Episode 310: Systematizing businesses with Michael Frew

The Fuel Your Legacy Show

Links:
Michaelfrew.com
Summary
Michael Frew encourages people to use their skills to purchase an already working business rather than building one from scratch. He emphasizes the importance of systematizing businesses to free up time for new opportunities and constantly looking for ways to improve and optimize workflows. Samuel Knickerbocker recommends using Michael's free resources before seeking mentorship and mentions Michael's role in running a portfolio investment company as a potential topic of discussion.
Key Points
• Michael believes it's easier to buy something than build it and encourages people to use their skills to purchase an already working business (0:58)
• Michael discovered the idea of acquiring businesses instead of building them, which fit well with his skill set as an operator rather than an entrepreneur (5:57)
• For the past decade, Michael has been acquiring projects and businesses that he finds fun to run and has built a successful career doing so (7:39)
• Samuel Knickerbocker notes that many people ask themselves too late in life if their current career is what they really want, and Michael encourages people to start planning for a more fulfilling career path. (8:38)
• Samuel asks Michael how he found the confidence to start his own business, and Michael shares that he started small with a five-figure Amazon affiliate site to understand the world of running a business and see if he enjoyed it (12:27)
• Samuel and Michael discuss the benefits of software as a service (SaaS) businesses, including scalability and lower overhead costs compared to brick and mortar businesses (18:41)
• Michael Frew discusses the revenue and customer stickiness of SaaS businesses, and how they can be sold for high multiples (22:54)
• Michael Frew explains the advantages of acquiring an existing SaaS business rather than starting one from scratch, including skipping the hard part of setting it up and buying momentum (24:40)
• Michael Frew and Samuel Knickerbocker discuss the mindset of buyers and sellers in acquisitions, and how it's important for the buyer to understand the seller's passion for their project (30:52)
• Michael emphasizes the importance of selling to someone who cares about the project and its customers, rather than just selling for money or to a faceless entity that may shut it down (33:00)
• Michael emphasizes the importance of systematizing businesses to free up time for new opportunities and constantly looking for ways to improve and optimize workflows (39:39)
• Samuel Knickerbocker adds that approaching all roles with excellence and creating systems can allow for easy replacement and the ability to pursue similar roles in different companies, using the analogy of remodeling houses (40:52)
• Michael explains that buying momentum involves changing your mindset and exposing yourself to different things, such as podcasts or books, to skip the line and jump on a train that someone else has started (43:48)
• Samuel talks about how anyone can recreate themselves by clearly defining who they want to be and obsessing over becoming that person, and Michael agrees that the mind is pliable and change is possible (45:31)
• Samuel Knickerbocker recommends using Michael's free resources before asking him the same questions he's already answered in his videos, and to be respectful of his time when seeking mentorship (47:53)
• Michael expresses interest in the event and mentions his role in running a portfolio investment company, which could be a topic of discussion for the audience. (53:00)
Next Steps
• Michael Frew to suggest finding different networking groups to help mind start looking for opportunities instead of always seeing barriers. (15:17)
• Samuel Knickerbocker to highlight the benefits of acquiring businesses to listeners who may not understand how businesses work. (17:30)
• Samuel Knickerbocker to discuss the value of software as a service type business over owning a high overhead brick and mortar business. (19:25)