In 1999, Jill Barad, CEO of Mattel executed a $3.5 billion acquisition of The Learning Company.

Mattel was a toy manufacturer.

The Learning Company was a software company.

Alarm bells should have been going off.

Unfortunately they did not, and the acquisition of The Learning Company by Mattel ended up one of the largest corporate losses in history.

Mattel saw over $100 million in losses in the first year of the acquisition alone.

Jill Barad ended up resigning in 2000 after only 3 years as CEO of Mattel and Mattel ended up divesting from The Learning Company, effectively giving it away for pennies on the dollar.

While this was a colossal strategic fumble, I believe a lot of heartache and headache could have been avoided has Jill Barad simply understood Mattel's core business models.

Insights from the Business Model

Just like a pilot must understand the principles of flight before he can perform a safe take off or emergency landing, so to must the investor understand the core business model before he / she makes a strategic investment.

While this seems rudimentary or simply textbook, I struggled to find a resource that gave me a clear and concise definition of a business model with an accompanying list.

Even Investopedia's article on business models fails to provide clear descriptions on how to categorize a business into the "right" business model.

I say "right" business model, because the lion's share of risk in a business or investment is hidden in misunderstanding the core business model.

This is because time, money, and energy are all limited resources that need to be allocated and deployed in line with the business model for the highest probability of continued success.

Almost every decision the company makes should be to maximize the probability of continued success. Those decisions should be predominantly rooted in the core business model(s).

For example:

• Sales & marketing efforts are designed to promote the primary value proposition.
• Partnerships are created to enhance key activities.
• Operations are streamlined to reduce key risks.
• Customer service can support key activities and mitigate key risks.
• Talent is hired to execute on the primary value proposition.
• CEOs and executive teams create incentives for talent in all categories.

From the front lines to the executive office, a fundamental understanding of the business' core model(s) is the entry point to good decision making.

Granted, a company can have multiple models running in parallel, and most large organizations do, but there does tend to be a core business model as reflected in the primary revenue stream and operations.

Defining the Business Model

A core business model defines the primary value proposition the business offers to customers, the key activities that the business must perform, and the key risks that need to be mitigated for the business to succeed long term.

This combination of the primary value proposition, key activities, and key risks, defines the business model and underscores where the principle time, energy, and money should be spent within the business.

• The primary value proposition is effectively what customers are paying for.
• Key activities are the strategic & operational activities needed to deliver the product or service being purchased.
• Key risks are the strategic & operational risks that need to be mitigated to ensure business continuity.

Most businesses and business models do have some overlap, but each business model will have different weights and balances for their success.

Let's look back at Jill Barad with Mattel for a moment.

Learning From Jill

At a very high level, Mattel makes toys. They've been involved in advertising, licensing brand names like Superman and Batman, and even making video games for their signature product: Barbie.

However, all of those activities have been in service of their bread and butter business: making toys.

In their 1999 10-K, on page 14 they note that $2.2B in sales came primarily from sales of Barbie, Entertainment & Wheels products. Looking at their revenues ( page 42 ) shows that a whopping 91% of their revenue came from Toy Marketing.

Reading their 10K further, Toy Marketing just means the sale of their products or products that they have purchased the license to make or sell.

Mattel's core business models are clearly: Manufacturing, Distribution, & Retail. They excel in the making of and subsequent advertising and selling of toy products.

Mattel did not have a strong operational background in the Licensing business as The Learning Company did. Mattel did license some toy brands, but not in the same way software licensing is done.

As you'll see below, manufacturers are more concerned with production management, quality control, and supply chain interrupts while a licensing business is concerned with IP protection and customer service demands.

Additionally, the $3.5B deal was ~10x their net income at the time. It was a huge bet, not only on The Learning Company, but also on Mattel's own skills to strategically integrate that business.

I wasn't in the board room when these conversations were taking place, but no amount of 1999 internet .com boom mania could have convinced me that Mattel's core business model was ready for a merger of a completely different business model... especially one of that size.

Had Mattel and the board recognized this, I believe they could have avoided those gargantuan financial losses.

The 12 Core Business Models

I have found that all businesses operationalize at least one of these 12 core business models that I've identified.

Many businesses operationalize multiple business models as there are natural synergies within businesses models under the right conditions. However there is typically 1 model that takes the lion's share of the company's time, energy, and money.

