Ice Baths, Labor to Ownership, LinkedIn for Doctors, Expensive IP, & more

designed to be skimmed

March 15, 2023

Welcome to Biz Brainstorms –

My name's Connor. I'll send you a weekly email covering ideas to help start or grow your business.

These emails are designed to be skimmed. Enjoy. 🧠 ☕️

Today's Outline:

  • LinkedIn For Doctors

  • Most Expensive Intellectual Property

  • LVMH Tiffany Acquisition

  • Missing the Ice Bath Trend

  • Converting Labor to Ownership (ie. how to get rich without money)

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🚒 LinkedIn for Doctors

There's a LinkedIn copycat that only targets Doctors.

It's called Doximity.

They do $450M in Annual Reoccurring Revenue... and they're worth $6.5B growing at double digit numbers annually.

3 crazy parts:

1.They're outrageously profitable:

Here are Doximitys profit from 2019-2022 (2023 is forecasted)

Here's the secret with these types of SaaS companies:

They get more profitable the bigger they get.

Notice how their margin was 11% at $10M EBITDA but 44% at $150M EBITDA.

A perfect example of a hard business to start, but when it works, it really works.

2. They have under 1,000 employees

With a headcount of 973, their revenue per employee sits at an envious $400,000.

That's 60% higher than the average public SaaS company ($250k)

3. They own nearly the entire market

80% of all US Physicians are in their network

With such market penetration, the question from here will turn towards how are they growing existing revenue per physician versus adding more to their network.

Curious if you could build the same for... Consultants, Accountants, Attorneys, etc.

👩🏼‍💼 Most Expensive Intellectual Property

Top 11 Highest-Grossing IP in History:

  1. Pokemon, $110B

  2. Hello Kitty $89B

  3. Mickey Mouse, 83B 👑

  4. Winnie the Pooh, $81B 👑

  5. Star Wars, $70B 👑

  6. Mario, $48B

  7. Disney Princess, $46B 👑

  8. Anpanman, $45B – (Japenese Kids Cartoon, I had to look it up too)

  9. Marvel, $38B 👑

  10. Harry Potter, $33B

  11. Spider-Man, $32B

👑 = Disney owned IP. Just remember, Disney is the KING of Intellectual Property.

They also own Cars, Looney Tunes, The Lion King, Avengers, Toy Story, & Frozen which all do 10's of Billions in Gross Earnings.

Shoutout Rex Woodbury for sharing this on Twitter.

💎 LVMH Tiffany Acquisition

On Jan 7, 2021 – LVMH bought Tiffany 

LVMH owns everything luxury. Hermes, Louis Vutton, Dior, Dom Perigon, Hennesy, Moet.

And they're huge. Like $60B in revenue huge.

Well they're also damn good at scaling companies post-acquisition.

They paid $15.8B for Tiffany.

6 weeks ago, Tiffany announced profit doubled to $1.08B

In under 2 years, Bernard Arnault essentially paid 14x earning for a multi-billion dollar asset. What a legend.

PS – This is the same man who bought Sephora for $225M with "rumors" that it now makes nearly $10B annually today (haven't been able to verify these revenue numbers)

S/o this tweet for the inspo and yours truly for the fact checks.

🛀🏻 Missing the Ice Bath Trend

I love this chart:

It shows search volume for ice baths in the last 10 years.

Here's the thing: Everyone is beginning to buy & sell ice baths today.

Which means you're competing in a very crowded market. But if you got started back in 2019... well you're probably doing pretty damn good right now.

John Fiorentino talks about this with his launch of Moonpals about how they think about inventing and creating categories (btw, good book on that here)

Riskier? Yep.

Harder? For sure.

Bigger payoff? You bet.

💪 Converting Labor to Ownership (getting rich without money)

Nearly every word here is a direct copy & paste from Moses Kagan here but I love this idea too much to change much on it:

One of your top priorities when starting out (if you don't have a lot of money) is to figure out how to translate your “labor” into “ownership" (equity).

Ideally without going through the “income” step (and being subjected to taxation).

Simplest way to transmit L into O:

Salary -> taxes -> spend -> save remainder -> buy stocks

But notice that, depending on where you live, 10-55% of your L goes to taxes, before you even have the spend vs. save debate.

Instead, consider what happens if you work in a company you own:

Each incremental dollar of profit goes in your pocket as taxable income, but also grows your net worth by $3-$12 (bc businesses are valued at a multiple of profits) tax-free.

✌️ Until Next Week

-Connor

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