Brent Beshore — Update on Small Business and Private Equity (Invest Like the Best EP.164)

Brent Beshore mid-2020 on what the relief programs missed — “no business owner right now is worried about paying their taxes; there’s going to be no taxes to pay” — and the distinction that decided who survived: transactional revenue goes to zero, contractual revenue doesn’t. Cinemark against a B2B contract book. Also: value-add relationships are rarely born in times of intense stress.

Notes

• “The problem is they’re compensating people through tax credits and no business owner right now is worried about paying their taxes. There’s going to be no taxes to pay… Policymakers need to talk to small business owners…”
• Focused on being relationship-driven value-add partners and those kinds of relationships are rarely born in times of intense stress
• Finding the balance between being respectful of what owners need and finding creative ways to generate the returns they need to
• A real difference in businesses that have transactional vs. contractual revenue; transactional revenue like Cinemark suddenly go to zero; B2B business contracts see KPIs start to tank but revenue still exists (offers breathing room)