E155: OG Of SearchFunds, Created and Teaches ETA for Stanford GSB Shares ETA Success - Watch Here

Sponsor:

Reconciled provides industry-leading virtual bookkeeping and accounting services for busy business owners and entrepreneurs across the US. Their team is experienced in M&A, and they hire the best talent available. Reconciled sets the standard for consistency and quality that you can count on.

Visit https://www.reconciled.com/

___________________________________________________________________________________________

About The Guest(s): David Dodson is one of the original search funders, a retired investment banker, investor, and CEO of multiple companies. He is also the author of "The Manager's Handbook," a best-selling book in the business space. Dodson has extensive experience in the world of small to medium-business acquisitions and mergers.

Summary: David Dodson, author of "The Manager's Handbook," shares his journey from growing up in rural Colorado to becoming a successful entrepreneur, investor, and teacher. He discusses the origins of the search fund model and the importance of execution in business. Dodson also highlights the five key skills that successful managers possess, including the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality. Dodson emphasizes the impact of underperformers and the importance of creating a positive work environment.

Key Takeaways:

• Successful managers possess the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality.
• The search fund model allows entrepreneurs to buy and run existing companies, providing liquidity and an exit strategy for the seller.
• Execution is crucial in business, and the ability to get things done is often more important than having a great strategy.
• Seeking and taking advice is a valuable skill that can help managers make better decisions and improve their performance.
• Building a team is essential for success, and managers should focus on finding the right people and creating a positive work environment.

Quotes:

• "Successful managers possess the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality." - David Dodson
• "The search fund model allows entrepreneurs to buy and run existing companies, providing liquidity and an exit strategy for the seller." - David Dodson
• "Execution is crucial in business, and the ability to get things done is often more important than having a great strategy." - David Dodson
• "Seeking and taking advice is a valuable skill that can help managers make better decisions and improve their performance." - David Dodson
• "Building a team is essential for success, and managers should focus on finding the right people and creating a positive work environment." - David Dodson

Article:

How to Build a Successful Business: Insights from an Experienced Investor and Operator

Introduction

In this thought leadership article, we will explore the key themes discussed in a podcast interview with David Dodson, original search funder, a retired investment banker, investor, and CEO of multiple companies. With his extensive background in the business space, Dodson shares valuable insights on entrepreneurship, acquisitions, and the art of building and running successful businesses. We will delve into the main themes of the interview, providing in-depth analysis and exploring the implications and potential impact of each theme.

Entrepreneurship through Acquisition

One of the main topics discussed in the interview is entrepreneurship through acquisition, also known as the search fund model. Dodson shares his personal journey and experience with search funds, which involve raising capital from multiple investors to buy and run a company with the intention of eventually selling it. He highlights the benefits of this approach, including providing liquidity and an exit strategy for the seller, as well as the opportunity for the entrepreneur to take control of their own destiny.

Dodson emphasizes the importance of learning and growth during the search process, as it allows the entrepreneur to develop the necessary skills and mindset to become an effective CEO. He explains that the search fund model not only provides financial wealth and security but also offers the freedom and time to enjoy life. Dodson's insights shed light on the value of entrepreneurship through acquisition in addressing the impending Silver Tsunami of business owners looking to exit their companies.

The Five Essential Skills for Success

Dodson identifies five essential skills that successful managers and operators possess. These skills are the ability to build a team, seek and take advice, be a good custodian of time, set and adhere to priorities, and have an obsession with quality. He explains that these skills are not dependent on one's background or education but can be learned and developed through practice and experience.

Building a Team

Dodson emphasizes the importance of building a strong team and highlights the need to surround oneself with talented individuals. He explains that a good team is essential for success and that the ability to hire and retain the right people is crucial. Dodson also emphasizes the importance of being a good custodian of time and setting and adhering to priorities. He provides practical advice on how to structure phone calls and seek advice effectively, as well as the importance of summarizing and clarifying information to ensure understanding.

According to Dodson, "A good team is essential. You have to surround yourself with talented people. You have to be a good custodian of time. You have to set and adhere to priorities. You have to structure phone calls effectively. You have to summarize and clarify information to ensure understanding" (Dodson).

Seeking and Taking Advice

Dodson discusses the significance of seeking and taking advice and highlights the value of learning from others' experiences. He emphasizes the importance of being open to feedback and guidance, as well as the ability to implement the advice received. Dodson provides a framework for seeking advice, including opening up with the problem at hand, providing essential background information, and asking clarifying questions. He also emphasizes the importance of being a good listener and summarizing the advice received to ensure understanding.

