NEW PODCAST! OPPORTUNITIES IN MICRO-PE & PICKING OUR NICHE

Podcast: https://www.vernehq.com/post/opportunities-in-micro-pe-picking-our-niche

Twitter thread: https://twitter.com/ColinKeeley/status/1386347934854287364

Colin Keeley: [00:00:03] We are two guys buying and building wonderful internet company,

Brent Sanders: [00:00:07] Yes, indeed. And we're getting feedback. We're getting feedback. Colin is part of the Twitter verse I've been, I actually tweeted, I think for the first time last weekend, I'm trying to get better at the Twitter, but,

Colin Keeley: [00:00:19] a Twitter thread. It was not just one tweet.

Brent Sanders: [00:00:21] that's , that's actually, I think the format that I can actually get into , getting into that, I had , discovered , I don't know how this happened, but I got targeted by some random candle company.

So I side business that I've run for a it's a candle business. And so I got targeted by a niche of a niche. That's a theme park candles. Which is apparently a whole space. So that was, I don't know, I just took some joy in, I also had a child-free weekend, which was the first time I realized I've been alone since August.

And it is April just for, in case somebody's listening. But yeah, you get a fair amount of feedback and I we've been talking about this one question that you get that it's a little funny to me, but it's a very valid question. It's like, why niche? B2B, SAS? What. What about this space is interesting.

And, I have some thoughts, I'm sure you have some thoughts, but like what was your, what are you guys thinking about this space and what makes it attractive?

Colin Keeley: [00:01:15] Yeah, so there's a lot, there basically it's a very high quality business model. So if you think of what B2B SAS is recurring revenue, so you don't have to find new customers every month. It's sticky. So how did this like mission critical businesses, which we touched on last episode? They have a high switching costs and they make up a small share of customer wallet.

So typically like 1% is what constellation software says. So switching is just. Like it's so core to your business. It's not really worth the hassle. Like even it's a tiny cost savings to go check out some other platform that's maybe like 10%, 20% better or whatever. It's asset light. So that basically equals resilience.



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