bitcoin4all on Nostr: A Millennial Small Business [micro]Strategy MicroStrategy has out preformed ...

A Millennial Small Business [micro]Strategy

MicroStrategy has out preformed massively. Michael Saylor saw something no one else saw
and had the gumption to take action on it. He then went a step further and open-sourced his
play book. The asymmetry of his strategy comes from the overvaluation his companies stock
resulting from the fiat-industrial-complexes over production of currency seeking yield. He has
been able to use this to take on low-interest debt which he has plowed into Bitcoin, the best
preforming asset in the history of the world. As Bitcoin goes up, so does the value of the
company he manages which results in more debt being offered to him which will be used to
buy more Bitcoin. This cycle should continue until Bitcoin stops going up in price (“it’s going up
forever, Laura”) or every public company in the world adopts the strategy and the competition
floods the island Michael is currently standing atop alone. Because of Bitcoins increasing
scarcity, his early lead will be forever cemented in history. In the coming decades,
MicroStrategy is likely to become one of the biggest tech companies in the world and Michael
Saylor one of the wealthiest people ever to live.

What makes Michael the perfect person to execute this strategy is his mastery of public market
financing. If I were put in charge of a public company and tried to accomplish the same thing,
the odds of me recking things are nearly 100%. I don’t know the difference between a
convertible bond and a hangman’s noose so I figure it’s best I don’t play with either. I run small
businesses. The most sophisticated debt instruments I have ever used are an unsecured line of
credit and a credit card. When I was twenty-one with no formal education, I went to work for a
small-business owner as his first sales rep. His instructions were, “buy low, sell high and figure
out the rest”. That’s pretty much what I have been doing ever since except that four years ago I
took the huge step of going into business for myself.

What I love about what I do is the entrepreneurs I get to meet along the way. These are people
who built a product, developed a brand took it to market and have been operating their
company profitably for decades. They are small business people. Like me, they aren’t
sophisticated and they only banker they know is at their local branch. Mostly, they are
Boomers in their late 60’s or early 70’s. They don’t hold Bitcoin. Many of them are looking to
retire, but don’t have much of a plan for it. They have poured their lives into the businesses
and in some cases, there is no heir apparent to take over. I’m guessing my experience is not
unique. Maybe you know someone in that position too. I submit that over the next decade,
trillions of dollars’ worth of small business value is going to change hands and as Millennial
Bitcoiners, we are perfectly positioned to take the torch.

I have been researching this with one particular acquisition target in mind. Inspired by Michael
Saylor, I want to opensource my thinking and strategy around this potential acquisition. I have
no delusions that my contribution is anything like the scale of his, but hopefully by putting this
out in public I can help other people acquire profitable small businesses. Even better, if this
gets attention, other business people in the Bitcoin space might help me avoid obvious pitfalls
so I can navigate this successfully….call it crowdsourced mentorship.

So, the strategy looks like this: Use Small Business Administration business acquisition 7 (a)
loans to buy profitable cash-flowing companies run by Boomers. Put in the Proof Of Work to
learn your new business and add value where you can. Structure your businesses in a way that
profits are taken first and operating expenses are paid from what is left over.

For a great description of the mechanics of this, check out the book: Profit First - Transform
Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz.
His insight is to set up five distinct checking accounts at one bank and two “off-limits” accounts
at another bank. This sounds complicated at first, but it works on the same principal as “dieting
at the grocery store”. You won’t eat what is not in your fridge and you won’t spend what is not
in your Operating Account. Put the money where it’s supposed to go so you won’t be tempted
to let expenses balloon.

Money comes into the Income Account and then is dispersed in the following order at the first
bank: Profit Account, Owners Salary, Tax, Operating Expense. The Tax and Profit accounts are
then linked to a second “off limits” bank to make it that much harder to access them and
reduce the risk that you will “borrow” against yourself. I am proposing that instead of a second
bank for your “Profit Account” you use a secure self-custody set up and dump that money right
into Bitcoin. Then go about your business delighting customers, reducing costs, innovating new
channels to market or adding complimentary product offerings. Don’t even think about the
Bitcoin account. Use a secure Multi-Sig or Multi-Institutional custody model and let it ride.

Every time you make a deposit, move a predetermined percent into your Bitcoin profit account.
Running a business is challenging and rewarding and in no time, you will look up from your
laptop and realize it’s been two full halvings since you started the strategy. The Bitcoin in your
profit account is now worth more than you paid for the business and can be used to pay it off
the SBA. Or if you’re enjoying yourself, use a small percent of your increased purchasing power
to buy more businesses. Afterall, this is how the generational shift in value will take place.

The Boomers need an exit and want someone who will take their businesses seriously. They
may not understand Bitcoin, but business people understand Proof Of Work and the pride you
develop by living your life on a hard-money-standard. Their customers want the same great
products they have been buying forever and will be reenergized with enthusiasm for the brand
when they see the energy a young entrepreneur brings to the business. The only looser here is
the bank who issued the government backed SBA loan. The rate of interest over the years of
the loan will be fixed and will likely be far less than actual inflation over that same period. But
don’t you worry about them….they didn’t put in any Proof of Work to issue that loan. Their
cost of goods sold is nearly the same as their reserve ratio which is likely +/- zero.

This is a much less sophisticated version of what saylor (npub15dq…lm5m) is doing. It’s short the dollar long hard money and productive assets. It doesn’t use leverage or get fancy. To quote ODELL (npub1qny…95gx) all you have to do is stay humble and stack sats.

I would love feedback. Let me know what you think….have I missed anything obvious. Would you like me to expand
on any parts of this in more detail?