Codie Sanchez
Appearances
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You know, Google doesn't mandate that you have a college degree if you're going into an engineering degree, actually. And I think that should be really liberating for us. It's basically breaking down this barrier that's a six-figure barrier that allowed for the few, the elites, to stair-step over everybody else. And now it's actually saying, how bad do you want it?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And don't tell me what you learned. Show me what you can do. Or even better, show me what you did. And so I think the resume of the future is actually, if somebody came to you, Jay, and they were like, I just graduated from Wharton. I am very smart. You know, I also did my undergraduate degree at Harvard. I now want to come work for you. You'd be like, what? What do you know how to do?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Do you know how to market? Do you know how to grow a beverage company? Do you know how to increase our investment return? Oh, you kind of like theoretically have looked about how to do that in a case study. That's probably less interesting to you than somebody that goes, you know what?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I was part of the beverage team at Erewhon and Whole Foods, and I figured out sort of across the country how they buy different pieces of inventory.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Right, exactly. And maybe because I want to help you grow this individual business, which I know you care about because I see it on your socials, I put together this little spreadsheet for you. Here's the things they care about. Could I come work for you for free for three or six months? And if that works out, could we do something better and bigger?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The problem that people usually have on the internet when I throw out the word work for free... These young people are like, remember that part where you told us that we were broke and we don't have any money? So I'm not trying to dismiss that at all.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But I do think we have to be honest about the fact that when we're young, you're going to have to work harder than you think, longer than you think, doing stuff you don't like with people you probably don't like until eventually you get the right to do something really interesting. But like you don't die in your first job from it being really hard and challenging.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You die from the absolute monotony and the low level tasks you have to do for basically pennies on the dollar.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Most often, we're told things like, follow our passion. I think that's pretty bad advice. If you don't have ownership, you're probably never going to be free financially.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, one, I would say these days you do not have to have money to make money, which is incredibly powerful. So when I think about it, if I'm 30 and I am at a company like that, what would I do today? Well, I would actually probably sit down and figure out what am I actually skilled at that somebody else would pay me for?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Once you know what somebody else would pay you for, which is really just like, do people ask for your opinion on this? Could you actually get jobs in this space? If it was me, because I'm kind of unemployable, like you don't want me to work for you. Like I got my own ideas. I want to do things this way.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
If she's like that, then what you want to do is you want to try to partner with somebody where you can be the solution to their problem. And because you understand what I call deal-making, which is really the language of money, you can negotiate an ability for you to own part of a thing in order for you to have one of three outcomes.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
If she can figure out if she can help a business grow its revenue, make more money, if she can help a business cut its costs, or if she can help decrease the pain of a business owner, you can negotiate your way into a business and have equity in it and upside. And I wish somebody had taught me that earlier. Because this is what consultants do. This is what private equity firms do.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
This is what some of the largest institutions in the world do. I call it expertise to equity. But if I was her, I'd say, don't go find another job. And if you don't have a brilliant idea that you're like, I would die for the want of creating this thing in the world. If you have that, please go do it. But if you're like, I don't have that. I just want to make money. And I want to feel respected.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I want to feel like my skills... fit somewhere, and I'm able to have an outsized income. If that's you, then I think you should try to value your skill set. Then you should try to negotiate for an upside deal with somebody. And you should try your hand at this game called ownership, which is where you say, hey, small business, I know how to market.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Can I help you market at the side while I'm working on this company? And because I help you grow your revenue by 50%, could I keep 10% of the 50% I grow? Do you think a small business owner would say yes to that? Of course they would because there's no downside. And I think more often than not, we think that the only risk you can take in making money in business is putting your own cash down.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
That's a risk. Or starting a business, aka dedicating your life to something. The last part I'll get a little statistic on us is 90% of startups fail inside any rolling 10-year period. We know that statistic. Most startups make $0 for the first three years. After that, the average entrepreneur makes about $46,000 a year, which is great, but not when you've been making zero for three years.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Jay Shetty. The one, the only, Jay Shetty.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And then on top of that, we've got this nation of people who have all these bills to pay, and they are betting on hopes and dreams as opposed to realities. And so my commentary is, can you figure out how to value your skills so you can negotiate a little bit more upside for that day where you can't work anymore?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, I actually would say be scared of partnerships.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Because 50% of marriages end divorce, but 100% of business marriages typically end because no business lasts forever, right? And so at some point, you're going to have a rift with your business partner by and large. And probably you'll have a few rifts with them. So I would actually say it's cool to be scared about that. You should be.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The thing that I want people to think about is like I want to make risk a non-four-letter word because I think the key to wealth is actually risk, taking some of it. The question is, if you're like me, I'm kind of a wuss. Like I stayed in a corporate job for 12 years because I was too scared to do things by myself.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Even though I was like pretty highly skilled, I had a decent amount of cash, I was like – Definitely not going to make it. I don't think I'm capable. It took me a long time to get there.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so what I did is I'm all about risk mitigation, which is like a fancy, you know, fancy word to say, how can I just make the outcome so in my favor that even if I'm not as smart as I think I am, it's almost like a win-win no matter what. And so in that instance, I would probably say, make the founder a deal so good that they would feel dumb saying no to it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so if I was coming to you, Jay, and Jay was just starting out, I wouldn't do this to somebody who has a big platform. They have way too many resources. You need to go with somebody that's more accessible to you, that doesn't have a lot of resources, that's more on your level. But when you find that person, you go, hey, win-win deal. Don't give me a cent unless I provide X value.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like literally nothing. Don't give me a percentage of the company right away. I never give a percentage of my companies right away anymore. I did once. It cost me a million bucks. I was pissed. I didn't do it again. So you can do what's called an earn-in or milestone-based deliverables, which I know sounds like a little maybe boring if people are listening to this.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, I mean, what you want to do is say, hey, I love you. You love me. We're going to be together forever. In the off chance that you see a hot little side piece and you run off with them, I want an ability to get the business back, right? And so in that way, I am going to instead say, hey, I'm taking all the risk in this business for the most part. I'm putting in the capital.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Unless you're going to put in money that is equal to me, You only get the equity in the business or the upside in the business if it's either duration or it's execution. So either you're here for one, two, three years, which is called cliff-based investing, or you're here for the first million that you helped me get in, and then the second million, and then the third million.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And if you help me hit those milestones, you get the equity. If you don't, I wish you well, you wish me well, but we've already signed a prenup, and this is how it works. And so I think we need to start thinking like that. And it's very non-American. We're not so used to negotiating. Probably non-British, too. Actually, Indians, incredible at negotiation.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Same with a lot of people in the Middle East. But British and American people, not so good at negotiating. We think that it's like a low-level signal.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
on average. So like when I was young, my mom, we call her the pit bull. She's amazing. And she would always negotiate everything. My dad's an incredible businessman, like totally pulled himself up by his own bootstraps, but my mom would go negotiate. And I don't know if you ever felt like this, but I remember sometimes, you know, my mom would be like negotiating for a different price.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I'd be like, mom, mom, like, please stop. You just pay it. And she would look at me and she would say like, Once it's your money, you pay it, but it's my money. So like, get out of here if you don't want to deal with this. And I used to think it was so embarrassing. And now I realize, oh, that's very smart.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And it's actually the thing the wealthy do more than anything else that the poor do not, which is the wealthy negotiate everything and the poor take price while the rich set price.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Oh, yeah. I think I would have stayed an employee forever, Jay.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I also think if you're listening right now and you ever feel less than for being an employee, you tell that person to pound sand. Because I guarantee you, Sheryl Sandberg is worth a lot more than many entrepreneurs. And she was an intrapreneur. She worked inside of a business and amassed massive wealth, prestige, status, and impact from it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so I don't like when people make employees feel less than. You and I couldn't do what we do if we didn't have people who also wanted to build a vision with a team as opposed to an individual. So one, you can make a ton of money whether you're an employee or whether you are the founder of the business. You just got to get a little skin in the game and upside.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And you get skin in the game and upside when you have more value. You don't just ask for it. You've got to be able to earn it. And so when I was thinking those last two years in the business, I was running a business in Latin America. I had taken the business from zero to a billion dollars in assets under management. I had done it in a place that I had never lived, Mexico, Chile, Colombia, Peru.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I didn't have contacts there. I'd like built something from nothing. And I was really proud of that. But I wasn't very good at doing deals back then. And maybe that's why I'm obsessed with it now, because I did a shitty deal. with a guy that I respect a lot, but he was just better than me.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And he ran the company and I built up this huge thing, but basically I had no way to take the assets of the business with me. The only thing that I could do is stay at that business and continue to get partnership until they eventually sold. I was like, gosh, I don't want to be here for 30 years. And at the time, again, I respected the CEO a lot, but we didn't believe in the same world.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like, I believe in a world in which we can all get rich together. He believed in a world in which he told me we get rich quietly. And he believed that if you told people that you were rich, they came after you, which sometimes they do. And because of that, he wanted to protect himself and be quiet. And I said, I don't want to live in that world. And so we fought about that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I thought we should run the business this way. He thought we should run the business that way. And so for those last two years, if he hadn't finally taken me on a beach for a walk, him and I went, he runs a multi hundreds, hundreds, hundreds of billions of dollar company. We're still friends to this day, but he essentially gave me an ultimatum. He said, listen, I want to row left.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You want to row right. The problem is you need to get your own chips. You got to get your own boat. You're on my boat and you're trying to row this way and we're going this way. So you got to make a decision. And at the time, I was so mad. I was like, I built this from nothing. You guys can't even speak Spanish. I'm down here. Do it. Like, I was mad. I was super entitled.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Then I realized, Cody, did you put any of the money on the table to build this business? No. You know, did you take the risk? No. Besides coming here, like, that was his. And so he was right. And I couldn't take anything with me. I did put my old number two in charge of that business, which was cool. She still runs it to this day. But I was really mad at myself and sad.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
There's two things in life that I wish we were told earlier. And one is if you want to make money, you got to follow the math. And I think most often we're told things like follow our passion, you know, do what I did to make money. I made real estate money. You should make real estate money. And I think that's pretty bad advice. I think instead we should look to where are most people rich?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so before I left there, I had done a lot of little investments. I call them throwing out my chips. So once you start to make a little money, I think it's really... helpful to start investing in the things that you want to eventually earn from. So I knew I wanted to get into some venture capital-like things. So I started investing in some venture capital firms.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so when he finally gave me that ultimatum, I jumped ship, went to another company, and I didn't even have the balls to do it by myself then. I partnered up with a few other people. And man, like a lot of terrible things can happen to you when you don't believe in yourself. And I think the universe, like it will tell you kind of what you need to do.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And then if you don't listen, it'll ignore you for a while. And then at some point, it'll just kick you in the face. Like, that's my experience. You probably have a nicer experience with the universe. But it's kind of like, come on, we should do this. We should do this. And it just pushes you off the cliff. And so with me, I raised a ton of money for this company. I had these couple of partners.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And at the end, it didn't work out between us. And again, unemployable. I wanted to go left. They wanted to go right. And I didn't really do that good of a deal. And so twice this happened. But that last time, I did a better deal. And so I said, you guys have to pay me out for what I did. And I'm going to go do this new business. And I want to take some of our investors. And so...
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
If somebody hadn't pushed me out of a company and if somebody else hadn't also said, no, we don't want to do this with you, I never would have done it by myself. And so I think it's okay if somebody is listening and you're stuck in a corporate job, quote unquote stuck for a long time, that's okay. And it's also okay if it takes you a few tries.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I don't think that the only way to make money is to go be an entrepreneur and founder and do it all by yourself and never work in corporate America. I'm very grateful for the money that they spent on me for decades.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Okay, we're rolling.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
What makes most people rich? So I kind of go to the data. I came from really middle class, kind of we didn't have money all the time. I remember what it was like to not have money. I remember what it was like when my debit card – I was a little worried stuff wouldn't go through at the grocery store. And I didn't like that feeling.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You're right. Yeah. Lots of people focus on the tactics. They don't focus on the foundation. The foundation is, do you believe that you have ownership and responsibility for the things you spend more time doing than anything besides sleeping, which is working? And if you have what we call an owner's mindset, so the type of human that's like,
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I'm putting like respect and dignity into what I do every day to the point that I start to value my own worth and I understand why I'm valued. Then you will finally be able to negotiate for the only thing that nobody can take from you. Somebody can take a job. Somebody can take a salary. Nobody can take contractual ownership in a business.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I think that's really important in today's world because it really allows you. Then when somebody that you work for does something you don't like, you just go, Yeah, I'm not doing that, you know? And you become, it's what I call my Q fund in my ladylike fashion, which is like, hey, I have a certain amount of money, and because I have it, I will never compromise on a few things.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But the owner's mindset is kind of rare, you know? And so I think for young people today, so often, and I was one, it's like, my boss is bad, my job sucks, you know, I don't have upward mobility. And if I could tell young Cody one thing differently, it would be like, what would the opposite side of that story say? And which one do you think would make you more money?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I'd be like, probably the one in which you're like, hey, this is all kind of in my control. And if I make some serious changes in my life, I bet I could be richer than I am today. And I wish more people thought that way.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I remember once I was at an event and I was just listening in the crowd and it was actually a finance event for women. So it was a bunch of like kind of well-off ladies. And we were in the audience and the person in front asked everybody to close their eyes. So we all closed our eyes. And then they said, nobody's looking.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I want you to have your body have a physical representation of what you feel when you think of money. So I was like, this is weird hippies. Like, what are we doing? So I was like, I don't know, you know, and you can't see me, but like, I was like throwing up my hands. I'm like, okay, money. I like it. Like, give it to me. Keep it going. You know, these are like my internal monologues, right? Yeah.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so I kind of started looking around and I was like, wait a second, where do people have money? And after being in finance for whatever it is, 15 years, I'm going to give away my age, I realized people that have money have one thing, ownership. So the data is really clear on this. 70% of millionaires are self-made, which is interesting. I used to think maybe you just inherit it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like I'll take some. And so anyway, I'm chilling. I'm like this, like nobody's looking. And then they're like, now don't move, but open your eyes. When I looked out, I was like, whoa, because the rest of the audience, not the rest, but let's call it 80%, were like this. They were tight to the chest. They were kind of like maybe small arms to the side.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
In some instances, I was like, it looked like they had been hit. They had been harmed. And I thought that was so fascinating. And then they let us shake it off. And I was like, oh, man, if your representation of money that you feel in your body is closed off, kind of scared, whatever, I don't know, it might be hard for you to earn it. So I think for some reason...
