365 is built on durable capital. What exactly does that mean? Merriam-Webster defines durable as “able to exist for a long time without significant deterioration in quality or value”. Durability is synonymous with “enduring, lasting, permanent, sturdy, and resilient”.
In short, our durable capital model means that we don’t answer to outside investor demands so we can focus on doing what is best for our team and the brands in our portfolio. When we do right by our team and our brands we are doing right by our most important stakeholders - our customers! Investing in our people, our products and our customer experiences with a long term view is only possible when we have a truly long term capital base and this helps us make our customers successful.
It is not often obvious to the employees of a company or to the seller of a business that the capital base that their employer or potential business buyer is built on matters. We believe that it is incredibly important to both constituencies. Our view is that durable capital is superior to the other capital structures typically found in small businesses.
So what is the 365 durable capital model? What does it mean to a job seeker and what does it mean to a business seller? It means we are still a small business but we have big goals. We are managed entrepreneurially instead of bureaucratically. Our financial goals are long term oriented so we can make the right investments in the future.
Our view of durable capital extends beyond our financial capital and into human capital and the equity of our brands in the marketplace. Yes, our financial base is strong. We use appropriate amounts of leverage and focus on growing profitability. Our view of the human capital and brand equity inside of our organization is similarly long term oriented. We work hard to align those intangible forms of capital with the goals of our financial capital.
On aligning our team with our durable capital model:
On aligning our brands internal capital investments with our durable capital model:
Frequently Asked Questions:
Influences: Brent Beshore at Permanent Equity, Rick Simmons at the Telos Institute, Bill D'Alessandro at Elements Brands.