---
title: "Nick Powills: How To Manage the Stress and Unpredictability of Riding Out the J-Curve"
url: https://burnaze.com/article/3de26c1f-e47e-4334-af7c-56e858eab004
source: "1851 Franchise"
original_url: https://1851franchise.com/nick-powills-how-to-manage-the-stress-and-unpredictability-of-riding-out-the-j-curve-2711198
category: "General"
published: 2019-11-14T19:14:01.000Z
modified: 2026-11-01T02:29:08.097Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/035634e9c22322564c008d630ff736377314.jpg
---

# Nick Powills: How To Manage the Stress and Unpredictability of Riding Out the J-Curve

**TL;DR:** Nick Powills discusses managing stress and unpredictability in business, particularly in private equity purchases, using the concept of the j-curve. He shares his experience of strategically investing in people, process, and tech to grow the business.

*originally published in 1851 Franchise on 2019-11-14. [Read the original](https://1851franchise.com/nick-powills-how-to-manage-the-stress-and-unpredictability-of-riding-out-the-j-curve-2711198).*

## Story

**The j-curve is what happens when you ditch stability for risk—with the hope that the upside of the risk is greater than the drop-off of stability.**

**In private equity purchases, the ideal purchase point is at the last minute before bottoming out—especially after studying the upside of that purchase. Business X does $5 million in annual sales in 2018. In 2019, Business X does $4 million.

In 2020, they are tracking to do $4.3 million and have a technology solution with untapped potential. Cash flow issues limit the potential success of Business X, thus PE firm, Y, picks it up at the $4 million point and net of 15% , infuses the business with enough capital to hire the team to grow the business—with a plan to double volumes and net profitability.

They buy when the curve is sliding, not when it is climbing.

**So, in our business, in 2019, we have strategically invested into three key categories—people, process and tech—with an ultimate plan to grow.**

**First, people. We have increased the bodies, the average salary and the benefits. We have installed scorecards; redefined roles and responsibilities; and added a bench. These investments cost money, thus, profitability decreased, with the plan that we could give our clients a superior experience.**

**If we can increase the value of a given client’s experience, then, they should want to grow their businesses with us—thus creating more work. When you hire in a bind, you make poor decisions. Thus, we have worked on our bench by trying to attract level-up talent.**

**This talent should affect our processes—making them stronger and more scalable. The investment in process takes resources, too—like implementing a CRM system to better organize our entire operations.**

**Lastly, we have invested in our tech. Tech is the future of everything. The goals have been two-fold—simplicity and transparency. Both should help us climb back up the j-curve.**

**We are not investing in the business for the hell of it. We are investing to create a better future and a future where our people and our brands are happier.**

**But, the j-curve has stress tied to it. Why? The change in norm and profits can be worrisome. But, as long as the plan is sound, then the climb can be incredible.**

## Entities

- 1851 Franchise (publication)
- General (sector)
- private equity (topic)
- Nick Powills (person)
- business growth (topic)
- investment strategy (topic)
- j-curve (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/nick-powills-how-to-manage-the-stress-and-unpredictability-of-riding-out-the-j-curve-2711198). Summarized by Burnaze (https://burnaze.com/article/3de26c1f-e47e-4334-af7c-56e858eab004).