If I wanted to start the perfect business, these are the things that I would focus on.

So think of these like the five advantages that make any business easier to grow and way more profitable. And this is what's helped me build a portfolio of companies that generated over $250 million in revenue last year alone. And so for each one, I'll describe what it is. I'll give examples and I'll show you industries that excel in them and industries that suck. There are very few businesses that have all five, and even having one of these makes the business that you have better than others.

And so just think this video is like an S-tier ranking for opportunity vehicles. So if you've ever heard or thought, man, like I feel like I've got a level 10 skill set and a level two opportunity, then this video is for you. So let's get started with number one. Sticky. It's the most important thing. If you do not have what's called revenue retention,

you have nothing.

Revenue retention just means how much revenue from last year you retain to the next year. That's all it is. If you don't have that, you will always be in the sales business. So John Paul DeGiorio, who started Paul Mitchell, he started Bertone. He says this quote that I always remember. It says you want to be in the resale business,

not in the sales business.

And so there's two types of retention that people discuss.

One is logo retention, which is if you had 100 customers in January, how many do you have now? And then the second is the revenue retention piece, which is if you made $100 from those customers in aggregate in January, how much do you make from that same cohort or group of customers today? And so logo retention, just to be clear, you almost never have 100% logo retention.

Like you can't get more than 100%.

You only have a certain amount of customers and it only decays over time.

And so some reasons for that is that there's something called structural term.

So someone moves away, they die, their business dies.

They fire the employee if you do a payroll thing who use the subscription or the service. And this is called involuntary turn. It's because it's just structural to how businesses operate, right? On the other hand, there's something called voluntary turn. And this is the one you really want to avoid. That's when people leave because they just think you suck. And so those are kind of like from a logo retention

perspective, how many of the number of people

are still here?

The revenue retention side, you absolutely

can have over 100% net revenue retention.

And so that means that even if you lose some of those customers,

the ones who stay increase how much they spend enough

to make up for the ones you lost.

And so the easiest way to do this is have a clear way for cheaper customers to spend more

with you and if your service keep doing the thing they need you to do which part of

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