At a high level, the 12 core business models and their value proposition are:

• Resources: Extracts & processes raw materials for manufacturing
• Manufacturing: Makes finished goods and products
• Distributor: Provides access and variety to industrial products
• Retailer: Provides access and variety to consumer products
• Leasing: Owns assets that others want to use but do not want to buy outright
• Licensing: Owns intellectual property (IP) that others want to use
• Service: Provides expertise and labor to accomplish a task or project
• Utility: Owns basic needs that everyone needs
• Financial: Owns capital that people want
• Advertising: Has access to lots of people’s attention in a specific area or domain
• Marketplace: Has access to buyers and seller and can bring them together
• Events: Puts together a temporal activity that people want to attend

For the Long-Term Investor

I am of the opinion that any long term investor should be able to know these core business models like they know their ABCs or multiplication tables.

Knowing the model & its core components allows you to:

• Identify the right CEOs, CFOs, and executive team
• Capitalize on the right sales & marketing strategies
• Identify changes in the regulatory, customer, or geographic environment before others
• Identify & create long term strategic partnerships
• Make risk adjusted strategic decisions

Ultimately, the better you know your business model, the better you're able to navigate the waters of uncertainty and gain alpha in the market.

Understanding an Industry

A wonderful side benefit of knowing these 12 core business models, is the speed at which you can explore a new industry.

Every industry contains almost all 12 business models within it. Let's take the "Golfing Industry" as an example and see if we can identify some of the key players in each of the 12 categories:

• Resources: N/A
• Manufacturing: Callaway, Titleist, Cobra, TaylorMade, Skytrak
• Distributor: J&M Golf, Golf Max, GT Golf Supplies
• Retailer: Golf Galaxy, PGA Tour Superstore, Dicks
• Leasing: Golf cart rentals, Golf courses themselves
• Licensing: GolfGenius, LightSpeed, EventCaddy
• Service: ClubCorp, Troon Golf, KemperSports, American Golf Corp, Golf Tec
• Utility: N/A
• Financial: Saudi Arabia Public Investment Fund (PIF), Strategic Sports Group
• Advertising: Golf Week, Golf Digest, GolfWRX, NBC Golf, & Golf players themselves
• Marketplace: Golfing-Exchange.com
• Events: PGA Tour, Augusta National Golf Club, United States Golf Association

Candidly, I know nothing about golf, but in ~30 min and through the lens of the 12 core business models, I've generated a plethora of entry points for ideation, learning, partnerships, etc...

And just for fun, before we get into the 12 core business models, here's a short video on how golf balls are made:

If you've liked this article so far, I ask that you subscribe for more of this type of content in the future.

The 12 Core Business Models

Describing at a high level, their primary value proposition, their key activities, and their key risks...

Resources

Extractive industries focus on the extraction of natural resources from the earth. These businesses engage in the exploration, extraction, and initial processing of raw materials such as minerals, oil, gas, and timber. The key characteristic of this business model is the reliance on natural resources that are finite and often located in specific geographic areas.

Examples: ExxonMobil, Weyerhaeuser, Rio Tinto, Marathon Digital, Southern Copper Corporation

Key business activities: Resources companies depend on the access to and the ability to extract raw materials from the earth. These companies spend the bulk of their time in the following key activities:

• Exploration
• Extraction
• Initial material processing
• Environmental management
• Health & safety
• Regulatory compliance

Areas of Risks: Given the reliance on natural resources and regulatory environments, extractive industries need to be wary of:

• Capital access
• Equipment maintenance
• Regulatory changes
• Resource depletion
• Geopolitical risks
• Commodity price volatility

For the long-term investor: At the very beginning of the supply chain, these businesses are selling pure commodities and typically require enormous capital expenditures for the exploration, extraction, and processing of the raw materials.

In a global marketplace with cheap shipping, there are few opportunities to gain a competitive advantage and margins tend to be extremely tight as these companies sell a pure commodity.

These businesses benefit from economies of scale, access to large sums of investable capital, and the technical skills and knowledge to properly extract the raw material from its sources.

These types of businesses typically gain their competitive advantage through local or regional monopolies. They own large mineral deposits or territories where nobody can compete because of the prohibitive entrant costs. Think Rockefeller's Standard Oil in the past, or today with De Beers diamonds and Saudi Aramco.

Manufacturer

Manufacturing businesses make, build or grow products that people want to buy. These businesses invest in assets and equipment to create the products, both finished and unfinished, that make the tangible world around us.