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Being in finance helped me realize, hey, you guys, if you met some of the guys who were worth $100 million that I did in finance, you'd go, I could do that too. Like that guy did it? Really? And so I think once you meet a bunch of those people, you go, oh, like this isn't as impossible as people say it is. And so I learn a lot from not seeing people achieve it and going, how could they?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
How could they? It's instead going, wow, that guy didn't want to think if he could do it, I could do it too. Yeah. And that taught me to keep going, okay, he did it, he did it. And it's like arms would raise, arms would raise, arms would raise. And so maybe that's what I would try to tell people.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It's like every time you see somebody that has a lot of money and you see the humanity in them, just remember like we're all kind of the same.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And you can – now don't get me wrong. Intelligence levels, network, how you're born, where you're born, real things. But if you're living in a first world country – In today's day and age, with the internet and what we have at our fingertips, I think you're in a better position than you've ever been in order to make a lot of money today.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I promise you only one thing, which is you'll make less money if you think you will.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, and don't get me wrong. I fall prey to all of these things, too. I still, to this day, play the game of comparison. Like, oh, they're doing that? Come on, team, where are we going? You know, I do it, too.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I wish I didn't, but I still do. But I do think cash loves curiosity. If you remember anything else, it's that curiosity. money is really attracted to the type of human that keeps asking questions. You don't actually have to know the answers often to make money. You need to ask the right questions.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So I kind of trained myself every time I saw somebody with money or I got to know somebody with money, I didn't need to know anything else besides like, can I just ask them a lot of questions continuously? And it was funny because I was talking to, I think another mutual friend of ours, Jesse Eitzler the other day. And Jesse talks about how he used to go to a hotel and
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Did they just get lucky? And then 68% of millionaires are have some form of ownership. They have actually bought a business or have equity in a business or built a business. And so when I realized that, I was like, the problem is I don't have a brilliant idea. Like I don't know how to make money. I don't have any money to make money.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And he would just ask questions in the lobby or at the lunch table. He was like living not in a nice place. He had no cash whatsoever. But when he saw people that he thought looked rich or interesting, he would just ask them questions. And I think with the internet sometimes we – we think that questions don't matter anymore. And we go to the internet to get answers.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And if instead you can make a human connection and get curious about them, they'll give things to you. And so one of my, I played a game when I was really young, which is I kind of started collecting mentors who never knew they were my mentor. And I think this is a really clever thing to do. And I remember one in particular, Bob Kendall. And BK is what we call him. He was super high up at
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I don't know if it was Goldman or Credit Suisse at the time, one of the companies. And he was so like out of my range. Like, you know, when somebody else is in a company and I was basically the intern and he was the big dog. But I got a couple chances to interact with him. And I would just ask him questions, like very simple ones. Like, oh, you just took over this area of the business.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like, what did you see there as opposed to this other area where a lot of people are going? I would just kind of be curious. And then I would do a thing that I think probably helped me make more mentors than anything else, which is... I would get their contact information. I would never ask them for anything.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I would largely just say, hey, that piece of advice that you gave me the other day, that was really useful and I applied it this way. Thank you for doing that. Or I'd see if his name was written somewhere. He had done a research paper or something. I might send it to him like with a couple highlighted things like these lines were incredible. Thank you for doing that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Then after I had done that a few times, I might give them one question like, hey, you know, I'm thinking about going into marketing or sales. And I'm trying to figure out how do you decide which career path is more interesting to you? Do you have just like a one sentence about it or do you have one book that you'd like to read like really short?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I remember I sat down with BK years later, and he was like, you know the funny thing about you? And I was like, oh, what? And he was like, you somehow made me your mentor, but you never asked. And then I started caring about what happened to your career, but I kind of never meant to, which is like a very Asperger's-y finance thing to do. And he's like, did you do that on purpose?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I was like, I don't know. I was young then, so I don't know, but maybe. Yeah. That tiny transfer of, hey, I have advice and somebody actually takes it, uses it continuously, wants nothing from me for it, and then gives me a positive feedback loop that I'm making change on their life is so rare.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Right?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Oh, don't do that. That also makes me die on the inside. If somebody asks me that, I'm like, that's such a huge responsibility. What if I you up?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But at least you have step one, which is if you don't have ownership, you're probably never going to be free financially. You got to get some skin in the game. That doesn't mean that you have to become an entrepreneur. It's really hard to do that. It sucks many days. You know this very well.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, I think it worked for me. And I also think the other piece of advice that was useful, I never went for like the top dog.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You know, I would never go to the president of Goldman, Lloyd Blankfein, back in the day and be like, Lloyd, the thing is, talk to me. Can I have your email? Of course not. I would go to like one or two levels past what was comfortable for me.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So it was like I could still get to the person. Yes. And then you can use it as like a leapfrog. And the last thing I'll say is I totally disagree with the advice today that a lot of like kind of well-known people give, which is once you outgrow people, leave them behind you. And a lot of people say like, well, they were my mentor, but I've superseded all my mentors.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, and I hear that often from the business community. It's like, you're the average of the five people you surround yourself with, so make sure they're awesome. And it's like, yeah, but also don't forget how you got there. Because you never know. Mentorship has multi-layers to it. You can get mentored from above, but also below.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I mean, your team was teaching us beforehand how to not sound like boomers, right? So there's that. You can also have somebody that's a hire that... For instance, I think a lot about the idea that... Peter Thiel, whether you like him or not, really rich guy, gives money to Mark Zuckerberg, right? Whether you like him or not, Mark Zuckerberg then goes to become richer than Peter Thiel.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
There's Fridays when you're never going to make payroll, and that is like a deep, terrible, dark hurt, actually. But if you realize ownership is the name of the game, then you should probably obsess on one thing more than anything else, which is learn the language of money. And back when I was young, I was a journalist originally, made zero dollars. And I realized that I had no idea why...
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Now, is Peter mad because Mark made more money than him? I highly doubt it because Mark made Peter a ton of money. And at one point, you know, the imbalance was Peter was way up here and Mark was down here. And now it's probably flipped. And how cool is that? That like somebody who used to be sort of below you, you've helped in some way get above you.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And then you get to like value transfer the other way. So I will say like, maybe if I gave one other piece of advice on mentorship, it would be... collect and keep with you the people, even after you've superseded them, you know, and try to be their best mentor. Like, I mean, mentee, I always try to like have them, I want them to be able to brag about me.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like no matter what you teach me, I want to be the best mentee to the point that they're like, Hey, look how smart I am because of that. And I want to give them all the credit on it. And when you do that, then they introduce you to their really successful friends too. So it's a twofer.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Oh, yeah.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, I agree. And, you know, it's one thing if somebody's negative or they're unhelpful, which I still believe very much so. Like Arthur Brooks, who I just think so highly of. And I remember back before I knew him as a friend and I was just a fan. Last time I was in New York with him, I was having like, you know when somebody's mean to you online? Does that ever happen to you? Probably sometimes.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, all the time. Of course. Well, there was one person that was like really mean and I don't know why. It got to me somehow. It bothered me. And, you know, this was a while ago and I remember telling him for some reason. And often it only bothers me if I feel like there's a kernel of truth to it. So if they like really nail my imposter syndrome or they really nail like –
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Is she as smart as she thinks she is? Something that I worry about too. If they get that, I'm like, dang it, I'm paying attention now. That's not good. But I remember I said to him, I'm just bothered and I want to do something about it. And he was like, are you going to listen to me? And I was like, maybe. What are you going to tell me to do? And he's like, I want you...
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I had opportunities and ability to make some money. And let's say the women I was covering at the time in Juarez, who are, they call it La Ciudad de Muerte, right, the city of death, which is where women are mutilated and raped and brutalized and found murdered all over the city every single day, thousands of women a year. There were many that had the last name Sanchez.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Two, picture this guy having all the success in the world. I want you to wish him so much well it becomes like a bit bizarre. And I want you to actually feel it. And again, I'm not that touchy-feely. I'm pretty spreadsheety. So when he told me that, I'm like, fine. But like I don't think there's going to be an outcome here like that. And he's a wonky, very smart guy. So it's not –
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Anyway, so I did it and I like really thought about it. I was like walking in New York and I was like, you know what? I do wish this guy well, because I bet it is sad if you are like, if you're in a place where all you're doing is hating on somebody online all the time, I bet you are kind of sad. So I started like empathizing with him and thinking about it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Anyway, not two weeks later, the guy does a public apology for like, and does this long DM to me. You know, my husband has like a long memory. So he's like, no, you know, let's get that guy. But I was like, I just learned such a lesson. And maybe it doesn't always work like that. And maybe they're still mean to you later.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But I really think sometimes you learn just as much from your haters as you do from your mentors. And so don't underestimate not only the same where we kind of get all hot and bothered, like, you know, if you don't got hate, you're not doing anything, maybe. But also, wow, you can learn a lot from the type of feelings you get when people doubt you. And I think that's just as important.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I wouldn't be where I was today if I didn't have some big haters that I felt like I needed to prove wrong.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yes, let's do it. And also realize first, like, most of the people who are really shiny on the internet don't actually make much money. In fact, a lot of celebrities make no money. And you know this all too well being here. There's a lot of show and it's actually quite hard to make money in the shiny things. The richest guy you know probably started a landscaping or sprinkler head company.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
In fact, that was the case for my family. When I was growing up, I interned for a woman who was my brother's friend's mom. And they were worth what I thought was a bajillion dollars back then. And it was from an equipment rental company. So this guy was worth somewhere near $50 million from one idea. I buy some landscaping equipment, some tractors, et cetera. And I don't sell them.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I don't flip them. But I realized that construction companies only want to use them part time. So I actually rent them out. And so this guy would make the cost of a piece of equipment back inside of 90 days. And so instead of getting whatever differences between him buying the equipment and selling it for a little bit more, he would make the entire purchase price over every 90-day cycle.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I remember like thinking back in the day when I saw that, you can make money doing anything. And in fact, you probably make it more often in the things that nobody thinks about because you have less competition because it also sounds really boring.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And, you know, the Mark Zuckerbergs and brilliant minds of the world, they don't want to mess around with equipment rental. But people like me who are maybe like kind of smart but not that smart could make a lot of money doing it. And so there are three types of businesses that I obsess about. I call them overarchingly Main Street businesses.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So the idea is basically what if all the money is actually made in community businesses that we use every single day? Your roofing company, your podcast production company you send outsourced editing clips to. You know, the cobbler that actually cleans up shoes on the corner store.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
My last name happens to be Sanchez. I was like, what's the difference between us? Is it that I'm American? No, that's not it alone. I think it's also that I had some financial tools. And money is a pushback against other people's architecture of your life. And it makes people care about you one way or the other, which is sad. But the truth of the matter is, if you are poor, you have no power.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
All of these businesses, when you see that they've been in business for 30 years, it's not because they were making money or because they were losing money. And it's not because they got venture capital because they didn't. So these things actually are profitable, which is kind of rare. So Main Street businesses, and then underneath it, I call them three different types.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The first one is the gateway drug business, which basically I use that as a little bit of a joke, but it's like a vending machine. Well, everybody understands how a vending machine works, right? You get the machine, you take the cash out, you input the things. It's a straightforward business. It doesn't need a lot of people.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I think it's a great place for like young people to start because you learn the game of business. A similar one might be what I call a people light business, which might be like a laundromat. So a laundromat is like, in some ways, a slightly bigger vending machine, right? You put clothes in, the clothes get washed, you take the clothes out, you put coins in and return, right?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And that doesn't have a lot of employees and they're not super, super expensive on the scale of it. And so you go, okay, we got gateway drug businesses, we've got people light businesses. And then finally, we get into what I call the trades businesses overall, or boring businesses.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And these are things like we own a company called Resi Brands that has a window cleaning company called Pinks, a roofing company, a painting company called That One Painter. And what's wild is with these businesses, if you were to look right now, Jay, at like... the Forbes 100 list of the richest people in the world, and you were to see what they made their money from, they're not celebrities.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
They're not singing songs. They're not doing YouTube. Like we're not even touching the amount of wealth they have. What do most of them have in common more than anything else? Finance and business ownership. And the businesses they own are largely boring businesses. Richest woman in the world, Kim Kardashian, no. roofing magnet, literally the richest woman in the world.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
This was as of 2022, so we should see if the numbers are updated, but is a woman who started a very large roofing company. And so, you know, I wish somebody told us this when we were younger, because instead, you know who knows this? The private equity guys. And I don't mean to villainize anybody. I was in private equity. I know plenty of good people in that industry.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But again, centralization of power, private equity companies in 2000 owned 4% of the companies in the US. Now they own 20%. That's almost one out of every four companies in the US is owned by private equity. You know what they're buying like crazy? The trades, the service businesses, the boring businesses that print money that service our community.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I think this is our chance to take those things back.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And anybody who's been poor before knows that is true. you got to go where the game is played. So the first thing I tell you, if you don't have any cash, you need to find a way to figure out how to speak the language of money. And that probably means you maybe go work in finance like I did.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
my husband has a secret son from a past partner hold up sam how do we know have we done the dna test well john luckily it's mother may i have a dna test week on the okay story time podcast so we'll find out soon and this wife writes my husband received a facebook message from a woman saying that he is the father of a five-year-old whoa at first he didn't remember her but then he realized they had a one night stand right before we started dating
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Wait, but do we have proof he's the dad? Well, the author says there's no confirmation the kid is even his son, but the woman from Facebook has a meeting with her lawyer soon. I think she's going after our money. If the kid is actually my husband's, she would be entitled to it too. So what's the husband got to say about this? This could be his kid.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, apparently he broke down in the middle of the living room apologizing, but this is what scared me. His first instinct? If the kid is his son, is to pay the child support but not be an active father in the kid's life because he only wants a family with me, his wife. Oh, this is a mess.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
To hear the explosive finale, follow OK Storytime on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You get with a company that has smart leaders like Jay, where you can actually go and learn from them and you obsess on, can I become fluent in the thing that nobody talks about in the US because money is supposed to be the root of all evil.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, it's a great question. Well, first of all, what I would think about is there's two different things we need to know in buying businesses or growing businesses. And the first thing is you've got to learn how to do deal making and how to actually speak the language of money, which is what we talk about in the book, before you buy a business. So please don't just hear me and go buy a business.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Read the book or go to our free newsletter online, but spend a decent amount of upfront time learning. I promise you'll make more money that way. I kind of think about sometimes people go, well, why don't I use X amount of dollars I have instead of learning just buying the business?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I go, does that ever work out well where we don't know what we're doing but we plow a bunch of money into it because we want to just go do the thing? It doesn't work out. So spend your time learning how to execute first. Now, that said, I really think there's just three – key skills that we need to learn to grow a business. The first one is deal making. We got to understand how to do a deal.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The second one is really the mixture of grit and endurance. So it's actually not tactics. It's how hard am I willing to work? What am I willing to sacrifice for the things that I want? And for how long am I willing to do that? And so Angela Duckworth, famously University of Pennsylvania, popularized grit as the most important thing to measure success.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So it's basically like how much pain can you tolerate? And if you can tolerate a lot of pain, turns out you have a higher likelihood of making money. Business is really just like elongated periods of low-level pain. Sometimes you have what's called an acute or a big jump in pain. But for the most part, you know this. It's like, what is running a business or starting a business?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It's like, well, you're looking at your statements pretty much often. You're messing around with marketing. It's kind of like low-level pain. Mm-hmm. And so that's the second point. And the third point is actually maybe a little rare too, which is just a lot of people obsess on how. So what skills do I have to have exactly? How do I start a business? How do I tax structure the business?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
