Happy Monday and welcome back to Nikonomics! Today’s newsletter goes HARD:

• Exactly how to pick the best type of business for YOU (not just what's trendy).

• The industries I'm most bullish on right now—Home Services, Healthcare, and Boring Tech—with real-world examples.

• A detailed, no-BS analysis of a property management business doing $720K in annual cash flow.

• How a $30M manufacturing company is practically using AI to increase margins and simplify operations.

• Plus, bite-sized insights from this week’s podcast episodes

What’s a Good Business to Buy?

Every week, people ask me the same question: 'Nik, what kind of business should I actually buy?'

But here’s the thing: the right answer depends entirely on you. Your skills, your experience, and your strengths.

My general philosophy on buying a business boils down to Clarity, Control, and Stability.

Here’s my framework for identifying a business YOU should buy:

1. Buy a Business You Understand

• Ideally, this is an industry where you've worked, have direct experience, or at least have significant transferable skills.

• Understanding the nuances, key players, typical margins, customer base, and the common pitfalls gives you an immediate advantage.

• If you've been in healthcare, buy a healthcare company. If you know construction, buy home services. The more familiar the territory, the faster you'll spot opportunities and avoid problems.

2. Look for Operational Scale (Not Owner-Dependent)

• Avoid businesses that hinge completely on the current owner's personality or relationships.

• If the business crumbles without the founder present, it’s not scalable or sustainable after you buy.

• I prefer businesses with some existing management structure or documented operational processes, so you can step in as an owner rather than buying yourself a full-time job.

3. Buy Steady, Established Businesses (Not Distressed)

• Unless you're specifically experienced in turnarounds, distressed businesses often become expensive headaches.

• Look for stability: consistent cash flows, a solid history of profitability, and long-term customer relationships.

• This stability gives you breathing room and reduces your risk.

I look for these characteristics in Businesses and Industries:

• Strong Tailwinds (Demographic, Geographic, Consumer Preferences, Technology)

• Industry/Business Specific or Analogous Experience

• Clear Distribution Channels I can leverage

• Low levels of consolidation

Industries I’m Specifically Bullish On:

🛠️ Home Services

• Why? Fragmented markets, recurring revenue opportunities, and huge potential for operational improvements (marketing efficiency, technology adoption, sales optimization).

• Examples: Roofing, HVAC, plumbing, pest control, landscaping, or window cleaning.

• I watched our tree-trimming company scale from zero to $100K/month simply by systematizing cold outreach with affordable offshore virtual assistants. If you’re considering home services, these are the types of opportunities you could replicate.

🩺 Healthcare

• Home Health, Hospice, Assisted Living, Medical Billing, or Med Spas (to name a few): These businesses benefit from strong demographic tailwinds (aging population, increased health awareness).

• Margins are often healthy if you run the business efficiently. My own experience in healthcare has shown me that operational improvements can often quickly boost profitability.

💻 Boring Tech & Tech-Enabled Services

• Think: marketing agencies, niche software, or services that solve clear, repeatable business problems (SEO, paid ads, CRM implementations).

• These businesses can have recurring revenue streams, sticky customers, and relatively low operating complexity if you understand the tech and marketing landscape.

What I Avoid Right Now:

• Highly cyclical industries or trendy businesses dependent on consumer discretionary spending without recurring revenues.

• Businesses heavily dependent on skilled labor where there's an extreme shortage or declining demand trends (without clear upside).

Ultimately, the best business to buy is one that aligns with your own knowledge, strengths, and interests. If you can't see yourself understanding and running it better than the current owner, it's probably not worth the risk.

This Week’s Nikonomics Podcast Summaries

🎙️ Guest: Thomas Rudy
From mystery eBay boxes to a $300M exit—Thomas mastered digital arbitrage

Business: Founder, 1020 Agency (sold to Benzinga) & Data Shopper
💡 Insight: Grew Benzinga’s performance marketing from $40 to $2M/month using SEO, paid ads & syndication.
Model: Took low retainers with high commissions, scaling affiliate partnerships & direct response marketing.
🚀 Next Play: Data Shopper helps businesses target visitors before they leave—no more relying on Google & Meta.