Examples: Toyota, Boeing, General Mills, Burt's Bees, Gorilla Glue

There are also digital manufacturing company's such as Movie Production company's, such as Paramount, Warner Bros, or Universal which spend the capital to hire and ultimately manufacture a digital product. However this is not to be confused with general content creation that advertisers do.

Key business activities: In order to ensure that products are being made to the expected levels of quality, manufacturing businesses focus on the following:

• Production management
• Quality control
• Supply chain management
• Distribution
• Sales & marketing
• Research & development

Areas of risks: As manufacturers typically make high capital expenditures for equipment, they need to be cognizant of the following key areas of risk:

• Supply chain disruptions & vendor lock-in
• Equipment age and failures
• Market demand fluctuations

For the long-term investor: Most manufacturers trend toward commodities as consumers or businesses tend to have lots of choices for the products they can buy.

However if the manufacturer can create a strong brand and is very good at sales & marketing, the manufacturer can move out of commodity pricing margins.

Manufacturer's also tend to be the most model with multiple models operationalized. This can be Distribution if they own their own warehouses, Retail especially in a digital eCommerce age, if they want to sell directly to consumers, sometimes Leasing if they own excess equipment they've purchased, and even Service if they're providing a value add within their own manufacturing process.

You want to look for manufacturer's with strong brand recognition, long term contracts for purchases, or specialized niche products that requires specialized technical knowledge. These elements can help create durable profitability in manufacturing businesses.

Distributor

Distributor businesses provide access and variety to industrial products that other businesses need. These companies act as intermediaries, sourcing products from manufacturers and distributing them to retailers, businesses, or in a few cases, directly to consumers. They ensure that goods are available where and when needed, often adding value through services like logistics, storage, and customer support.

Examples: Grainger, Fastenal, Arrow Electronics, Sysco, TTI

Many American retail outlets also function as mini warehouses and distribution centers themselves. Costco, Walmart & Home Depot are examples of consumer retailers that also function partially as distributors with their warehouse sized facilities.

Key business activities: In order to ensure that products are delivered efficiently and meet the needs of their clients, distributor businesses focus on the following:

• Inventory management
• Supplier relationships
• Logistics & distribution
• Sales & marketing
• Customer service

Areas of risks: As Distributors are typically managing lots of various inventory ranging in size, cost, and complexity, distributors should be aware of the following risks:

• Inventory obsolescence
• Supplier dependence
• Price sensitivity
• Logistics disruptions

For the long-term investor: As an alumni of Texas A&M's Industrial Distribution program, I've had the pleasure of working with distribution companies and even visiting a high volume electronic components distributor TTI in China.

These business models make their margin through variety, access, and knowledge of the makes and models of inventory they have available.

As intermediaries, distributors tend to have key knowledge and special relationships with both the manufacturers and customers, giving them information arbitrage.

When evaluating distributor businesses, you should be looking for distributors with a diversified supplier base, efficient logistics, strong customer relationships, and adaptability when either customer or manufacturing demands change.

Retailer

Retail businesses provide access and variety to finished consumer products that individual people want to buy. These companies operate storefronts, whether physical, digital, or both, to sell goods directly to consumers. Retailers are the final link in the supply chain, bridging the gap between manufacturers or distributors and end-users. Successful retailers offer a compelling shopping experience, a wide product selection, and competitive pricing to attract and retain customers.

Examples: H-E-B, Target, BootBarn, Walgreens, Sephora, Sally Beauty Supply, Michael's, Best Buy

Many high value goods manufucturers have retail components of their business as well. Think Nike, Lululemon, Warby Parker, Bath & Body Works, Patagonia, and Rolex to name few.

Key business activities: To ensure products are available, appealing to customers, and being purchased, retail businesses should focus on the following activities:

• Sales & marketing
• Inventory management
• Customer engagement & retention
• Merchandising ( physical & online display & discovery )
• Customer service

Areas of risks: Retail businesses are beholden to the end consumer and are subject to consumer sentiment, consumer spending capabilities, and lots of customer service. As such the following risks should be kept top of mind in a retail business investor's mind:

• Changing consumer preferences
• High overheads, especially with physical stores
• Quality customer support
• Inventory management
• Competition

For the long-term investor: Retail businesses are hyper competitive as these businesses can have some of the highest margins of any of the business models that deal with physical goods and products.

