This space has some of the most unique backgrounds and my guest on this episode is no exception. David Krock joined a band as their drummer coming out of high school, did not go to college, and wound up starting a recording studio which led him on a path to entrepreneurship and micro PE investing, which he does today through his firm Sunset Coast Capital. David is your quintessential outside-the-classroom learner and has a rare depth of thought and experience.
The topics of our conversation include his early years switching from music to entrepreneurship, the advantages of seasonal and cyclical businesses, lessons learned along the way, and a way he's trying to emulate Amazon. You can follow David Krock on Twitter and on through his sites DavidKrock.com and SunsetCoastCapital.com.
Please enjoy our conversation.
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1:14 Music background and switch to entrepreneurship
2:51 Parallels between music and business
7:13 Leaving the recording business behind
7:58 Advantages/disadvantages due to music background
9:36 Lessons learned by failing
10:50 Not being afraid to ask for help and potentially look dumb
11:30 Initial businesses started & growing into an entrepreneur
16:20 Starting entrepreneurship meetups
19:02 Becoming a consultant
22:06 What industries/characteristics do you look for?
24:00 Investing in a retirement community
25:55 Wedding industry/business model, being a seasonal business
31:55 Building the business in the offseason
34:40 Cash management strategies for cyclical/seasonal businesses
41:00 Using earnings from portfolio companies to reinvest
43:41 Funding projects within portfolio companies
45:07 Calculating returns
50:52 Using Amazon's model in micro PE through Sunset
1:02:58 Which service are you going to turn into a business first?
1:03:56 What class would you teach in college?
1:07:57 Most fortunate event that was completely random?
1:09:07 Best business you've ever seen?