Key Takeaways

The recent episode of The Bitcoin Frontier podcast featured guest Bobby Shell, an experienced marketer and advocate for small businesses and bitcoin. Shell brought to light the current wealth transfers occurring: bitcoin and the shift in small business ownership. With the backdrop of COVID-19, Shell broke away from traditional employment to engage fully with bitcoin, joining Voltage as VP of Marketing. His dual background in both digital marketing and a deep understanding of small businesses has provided him with a unique perspective on the intersection of entrepreneurship and bitcoin.

Shell discussed the significant opportunity in acquiring small businesses, emphasizing the impending retirement of baby boomers who own a significant portion of small to medium businesses (SMBs). A staggering 70% of these businesses go unsold, presenting an opening for new entrepreneurs to step in. Leveraging government incentives like Small Business Administration (SBA) loans, individuals can embark on acquisition entrepreneurship, a concept gaining traction thanks to online resources and thought leaders like Codie Sanchez.

Furthermore, Shell highlighted the low default rate for businesses that make over a million in revenue and the potential for personal skill sets to grow these businesses further. He also touched upon the benefits of incorporating bitcoin into a business's balance sheet and the potential tax benefits that could be realized by high net worth bitcoin holders.

The conversation delved into the practicalities of starting or acquiring an SMB, the impact of private equity firms on local communities, and the potential for technology, specifically AI, to revolutionize SMB operations. Shell also discussed how a bitcoin standard might influence the landscape of entrepreneurship and SMB ownership, potentially leading to more freedom and sovereignty in local communities.

Best Quotes

1. "There's 10,000 baby boomers every day retiring, and they own about seven to $10 trillion worth of businesses. And 70% of these businesses go unsold, meaning they're just going to shut their doors."
2. "The SBA program is in place to help individuals start a business...you have to pledge sometimes your own assets...but businesses that make it over a million in revenue, the risk of it defaulting when using an SBA loan is less than 2%."
3. "If you're just, like, betting on bitcoin and not yourself, there's a couple of things there. One, by growing your business and scaling it and increasing the revenue, it sells at a higher multiple."
4. "The only reason we have bitcoin and money in the first place is because people want to trade products and services. So if you put money ahead of products and services, you have it backwards."
5. "By having things produced and made locally and pushing small businesses out, by bringing big ones in, it allows for greater, not only cost benefits for the end consumer, but it allows more people locally to have jobs."
6. "If you are a small business, check out Voltage. You can start accepting bitcoin payments and using bitcoin, or even if you're like middle market."

Conclusion

Bobby Shell's conversation on The Bitcoin Frontier podcast brought to light the significant and often overlooked opportunity in small business acquisition, particularly in the context of the current wealth transfer due to retiring baby boomers. His insights into leveraging SBA loans, the potential for personal growth through business ownership, and the integration of bitcoin into business operations provide a compelling narrative for current and aspiring entrepreneurs.

The episode also touched on the broader implications of bitcoin on entrepreneurship and community sovereignty, suggesting that as bitcoin becomes more widely adopted and its returns stabilize, we could see a surge in local business investment by bitcoin holders. This shift may empower individuals and foster more resilient local economies that are less dependent on large corporations and private equity firms.

Overall, the podcast illuminated the crossroads of SMBs, bitcoin, and community impact, offering listeners a nuanced perspective on the future of entrepreneurship and financial sovereignty. As Shell stated, it’s about betting on bitcoin and oneself to create a sustainable and prosperous future, both personally and for the local community.