How do I get my first customers? All important and good questions. But the real pros know... You don't ask how, you ask who. Who can I go to who already has 10,000 hours where I can steal their homework? So now in business, if I go, hey, I don't know how to do our taxes. I go find somebody else who has done taxes for us. And it doesn't mean you have to pay for them.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It just means you have to talk to them and often people will help you. And so I find my who second. And then the third tier is buy. So the really, really rich, when they have a problem, they don't think, how do I fix it? They don't think, who can fix it? They think, how do I buy the solution to my problem?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Because if I can buy the business, if I can buy the solution, then it's a higher guarantee of winning. And so that last one is really about your connections. And so I think if you understand deal making, you are honest with yourself about how much work you're willing to do one way or the other, and you are willing to ask people for help, I think just about anybody can run a business.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Now, can anybody run Amazon? No, of course not. Could anybody run your businesses, which are quite big? No, of course not. It's really like the level of skill to the level you're at. But we don't say to people, you know, well, not anybody could buy an individual apartment and live in them. We ask like, what do you want? And how are you willing to work in order to get it?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So I think the same thing with businesses. It's like, okay, we have what's called the deal box, which is a little slightly technical, but basically the idea is Oracle of Delphi says, know thyself, right? Most important thing we can do. And in business, you basically want to have your little deal box of what you want. So do you want income of X amount? Do you want it to be located in LA?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Do you want it to scratch an artistic itch and make you money? And you sort of fill out this box. You know what you want. And then again, you know, the universe, I think a lot of times wants to help us out, but we don't know what we want. So how is it going to help us? Because we can't tell it one way or the other. And I think it's the same with business.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You know, because we could go 15 ways from sideways on like, we have something called the nine Ps, which are like the nine ways you scale a business to nine figures. But I don't want to stop people.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I want them to start small and reasonable and know that the biggest thing in between you and the thing that you want is the knowledge on learning the language of money, on getting after it kind of intensely, and then on asking for help. Like if you have those three things, you can at least start. And I don't want people to stop because they don't have XYZ leadership skill.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like I believe in your ability to figure it out.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah. Just don't make mistakes. Like the only rule that I really have is don't do a deal so big that it can wipe you out. Make sure your first deal is reasonable or you help other people bring on risk to level it out. So like if I'm young and I have no cash, should I go buy a million dollar business? Of course not. What would I do?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I might go and I might partner with a couple friends and I might say, hey, do you want to pool our capital together? Let's buy this little business together. If it doesn't work out, it's not going to murder us. It's going to hurt. But we're going to learn a lot and we're going to diversify our risk amongst us and we're going to do it together.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Or maybe you partner with your dad or maybe you partner with your dad's friends or your mom's friends or whatever. And so don't think that you have to do this game of entrepreneurship and acquisition by yourself. You don't. The big boys in private equity don't. You don't have to either.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Right. Well, you probably already know this. How many people offer you businesses or stakes in businesses now?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
never knew that. I do wonder sometimes, how do we get programmed these ways? Because if you think about it, it's like, what are the three things you're not supposed to talk about? Politics, religion, money. Now, politics and religion, maybe I could understand. You could offend somebody. I believe this religion. You believe this political slant. And if we could glide, that could be bad.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Why? Because you have a very high value skill stack that's very evident. People can directly attribute, if I partnered with Jay Shetty, then he's probably going to market my stuff. He's going to give me brand recognition. There's a high level of trust. So there's what's called a trust transference. So the higher level of skill you have, the easier it is for you to find businesses.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
In fact, they'll often come to you. The thing is though, even when we have a higher level of skill, we often don't really know what to do when it comes to us. We don't know how to do zero risk deals to us.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so I like learning deal making even if you have a ton of skills and a ton of money because you can do a deal that seems unfair but because you recognize your value, the deal is incredibly fair. In fact, the richer you are and the more audience you have,
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
uh money you have which i call capital the more coding ability you have aka like tech jeff bezos engineering capability or labor you have access to so employees or people that work with you the better deals you can do yeah and that's like the 202 303 level and anybody who's listening who actually has access to money and capital you are crazy if you're not thinking about doing deals and learning it because it is the ultimate positive form of leverage
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So I wish that we learned this earlier. This is how so many celebrities get screwed, by the way. And, you know, they get screwed because they do a deal. They don't understand the terms they signed. Their agent understands the terms they signed. Their agent isn't actually incentive aligned with them long term. And so they end up getting screwed.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like it broke my heart when I watched that documentary with Val Kilmer. I haven't seen it. First of all, you would love it. It's beautiful. The documentary is beautiful. He wrote it, produced it, and directed it, and starred in it. And it's just a beautiful piece of art. But also, he lost everything. I mean, he has basically no money now.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And the reason why is because of a series of deals that he did where other people made it and he didn't. And so even if you have a ton of money, you've got to be really careful about how you structure things in order to keep it. And the bigger that you get, the bigger target you have. And so it's important to think about that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And like the Russian proverb, trust but verify, which is like trust nobody – I'm sorry, trust everybody but verify that they are actually on your best terms, which is why it always doesn't count unless you've signed on the line that is dotted in the words of Alec Baldwin. So if you –
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
don't have deals coming at you because you don't have massive fame or money or whatever, like a normal person, then the easiest way is to find deals. It's called origination and private equity. So in private equity, if you think about what they do, they go around and they cold call small businesses.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So they literally will cold call a plumbing company up all over the Midwest and ask like, hey, you guys want to sell? Or I get them all the time because I own these. So our small business is, hey, can we buy your landscaping company? So one, one way you find deals is called on off-market deal searching.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So you basically turn on what I call your reticular activating system, which is basically just a system inside of your brain that is trained from the African savannah to say, if I keep repeating this thing, brain, It means it's important and I might die if I don't pay attention to it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so in real life, what happens to you is once you play the game of business enough, then once you like deals, like have you ever gone into somebody else's podcast studio and because you probably are obsessed with podcasting, you walk in and you're like, hmm, that's an interesting way to do that setup. I don't think I would do that. Oh, I like that they did that. Let's steal that, right?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But when it comes to money... Who's like, no, I wish everybody was poor. Why wouldn't we be able to talk about it? And the only thing that I can determine from that is that every time we get a little bit more ownership, a little bit more money, we become harder to control. And when you're harder to control, Big institutions and largely our governments, they don't like that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Your reticular activating system is so turned on to podcasts that you can't help but notice all around you things you would do differently or that you like. The same thing happens with business and deals. So now when I go into like a corner store or when I go into a restaurant, I go, or a gym. Gyms get me for some reason. It's like you have me. You have my credit card. You have recurring revenue.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I come in here every single day. Sell me more shit. Why don't you sell me more things? You definitely should. And so one, I will say, as you learn dealmaking, I can promise you only really one thing when it comes to you becoming a better dealmaker, your reticular activating system comes on.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So what's going to happen in deal finding, yes, you could cold call just like private equity, but instead kind of steep yourself in the type of deal you are looking for. Steep yourself in what skills you actually have, and then you're going to see them all around. You won't be able to turn it off. It'll be like when you buy a car, all of a sudden the car's all over the place after you bought it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You're like, did everybody? Was it a sale? No. Your brain starts making you notice it. And so the best way to find deals is you start just having conversations with guys because, again, cash loves curiosity. Every time you go into a small business, you just go like, oh, amazing. I mean, LA is full of them. You walk into a cool retail shop. Oh, that's cool, man. This is your store? Oh, it is? Yeah.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I mean, probably 50% of the time it's theirs. And then you say to the guy, like, how long have you been doing this? A while. Do you want to keep doing this? Like, how's business going? You guys make a lot of money. How long have you been around? Is the kid going to take over? Are you going to keep going? Oh, this is so cool. I love this. Maybe I buy a little something.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And then maybe I decide I want to own one of these businesses with them. All of a sudden I get to know the owner and I start getting into the curiosity where I get them to maybe consider that a young hustler who is really aggressive might be good for their business.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You know, you want a controllable populace by and large. And I think that is a big reason why people don't talk about money. It's actually that we have been programmed to be more malleable sheep in many ways, not because people are evil at the top, but because once we get power, we humans are a little funny. We don't like to give it up. No matter who we are, I would probably be the same.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, yeah. And you know, it's a funny thing I do sometimes. One, it's so lovely. And also how happy was she probably at the value you found in it?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Like, did you feel like you were taking advantage of her or did she feel like, wow, are you sure? Like, I'm glad you're spending time with me.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I think this is something we don't realize because our generation is highly transactional. We're a highly transactional generation with immediate feedback loops, AKA social media, with a high status game that we play with a lot of attention on us because you get a lot of attention when you're young and hungry and moving. But as we get older, I mean, women will tell you this all the time.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
They'll warn you that as you get older, you become invisible. Like a middle-aged woman will say, often nobody sees me. And like one of our copywriters, she was so lovely. She said a thing to me. I was like, oh, she dyed her hair blue. And I was like, Marcel, it looks great. Like she's an older woman, probably like mid-50s. And I was like, it looks great. Like, you know, what was the impetus?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And she's like, you know, as you get older, I realized that like nobody would talk to me and I feel like they were looking through me. And she's like, so... She's like, so I was with one of my little nieces and we dyed our hair little strips of it pink together.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And she was like, and I was walking across the street and this young man kind of yelled over to me and he was like, hey, mama, I like the hair. And she's like, I can't remember the last time a young man talked to me. She's like, so anytime I now feel a little out of it, I dye my hair blue. And to be fair, in the past, sometimes when I saw people do that, I was like, really? What's going on here?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
What's the move? And then I realized, just because we value something one way doesn't mean that everybody else values it the other way. And so in order to break your frame and to see businesses all around you, don't assume that the same things you value other people do. It's like, I've never really believed in the golden rule, which is treat others how you want to be treated.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It's like, by and large, treat them how they want to be treated, unless that breaks how you want to be treated. And I think that's the same with business owners. I mean, my Uncle Eb, which is one of the main reasons I started publicly talking about businesses online, he had a business, did a couple million dollars a year in revenue. And it's called Eb Homes Plumbing. It was in Phoenix, Arizona.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And he got sick with cancer and decided he wanted to shut the business down. You know, he's in his 70s and was like, you know, I'm ready to be done. And what he didn't know at the time is that a business that is doing a couple millions of dollars in revenue and a couple of millions of dollars in profit is worth millions of dollars.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so that centralization of power, we start to think, I know better. You poor person, let me give you some charity. You can't figure it out. And instead, we should be saying, you are just as capable as I am. And I would probably be you if I lived your life. And so instead, why don't I transfer some knowledge? Because that's where money starts.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so this man who spent his life building up a plumbing company that probably would have thought, honestly, like if he was here, he would say, Cody, I couldn't have sold that thing. Like that wasn't really, you know, it was sort of, and this is what most baby boomer business owners think. They're like, who's going to buy this?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Because how many times have you had a business where you didn't want to be in it before? Have you ever had that before? Yeah, absolutely. And I go, okay, let's play a game. Business owners, raise your hand. Everybody raises their hand that's a business owner. I go, cool. Keep them up. If you would sell your business at the right price and the right terms, if it came along, keep your hand up.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
What happens? Everybody's up. Not one. If you go down and I go, liars.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Because the truth of the matter is, you haven't been in the game long enough if you put your hand down. But if you've been in the game long enough, you go, absolutely. Now, I wouldn't sell every one of my businesses.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah. But there is at some point one business. And if you caught me on the right thing, maybe I would. So I think we have to change our programming to realize all around us, every business has a value. That book selling business that shut down, I bet there was a value in the lease that they had. It might have been in California. Sometimes they have leases that are locked in.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
There could have been value in just the lease contract to transfer it. There could have been value in the assets, the books. There could have been value in the employees because you can do an acqui-hire. There could have been value in the website listing. What about the Yelp and Google reviews? There could have been value in the IP. What about the logos and the brand and the name?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
What if they had one of those old school original Kodi.com websites before we now have to have websites that are like 452 words, right? And so every single business has some value. And if you can find the business where the value to the owner is not as much as the value is to you,
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
My husband has a secret son from a past partner. Hold up, Sam. How do we know? Have we done the DNA test? Well, John, luckily it's mother. May I have a DNA test week on the OK Storytime podcast? So we'll find out soon. And this wife writes, my husband received a Facebook message from a woman saying that he is the father of a five-year-old. Whoa.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
At first, he didn't remember her, but then he realized they had a one night stand right before we started dating. Wait, but do we have proof he's the dad? Well, the author says there's no confirmation the kid is even his son, but the woman from Facebook has a meeting with her lawyer soon. I think she's going after our money. If the kid is actually my husband's, she would be entitled to it too.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So what's the husband got to say about this? This could be his kid. Well, apparently he broke down in the middle of the living room apologizing, but this is what scared me. His first instinct? if the kid is his son, is to pay the child support but not be an active father in the kid's life because he only wants a family with me, his wife. Oh, this is a mess.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
To hear the explosive finale, follow OK Storytime on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, I mean, let's talk first. We'll talk about how it's tough, and I'll be honest. And then we can talk about solutions. So I promise I won't leave you in a doom scroll. But here's the truth of what's happening in the world right now. If you're young, young people today are upset about what's happening in the world around them. And I understand why. You have wage stagnation.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I wish that I didn't have stories to myself about me being bad at math and money. I think most people have a story when they're younger about how bad they are at math. I have one that I think really messed me up. I was in middle, no, no, no, it was high school. I was at Arcadia High. And I had a math teacher. And I wasn't very good at math. Like I struggled.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I think I might have a little bit of dyslexia. I'm not sure. But I just couldn't get the numbers to stay in my head correctly. And so I was sort of struggling. And I remember one day the teacher was getting really frustrated with me. And teaching is a hard job, so I get it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But he looked at me in front of the class and he said, man, I think Helen Keller would have a better shot at winning an archery contest than you would at winning in finance. And at the time, I was like heartbroken about this and like embarrassed, you know, and did it in the way teenagers do, which is like – I don't care, whatever. But I was very sad about it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And then I love my parents deeply, but my parents always used to say to my brother, you're so smart. You're so smart. You're so smart. You're so smart. And to me, they would always say, you work so hard. You work so hard. You work so hard. And at the time, I was kind of mad. I'm like, I'm also smart. What about me?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And they would always be like, well, Cody's not very good at math in the same way that they would say I'm not very good at singing. The singing is true. I'm not good at that one. But But that math thing stuck with me for a long time. And so I always thought that it was big and hard and scary to be quote unquote good at math. And when it comes to making money, the math is really simple, guys.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I'm bad at making math, so bad that Helen Keller would be better at archery than I am. And so if any part of this skill is scaring you, I think it often starts with like, oh my God, I look at a spreadsheet and I panic. You know, I have to calculate something and I panic. I look at a calculator and I panic. And I would say just like lean into that slightly,
