Megatrends A Future of Opportunities

Search Fund Resources | Happiness | Hunting ARR

Author

JD
October 18, 2023

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New Ideas | Technology | Resources | Operations | Sales | Transition

Why Megatrends Matter as a Searcher or Operator

SMBs who understand the megatrends that are shaping their industry and the world around them will be better positioned to take advantage of opportunities and mitigate risks. Whether you are an existing Owner, Searcher, or Investor megatrends should be part of your business strategy creation.

Megatrends can help small businesses to:

  • Identify new markets and opportunities for growth

  • Develop new products and services that meet the changing needs of consumers

  • Improve their operational efficiency and productivity

  • Become more sustainable and environmentally friendly

  • Manage risks and prepare for disruptions

Energy Transition is a megatrend. How could you think about leveraging this?

  • Invest in renewable energy. reduce their carbon footprint and save money on energy costs by investing in renewable energy sources such as solar and wind power. They can also purchase renewable energy credits (RECs) to support the development of renewable energy projects or provide their customers with solutions that have a lower carbon footprint.

  • Improve energy efficiency. Breduce their energy consumption and costs by improving the energy efficiency of their operations. This can be done by making changes to their equipment, buildings, and transportation. Reduced costs can extend from preferred insurance rates, cost of capital, and reduction in fuel and fuel transmission costs.

  • Partner with other businesses and organizations

  • Develop new products and services. develop new products and services that help consumers and other businesses transition to clean energy. For example, a business could develop electric-powered devices, energy storage systems, emissions-distributed power solutions, or software to help businesses manage their energy consumption. Try asking

    “How much does our product consume? How could we make it 50% less? What customer persona would pay the additional cost for this result?”

By understanding and planning for megatrends, small business owners can increase their chances of success in the long term. Peter Fisk has a good overview of 2030 Megatrends that can be the starting point for developing a strategy for your business.

Megatrends 2030: In a world shaken up by Covid, conflict and uncertainty, are you shaping the future, or is it shaping you? - Peter Fisk

www.peterfisk.com/2022/10/megatrends-2022-in-a-world-shaken-up-by-covid-conflict-and-uncertainty-are-you-shaping-the-future-or-is-it-shaping-you

What’s Happening?

  • West coast dock strike, adding pressure to small business

  • Small business week - JT’s comment on the Canadian Small Business Financing Program & extending the deadline for pandemic loans (extended to January 18, 2024 for eligible CEBA loan holders)

  • Tax exemptions POV - Frank Stronach

  • Everyone wants ARR (annual recurring revenue). Operators are changing models, and searchers and investors are hunting for opportunities with it. But what about the TON of great non-recurring rev companies? - The conversation is on…

“No one goes into business on their own to lose money or end up bankrupt. So the reward portion of the “no risk, no reward” equation must be significant — otherwise, why take the risk?”

Frank Stronach - founder of Magna Inc.

Resources & Tools

In the coming weeks, a categorized list of resources and tools will be available our our site.

  • Village Wellth - Business acquisition platform that helps reduce friction with finding loans and investors. (Canadian-based company)

  • Search Fund Primer - If you are considering a Search Fund or Investing in one Standford has a rich set of resources and documents you can leverage. These can also be helpful for SMB owners to learn more about the process if thinking about selling their business

Continuous Improvement

  • Search Funds & EA (Book) - This is one of the best books about ETA providing in-depth detail about each stage of the process. Including post-acquisition phases of management. A must check out!

  • Tim Ferriss: Happiness w/ Arthur Brooks (Podcast) - This is jammed-packed perspectives and processes for happier lives. Both from an individual perspective and your employees’.

    “If you are a close friend of Unconventional SMB and over 40, expect restrictive bands in your stocking this year!”

“Tough decisions are easy to make and you likely already know the answer. It’s the action of implementing the decision that is challenging. Ask yourself - what do I fear by taking action - then solve to reduce that fear. ”

JD