There are more than one million small businesses with sales between $1-$25M in the United States. Many of these companies have enduring profitability and can compound capital at rates above 20%. Most can also be acquired between 3-5x earnings. This appears to be fertile ground for investors with an ownership mentality, but it is still really hard to do part time, and even more challenging to do with intentional diversification.
Little Engine Ventures brings together business owners in a partnership aimed at helping small businesses perform at their highest level with the least risk. We have an owner-operator mentality because we have been there, too. We also dedicate our full time and effort to LEV. We provide the capital and management assistance necessary for each company to thrive.
At any one time, we own shares in at least ten or more companies. This provides us staying power and liquidity that a solo investor is unlikely to achieve. Furthermore, we review more than 500 companies per year that are contemplating major changes. If you are an owner and looking for someone to bounce ideas off, we are glad to interact with you. We believe in helping first and love experiencing different perspectives on how to solve problems. Of course, we will keep everything in confidence and will agree to such in writing.
We prefer to be the largest or only non-day-to-day owner at the time of investment. This often means acquiring majority ownership from founding, owner-operators. We also believe in making our top five investments count. This means 50-80% of our assets under management will be applied to areas where we have a meaningful edge and tight alignment around vision for growth or exception cash flow.
Today we work in Agriculture, Finance, & Service industries. We sell Non-GMO seed corn, finance B2B transactions, fix auto and heavy equipment glass, and assist niche, vertical, B2B Software-as-a-Service companies manage cashflow. We are fascinated by lots of things other people find boring. We would like to work in manufacturing and insurance in the near future.
We believe our speed of investment (current record is 45 days), retention of employees & shared vision of future, and evergreen structure make us considerate owners. A business is often an instrument to accomplish more than just profit. We believe they should help all other stakeholders (customers, employees, vendors, neighbors, owners, etc.)
What goals do you have for your business? How can we help you? We would love to chat.