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Because I think in finance, we do a very sneaky thing, which is I think we try to make it seem really scary and hard for the average person to become rich. Why? Because if it's scary and hard for you to do it, guess what I get to do? I get to charge a lot of money for it. And so that's why most of us take our money and like think about it for a second.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So we basically have not made any more money. And in fact, this generation, Gen Z, is the first generation where at their same age as their parents, they're making less money, not more. Problem is their university degrees are three to four X more expensive. Oh, by the way, so is housing. Wait a second.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
We take our money and we give it to other people to take care of. Now, when you give your kids to other people to take care of 100%, like there are opinions about that. People say, no, you got to take care of your kids. You got to grow your kids. But with wealth, we can just say, no, no, I don't understand anything. I just give it to this guy over here and he figures it out.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
That's really not how we should treat money. And so the main skill that I think you should think about is one of my mentors said to me – Money is a cruel mistress. She'll leave you if you don't pay attention to her. And I think about that a lot. Like, just give the money a little attention. Give the math a little attention. You're more capable than you think you are.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And it's really not possible to be bad at this type of math. So if in your head you think, I'm bad at math, I'm bad at spreadsheets, it's really not possible. I'm bad at calculus, but you can figure this stuff out.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
that other people's money is actually feasible. People think that passive income is a lie, that getting other people's money is a lie, but they tell you that because they are usually the ones on the other side of the coin. So if you want to see about other people's money, look to private equity and mimic it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Inflation is at a degree in which my dollar today is worth even substantially less than even five years ago. On top of that, yeah, we have all these jobs open. Seven million working age men supposedly are unemployed at this moment right now, even though The jobs report says that there's so many jobs. Are the jobs real? Well, largely not. They're not private sector. They're public sector.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Oh, that's, yeah, that's a really good point. It's really simple. A couple tactical things. One, something called a tear sheet or a one sheet. So this is basically like, think about it like a baseball card with all the stats on the baseball card, but for the deal that you're going to put. So it's like, here's why I think it's good. Here's why I think we'll make money.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Here's what that's based off of. Here's what a summary it is. Here's why I'm good at it too. And you should invest in me. And here's why I think you should be the one to invest. That's called a one sheet or a tear sheet. The second one is a pitch deck. From Goldman, I learned something called the three Ps, which is people, process, performance.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So I do that in all my pitch decks, which basically is like, why us? Why should you bet on us? Because at the end of the day, if you're asking for somebody's money, it's about the opportunity for sure. But it's really like, do I want to invest in Jay? Do I believe in Jay? Yeah. And then second is process. So like what is the opportunity? What is the way we're structuring this?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
What are we investing in? What is the process by which you're going to take our money and go bring it back with friends? And then lastly is performance. So if I give you this, why do you think that I'm going to make money? How much money am I going to make? And why should I invest in you instead of all these other things?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So if you have those two things, that is the like typical one-on-one for raising money.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
A hundred percent. And I wish people would have told me that. It's like, sometimes when you have those little easy tactics, you're like, okay, now I feel good. You know, there's more to it than that, but at least, you know, like, hey, if I want to drive a car, I need the car and I need some gas. And so now you guys got that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, exactly. Best predictor of future behavior is past behavior. So if you can show them you have a history of winning and even show them some instances where you didn't win, why and how you're never going to replicate that again, people are going to bet on the hustler who is on a winning streak.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You know, oftentimes, right, you know this, if you go to gamble on a game in sports, you don't gamble on the person that's have a losing streak. Why? Because it's actually quite hard to break. And so I think also if you can show a history of winning, and that's a narrative you can frame, you're more likely to get cash too.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
That money is scarce and hard to get. If you think money is hard and scarce, then you're probably not going to get it. And I think people want you to think that. And that does not serve you at all.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I think this is a little cliche, but health and wealth are super tied. the best money I've ever spent are probably two things, a sauna and a cold plunge. And I know that sounds like super tech bro Twitter, but the truth of the matter is, is that if I can get a little bit more energy in the beginning of the day, it seems to carry through the rest of my day and make me more money.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
They're government jobs. And so young people are like, wait a second. I can't live. I can't eat. Grocery's more expensive. And that's real, actually. And so the people that are making fun of young people in TikToks when they cry about their job being difficult, I don't really vibe with that because the math says it's hard right now.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So whatever your sauna and cold plunges, and I think I bought mine on Amazon for literally like a thousand bucks each, then that's money well spent.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The biggest mistakes I've ever made are always not things I did or bought, but people I chose. It's always about the people, the good things and the best things. So be careful those you partner with, spend time with and invest in and know that those will often be the things that give you the most heartache or make you the most money.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I have a couple different rules. One rule is you don't get married on the first date. Don't do a deal or start a business on the first date, which means I have a one-year rule. I do not get into a long-term partnership with anybody that I haven't known for at least a year in business. A lot of times there's this, you know, that rosy phase you have when you're first dating with somebody.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
You're like, the thing is, we're in love and we were meant to be. And then about six months later, you're like, also no. And so same thing with business partners. Give yourself a nice 12-month window. It's hard to hide who you are for a year. The second thing when doing business deals is when you partner with somebody, you don't actually want to partner with somebody that's just like you.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It's the same with marriage. It's why dating apps are so tough. I mean, I was talking to Sean Radd about that, the founder and attendant of the other day. I was like, the thing is, you don't realize what you did, but you allowed people to self-select for people that are just like them. And it turns out...
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The statistics all show that we do not last in marriages as long or relationships as long when our person is just like us. We actually have to have this creative difference between the two of us. There's a yin to the yang in everything in the universe. And so the studies tell us you need two different types in order to succeed long term.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Some overlap is necessary, obviously, but you don't actually want to date yourself. It's the same with a partner. Make sure that if you're a great salesperson, they're not pairing it with another salesperson. You've got a great operational person and a great salesperson, maybe that works. And the last thing about great partnerships is everything else is figureoutable if there is enough drive.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But my father says, you can lead a horse to water, but you can't make him drink. And so I always over-optimize on this idea of desire. Like, why do you want to partner with me? And do I believe that that why is so big that we can overcome anyhow? And if your why is like, I kind of want to make a couple dollars on the side, but I might do this, but I might do this, but I might do this.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I call you a toe tepper. You're actually not all the way in. You're not fully in with me. And so at our company, we just had one of these people the other day, a young kid, he's a stud, but he came to us and he was like, yeah, I want to do this job with you, but I also have these other things. And
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Once you've interviewed, I've interviewed thousands and thousands of people by now, so I can kind of get to the heart of it. I remember Tanner was sitting in the interview with me, and Tanner's face was just falling as he was listening to it because I was kind of ferreting out a few things. The young guy was like, well, I have this channel, and I want to grow this, and I want to do that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And not just for young people, but I think it's important to talk about them. And the truth of the matter is, though, that in any market we can make money. And so although it's really difficult out there, there's like one silver lining that I've kind of been screaming from the rooftops for the past three years. And people, I think, are starting to see it, which is that...
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I was like, why do you want to be here then? Like, if you want to do all those other things, like, no, no, no, I want to do this too. And we can do it all together. And I said, the thing in life that I wish somebody had told me earlier is when you're starting out, you can never be excellent at multiple things at once.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Eventually, you can have excellence in multiple things because you can attract top talent. But in the beginning, you're either all in or you are a barely concealed series of distractions. And so a partnership, make sure they are all in and their why is super, super big. Otherwise, they should go find their why and it's not you.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Oh God, that's a hard one. Just one. One law in the world that everybody in the world had to follow.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
How would we... We'd have to think legally about some of the caveats to this. We'd want to make sure we crafted the language correctly in order to not have perverse incentives or second and third order effects. But it would be something to the tune of like... It would probably be something about taxes. It'd be like, don't allow centralization of tax power above a certain amount.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And the reason why is... Kind of technical, but basically, we want to give as much money as possible back to you, the builders. The only way that money and thus freedom is created is from individual humans who build things. Governments cannot build things. Governments can take capital from somewhere else and they can allocate it to other things and equalize.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And that is great and wonderful and necessary. But I would be really careful about what I see as like... core to our society today, which is, are we allowing too few of people to control too much of us? And it starts with our money. And I know there are lots of other things we could care about when it comes to politics, and that's very important too.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
But I was in Argentina when they closed my business and made it illegal overnight because they nationalized it. And I have seen countries fall apart at the floor of taxation and nationalization. And so I guess it would be a government is never allowed to nationalize and a government is never allowed to overly tax.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And every chance we get, let's believe in the builder and the individual and not the big, huge entity. Like you guys can figure out you don't need them all the time.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, thank you. And maybe the only thing, can I add one thing for the audience? The only thing I would add is like, um, anybody who is out there building right now, I hope you know how important you are. You know, it is, it is so critical to have builders in this world and it is so hard and you're never alone and you are so necessary. And without you, the world literally stops.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
We are thankfully, I think, going to have a marriage between baby boomers and young people that would be very unexpected. So right now, and historically, young people have said, okay, boomer, you messed up our economy, boomer. You're not employing me, boomer. You don't understand my life. You listen to the music that young people like. They don't like that generation in a lot of ways.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so 3% of Americans own a business. 3%. We need more of you builders out there in the world. And so everything we do is to try to create more humans who have skin in the game, who are creating things with your beautiful brains and your hands. And I'm in awe of you.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So every time I meet the laundromat owner, the car wash owner, the entrepreneur that's building something inside of a business, I just hope you know there's so much dignity in the world. And it's because of the work you do. And without you, you know, it's actually not good to go back to the Stone Age. Like we have all the things we have today because of each of you.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And that includes you and building this business. So thank you for having me.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Well, thank you. I think, you know, you meet a lot of people in real life that you kind of know online. And so at a certain point, I think you can kind of tell when the human is going to match the human. And that's what I felt with you. So it's cool for the people listening too. You got to question everything.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And sometimes you meet people that you look up to and you're like, dang it, you know, not quite what I thought it was going to be. And so like real respect to you for that.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
my husband has a secret son from a past partner hold up sam how do we know have we done the dna test well john luckily it's mother may i have a dna test week on the okay story time podcast so we'll find out soon and this wife writes my husband received a facebook message from a woman saying that he is the father of a five-year-old whoa at first he didn't remember her but then he realized they had a one night stand right before we started dating
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Wait, but do we have proof he's a dad? To hear the explosive finale, listen to the OK Storytime podcast on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Then the baby boomers are like, you guys are quiet quitting. You're not working very hard. Get out of my basement. And so these two generations have been at war in some ways, like a quiet war.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And now I think with the transfer of ownership that we're seeing, and we can talk about the great wealth transfer, I think we have an opportunity where the baby boomer generation, the richest generation that we have ever seen in the U.S., which has mimicked in all other countries around the world, by the way, that are developed countries, This generation is about to sunset.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
They're getting ready to retire. They're ready to move on. But they own $68 trillion in wealth in just the U.S. The interesting part is the young people think, well, that money must get transferred somehow, right? Does that mean I get a house? Does that mean I get a car? Does that mean I get inheritance? The problem is that money is not tied up in just assets.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It's not tied up in houses and bank accounts. It by and large is tied up in small businesses because baby boomers own 60% of all small businesses. And so I think we've got to find a way for the young people to take over these baby boomer businesses because otherwise then we're in a really bad spot. Then we're Japan.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
I think a lot of young people today chase the shiny object, right? And think about this for a second. I remember like many years ago, I had an opportunity to invest in Robinhood. And I could kick myself financially because I didn't. But at the time, why I didn't is I was like day trading stocks as amateurs and then gamifying it.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So we get like adrenal response every time a balloon pops because we placed a trade. Might be a bad idea. Like I don't think we should probably gamify our finances that way. And I think that's what's happened to young people. They're being told, I mean – put it in the stock market and day trade. They're being told NFTs and playing with crypto monkeys.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
They're being told price speculation on crypto or even Bitcoin. They're taking margin calls out on their stock portfolios. And with the little amount of money that they have, they're trying for this get rich scheme speculation. And the shitty part is that just never works. You
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
is that you're never going to make it if your solution is, hey, I'm going to win at money because that guy's going to lose. If you think that there is a lose-win scenario and you are the one that's going to win, I hate to tell you, you're the one holding the bag.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah. And I wish people told us that more, that actually making money doesn't have to be lose-win. It could be win-win. And that is when you know you've actually found a good opportunity is when you go, okay, Why would I make money on this deal? Oh, because I am solving a pain point that adds value to another human's life and I've properly valued what my own skill set is.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
The problem is most of us don't even know what we're good at or how you'd value that skill. And we can play around with some exercises so that any human could figure out, okay, I, Cody, know how to market something. How do I figure out how much that is worth and how could I transfer some of that to get a percentage of equity in somebody's company just for the skill that I have?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And the last thing I want to say there is like, More than anything, I think one, we think money's bad. And then two, money's scary. Like, I don't really know why, but I think we're scared of it. And we're scared that we might not be able to make it. And we're scared what if we lose it? And what if our self-worth is tied up in it? And should we actually ask for it?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So we have all these fears surrounding money, which is probably why we don't talk about it too. And we got to kind of work through that because money is just a tool. So it's just like, if you want to build a house, do you want to use a bunch of tiny little nails and your own hammer, or do you want to have a screw gun? And like in this instance, I want to have the bigger gun.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah. Well, here's how I think about making money. We have a four-step process that I think if you don't have money now, here is how you make it consistently over time and you have your money go out and bring back friends with it. The first is you've got to learn. We've got to obsess in the beginning about one thing only. It's not what your salary is.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
It's how can I cram as much information as humanly possible in my brain in order for me to then do the next thing, which is increase my skill stack. After I learn, can I increase my skills so that my skills are more valuable today than they were yesterday? And the third is, how can I increase my income?
