Stoddart: I only invest in liked founders, cash flow, and evergreen markets
Tim Stoddart · I Make $5M/Year With 3 Businesses · Apr 27, 2024 · at 12:14
Entrepreneur Tim Stoddart describes his capital allocation rules and investment framework to Starter Story host Pat Walls.
0:00 / 0:37exact quote · 37.6s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“There's only three things that I really care about. One, do I like the founder? Because if I don't like the person, it doesn't matter how great the idea is, like life is too short to deal with people that you don't like. Two, is it cash flowing? I personally am not interested in betting on a thousand companies and hoping that like one of them turns into Facebook. I want to build a portfolio of assets. And then the third one, this is just for me personally, is, is it like evergreen? I want to find something that's going to be around Forever. Right. That's why healthcare is appealing to me because people are always going to need to take care of themselves. So that's it. Like, is the founder cool? Does it cash well? And is it evergreen? And if it meets those criteria, I'll take it seriously.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Tim Stoddart
Stoddart: "Being yourself" is terrible SEO advice compared to solving specific problems
“Being yourself is like terrible SEO advice. What you want to do is you want to know what people are searching for. You can figure that out just by going to trends.google.com, type in a bunch of keywords, see what keywords are available, and then write an artic…”
Stoddart: Agencies are the best starter businesses because they require no capital
“I still think it's the best business for somebody to start because you just need a client. Once you get your first client, all of a sudden you have a profitable business.”
Stoddart: Address pricing upfront in sales calls to avoid closing stalls
“The second most important thing is to get like the price out of the way in the very beginning. Because what always happens, you go through this whole pitch and then people say, okay, I'll call you back. Let me think about it. And that's the worst thing that ca…”
Stoddart: Ask "Are you ready to get started?" and remain completely silent
“And then the last and absolutely most important thing is ask for the deal. Here's my line for this is the best line. It's, are you ready to get started? So you got to say, you say, are you ready to get started? And the trick is you shut up. And so what I do is…”
Stoddart built his business by hiring staff directly from halfway houses
“I hired them like straight out of halfway houses, and we've all built this together over the last 10 years.”
Stoddart predicts his holding company will generate up to $5.5M in 2024
“This year for Stasi, we'll do probably like two and a half million, but on the side and more and more throughout the day, I find myself running a personal holdings company. My guess is it'll be like 5.2 to five and a half million for 2024.”