Prior to the internet and Amazon, this business model was fairly durable if the business could gain an effective monopoly in a geographic area.

Now that retail can cross state and international borders with a "1-click buy" option, retail has struggled; however, there is still room for retail, especially physical, in-person retail with live experiences, community building, and offering additional services.

Leasing

Leasing businesses own assets that other individuals or businesses want to use but do not want to buy outright. These companies generate revenue by renting out these assets for a specified period.

Examples: Hertz, WeWork, Breckenridge Ski Resort, Exsif Worldwide, Caterpillar Leasing

Key business activities: To ensure the efficient operation, maintenance, and profitability of assets that are being leased, the following key activities are essential:

• Asset acquisition, maintenance, & management
• Contract management
• Financial management, for larger capex purchases
• Customer service

Areas of risks: Without ownership of the core asset(s) there is no leasing business available, so leasing businesses need to be acutely aware of:

• Asset depreciation & maintenance costs
• Access to capital & credit risk
• Market Saturation
• Legal Terms & Conditions

For the long-term investor: Leasing businesses are inherently a financial optimization between owning the asset and borrowing the asset for its utility.

Customers of leasing businesses do not have the means or desire to own the underlying asset themselves.

Things like railcars, oil tankers, cranes, trucks, boats, or even simply ski's are all types of leasing businesses. The entire world of real estate is effectively one large leasing game.

Leasing businesses that have high quality assets, do minimal lease customization, have long term lease agreements, and have a consistent customer base can be attractive businesses to own for long periods of time.

Leasing can also be one of the most stable businesses models if you have long term contracts with your customers.

These are some of the main reasons real estate is one of the most stable long term investment vehicles. Most businesses or individuals do not want the burden of ownership and simply want to borrow the space for the duration they're occupying the space.

Licensing

Licensing businesses own intellectual property (IP) that other individuals or companies want to use but do not want to buy outright. These companies generate revenue by allowing others to use their IP, which can include software, brands, technology, or creative works, in exchange for a fee or royalty.

Examples: Microsoft, IBIS World, Netflix, The Walt Disney Company, Asana.

Any software as a service business ( despite the name ) is a licensing business selling a license to use the software.

Key business activities: Licensing businesses need to ensure their core IP is profitable and protected, so they must focus on:

• IP development
• IP protection ( protecting IP through patents, trademarks, copyrights, and legal means )
• Licensing partnerships
• Customer service

Areas of risks: Given the complete dependency on their IP to drive their sales, as the investor you should be aware of:

• Competition vs. incumbent IP quality
• IP infringement
• Regulatory changes

For the long-term investor: Licensing businesses succeed on the strength and uniqueness of their intellectual property. Companies like Netflix, Microsoft, and Disney have built robust portfolios of IP that are in high demand across various markets. However, that's being challenged daily.

In the digital & A.I. age, licensing of digital products is getting hammered by new competition and IP infringement. It's getting to the point where many companies do not have the resources to protect against IP infringement or cannot keep up with the competition.

As a long term investor, it is crucial to evaluate the quality and uniqueness of the IP held by the licensing company. Strong IP that is well-protected through patents, trademarks, and copyrights can provide a competitive advantage and generate steady revenue streams.

A company that has a protectable patent, with long term contracts / partnerships, and the means to protect that patent can be very lucrative. The pharmaceutical industry is the primary example of combining manufacturing with patents & licensing to create wildly huge profits.

Service

Service businesses provide expertise and labor to accomplish a task or project that cannot be purchased off the shelf. These companies sell skills for hire or use people directly in the creation of the final product offering that ranges from professional advice to physical tasks. Success in the service industry depends heavily on the quality of service, customer relationships, and the ability to adapt to changing client needs.

Examples: Deloitte, Bechtel, Schlumberger, H&R block, Equinox, AAA, Starbucks, Baylor Scott & White.

Everything from the local plumber to the 5 star restaurant to the construction company to your optometrist is a service business.

Key business activities: To ensure the delivery of high-quality services and maintain client satisfaction, service businesses focus on the following:

• Customer relationship management: for repeat business and referrals.
• Service delivery
• Talent acquisition & training
• Billing & invoicing

Areas of risks: Given the typically heavier dependence that the service business has on human skills and creativity, it's best to look out for the following:

• Client relationships and public image
• Dependency on key personnel
• Quality of the talent pool
• Consumer trends & competition
• Regulatory changes

For the long-term investor: Because services can have some of the highest consistent margins of all the business models, they become highly commoditized, competition is fierce, and the business needs to get many things right at the same time.