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
So before you go thinking about investing in things overall, how can I just make more money currently with what I'm doing? And then finally, we can get to invest. So after we do these three steps, the final one is, how do I take my money and make my money work for me? But in the beginning, you don't have money. You don't really have skills. You probably don't have a ton of connections.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And so what you actually want to do is use your sweat equity and your experience and time as a really maybe hungry individual to get money to eventually be able to invest the money.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
And I think that's the other thing young people are told that's a lie is that you can go out as a young person and, you know, Fendi, Gucci, Prada, Lamborghini on the internet, make a bunch of fast cash and Airbnb arbitrage or whatever. Man, I wish somebody had told me earlier on that's a terrible thing to do.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
70% of millionaires are self-made. If you want to make money, you got to follow the map. People that have money have one thing.
On Purpose with Jay Shetty
Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)
Yeah, I think you're exactly right. I mean, for a long time, we employed people from the top universities and financial firms. We would go out and we would hand select them because that would be an indicator of their grit, perseverance, and potentially their intellect, their IQ. Now, by and large, you're starting to see a lot of the top institutions bypass that.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Private equity in 2020, I'm sorry, yes, private equity in 2000 owned about 4% of private companies in the US. Flash forward to 2020, that's about 20%. These aren't bad guys. I was friends with a lot of people in private equity. I still am. They're incredibly intelligent, incredibly skilled individuals, but I don't think that
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Because they have perverse tax incentives, such as not to get really technical, but the way that they do carry in capital gains and how much low of a tax basis that gives to them. Plus, they know how to raise capital. They should be able to buy out our businesses from under us. And we've all felt it. You've gone to your favorite neighborhood store after it's been replaced with a CVS or a Walmart.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You felt what it's like when you go to a local coffee shop and that coffee shop has been bought out by private equity. It's really hard to not suck the soul out of something when you've never stepped foot inside that company and you just see it as numbers on a spreadsheet. And that is what these large private equity firms do. It's just perverse incentives.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so you can't really get mad at the snake for biting you when you know that's what snakes do and what they are created to do. They're not wrong. They are just created that way. And so my pushback on this is, yes, I think there are some regulatory changes that could happen, but also let's take back our businesses ourselves and not wait for the government to do it for us.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So that's a great point. And I think that's a really good point too. When a dog takes a shit on your lawn, you clean up your lawn. Why? Because it's yours because you don't want that sitting on your front yard. But when you don't own the house, when you don't really visit the house, when that is just an asset and not a home, you treat it real different.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so I think that happens overwhelmingly in these areas and it's, Again, I mean, you were in private equity, so it's not bad people. It's pretty brilliant people. But it is not great that we take away a community feel from a community. And I think at some point we should all go and become spectacularly wealthy. And I love that.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And I think it's very possible for us because there's more money than we could ever imagine. But do we have to do it by sucking the life out of local communities and not having localized strategy and incentive alignment? And I think the answer is for the everyday average person, these issues are too big. It's like, all right, well, what am I going to do about Blackstone or KKR? I have no idea.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, let me tell you what you can do. You can go and actually get ownership in a small business yourself. It is an asset that will be valuable. You can build that up into a nice little mini empire of yours in Piedmont, North Dakota, in Scottsdale, Arizona.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And in that, you can then transition it to the next generation and make just as much money as if you sold it to private equity by doing seller financing or creative financing for the next generation to take it over and keep a percentage of equity ownership in the business overall. I think that's the other thing that private equity guys do is they catch us at the moment of weakness.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You've been in your business for 10 or 15 years. You're fucking, you're tired. Your kid doesn't want to take it over. You got like some issues, some HR employment issue. You don't really know how to exit the business yourself. You need some liquidity and capital because all your money is tied up in your business, 90% of all. of small business owners net worth is tied up in their business.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And somebody comes to you with a really attractive multimillion dollar offer to buy your business. What do you want to do? Yeah. You want, that sounds nice. I would like to take that offer, but Hey, I live down the street from all of these guys and I still got to go to church with all my clients on Sunday.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And when they run my business into the ground or when they sell it for parts, or when they take my name off of it, maybe I'm going to feel something about that. Cause I spent 30 years of my life building this fucking place.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And if there was another option for me to sell my business also for millions, but not to somebody who is going to slice it up for parts, change the name, et cetera, I would probably do that. The problem is there's not an educated enough populace that knows how to buy these businesses to compete with those offers. Because as we know with private equity, it comes with a lot of...
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
It comes with a lot of handcuffs that you don't recognize. There are some weights that they put on your feet when they buy your company, because these guys are smart. They know how to minimize risk. And so they're going to make sure that you're doing earnouts, you're doing milestones. They're going to make sure that all of the capital isn't given to you unless XYZ happens.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so I think there's a real opportunity for people who understand how to do deals to come in and even compete with those guys at some level, because the word's out on how they treat a lot of owners that they buy their business from.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, if we know that only six percent of Americans on average own a small business, then what do we know? We know if we actually got one to five percent of Americans to additionally own a small business, we've anywhere from 20 percent increased to double the amount of owners in this country. Why do I think that's good?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, if we have a bunch of owners in this country, they're a lot harder to push around. It's harder to require, for instance,
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
that owners because we have a diversified group of companies as opposed to a few fortune 500 if we have hundreds of thousands or millions of companies then they're harder to regulate for instance if you want to say medical mandate here or there to the big fortune 500 well they can come after you and sue the out of you but if you have a ton of companies then that's much harder to do that's why decentralization is really good for protection it's the same thing with this idea of bitcoin or crypto
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
When we don't have one single point of failure or one single point of friction, then we usually have healthier ecosystems and marketplaces. We want this in everything, really. We want this in food processing. We want this in logistics. We want this in our power sources and everything and everywhere.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
If we can have decentralizations and multi nodes, it's usually better for society, in this case, better for consumers and citizens. What I think is happening today that's a little bit different is
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
that for the first time ever, we have a real aging demographic shift that we've seen all around the world and is starting to accelerate in the US, which is this baby boomer generation, the youngest of which are now starting to retire. And this generation is the big predominant owner of small businesses. And there's two things going on with that. That means that you have a ton of supply, right?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So always good to buy something at a discount if there's a big supply. The problem though is most of these owners don't know how to sell their business. They don't know how to prep their business for sale. They don't know that their business is even sellable and they certainly don't know how to price it.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so we have to educate the populace in how to train business owners to think about transferring their businesses so everybody gets a fair price and a fair exchange. And then we've got to, we've got to train the sellers to realize not to just shut down their business or sell to a big corporation or sell to private equity, but instead maybe think about how to keep the ownership local.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And the last thing I'd say there is there's lots of studies that show that if you spend a dollar. At a local business, so you go to a local hardware store, 60 cents of that dollar stays in your local community. If you go instead to Amazon and you buy the wrench or you buy the hammer on Amazon, less than 10% or 10 cents goes to your local community.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so this idea of own local, buy local together, I think is really important if we feel like we want communities that we want to live in, because prosperous communities end up being communities that have higher happiness levels, higher safety levels, et cetera.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Another way to say that everything is contextual, which I think is very true. I'm not sure there's too many things that are complete black or white instances, mathematical equations until we prove them wrong, perhaps. Scientific equations until we prove them wrong, perhaps.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
But I do think by and large, we are all an amoeba put into a Petri dish that is a byproduct of the other things that go into the Petri dish alongside us. We're contagious and we are easily influenced by our society and by our culture and by the people surrounding us.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So one of the reasons why we created Contrarian Thinking and our Contrarian Academy, which is where we teach people to buy businesses, is because you do become the average of the people you surround yourself with, both in weight and bank account and title and marital status. It's wild when you start to realize how contagious we are. And that's why I
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
relentlessly cut out negative naysayers in my life because they are actually making me make less money, be healthy on average, be happier. And life's hard enough as it is when you have people who are cheering you on to win. The last thing that you need is to let those who don't want you to win into your ecosystem.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I think that's true.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I mean, the easiest thing to do is pick up your feet and move. I do believe there's a real power of place and it is hard to be something different in a place that is not different. And so if you are surrounded, I mean, just think about it this way. We talk about it. If you, if you want to change your life, get in a room where other people's Tuesday is your dream day.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I could pretty much tell you with increased certainty that in our members of our community who are trying to buy businesses, as soon as they join one of our accountability pods, their likelihood of buying a business goes up by about 50 to 60%.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
As soon as they come to one of the events in person that is tailored for their subsegment, the likelihood of them doing their first series of LOIs and PPMs is increased by about 100%. So like proximity is power and it does matter.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
If you want to stop drinking and you went and hung out with a bunch of CrossFitters, none of them drink and they all go work out every day, you probably are going to decrease your drinking. If you want to stop drinking, but you hang out with friends every night at the bar, you're probably going to have a hard time decreasing your drinking.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so, yes, you could build incredible willpower or you could get into an environment where willpower is not even really necessary because proximity and habit kicks in.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, I think tools limit mistakes. So if you want to succeed more consistently, you should try to steal somebody else's 10,000 hours and use the tools that they've used to already get the thing that you want. And so what I do in the book is I give you what I call the perfect fit.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
the diagram and so basically this is overlapping three circles that talk to you about your passions or what we call obsessions i'm more interested in what you're obsessed with and what you're passionate about your skill set uh what you are uniquely skilled at in the world and like doing
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
then your network where do you have other people who can help you achieve the things you want with more speed and certainty we take this you through this exercise to look at those three things and then put it into your deal box and a deal box when investing is similar to what we in private equity might call our investment thesis so what is the thing that you are going to invest in that will be the blinders that you keep on for all the distractions of potential investments
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
If you want to close a deal with higher likelihood, it's not that you should actually open your aperture and look at more deals. You should get really clear on what is a good deal for you. And so this is an exercise that I think if people follow through with it, will accelerate your deal buying journey much faster.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
It'll also accelerate your career and your ability to negotiate because you're going to have the rarest of things, a knowledge of what you want, which most people do not have.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
We have a real aging demographic shift that we've seen all around the world and is starting to accelerate as this baby boomer generation, the youngest of which are now starting to retire. And this generation is the big predominant owner of small businesses. And there's two things going on with that. That means that you have a ton of supply, right?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So always good to buy something at a discount if there's a big supply. The problem, though, is most of these owners don't know how to sell their business. They don't know how to prep their business for sale. They don't know that their business is even sellable, and they certainly don't know how to price it.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I mean, I don't think that buying businesses is easy. I think that it's worth it. I think that ownership is actually one of the hardest things that you can do, but it's really the only thing that I think over the long term leads to financial freedom consistently. And so it's not easy. And if you want quick or easy or immediate or no risk, you shouldn't do this. You shouldn't play this game.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And you should probably play a game that has a lot less risk and a lot less potential reward. And that's totally fine. And this may just be something that is a phase of your life too. But well, I mean, I think where you should really start is whether it's my book or somebody else's, but you want to actually understand the full landscape. So it's not actually where do you start?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
It's what is your knowledge base? So I have an employee that owns some businesses on the side too. And he said something really interesting to me once. So since he started working with me and I taught him how to do acquisitions, that was three years ago, he's bought three businesses. Maybe he's done four now.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And before that, he had been working in business, very successful salesperson for 11 plus years and had never bought a business before, had never done a partial equity deal, had never owned half of anything or a part of anything. And what was interesting is he said to me that he was talking to one of his mentors and his that no deals existed prior to you meeting Cody.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Prior to you learning acquisitions, were there no deals around? No, of course not. It's that you couldn't recognize them. And I think your opportunity will always be limited by your ability to recognize it. And so if one day you want ownership, you need to start with understanding what does it even look like to get ownership? What does it look like to buy a business?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
How do we use this language of money, which is to talk about deal-making?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
and structuring and once you have that down then you can go to the next level the next level would be like all right i've read the book now how do i go into something deeper maybe it is a course maybe it is a community or an academy of people how do i go from the education to starting to begin the implementation i think where people go wrong in business buying is they start with this is a cool idea all right i learned a few things about buying a business now let's go buy one and instead it should probably be maximize your education
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
until you can say you're quite versed in how to buy businesses. You could have a conversation with you or I on doing a private equity deal and you would understand everything we're saying. And if we probed you on some questions, you would be able to respond in kind. Then you might be ready to start looking at acquisitions.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
But what I've found is there's some real hubris that comes along with acquisitions and also that exists a lot in finance. Like one of the things I find most interesting is that people who have been in finance but never done a deal always talk like they know how to do a deal. But if you've never done one, then it's just theory. It's not actual practice.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And it's a totally different thing buying a business by yourself than it is doing it in a corporation. That's why I had to start with some smaller ones and I scaled my way up continuously because I wanted to make sure that I was an expert before I started putting my expertise into action.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
First, I'd say this. If you've ever spoken to a business owner in any sector and asked them, is your industry or sector easy? You already know what the response is going to be. They always say no. Business owners are really funny. We're always really negative about the industry we're in. We think it's hard. We think it's risky. We think that other people shouldn't get into it.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
We think the grass is greener somewhere else. So what I will say first is every business is hard. And are some of them harder than others? Theoretically, yes, for that type of entrepreneur. And it really depends on who you are. Now, there are a list of businesses that I don't like because they're just more complex or complicated.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
For instance, if you've never run a business before and you have no experience, but you go into industrial manufacturing, You go into biotechnology, you go into, I don't know, complex mergers and acquisitions and starting a business in it. That, that requires a lot of historical knowledge. Instead, you might want to start with a business that is so simple. You could explain it to your grandmother.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And this is how I talk about these businesses. Where is there a business where you fully understand the business model? You're like, so I always talk about laundromats, but we could use another example. You're like, all right, this guy paints houses.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
he charges for the paint and he charges for the service to come to the house and he could put it on a recurring revenue model and he could have some commercial contracts and he could have some residential contracts and he probably does door-to-door marketing maybe a little seo and social to get it he needs to know how to price the location but we could probably figure that out that's a pretty straightforward business okay i could understand that business and thus i could get into that business
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Now, am I going to be as good as somebody that's already been in it? No, of course, I've got to learn the ropes. But I think you're asking to yourself, do you really understand at a core level how this business makes money? And we have what we call the money pathway in the book, which basically shows you, for instance, in what would be a good example of a business, Kim Kardashian.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So Kim Kardashian creates a business. new skincare or a new lip gloss. So she creates a new lip gloss. She posts about it on her socials. She gets sales from people clicking on her socials. And that is how the business makes money. So it's create a product, market the product on our social media, collect the cash for the business. That is her money making deal journey for a laundromat.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
