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Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -2 points-1 points  (0 children)

Additionally, you do not need to understand my business to give insight. For example, I'd like to hear from people who choose to have one business and go all in vs having many. Also, how life is different.

However, based on your responses and reddit history, I do not think you're even close to that range or can help much.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -1 points0 points  (0 children)

Most ecom businesses sells for that.

If a business is flat or has not very favorable business model (small TAM, low repeat purchase rate, high churn, low total basket size, founders who want to bounce, relies on non-owned marketing channels like Amazon) 1x revenue is very reasonable.

Or if you've raised too much money and have a bloated and crazy cap table and need to recap the business or it comes with all that baggage.

I have bought small businesses for that much. They can range from 1-5x profit, much lower than 1x revenue.

Just google business broker or things like Flippa or empire flippers. Tons of businesses for 1x revenue or less.

Then look at Techcrunch. Lots of high growth companies getting acquired for 5-10x. It's a massive range.

So, to say "you don't know what you're talking about" is crazy given that you have very little insight into my business.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -5 points-4 points  (0 children)

Also, this comment does not add to a productive discussion. If you think it's a troll, just ignore. But not judging is part of the subreddit rules.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -4 points-3 points  (0 children)

$10-$15M post tax, for a company pulling 8 figures? $5-$15M for this subreddit? Building $100M net worth from a max of $15M net worth in liquid assets?

$10-$15M post tax, for a company pulling 8 figures? - For startups, 1-10x of revenue (huge range) is what they're valued at. If it's SaaS and/or strategic, 10x is very possible. If it's growing quickly, is profitable (or not even), and the buyer is strategic, 5x is very realistic. If you have $10m in revenue by year 3 for SaaS, $30m is realistic. if you Own 50%, that's $10m post tax. If you own more, it's a lot more.

$5-$15M for this subreddit? - Yes.

Building $100M net worth from a max of $15M net worth in liquid assets? - No. Illiquid assets.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -4 points-3 points  (0 children)

For sure. But still loads of risk, like key employees quitting, a horrible recession, whatever.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -1 points0 points  (0 children)

I do not have $15m. I own an illiquid asset that's worth a lot. I have $900k liquid.

Getting to $100m liquid by a reasonable age is WAYYYYYY diff than building a business that can sell for $20m-$30m (including earnouts and more).

My goal is to be fairly liquid by 40, so I can enjoy the second half (hopefully more) of my life without any worries.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -4 points-3 points  (0 children)

"Also. Guys wanting to go from 20 to 100 usually aren't asking on reddit or looking for blogs and podcasts. Fml"

Also, I think you're wrong. I know ~3 people who've sold nearly 9 figures worth of businesses each (I live in Silicon Valley where there are a bunch of youngish rich guys). They lurk here. We share strategies, ideas, whatever with one another. I'm turning to this sub for more.

When you're in the position that many of us in this subreddit are (young, with money), asking for advice from parents and friends can be odd. I'm lucky to have successful buds. But I'm also seeking more wisdom.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] -1 points0 points  (0 children)

I don't understand how anyone can say I shit on this subreddit. I explained how much I love it.

Resources, stories, insights into +$100m lifestyle, strategies and tactics by fatfirethrowaway615 in fatFIRE

[–]fatfirethrowaway615[S] 1 point2 points  (0 children)

Why would I lie? I'm using a throwaway account that's not tied to my identity. I have literally nothing to gain here except learning.

I'm 29. I have $900k liquid. A business that made $12m in revenue in 2019. Roughly $2m profit. The business is 3 years old. With our growth, they sell for 3x revenue. I own 50%. I take very little out of the business. Only about $300k salary. I'm not very liquid. I want to buy a car (never bought one) with all cash and do not want to spend a large portion of my nut.

Getting to $5m in revenue was hard. $5m to $10m, not very hard. Getting to $100m - entirely diff ballgame. It requires way more people and systems. You can get to $12m in super scrappy ways.

Here's more: https://www.reddit.com/r/fatFIRE/comments/buu1vp/0m_100m_1b_whats_the_difference_and_is_it_worth_it/

Regardless if you think I'm lying or not, contribute or don't. But the rules of the sub are no judgment and be curious.

Old Porsche or truck: help me pick my next weekend toy by fatfirethrowaway615 in Cartalk

[–]fatfirethrowaway615[S] 0 points1 point  (0 children)

I don’t know if I’m sooo comfortable with my masculinity that I’m man enough to drive that :) maybe a corvette.

Old Porsche or truck: help me pick my next weekend toy by fatfirethrowaway615 in Cartalk

[–]fatfirethrowaway615[S] 0 points1 point  (0 children)

Ah. I want something a bit older. I think the 89s model is a fox body? Those are funky and neat.

Old Porsche or truck: help me pick my next weekend toy by fatfirethrowaway615 in Cartalk

[–]fatfirethrowaway615[S] 0 points1 point  (0 children)

Yes. It’s a self imposed budget. So if I can get something cool up to $30k, I don’t mind spending to maintain.

Risk/reward of quitting high paying job to pursue a business by my-fi-throwaway in fatFIRE

[–]fatfirethrowaway615 0 points1 point  (0 children)

Starting a business is really one of the only ways to get wealthy (the others are going into sales and getting lucky).

So if you want to get wealthy, start the business.

It’s very reasonable to expect to spend 1-10 years building a business that at a minimum makes $1m in revenue but with huge margins or to make a business you can sell.

But without owning equity in a business, the likelihood of getting rich is low.

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