To stay competitive, the business must have good human capital & talent, strong client relationships over many years, have scaled operations and maintained quality in the service over time, and developed a solid reputation for the quality of the service delivered.

Service businesses with all of these attributes can be very compelling businesses to own and is the reason why many PE firms jumped into the HVAC, plumbing, and home services business in 2021, as even a moderate amount of training, operational discipline, and automation, can allow these businesses to maintain margins and scale quicker than the competition. Throw in a really good product or service and you can have high margin customers & referrals for life.

Advertising

Advertising businesses monetize access to large audiences by selling attention to advertisers. These companies leverage their platform to capture and retain audience attention, offering advertisers the opportunity to promote their products and services to targeted demographics. Success in the advertising industry depends on the ability to gather a large, engaged audience and provide effective advertising solutions to clients.

Examples: Google & YouTube, The New York Times, Clear Channel Outdoor, iHeartRadio.

Additionally, in the sports & entertainment world, players & creators themselves are also advertising platforms that leverage the audience they build to sell products. It's why the world of "influencer marketing" has recently come about as social media has enabled the long tail of advertising.

Key business activities: To ensure the delivery of high-quality advertising services and maintain client satisfaction, advertising businesses tend to focus on the following key activities:

• Content creation & audience development
• Sales & marketing
• Analytics, demonstrating advertising campaign effectiveness
• Platform management

Areas of risks: Advertising, like the Marketplace business model, have 2 sets of core customers to serve: the audience & the advertisers, and need to ensure that both sets of customers are managed properly:

• Audience quality & engagement
• Advertiser match with audience
• Customer & advertiser perception
• Platform development
• Ad Blockers, for online advertisers

For the long-term Investor: Advertising businesses are inherently reliant on their ability to capture and retain audience attention. Additionally, with 2 sets of core customers to serve, it is inherently more operational complex.

Companies like Google and Facebook have built empires on their extensive reach and sophisticated data analytics, allowing them to offer highly targeted advertising solutions because they didn't have to focus on building the content, but instead leveraged UGC and focused on building the audience platform.

These businesses can be very tricky and require delicate balance between advertiser demands and audience demands. However, niche advertisers in niche audiences can be very stable. Think niche magazines, subscription newsletters, and industry journals. The customers of these niche content creators can be very highly engaged and motivated to spend money.

Marketplace

Marketplace businesses facilitate transactions by bringing buyers and sellers together on a common platform. These companies generate revenue through various means such as transaction fees, listing fees, and premium services.

Examples: eBay, Airbnb, Etsy, ZipRecruiter, Zillow, Uber, Upwork.

Key business activities: In order to attract buyers and sellers, marketplaces must focus on:

• Platform / space development
• Trust & safety
• User Acquisition
• Transaction management
• Customer support
• Marketing & promotion

Areas of risks: Given the dependency on the platform and the need to serve 2 customers with different needs, marketplaces have to be wary of:

• Operational complexity
• Platform competition
• Fraud prevention
• Buyer & seller retention

For the Long-Term Investor: Marketplace businesses are inherently dependent on their ability to attract and retain a critical mass of buyers and sellers.

To have any alpha in the marketplace business, you must understand what both sides of the marketplace want / need, and the platform must incentivize or fulfill both customer's needs.

As an investor, look for marketplace companies that have this "critical mass" flywheel already in place and excel in platform and user experience development. A user-friendly and reliable platform is fundamental to attracting and retaining buyers and sellers.

For example with AirBnb, consumers want a clean, safe location with good amenities, and potentially a host to give them a cultural experience. Hosts want a short term tenant that isn't going to destroy their home. Knowing this, it makes sense that AirBnb incentivizes hosts to have ample pictures of their home while AirBnb also implemented a rating system for renters to score their tenants.

Marketplaces with a strong platform, effective user acquisition, and robust trust and safety measures can create be robust businesses so long as the underlying needs or wants of the 2 sides of the marketplace are being fulfilled.

Utility

Utility businesses provide essential services that everyone needs. These companies generate revenue by charging customers for the usage of these essential services.