It might be put up new signage outside of laundromat, give discounts in the local newspaper, get customers to come in to the laundromat to use the service, sign them up for a monthly program that allows them to get it all at a discounted cost. That's how we make money.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So you really want to understand your business, how most businesses don't have more than three to five steps for how you get attention to product to closing capital. And that's what you need to understand in each business that you would buy.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You said it perfectly. You don't actually have a money problem ever in raising capital for a business. You have a knowledge problem. You don't understand all the different ways that people get money that is not out of their bank account or out of their own assets. Those can be ways. We teach 21 different ways to buy a business using varying capital structures.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
In the book, we focus a lot on one called creative financing, which is basically investing How do you get the seller of the business to align with you on wanting to put up capital for you to buy the business? So use the future profits and revenue of the business in order for you to buy the business. That's called seller financing, but there's there's 62 ways from sideways to do this.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You could do a Rob's account. You could do a line of credit. You could do a HELOC. You could. raise capital from third-party investors as equity. You could raise capital as debt. You could do equipment factoring. I'm sorry, you could do equipment financing. You could do invoice factoring.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You could use the equity from another business that you have and give it to that current business owner in order to buy their business. You could ask for a percentage of
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
future sales in order for you to do some sort of partial equity deal that you bring in capital for so there's all these ways to make money it's never that you don't have money it's that you don't have knowledge and that really unlocked something for me in finance because when i started buying businesses i didn't have millions to put on the line so i had to be really creative and how i did my first series of deals and now even today i'm very creative on deal structuring there's no way i'm going to do a business transaction that's just dollar for dollar acquisition i'm going to do some sort of earn out i'm going to do milestones
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I'm going to ask for a discount and warrants and options if we do X, Y, Z, creative deal making.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I mean, we have Lloyd, for example, who's a member of my community, and he bought a laundromat, still wanted to run his day-to-day business, and so got a general manager to run the laundromat and then bought another laundromat. So now that GM manages both.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So if Lloyd, let's say, wasn't a top-level private equity operator that's going to be able to attract top-level talent, well, he bought a different type of business that he could attract a general manager-level talent. And I think he pays his GM something like $50,000, $60,000 a year to run these two laundromats. These aren't a huge cost.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So the better that you are, the better talent that you can attract. But you want to buy a business, not a job. And that means that it has employees inside of it.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, it really comes down to what do you want? I mean, when I buy a business, I want that business to make me a certain amount of money each year. I only do deals that cash flow. So that might be you might only want to do cash flowing deals. And then you might want an exit.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You might want to in three to five years say, hey, I want to build up this business to do X, and then I want to sell it to another strategic. and your first deal probably won't be your best deal. And so you might want to have a space in which you're like, I'm either going to exit the business or I want to add on more because I know maybe my first deal was a little bit too small.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
But at the end of the day, the difference between Often you and the bank account that you want is just how fast you move. And it turns out that the faster you move with decisions that can't bankrupt you, but that are like small decisions consistently moved over time is what leads to is what leads to more money.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so that's what I would impair upon people is no matter what, I've never met somebody who regretted getting educated on deal making and learning how to structure deals ever. I think it is the highest level skill one can have in business. So at least go and learn the skill and then decide if you want to be an owner and then decide when you're ready to actually do a business transaction.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, listen, we have a perfect vehicle insight into what can happen if we don't buy these businesses. And I think that is Japan. We can see in Japan right now, real centralization of ownership, massive shutdowns of business, the government concerned that there'll be 10%. unemployment if they don't figure out a way to transfer these businesses.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so one, it's a great opportunity for people to build wealth if they're willing to put in the work. But also it's an opportunity to save our country from living under neon signs by big corporations that all report into Wall Street eventually. And so I think this movement is one that we will see within our lifetimes and it will either go our way or it won't.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so I hope that people believe what I know to be true, which is that if you get ownership, if you have skin in the game, if you own part of a house, you don't burn it down, you build it. And I think that's what this mission is all about.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Probably be CodySanchez.com. That's where the book is. All of our event information. We're having a big celebration on the 12th. So thank you so much for having me, John. And I hope that all of your people go out and become owners.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Well, same. Thanks for being a good private equity guy. Okay. I'm going to run, John. Thank you so much for having me. I really appreciate it. Nice to meet you. Thank you. Bye. Bye.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so we have to educate the populace in how to train business owners to think about transferring their businesses so everybody gets a fair price and a fair exchange.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Chris doesn't say he's going to do a thing and not do it. His ability to keep his promises to himself, I think is one of the biggest reasons why he's as successful as he is. It starts with a really core understanding that if you lie to yourself, then you are more likely to lie to everybody else. And you're more likely to not achieve the things that you really want because you're
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
You're telling the universe and you all the time that you aren't that serious. And so I take that away from Chris often. He also jokingly in the gym often says to me, when I don't want to do more, when I don't want to go, he'll say, are you a good white shark or are you a great white shark? And I find that very annoying, but also really true.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
He just doesn't sacrifice much at the altar of I'm tired. It's a long day. It's too much. Or I don't have enough left in the tank.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I think if you don't like where you are today, try looking forward to the boss, the person that you work for that's 10 years down the line from you. And I think what you'll pretty quickly realize is that you might not like the person that you see as future you in 10 years. And that was the case for me. I was constantly like,
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
this other human that i could grow into if i stayed here if i did the status quo if i kept just doing what was expected of me as somebody that i'm not going to like very much and so i decided to make a change and it was pretty much at that moment when i started to buy businesses when i started to invest in outside companies when i started to invest in other private equity funds and because i was i was throwing little fishing lines out into the water
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
to see what I could catch. And I wasn't sure what the right move was. There were so many options in front of me. I was overwhelmed by the number of optionality in the world. And then I was scared to leave because I wasn't sure that I could do it on my own.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so that whole process led me to thinking, well, maybe I actually could take risk and go do something bigger than myself, but it took a long time to figure out how and why.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Oh, thanks.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Here's what the data tells us. The data tells us that when you work in a small business, 60% of the time, you like what you do for a living. The average corporate employee, 85% of the time, does not like what they do for a living. So we have a bias, I think, towards groups of humans that have connectivity that feel like we are working together on something important.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
When we become a number, a cog in the wheel, it decreases our happiness level. So I would say, first of all, if you don't love your job, maybe try a smaller company. Maybe try a company where it is really materially important to them that you show up every single day. And I think that is something that we stopped feeling.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
I know when I worked at Goldman and Vanguard and State Street and all these big companies, I didn't really matter to the company.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
i disappeared it didn't matter in fact at goldman they cut about 20 of the workforce every single year and so i was nothing but a number and if i grew really highly inside of the company i still probably wouldn't matter ceo hypothetically might not matter at a company like state street or goldman but that would really be like the level of staff that is absolutely necessary otherwise the business starts to crumble
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
and so if you can go from being somewhere where you're not needed to being needed i think we're happier human beings in my opinion you need to feel useful utility leads to happiness and so in small business you have that now the second thing that we've seen and why i wrote the book is that we are moving away from small businesses small businesses are like the little goldfish that are getting eaten up and eaten up by the bigger and bigger fish and those bigger and bigger fish are private equity
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
So right now, if you don't like the job that you have, if you don't make enough money, we've thought that the only real answer were that you had two paths. You could well get a better job or a different company or a different title. So stay on the corporate grind or go do a startup. Now, I think people who do startups are incredible and I'm really glad they exist in the world. I'm one of them.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
But I don't think that everybody should go do a startup. In fact, I think you are very rare if you are going to go and start something from nothing and you're going to brave the truth, which is that most startups do not make money. Most startups fail, 90% fail within the first 10 years. Most startups never are profitable ever.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And the few startups that are the average entrepreneur that starts a business makes anywhere from 30 to $60,000 a year. And so I think we were told a little bit of a lie, that to start up was how we made our millions. Well, that is not true.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Now, if you have an idea that is inside you, that you would die for the want of it not existing in the world, that keeps you up late at night, that you want to grind on for 20 hours a day, or at least 12, then do a startup, then create that innovation that we need in the world and we'll be better for it and we should thank you for it.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
But if what you really want is to make a little bit more money, to have more freedom, to not work with people you don't like, to work with people you do, and to be able to still continue to get paid even if you're not working hours, then I think the path to ownership of small businesses is the way. And it's the way that we've forgotten.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Most of us are not the 10% that are gonna go, I mean, not even the 10% though, 0.0001% that is going to go build the next Tesla or Tinder. And that's okay. It doesn't mean that we aren't useful. In fact, our community needs us to own these small businesses. These small businesses are profitable. They have a higher success rate than startups and they lead to pretty happy lives.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
We started as a nation of owners. In the 1800s, 80% of Americans owned their own business. By 2020, that number is somewhere between 6% and 10%, depending on how you report it. It is easier to control an employee. It is easier to tax an employee. It is easier to grow a few large institutions, have protections around them, than it is to have a diversified, non-centralized citizen base.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And I think that is why. And so we have let a few companies continue to get bigger because that's the natural state of things. We humans, once we get power, we want more of it. And so as companies get big, they have more lobbying power. What do they do with the lobbying power? Well, they lobby governments for more regulation. Why? Why would they want to be more regulated?
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Because they can afford the expense of it and the new guy cannot. In tandem, The big corporations have more buying power today. I mean, if you look at how Blackstone, BlackRock, KKR, some of these companies use our money, but particularly let's say BlackRock or Blackstone, they have very large public funds where they manage our pensions, our 401ks, our mutual funds. They take in our capital.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
then they use our money against us to buy our single family homes, to buy up small businesses inside of their private investment portfolios. And it's worse than that actually, because they have so much capital that we've given them, they get decreased interest rates as well on their capital and increased leverage rates because of how big they are.
Passion Struck with John R. Miles
Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
And so they can buy our houses for more money and they can buy them with a lower interest rate than we do. And so they outbid us on the very assets that were supposed to be part of an American dream. And I think that is happening right now in home ownership, but also I think it is happening even more materially in small business.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
Got to talk about money. Tax avoidance is a key skill to building wealth. And by the way... We don't talk about, I speak openly about my, I won't call it tax avoidance, but my tax strategies. It's like they said, if you're a prisoner of war, you have an obligation to escape. If you're trying to build wealth, you have an obligation to pay as little tax as possible. Do it legally.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
But Apple will issue their IP to Apple International in Ireland, and then they will use Apple Ireland, they will license their IP to America, charge them tens of billions of dollars, thereby increasing the income of Apple Ireland at a lower tax rate and decreasing the income in the US, thereby lowering their overall tax rate. That is pure tax avoidance.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
Every organization, every corporation does this to the hilt, and so should you. By the way, I will vote for people who have an alternative minimum tax. We have to raise taxes on corporations. The 25 wealthiest Americans pay between 6% and 8% tax rate. What are the tax games they're playing? Oh. The rich people. There's a bunch of them.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
First and foremost, it's you buy stocks, you never sell them, you borrow against them. Okay, explain that to me like I'm a 10-year-old. Sure. You own $100 in Amazon stock.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
You need money to buy something instead of selling the stock, and say it's gone up 50%. I say it's doubled. you would have to realize a capital gain and pay long-term capital gains on that $50 gain. No, just borrow against it and let the stock continue to grow. And you pay a little bit of interest, hopefully from your current income, but basically it's invest, borrow against it and die.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
Put it into a trust and then pass it on to your kids. There's a lot of state arbitrage. Jeff Bezos just moved to Florida to spend more time with dad. Isn't that sweet, Steven? Isn't that nice? No, it has nothing to do with his father. Give me a fucking break. He aggregated $160 billion in wealth.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
He would pay about another 8% or 10% in state taxes in Washington because he's got to leverage the public school system, the University of Washington, the Seattle-Tacoma airport, the hospital system. But in the U.S., you're allowed to peace out to Texas or Florida and pay no income tax.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
So all the people shitposting California or New York, show me someone who's all of a sudden can't handle San Francisco politics. I'm going to show you someone who needs to recognize a capital gain and has all of a sudden decided they like Texas politics. It's really not very, it's very disingenuous. There's the tax loophole I've leveraged. In the U.S.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
there's something called 1202 or qualified small business. So when I started L2.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
L2 is my analytics company. I started it, I invested a small amount of money. Because it was a business worth less than 50 million, your business would qualify in the US as QSB, small business. If you hold onto that stock in that company for longer than five years, when you sell it, the first 10 million or 10 times the basis are tax-free. So the first 10 million out of L2 was tax-free, zero.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
That makes no sense. If that sounds like we're screwing the middle class, trust your instincts. I invested in a company, brought a company out of bankruptcy. I invested two and a half million. The first 25 million, got very lucky, the company got sold for a lot of money, the first 25 million were tax-free.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
The tax code has gone from 400 pages to 4,000, and that extra 3,600 pages are to turn rich people into super rich people. Now, the myth around taxes is the following, that rich people don't pay their taxes. Actually, the sort of rich pay a disproportionate amount of taxes. So if you make all of your money from current income, that is salary,
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
and you make a lot, you're actually paying more taxes than anyone. So mom's a baller. She's a partner in a prestigious law firm making a million bucks a year. Dad's a chiropractor, has three people working for him. He makes $1.6 million a year, total ballers.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
In order to make that kind of money, they probably have to live in an urban center in a blue state where at that level, they're paying 45, 48, sometimes 52% tax rates. But if dad decides to raise capital and buy a bunch of chiropractic clinics and they become investments and he sells them for $50 million, his tax rate plummets. So you don't want to be a super earner.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
You want to earn enough money to invest so you can become a super owner. The top 25 wealthiest Americans pay about 8% in tax. So actually the bottom half pay almost no tax. They pay a lot of consumption taxes, but it's the super earners that get screwed, what I call the workhorses.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
But once you jump to light speed and you own things and you make your money from buying and selling assets, your tax rate plummets.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
Yeah, I mean, you don't want to get into too much trouble, but leverage is how smart people go broke. But the idea is that one of the great tax schemes in history is that stocks grow. Think of yourself as a stock. You go up in value a million bucks a year. You're making a million dollars a year doing a very successful podcast.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
Every year, the government in the UK is going to take 40 cents of that, 40% of it. If you own a million dollars in stock, and it goes to 2 million, you don't get taxed on it until you sell it. Yeah, so just never sell it.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
And then when he finally needs to sell it to pay off some of those loans, he moves to Texas, despite the fact he built all his wealth in California.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
We don't all pay the same tax. Because we're not supposed to talk about it.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
Again, not talking about it is rich people trying to keep poor people down. Yeah. because rich people talk about their taxes all the time. Brightest woman in my entire professional universe is a woman named Lucy Lee, who is my tax Yoda, who works at a big law firm that I pay 1800 bucks an hour to, to figure out the smartest. When I set up a company, I talk to my tax person.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
When I'm about to get a big payment for my podcast distribution company, I talk to my tax person first. This is, it is everything. But the key when you're young is to become an owner, not an earner. You're an earner. You want to bust a move out of earning and develop an army of capital that goes out and kills for you at night. 500 bucks is a lot of money when you're 21.
