When Owners Design Management Incentives

Following my Q3-2020 report a partner inquired on management incentives. He indicated some internal debates in his own business. I shared some rules of thumbs I’ve picked up over the last few years. I wanted to try and bulletpoint my thinking such that it helps my future self, and possibly other business owners. Here are Read more about When Owners Design Management Incentives[…]

Common Practice Too Often Replaces Common Sense

This week a prospective business seller said he didn’t run his business according to traditional cost accounting methods. (I had asked about gross margins to get a sense of gross profit. This is an important indicator to me because it often reveals intellectual property and annual growth ceiling.) He gently said, “that’s just not how Read more about Common Practice Too Often Replaces Common Sense[…]

Updated Investment Criteria for Little Engine Ventures

Our basic investment criteria has not changed since we launched: get paid for the risks we take. We are not seeking guarantees. We provide guarantees and accept risk. Our guarantees often come in the form of cash and simple agreements. The risks we are willing to accept are diverse but of like kind, and of Read more about Updated Investment Criteria for Little Engine Ventures[…]