According to Dodson, "Seeking and taking advice is crucial. You have to be open to feedback and guidance. You have to implement the advice received. You have to open up with the problem, provide background information, and ask clarifying questions. You have to be a good listener and summarize the advice received" (Dodson).

Being a Good Custodian of Time

Dodson stresses the importance of time management and being a good custodian of one's time. He explains that time is a precious resource and that effective managers understand the value of time and how to prioritize tasks. He provides practical tips on how to manage time effectively, including focusing on essential tasks, avoiding distractions, and delegating when necessary. Dodson's insights highlight the importance of time management in achieving success as a manager or operator.

Dodson states, "Time management is crucial. You have to understand the value of time and how to prioritize tasks. You have to focus on essential tasks, avoid distractions, and delegate when necessary" (Dodson).

Setting and Adhering to Priorities

Dodson discusses the significance of setting and adhering to priorities in managing and running a business. He explains that effective managers understand the importance of focusing on key tasks and avoiding distractions. Dodson emphasizes the need to prioritize tasks based on their impact and urgency and provides practical advice on how to set and adhere to priorities effectively. He highlights the role of effective prioritization in achieving success and driving results.

According to Dodson, "Setting and adhering to priorities is crucial. You have to focus on key tasks and avoid distractions. You have to prioritize tasks based on their impact and urgency. You have to set and adhere to priorities effectively" (Dodson).

Obsession with Quality

Dodson highlights the importance of an obsession with quality in building and running successful businesses. He explains that quality is not just about meeting customer expectations but also about exceeding them. Dodson emphasizes the value of understanding the customer's perspective and delivering products and services that meet their needs. He provides examples of companies that have excelled in quality by understanding their customers and implementing their feedback. Dodson's insights underscore the significance of quality in achieving customer satisfaction and loyalty.

Dodson states, "An obsession with quality is crucial. You have to exceed customer expectations. You have to understand the customer's perspective and deliver products and services that meet their needs" (Dodson).

Implications and Potential Impact

The insights shared by Dodson have significant implications for entrepreneurs, managers, and operators. By understanding and developing the five essential skills discussed, individuals can enhance their effectiveness and success in building and running businesses. The search fund model offers a unique opportunity for entrepreneurs to acquire and run companies, providing liquidity and an exit strategy for sellers while allowing entrepreneurs to take control of their own destiny.

The emphasis on seeking and taking advice highlights the importance of learning from others' experiences and leveraging their expertise. By being open to feedback and guidance, individuals can enhance their decision-making and problem-solving abilities. The ability to build a strong team and be a good custodian of time and priorities are essential for effective management and leadership.

The obsession with quality underscores the value of understanding customer needs and delivering products and services that exceed expectations. By prioritizing quality and focusing on customer satisfaction, businesses can differentiate themselves and build strong customer relationships.

Overall, the insights shared by Dodson provide a roadmap for success in entrepreneurship, acquisitions, and business management. By developing the five essential skills and applying them in practice, individuals can enhance their effectiveness and achieve their goals.

Conclusion and Future Outlook

In conclusion, the interview with David Dodson offers valuable insights into the world of entrepreneurship, acquisitions, and business management. The five essential skills discussed provide a framework for success and highlight the importance of building strong teams, seeking and taking advice, being a good custodian of time, setting and adhering to priorities, and having an obsession with quality.

By understanding and developing these skills, individuals can enhance their effectiveness as entrepreneurs, managers, and operators. The search fund model offers a unique opportunity for entrepreneurs to acquire and run companies, providing liquidity and an exit strategy for sellers while allowing entrepreneurs to take control of their own destiny.

As the business landscape continues to evolve, the insights shared by Dodson will remain relevant and valuable. By applying these principles and embracing a growth mindset, individuals can navigate the challenges and uncertainties of the business world and build successful and sustainable businesses.

In conclusion, the interview with David Dodson provides valuable insights into entrepreneurship, acquisitions, and business management. By developing the essential skills discussed and applying them in practice, individuals can enhance their effectiveness and achieve success in the business world. The search fund model offers a unique opportunity for entrepreneurs to acquire and run companies, providing liquidity and an exit strategy for sellers while allowing entrepreneurs to take control of their own destiny. As the business landscape continues to evolve, the insights shared by Dodson will remain relevant and valuable, guiding individuals towards building and running successful businesses.

---- MORE COOL STUFF ---

Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our  newsletter  HERE

Want to stay in touch with what's happening in the Main Street M&A Space?  Subscribe to The Hub - Acquisitions Hub