Royce Yudkoff

People call us often when they're struggling with something. Something just isn't clear to them and they want to go back and have somebody to talk to that they think is smart or clever or nonjudgmental or something. So we get a lot of those phone calls, I think.

People call us often when they're struggling with something. Something just isn't clear to them and they want to go back and have somebody to talk to that they think is smart or clever or nonjudgmental or something. So we get a lot of those phone calls, I think.

I was going to say, and often they call me when they have this sense that they might be wrong. Because you always say, Rick, feedback is a gift. I say feedback is a gift. And I'm willing to say to somebody, that's really stupid.

I was going to say, and often they call me when they have this sense that they might be wrong. Because you always say, Rick, feedback is a gift. I say feedback is a gift. And I'm willing to say to somebody, that's really stupid.

I think that's correct because you're always more cheerful after this. I'm like, what happened to these students? Why do they want to buy such a crappy business? And you're like, oh, I talked to so-and-so.

I think that's correct because you're always more cheerful after this. I'm like, what happened to these students? Why do they want to buy such a crappy business? And you're like, oh, I talked to so-and-so.

They have such a great deal.

They have such a great deal.

It's 80% recurring revenue. And I said, I don't get those.

It's 80% recurring revenue. And I said, I don't get those.

They call me with a pizza joint.

They call me with a pizza joint.

That is a great case. And it's nice to start off with one that we know is going to work out pretty well. It will usually do that as our very first case of the year. I was going to pick one that will probably make your teeth hurt. Can I pick two? Because they're very similar, actually. No rules here. One is a company called Capital Digital.

That is a great case. And it's nice to start off with one that we know is going to work out pretty well. It will usually do that as our very first case of the year. I was going to pick one that will probably make your teeth hurt. Can I pick two? Because they're very similar, actually. No rules here. One is a company called Capital Digital.

And what I really, really like about Capital Digital, it was purchased by a student of ours, Nick Anderson. And as all good cases came, I was at another student's wedding and happened to be sitting beside Nick. And I said, how are things going? And he said, I can't tell. And he described his first year of owning the business, which had its challenges.

And what I really, really like about Capital Digital, it was purchased by a student of ours, Nick Anderson. And as all good cases came, I was at another student's wedding and happened to be sitting beside Nick. And I said, how are things going? And he said, I can't tell. And he described his first year of owning the business, which had its challenges.

But what was hard for Nick was it was almost impossible to figure out what was really going on. And it just highlighted how special small business is. Small businesses are small and their information systems are small and the evolution of information is small. And so in this instance, there was nothing wrong with the business.

But what was hard for Nick was it was almost impossible to figure out what was really going on. And it just highlighted how special small business is. Small businesses are small and their information systems are small and the evolution of information is small. And so in this instance, there was nothing wrong with the business.

But it sure looked like there were things that were wrong with the business. And it was just that the firm needed to worry about its product mix a little more carefully than it was. But it was very subtle. And it took them a few years to figure it out. But once they figured it out, they've been tremendously successful in the years since.

But it sure looked like there were things that were wrong with the business. And it was just that the firm needed to worry about its product mix a little more carefully than it was. But it was very subtle. And it took them a few years to figure it out. But once they figured it out, they've been tremendously successful in the years since.