:17:24.046 --> 00:17:28.936 Like say a, um, a plumbing company or a HVAC company. 00:17:29.356 --> 00:17:34.216 Um, their multiples are typically lower just because their margins are lower. 00:17:34.726 --> 00:17:35.596 Um, not. 00:17:36.106 --> 00:17:38.866 Only because, but that would be one of the indicators. 00:17:39.436 --> 00:17:45.586 So anyway, with Right to Win, um, it's, IM, it's, it's out of all the ones 00:17:45.586 --> 00:17:47.626 that we've already talked about, right? 00:17:47.626 --> 00:17:51.706 To win is the most difficult one. 00:17:51.916 --> 00:17:52.186 Right? 00:17:52.186 --> 00:17:53.956 It takes a lot of time. 00:17:54.436 --> 00:17:59.656 Um, if we're looking to, if you've owned your business for 20 or 30 years and. 00:18:00.001 --> 00:18:04.981 You are wanting to implement these eight valuations, and you're going to work on 00:18:04.981 --> 00:18:10.021 financial performance, growth, potential key dependencies, recurring revenue, 00:18:10.441 --> 00:18:13.891 right to win is a long path, right? 00:18:13.921 --> 00:18:17.521 To be able to build that reputation, to be able to do that blue ocean 00:18:17.521 --> 00:18:22.021 strategy, to create market share, to create stickiness, right? 00:18:22.021 --> 00:18:24.061 You can get to work on your ip. 00:18:24.541 --> 00:18:28.441 Which is your culture and processes much more easier to do 00:18:28.441 --> 00:18:30.181 that in a shorter amount of time. 00:18:30.991 --> 00:18:34.561 Um, but this one's, this one, you're gonna have to take a, a longer 00:18:34.561 --> 00:18:40.921 view to get to, um, in order to uh, um, do well with the right to win. 00:18:41.491 --> 00:18:43.411 Um, doesn't mean I wouldn't work on it. 00:18:43.801 --> 00:18:46.411 Um, and like what we've talked about before. 00:18:46.786 --> 00:18:50.716 If it's, uh, if it's gonna take more time, then I wanna work on it sooner 00:18:50.716 --> 00:18:54.286 than later because I need that time and I don't want to run out of time. 00:18:54.826 --> 00:18:56.506 So anyway, that's right to win. 00:18:56.566 --> 00:18:59.446 That's the next, uh, slot in the ownership series. 00:18:59.806 --> 00:19:05.296 Next time we'll be talking about corporate structure and uh, thanks for listening. 00:19:05.356 --> 00:19:06.256 We'll talk with you later.