Examples: AT&T, AWS, Waste Management, CenterPoint Energy

A.I. is also quickly becoming a utility and I predict we will see many A.I. company's pricing model change to a "pay-as-you-use" accordingly.

Key business activities: To ensure the reliable delivery of essential services and maintain customer satisfaction, utility businesses focus on the following key activities:

• Infrastructure development
• Service reliability
• Regulatory compliance
• Customer support

Areas of Risks: Given the critical nature of their services and the regulatory environment, utility businesses have to be aware of:

• Infrastructure repair & maintenance costs
• Service uptime and redundancies
• Regulatory changes
• Competition

For the long-term investor: So long as service levels match demand, utility businesses tend to be stable businesses due to the essential nature of their services.

Utility companies are effectively a pure commodity and tend to have tight margins accordingly.

Utility companies with high service reliability, proper maintenance of their infrastructure, re-invest in their infrastructure, and consistent regulatory compliance can have a durable competitive advantage.

It's also best to understand the businesses contingency planning in the event of a nature disaster or service interruption.

With an uptick in service modifying events like natural disasters, supply chain interruptions, and black swans like Covid, having back ups for critical infrastructure can ensure the businesses long term success.

Financial

Financial businesses manage and grow capital for individuals and organizations. These companies offer a wide range of services including banking, insurance, investments, and credit.

Examples: JP Morgan Chase, Fidelity, Bain Capital, Sequoia Capital, Geico, Klarna, Visa, Loan sharks

Key business activities: To ensure effective operation and profitability, financial businesses focus on the following key activities:

• Capital management
• Risk management
• Customer acquisition
• Client advisory
• Regulatory compliance

Areas of risks: Given the nature of their operations and the regulatory environment, financial businesses need to be aware of:

• Credit risk
• Market volatility
• Regulatory changes
• Reputation risk

For the long-term investor: Just like a leasing company leases physical goods, financial businesses lease their money for a future return. In the same way a leasing company needs to protect it's asset from damage, theft, or destruction, a financial company's primarily responsibility is to protecting the capital that it has access to.

Financial companies must have very good risk mitigation strategies in place commensurate with their investment strategy. The reason why Warren Buffet is considered one of the greatest long term investors ever is because he deeply understood the risk of losing money.

It's jokingly said that his #1 & #2 rules were:

1. Never lose money
2. Never forget rule #1

When evaluating a financial company, look for long and short term financial risk exposure, regulatory compliance, customer credit worthiness, borrowing terms, and the true risk of insolvency.

These businesses should have a clearly defined investment thesis & underwriting criteria along with solid accounting and legal discipline with a strong pulse on the market and customer base to assess or identify any future potential risks.

Lastly financial businesses that offer competitive products and excellent client advisory services can attract and retain a loyal customer base.

A long term holding company like Township Ventures, falls into this category and thus risk mitigation is a fundamental component of our business. This article's purpose is not only to share knowledge, but also to demonstrate our first principles approach to risk assessment for investments in private businesses.

Events

Event businesses create and host temporal activities that people want to attend. These companies generate revenue through ticket sales, sponsorships, concessions, and merchandise.

Examples: NBA, SXSW, Bitcoin Conference, The Rodeo, The Met Gala

Key business activities: To ensure the successful execution and profitability of events, the following key activities are essential:

• Event Planning
• Marketing & promotion
• Logistics management
• Vendor management
• Customer experience
• Post-event analysis

Areas of risks: Given the temporal nature of their offerings and the dependency on customer turnout, event businesses need to mitigates risks of:

• Event cancellations, like from weather
• Event mismanagement or complications
• Safety concerns
• Venue availability
• Reputation

For the long-term investor: Event businesses require careful coordination and cooperation among a number of moving parts to participate in an activity at a specific time and place.

Inherently limited in time and space, events typically charge super premiums on ticket prices. These events typically have a captured audience, thus they can charge further premiums on merchandise, food, drinks, and sub activities.

Well coordinated events with unique experiences can be massively lucrative. While these businesses are difficult to scale, with the right operational playbooks in place, events can scale atomically to other geographic locations.

These businesses should have a solid track record of successfully executed events with fantastic margins, positive reputation among attendees, and clear customer marketing system to ensure consistent event turn out over and over again.

Share your thoughts

If you disagree with anything I've shared or have issues with any assertions I've made, let me know in the comments.

Township Ventures is a long-term holding company that I've started to buy and build Texas businesses.