The Diary Of A CEO with Steven Bartlett
The Top 7 Money Making Hacks For 2025 That Are PROVEN To Work! Do Not Buy A House! Do This Instead!
500 bucks when you're 21 is 10,000 when you're my age, right? And it's going to go really fast. So just start. And then once you become a super owner, you have $10,000, $50,000, $100,000, a million dollars in assets, then you can become a super tax avoider.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Amen.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Amen.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
And I say this because, you know, whenever we're talking about this hypothetical young person, everything is kind of just, yeah, just go ask this person to do this. And I was just, as you're saying that, I was thinking, I resonate with that because I was the 18 year old kid that was just sending off the emails and asking people to help me and whatever else.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Walter Isaacson.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Elon Musk is the same. I mean, I spoke to Walter and he told me that Elon has this just obsessive ability to just assume that everything he's being told is basically not true. I.e. if someone says something takes eight months or something, he seems to just reject that idea on site. And he immediately asks about the core components of the challenge.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
So he'll immediately go right down to the roots of the problem. And from there, he'll figure out that, in fact, it can get done in eight days. And I just don't think people understand the advantage of saving that amount of time on any challenge you have in your life, on figuring out a way to make it happen faster.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Because one of the great currencies of all of our lives is just the time that we have. And some people will take three to four years to start a business that with your information and that you're understanding and your bias would probably take you 90 days. That's like a three year, nine month saving on life.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Just because you have this sort of urgent bias, you have this bias towards believing that all these deadlines are actually just, I don't know, bullshit.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
But I don't think the vast majority of people have a deep internal belief that they can kind of just mold the world.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
It's funny because at the heart of all of your messages, Cody, is this sort of deep optimism and belief that one can just kind of bend the world.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Yeah. So if I've got tens of thousands of dollars or pounds, what would you do with it?
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Just like bend it in this direction. They think it is how it is and you play a role within it. Not that you can just like, yeah, just go to a guy and knock on his door and offer him this.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Senior care centers, okay.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
I just want to take a pause here and just sort of get perspective on what you're talking about for someone that has no understanding of business. So my name is Nigel and I am 37. I've never ran a business before. I don't know anything about businesses or investing or anything like that. What is it you're telling me to do? Nigel wants to make more money. He wants to be an owner.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
It's a bias that I think you and me have because we've been exposed to the fact that you can actually just bend the world around.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
He wants to be a millionaire in 10 years time.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
He's willing to work the hardest.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
He's hearing all these words, resi brands. He's hearing like window cleaning power. He's like, what's she doing with a power washer? Yeah.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
I'm not making enough money to completely walk away from my job yet.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
But I have a little bit of savings.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Is this your banister effect idea that I heard you talk about?
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Before I knew what I know now about business, if I'd heard you say when I was 18 years old, just go buy a business, I'd go, Cody, listen, I've got $700 left from my call center job a month. How can I buy a business that's making millions or hundreds of thousands? I'm going to have to wait till I'm rich.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
Loosely.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
100%. And also, I just want to explain what seller financing is for someone that doesn't know.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
They've just got to believe that you're going to be able to grow the business.
The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
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The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
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The Diary Of A CEO with Steven Bartlett
Best Moment: This Is The One Skill That Will Guarantee Your Success! (Even Against Smarter, Better & Richer People): Codie Sanchez
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The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Absolutely. I mean, world's strongest man can't lift a boat, right? But you get a group of people together, they can lift a boat. So what's more powerful, world's strongest individual contributor or the person who can get a crowd of humans to all move in the same direction? It's just physics, right?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so I think a lot of people don't understand what real leadership is, which is, can you get a bunch of people, a crowd of people to lift the boat together? It's always why I kind of giggled with David Goggins, because lots of people look to him for leadership advice, and he's a badass individual contributor.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But if you read his books and if you talk to people who are in the teams, not a very good leader, actually.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
He's a one-man, world's strongest man.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Inspiring. Very inspiring.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But I would never employ that guy. You couldn't pay me enough money to employ David Goggins.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
He's turned down all my offers. But yeah, and the reason I wouldn't is because he wants to work individually and he is relentless in his single-minded pursuit. What you need for a leader is somebody who actually wants a lot more collaboration. You're like, hey, I want you, you, and you to be incredibly successful. And if one day you become more successful than me, I win.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And that's hard for an individual contributor to think. He's like, I wanna win the race. You're not gonna win, I'm gonna win. And if you're a leader, you're like, great, you're better, faster, stronger than I am, go sprint, because I still get to benefit from it. So I wish I had understood that earlier.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But I think you have to be good individually before you can be a good leader because you have to earn people's respect through your doing.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I think you have to care about your people. It's literally, do you care about your people? And if you don't care about them, fake it. Because empathy is actually, it's contagious. So if you start asking questions, if I start asking questions about you, your background, your fiance, you know, your pets, your cats, your- By the way. What?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Listen, I was just trying to talk my husband into a mini pony, and he was talking about the lack of utility.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I'm like, a rose isn't useful. I love a rose.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
They bring me joy.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Hysterical. So funny story. One of my employees, Lindsay, her boyfriend is a catio maker for a living. Come on. I swear to God, ask Tanner.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And yeah, and I remember the first- Probably making bank right now. Well, I don't know. I haven't asked him his financials. So like, can you please- show that to me, but I might, but I was funny. I told Lindsay, I was like, that's the worst business model of all time. I'm like, it's like every time it's local, you know, you can't replicate it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like we got to get catio man into like toys or like, like, like something repeatable, you know? So if he's listening, you're welcome.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That's great.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I was just talking, you know, I think as a, You know what usually stops me? So once you get to like, let's say a business that does $10 million a year, 20, 30, 40, 50, if you want to go even bigger than that, what stops you is getting out of the way of your best people. You have to do two things simultaneously. You've got to attract the top talent in the world, sell them. My idea is that
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
as a business owner, your idea is you are building a pedestal and that pedestal is lifting up your team so that their dream is higher and bigger because of your pedestal, because of what you've put them on. And so I have to be able to sell them on this really big dream. And then simultaneously, I have to trust them enough and be clear enough in my vision that I can get out of their way.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so, you know, just last night I was sending a bunch of my leaders, where am I in your way? What is a roadblock that you have? What do you need that you do not? Where am I annoying you right now? Because your business can only go as fast as the boss goes. The boss isn't going fast, the business isn't going fast. And so it's actually the same with your bank account. It's this idea of speed.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so that is the biggest hurdle in most businesses that I've seen. You know, money is funny. Money is a mirror. It's a self-reflection mirror of how highly skilled we are in today's economy, how high our self-belief is, And then simultaneously how much others believe we are skilled. So it's like, it is just this mirror on multiple sides.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And if you wanna attract a lot of money, you gotta believe that you're capable of it. You have to get other people to believe that you're capable of it. And then you gotta be able to deliver on it with your actual skillset. And so no trick news, you know?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No circus mirrors.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Your number one skill set, if you want to make a massive amount of money, is hiring. Period. End of story. It is attracting humans. And it's really hard. Why is it so hard? Because in your job, you can go and spend 10 hours, 20 hours a day working on graphic design, working on sales. You can get so many reps in. It's really hard to get a lot of hiring reps in.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Because one, it costs money every time you hire somebody. Two, it's hard to find talent. So even to get enough interviews to see if you're good at them or not.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Three, the feedback loop's really long, right? So like the first 30, 60, 90 days, people are ramping up. You're like, I don't even know if they're good or if he's just new. And so hiring is really hard for those specific reasons. Not enough inputs, not enough practice, not a fast enough feedback loop.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so if I was to want to get really good at growing a business, I would obsess a lot more on hiring. The other thing that's really good about obsessing on hiring is you can also then tell how to get hired a lot more easily and make more money. And so if I could obsess with what type of person is the best hire that I have, what are their characteristics that they have?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
What are their skill sets that they have? Why would I be willing to pay them this much or not pay them this much? And once I have that broken down, I'm like, oh, wait a second. So this person's worth $250,000 a year. This person's worth $50,000 a year. What's the difference in their skill set? Huh. I want to be even more like this person.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So if I didn't have the ability to hire, I would probably just war games what a skill set looks like between the two more often so I could get in the 250 bucket and out of the 50 bucket.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Well, I believe that money is everywhere. I think it's literally just floating all around us. And it was funny because I did a podcast with Diary of a CEO. And I remember like a lot of the comments were like, it's not this easy. Like you can't. And I realized one, there's cultural differences. So Americans, we're wildly optimistic. We're a little brash. We're a little loud.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We really believe in ourselves and innovation. Brits, less optimistic, quieter, not so loud about their accomplishments. So there's some cultural differences. Neither one is really good or bad, but one is better for making more money, which is why even Mississippi has a higher average income than most of the, we'll call it counties in the US in Britain. even Mississippi, one of our poorer states.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I think a large part of the reason is because we are relentless, loud, brash, and optimistic as Americans. Those are really good characteristics for attracting money. So I, one, believe money is all around. I think I can get it whenever I need it. My husband has an incredible line, which is, he says, there's 100% ROI on fun. So he's like, I always spend on fun.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And he said, it's just money, we'll make more of it. And so if you believe that, then I think money is easier to get. And simultaneously, if you believe that, then when you're going out and talking to people, you're just coming at it with this like massive amount of abundance. The problem is that's really hard to do. Like when you're in debt, when you're scared about what's gonna happen next.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I mean, I remember back in the day, I had multiple times, like even last year, we had like one business where the CEO reached out to me last minute and he's like, hey, we're having a couple issues in the business. I'm like, okay, cool, man, what's going on? He's like, yeah, we're about eight weeks from running out of cash. I'm like, your sales cycle is 12 weeks. You're out of money right now.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We're out of money. What are we going to do? And in those moments where you're almost out of cash, where it's scary, it is not just that you're going to run out of money. It is an immediate... failure feel. Like you are like, oh no, I'm failing at this. I am a failure. And so, you know, I felt that so many times in business.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And it's hard when you're in that moment of, what if we run out of money entirely? What if I can't pay my employees? What if I can't pay my mortgage? It's really hard to go, yeah, money's all around me.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I just manifest that. You're like, no, I can't. But simultaneously, I know it's not going to help me if I believe that I'll never get money in that moment. I'm probably not going to get out of it. And so in moments like that, what I typically do is I sit down and I write. My out list, which is like, all right, I have no money. I'm struggling. This feels really painful.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Let's acknowledge that for a second. Now, what are we going to do about it? When you want to have a 90 to 10 rule, which is I think the best winners in life typically talk about the problems 10%, focus on potential solutions 90%. And so then I would start writing my list.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right, which is what we're geared to do, right? We are geared as humans to look around for problems all the time because historically one problem could have eaten us, right? And so it wasn't like solutions all the time. It was just don't die. And so we have to work through that.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But in my money case, I might sit down and write a list like I did when this one company was going sideways and say, okay, what are all the things I could do to get money right now, speed, fast? And so it was like, well, could we increase our prices? So every dollar we make increases the amount we bring in. Could we go out and could we tell our vendors that they actually need to pay us sooner?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So that's called changing your terms. Could we actually not pay people? Could we extend our terms in this business? There are all these levers that you can pull. The problem is nobody ever teaches us about money. And it's the same thing for us as individuals.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So if you're struggling and you have no money right now, like, did you know you can go to your bank and say, I need an extension on my mortgage? I want to extend it out. Can I get on a payment plan for my bank? Do you know your bank will do that with you nine times out of ten? Why? They don't want to take your house. That's an asset they have to manage, an asset they have to sell.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Do you know it's the same thing often with rent? You can go and negotiate your rent payments. And so I think often if we can think about, all right, what are all the levers I could take to increase the amount of cash I have in front of me, give myself a little breathing room, and then I could think about really earning on the upside.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, well, I don't think you can spell rich without risk. And so if you really want richness in your life, like if you want to be very, very rich, you are not gonna get there if you take no risk, unfortunately. I've never seen it done that way. Maybe you guys could tell me if I'm wrong. And if you wanna get rich, here's the stats.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
One thing that's cool stat, 79% of all millionaires in the US are self-made. That number shocked me. Because if you heard in the news, you'd think, no, no, it's all handed down. But 60% of all millionaires own a business. So you immediately know, well, I have a... 60% higher likelihood of becoming a millionaire if I own a business.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And if I want to make crazy levels of money, like 30 million plus, 88% of people who are worth 30 million plus own a business. So first you got to be honest with yourself. What do I really want? If I want to be a millionaire and if I want to be worth 10 million plus, hard to get there without having some version of ownership or equity.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like I giggled because another YouTube video did a video of me and it was like... Make millions, it's easy, no work. What's the title?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh my God, I was like, I'm pretty sure I've never said that in my life.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh, a lot. I mean, when I was in finance, I was working 70, 80 hours a week. I remember one of my colleagues, Eduardo, we were walking back from a, we were in New York at the time, and we were walking back from work one day, super late at night, and he just passed out in the middle of the road. And I was like, holy hell, Eduardo, are you okay? What's going on? And he just, he was exhausted.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. Well, first of all, my richest mentor once told me a line that I go back to again and again, which is that your bank account is a direct reflection of how fast you move. And that was kind of painful for me to hear that first go round. The faster you move, the more money you make, because that meant that my bank account was in my control.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It was like passing out from exhaustion.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, and he was young. So analyst program, I was only there for like two years. He would have been about the same, but just that compounding plus, you know, it's a work hard, play hard environment.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, for sure. I
