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November 20, 2024
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Alli Webb, Strategy Tax & Company Culture
At a glance
This edition is brought to you by CapitalPad
Good morning to all new and old readers! Here is your Wednesday edition of Faster Than Normal, exploring one short story about a person, a company, a high-performance tool, a trend I’m watching closely, and curated media to help you build businesses, wealth, and the most important asset of all: yourself.
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Today’s edition:
> Stories: Alli Webb & Burberry
> High-performance: Strategy Tax
> Insights: Importance of effort
> Tactical: Company culture
> 1 Question: Social contribution
Cheers,
Alex
P.S. Send me feedback on how we can improve. I respond to every email.
Stories of Excellence
Person: Alli Webb
Alli Webb, the founder of Drybar, transformed a simple idea into a multimillion-dollar hair empire. Starting as a mobile hairstylist, Webb noticed a gap in the market for affordable blowouts. In 2010, she opened her first Drybar location in Los Angeles. The concept quickly gained traction, appealing to women seeking quality hair styling without the full salon experience. Webb's business acumen and attention to customer experience drove rapid expansion. By 2018, Drybar had over 100 locations across the United States and Canada. The company's success led to a product line sold in major retailers. Webb's journey from hairstylist to entrepreneur showcases the power of identifying and fulfilling a specific market need. Her story continues to inspire aspiring business owners in the beauty industry and beyond.
Key Lessons from Alli Webb:
On identifying opportunities: "I saw a hole in the market that needed to be filled." Webb turned a common pain point into a successful business model.
On customer focus: "We're selling happiness and confidence." Webb understood that Drybar was about more than just hair.
Company: Burberry
Burberry was founded in 1856 by Thomas Burberry, a 21-year-old draper's apprentice in Basingstoke, England. He opened his first shop with £300 borrowed from a relative. Burberry's breakthrough came in 1879 when he invented gabardine, a weatherproof and breathable fabric. This innovation led to the creation of the iconic trench coat, originally designed for British military officers during World War I. The company's distinctive check pattern was introduced as a lining in the 1920s, becoming a trademark. Burberry gained royal warrants from British monarchs, solidifying its status as a luxury brand. By the early 2000s, Burberry had transformed from a traditional British outfitter to a global fashion powerhouse.
Key Lessons from Burberry:
On innovation: Don't just follow trends. Create something entirely new that solves a real problem. Burberry's gabardine fabric revolutionized outerwear. It wasn't just another coat - it was a solution to staying dry and comfortable in harsh weather.
On brand identity: Develop a signature element that's instantly recognizable. Burberry's check pattern, originally just a lining, became a powerful visual shorthand for the brand. It's not about slapping a logo everywhere. It's about creating a visual language that speaks for itself.
On product expansion: Start with a core product, then branch out strategically. Burberry began with weatherproof outerwear, then expanded into a full fashion line. But they never lost sight of what made them special in the first place.
Invest in Boring Businesses
Dry cleaners, HVAC, laundromats, lawn care.
These “boring businesses" are now popular for a reason.
Unlike their venture capital counterparts, good small businesses are cash flow positive.
Immense pricing power, actual profits, and decades of successful operations.
Eventually, though, these businesses must be sold.
When they do, acquisition entrepreneurs take the helm.
They raise capital from investors, acquire the company, and run it with fresh eyes.
This lets investors earn the returns of "boring businesses", without operating them.
But, where can you find these deals?
Enter CapitalPad - a platform connecting accredited investors directly with SMB acquirers.
Accelerants
High-performance tool
⎯
Strategy Tax
The "Strategy Tax" concept was coined by former Microsoft executive Steven Sinofsky. It refers to the cost a company pays in terms of resources, complexity, or missed opportunities due to its chosen strategy. "A strategy tax is the cost of following a particular strategy," Sinofsky explains. It's about recognizing that every strategic choice has trade-offs.
Understanding strategy tax is crucial because it helps companies make more informed decisions. It forces leaders to consider not just the benefits of a strategy, but also its hidden costs. This can lead to more balanced, sustainable strategies.
What strategy taxes is your company paying? Are they worth it, or should you reconsider your approach?
Insights
Michael Jordan on the importance of effort:
"I can accept failure; everyone fails at something. But I cannot accept not trying."—Michael Jordan, legendary NBA player, six-time NBA champion, and global cultural icon
Tactical reads
⎯
> When aiming to create a high-performing company culture
Building a High Performance Organization (Read it here)
> When struggling to prioritize personal development
Finding Time to Invest in Yourself (Read it here)
1 question
What is a meaningful activity or project you can pursue to better your own community?
That’s all for today, folks. As always, please give me your feedback. Which section is your favourite? What do you want to see more or less of? Other suggestions? Please let me know.
Have a wonderful rest of week, all.
Recommendation Zone
⎯
Invest in Boring Businesses
Dry cleaners, HVAC, laundromats, lawn care.
These “boring businesses" are now popular for a reason.
Unlike their venture capital counterparts, good small businesses are cash flow positive.
Immense pricing power, actual profits, and decades of successful operations.
Eventually, though, these businesses must be sold.
When they do, acquisition entrepreneurs take the helm.
They raise capital from investors, acquire the company, and run it with fresh eyes.
This lets investors earn the returns of "boring businesses", without operating them.
But, where can you find these deals?
Enter CapitalPad - a platform connecting accredited investors directly with SMB acquirers.
Alex Brogan
Find me on X, LinkedIn, YouTube, Instagram, TikTok
Offshore Talent: Where to find the best offshore talent. Powered by Athyna.
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