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Guidelines for Executives Struggling to Create a Thesis Niche
Guidelines for Executives Struggling to Create a Thesis Niche
Written By: Gerald O’Dwyer III
The PE Guru — Blackmore Partners, Inc | August 22, 2024
1. Assess Your Readiness:
- Reflect on Industry Focus: If you haven’t developed a clear industry focus, consider whether you’re ready to embark on a business search. Sometimes, gaining experience in an operating role can help you refine your focus and uncover opportunities without going through a traditional search process.
2. Picking an Industry:
- Play Off Your Interests:
- Start with Personal Connections: Focus on industries where you have a personal interest or a compelling story. This connection can help drive your passion and commitment to the industry.
- Career Longevity:
- Think Long-Term: Choose an industry where you can envision building a long-term career. Consider if you enjoy the people, events, and overall environment associated with the industry. Happiness in your work environment is crucial for sustained success.
- Avoid the Search for a ‘Magical Industry’:
- Be Realistic: Understand that every industry, even the most successful ones, will mature over time. Instead of seeking a perfect industry, look for those with continuous movement and evolution, which often present new growth opportunities.
- Search Where There Are Fish:
- Industry Selection: Use databases and past searcher experiences to gauge industry potential. Focus on industries with a healthy number of strong, viable businesses to acquire. For instance, while education might have strong fundamentals, the number of quality businesses available for purchase might be limited.
- Get Started, Don’t Wait:
- Avoid Over-Analysis: Don’t get stuck in analysis paralysis. Begin your search and immerse yourself in the process. Passion often grows as you delve deeper into a specific industry or niche.
- Focus on Acquisition, Not Start-Up:
- Stick to Proven Models: Remember, your goal is to acquire an existing business, not to pioneer a new industry or unproven business model. Focus on established sectors with proven success rather than trying to reinvent the wheel.
- Competition is Not a Bad Thing:
- Embrace Competition: Every industry has competitors, and this is not a negative. Healthy competition indicates a thriving market and can drive innovation and growth.
- Follow Themes:
- Thematic Focus: In addition to industries, develop strong thematic questions that can guide your search. These themes should be broad enough to allow flexibility but specific enough to keep you focused. For example, “How can we reduce the rising cost of healthcare?” Such themes can help you stay on track without being too rigid.
By following these guidelines, you can develop a focused and strategic approach to finding the right industry niche, setting yourself up for long-term success in the private equity landscape. Remember, the key is to start with what resonates with you personally and professionally and to remain flexible and open to opportunities as they arise.