🔗 Listen here:- Spotify / Apple

BANGER OF THE WEEK🎙️ Guest: Jack (The HVAC Entrepreneur)
From winery ops to $5M in HVAC—Jack learned the hard way

Business: HVAC & Plumbing Company, Middle Tennessee ($5-6M rev)
💡 Insight: 1/2 his growth came from buying mom-&-pop tuck-ins for as little as $12K.
Model: Mix of acquisitions (4 buys) + organic growth, plus overseas talent to scale.
🔥 Worst-Case Scenario: Bought the business, all employees quit Day 1, had to become an HVAC tech overnight—learning on YouTube at 3 AM.

🔗 Listen here: Spotify / Apple

🎙️ Holdco Bros
Chris believes he has cracked the mystery of Satoshi Nakamoto’s identity!

 Topic: Is Jack Dorsey actually Satoshi Nakamoto? 🤯
🔍 Evidence: Deep involvement in cryptography, Bitcoin-related timestamps aligning with family birthdays, and cryptic online posts about decentralization years before BTC.
💰 Biggest Clue: Whoever Satoshi is has never moved their Bitcoin—only a billionaire with no financial need could resist cashing out.

🔗 Listen here: Spotify / Apple

Business Listing Analysis

Pros

✅ Strong Cash Flow & Fair Multiple – $720K cash flow at a 3.5x multiple is reasonable.
✅ Recurring Revenue – 100% contracted, auto-renewing relationships = stable income.
✅ Owner Absentee – Already operated by a management team (smoother transition).
✅ Diverse Revenue Streams – No single customer concentration risk.
✅ SBA Loan Qualified – Easier financing access.
✅ Growth Potential – Recently demonstrated, but specifics needed.

Cons

❌ No EBITDA Disclosure – Hard to assess operational efficiency.
❌ Moderate Equipment Base ($176K in FF&E) – Not a large asset cushion.
❌ Seller's Motivation (Retiring & Moving Out of State) – Could be genuine, but worth verifying.

Price & Investment Analysis

• Asking Price: $2.5M (~3.5x cash flow) → Fair for a stable, contracted revenue model.

• Recurring Revenue: Major plus; contract terms should be reviewed.

• Rent: $12,995/mo → Could this business be relocated or optimized?

3 Key Questions Before Buying

1️⃣ How Secure Are These Contracts?
- Are contracts long-term, or can they cancel quickly?
- What's the churn rate?
- What % of revenue comes from the top 5 clients?

2️⃣ Is The Owner Really Absentee?
- What does the Owner do?
- How long has the management team been in place?

3️⃣ Can This Be Made More Efficient?
- Is there room to cut costs or improve margins?

Final Verdict: 7/10

This could be a solid buy if:

• Contracts are truly stable.

• Margins hold up despite rent and FF&E.

• Growth potential is real, not just speculative.

If contracts are rock solid, key employees stay, and margins are strong, this could be a great business—especially with SBA financing. Property Management companies are not easy businesses to operate but I do like the trajectory of the industry. I wrote a brief Industry Overview with Tailwinds, Headwinds and Impacts of AI, if you want to check it out here.

AI Round Up

I’m starting a series of interviewing business owners who are using AI in their business RIGHT NOW. We go over:
- Tech stacks
- Automations
- Custom GPTs
- The best tasks for AI to assist in

I’ve already interviewed my first guest: The Owner of a $30M Manufacturing company who is using AI for:
- Onboarding/Orientation chatbot
- Sales team resource chatbot
- Chemist Assistant chatbot
- Daily automated reports for deal pipeline updates

I'll be releasing these weekly, including exclusive insights available only to newsletter subscribers.

If you have questions you'd like me to answer, send them my way on Twitter, Speakpipe or [email protected].

Thank you for reading, please share with a friend!

Nik Hulewsky

Find me & Nikonomics on - Twitter, YouTube, Spotify, Apple