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No, unless you are the capital. That's where you start.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Unless you got the money. Then I have many businesses that I do no work for now.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But that's because I did risk.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I put money down.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I could lose it all. And the only way you get around that is you work really hard as an employee for somebody else and you get a percentage of the company, which is something that we do for our employees and I think really important. But you've got to become valuable enough to do it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Well, there's two ways that you can actually get equity in businesses that we learned in private equity that I think are useful for people. The first way is you can ask to buy in. So you can say, hey, I don't have a lot of cash, but like we're gonna do this deal over here. Could I put $10,000 into this business deal? You know, hey, you're gonna do this partnership.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Could I like buy into the partnership for 10K? And we're not taught how to do that as normal people. And we should think that way. Because what is that telling me? That's like, hey, you're willing to put a little risk on the table. And also you're not trying to sell me that you should get X, Y, Z entitlement. You're saying, let me put some skin in the game.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right. So that's, and that's how most private equity guys make their first dollars is they are just allowed to put some skin in the game, which is great. And then the second way is you become so valuable that the business can't see itself operating without you. And this is typically how startups do. So it's like, hey, you know, you're so valuable.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You're going to do the first stage of XYZ of the company. Because of that, we're going to give you a percentage. And every single year, you'll get a little bit more of that percentage over like three to five years. So two ways to get a percentage of a deal. And we teach one in the book called partial acquisitions.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so basically if right now you're working, like let's say somebody is working for you or me, right? And if you're working for a company right now today and you love what you do and you wanna stay there, but you wanna get some income on the side, you have a skillset, you're a photographer, I don't know, you're a videographer. then what could you do?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You could go to other companies that need your skillset and you could say, hey, if I can increase the revenue of your business, if I could decrease the costs of your business, or I could decrease your pain of the business, could I get a percentage of the business? And you could do that both for distributing equity. That's where you cashflow or regular equity.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
This is what I'm teaching a lot more people to do because there's a stair-step way to buy a business. Maybe you're not ready to go all in. We'll learn how to get a small percentage instead.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
At that time, when I heard that, I didn't like that very much. You know, it felt like, you know, I hadn't been given opportunities and all these different reasons. And so if you're gonna move on anything, what I would say is move as fast as possible. And it's fascinating because you've met with many billionaires now doing this podcast.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Not outright. Not outright. I don't think you're going to want the call on a Friday night when you're going to run out of cash.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Well, I like work. So I just worked a lot both times. I think I was probably working from seven until seven or eight or nine. As an employee. As an employee.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I'm probably working from seven until six as an owner, but a little bit on the weekends. And maybe when I was an employee, I wasn't working on the weekends. And I think when you're an owner, your schedule kind of looks more you know, when your name's on the door, it's easier to work more hours. Like, let's be honest, it's just easier.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's yours. And so, but when you're the owner, it's also easier when you set the hours to work more of them. And so, you know, for me, I got no problem taking, you know, four weeks off and going to Europe and I'm checking on stuff every day a little bit, but they're mainly running the business. When I was an employee, that wasn't an option.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But when I did go on vacation, I was an employee, wasn't checking. I was like, good luck, bye. So it really depends on how you want to run your life. you know, too. But I think the one thing that I do want to impress upon people is like, there is nothing wrong with being an employee. Being an employee is amazing.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It means that you do not carry all the risk and you can actually become massively wealthy as an employee if you understand how to become so valuable that you get a piece of multiple gains. Like for instance, right now we're hiring a president for one of our companies and he's from a huge company. So do we have a right, like,
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's not really reasonable that he would come and do this for one of my companies, given what he's done in the past.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Maybe one fifth of that. And so why would he come work for me? Because I'm like, listen, you could go work for this one company and have one shot at goal. If that company wins, you're gonna win big. But the founder's gotta sell at the right time. You guys gotta hit these huge milestones. The investor's gotta get paid. You've got one bet.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Or with me, you can come into this company and you can take an equity bet on this company, but also a bunch of these other little bites. And so that's why I think private equity is so interesting and why people stay as private equity employees for decades. I mean, I have a friend, let's call him Frank, who's probably one of the richest guys I know.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And he has been an employee in a private equity firm for like 30 years. He's like dating celebrities, has a plane. He's an employee, but he gets little bites at the apple. And so I'm trying to really explain this to my employees.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No risk. The only risk is getting fired.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I've met with many of them in buying businesses, building businesses, et cetera. And if there's one thing they all have in common, it's the same idea of speed. So, you know, when I was talking to Bill Perkins the other day, who him and I have done a bunch of deals together, he said the same thing. He's like, I am not smarter than anybody else or richer than anybody else.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
and that you have to work a lot.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right. Well, and let's talk about the truth of the matter here is that 90% of startups fail in a 10-year period. Most startups fail in the first three to four years. And in those first three to four years, you make $0. In fact, you spend on average $30,000 to $50,000 a year attempting to make money.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And then when you eventually do make money in year three or four, the average entrepreneur pays themselves anywhere from $40,000 to $60,000 a year in salaries.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Exactly.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I think that is the question we have to ask ourselves.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No, that's why I get excited about boring businesses because what are the two reasons that most businesses fail? Well, 60% of businesses fail because they don't have product market fit, which means like, I had an idea. I wanted to sell these graphic mugs. These graphic mugs are amazing. I asked all my buddies, are you gonna buy one, Louis? They're like, yeah, of course, great idea.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You should go be your own CEO of your company.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right, then you go and create the company. And all of a sudden, Louis is a little cheap. Nobody's buying my mugs, right? So the market didn't actually want what you were selling. And then the second reason most businesses fail, which is about 20% of the reason is lack of cashflow. So you have this big idea, nobody wants it, you run out of cash before you get to figure it out.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so I think we've been sold a total lie about business creation and startups, which is that employment sucks and also we should go start a business instead. And what often happens, and I hire a lot of these people, is they go start their business, they're like, oh my God, this is worse than employment, and I'm not making any money.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so if you're gonna play the odds, if you're gonna go gamble, you can play the slots and know that you have the worst odds out there playing the slots, And if you're gonna gamble, you at least are probably gonna play blackjack if you're good at it, because you know that's where you have the best odds. Business is very similar.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
The best odds is somewhere where the business party has product market fit and the business is already cash flowing.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's already profitable. And it's been doing it for years. And so that's why I'm obsessed with this idea of boring businesses and buying them because statistically it has less risk and it has more ability for you to earn over time. It's not no risk, but it is less risk than a startup. And nobody talks about that.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
There is a huge gap in education between asset value in business owners and ability to sell your assets. Think about it this way. If you owned a house anywhere in the country and that house was too small for you and it was still livable, it's still a house. Maybe it's not the nicest house. It's not really what you want. You would never just go, let's just light that. and like walk away, right?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That would be crazy. You'd be like, okay, well, let's sell it for whatever it's worth, or let's put a renter in there, or let's do something with that asset. We think about a house like an asset. In the US, we do not think about our businesses as assets. We do not think about our business lines and divisions as assets. And so what do we do instead?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I just move faster than anybody else. And by the time they've even pondered an idea, I've made a move, made three mistakes and found a better way. And so if I could give anybody broad money advice, it would be. You're waiting too long. And maybe be a little honest with yourself about, are you thinking a lot? Is there a lot of mental masturbation going on on money?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We just walk away from a house that somebody else could live in. And so, you know, there was a, who was I talking to? It was, oh, it was Sean Rad, founder of Tinder. So him and I were chatting the other day.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Love him.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No way.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh, good. I didn't tell, I'll have to tell him that we're buddies. So he was funny because I was explaining this to him and he's like, you know, it's interesting because I went into a, oh God, I might mess this up slightly, but let's say that he went into like an old book binding shop
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And in this book buying shop in LA, he looked over to the left and there were like these racks and racks and racks of books. And he was like, these are some cool vintage books. And so he was going through them and he was like, hey, I want to buy a couple of these from you. And she's like, no, I don't buy them. You could just take them. And he's like, no, no, I'm gonna, I want to pay you for them.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
What's the deal with these? Why do you have thousands of books here? And she's like, oh, well, my husband had a bookstore and he died or they got divorced. And so we shut down the bookstore. So what are all of those books? Those are assets. And if they had been thinking about their business as a house, what would she have done?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
She would have done an appraisal, had somebody come out, look at what the books are worth. She might have had somebody come and look at what the lease was worth for the business. She might have sold the whole business or done an asset sale. And so Sean ended up buying a bunch of one-off books. And then he was laughing. He's like, God, I felt bad because I went and checked them later.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I'm like, totally underpaid for these things because they were worth something. And so people sell their business because they don't understand the value of the business and they don't think it's sellable. And like an example that I would probably give you is like, you've done it. Like you've had a business line before, right? Let's say your education business.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And you're like, this isn't serving the current business right now. I'm going to shut it down. Reasonable, you're like, I'm the face, you know, it's not set up to sell. You haven't prepped a business that you created to be a business you could sell because most business owners do not know how to do that. And so you shut it down because you're like, well, reputational risk, all of these things.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But let's say that you went through our program that we teach and we talk about like prepping a business for sale like a cake. you would have done all these tasks, which meant that you would have removed yourself as key man, and you would have had a business that somebody else could take over.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And the benefit there is somebody else gets to steal your 10,000 hours, and you don't have to close a 10-year asset build that you have.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Did you get your cash out of it?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, but I think this is a perfect example. So I bet if third-party people looked at that, they'd be like, why would Lewis sell this business? He's making, I'm going to make up numbers, making $100,000 a year from the business. That's a great business. Nobody would sell $100,000 a year business. But why would you sell it? Because you had a million-dollar opportunity over here.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so you have opportunity costs. Yeah, exactly. So there's $900,000 that's waiting on Lewis to make a sale.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Or are you actually taking action? And then doing like the scientific process, trial, error, trial, error, trial, error, as quickly as possible with as little cash as possible so you can figure out what works for you. And then the only other thing I would add is coming into this next year, you have what? I don't know, 40 days left in the year, something like that.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, well, there's a whole chapter in there about partnerships and how to not them up. It's not perfect, but there's, I have like 12 key lessons about partnerships that are really important in selling it. But I bet, did you do that sale with Seller Financing? Was that like largely, hey, percentage of future profits? Yeah, yeah. So he sounds like he actually got a pretty good deal out of you.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, because he was able to talk you into his vision of the future.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And you probably didn't do a real deal process to have multiple people come in and potentially vet your business.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But why would you?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That's exactly right. That's the seven Ds, which is, you know, death, divorce, distress. I always forget this. You move. Death, divorce, distress. You move locations. You have disagreement. So that would be like a business partnership. You have... Debt. Yeah, that's not the exact one, but we could use that one to fill it in since I'm forgetting it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And somebody on the internet will tell me what the seventh is. Sure, sure. But for most small business owners, they're in the pain cave when they're looking to sell. In this case, largely retirees, because 60% of all small businesses are owned by people 65 plus in the US, which is wild. So a lot of them just want to retire.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right, right. But a lot of these business owners too just have the same thing you have, which is opportunity costs. Like, I'm running this landscaping business, but this roofing business is really taking off.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So I think that's a beautiful story to share because a lot of people don't think it happens. It happens all around us.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. It's one of the seven slash three and a half Ds.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Well, we were laughing earlier because in the book, you come up with all these acronyms to try to simplify things. And then I forget the acronyms.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, that's why you need SOPs to do business too.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. Yes, a thousand percent. However, do not buy a business based on that expectation. So I say you buy businesses based on realities and profits, not dreams and potential.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So January 1 can start on January 1 for you, or it can start today. It can start 30, 40 days earlier than everybody else. And because of that, you've already got a head run. You know, I can't tell you how many people. In fact, I was just talking to another person this morning and they were saying, well, should I wait until 2025?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right, exactly. Don't expect a lot of change. But you can model it. You can do a financial forward-looking model on it. So, for instance, in our businesses, you buy a business based on the profits in the business. So if the business is doing 100K, typically that means you're going to buy the business for anywhere from 100K to 500K. 1 to 5X is the profit multiple.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But what's interesting about these small businesses is a lot of these businesses are so under-optimized. And we have lots of ways we talk about this. But in this instance, this was a laundromat that we owned. And basically, it shows how you could use seven different types of acquisitions in order to grow the business, plus some things like price increases. Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
For instance, you might have a laundromat and then you might buy a second laundromat. So you have economies of scale. Plus you could use the equity of one laundromat to acquire the other laundromat. You could add additional revenue lines, right? So you could add gumball machines and soap dispensers. You could buy the real estate
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
of where the laundromat's sitting and then thus get the rental income from your laundromat plus everybody else in there. You could also do some vertical integration. So you could be thinking, well, what's my biggest cost? Soap? Could I white label a soap brand? And then could I sell that? And so there are all these ways that you can think about using acquisitions to grow your business. And I think
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Acquisitions are the hack to fast growth. Like I have never heard of a billion dollar company that has acquired zero things. I don't think it exists.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No, they're at least acquiring talent. They're acquiring competitions or competitors, different product lines. But if you want to go fast, you buy a hundred clients at a time as organically acquire one at a time. Even Facebook, like Instagram, perfect example.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
The big boys play in the game of acquisitions.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, but if you think about it, what's interesting is they use cash because for them, cash is their cheapest asset.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, well, it's speed and it's cheap. What should they have done? If the WhatsApp guys were really smart and the Instagram guys were really smart, they would have asked for a lot more equity in Facebook. So, you know, once you see this— Five bills, all right.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I think that the Instagram guys— They sold it for a billion, right? Yeah, and they said they regretted that transaction.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh, God.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, 100x. So I think that, again, goes back to this. To me, it feels kind of like you open, I don't know, Pan's Labyrinth or Pandora's Box. Once you look inside, you're like, oh, wait a second. We were taught for so long that money is hard to get, that it's impossible, that it's not around us.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You know, because business financials at the end of the year, they're wrapping up their financials. It's actually a really reasonable question. But the answer to waiting is almost always no. And so if you see people who are really successful, they just move faster than you could ever imagine. And I remind myself that a lot.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And once you start to play the game of ownership and dealmaking, you realize money is often the cheapest thing. And once that happens, then your world can really change.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, well, I would say, why'd you give them 60, 70, 80%?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, you're right.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's a great point. So here's the beautiful part about dealmaking. The smarter dealmaker that you are, the less you give away over time. I mean, contrarian thinking is a perfect example. We own 100% of contrarian thinking. I haven't taken a single investor. But my first couple of businesses I did, I took some investors because I didn't actually realize how to value myself for my asset.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It kind of goes back to that house example. We have to get more reps at understanding how to value things and create deal structures that benefit us. And so if I have a business that I know is going to need a lot of cash, isn't it wild that all we know how to do is go out and raise venture funds? Why do you think that is? Well, it's because that is the most lucrative.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Equity is the most lucrative in a fast-growing startup you can get. So if you have a fast-growing startup, what should you do instead? You should take a little bit more debt risk, which is like tactical to understand.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You're not giving up equity. You're giving up a percent that is set as opposed to a forever percent of future upside. You should give up less and try to talk people into your sweat equity being worth more. You should think about structuring deals where you go, hey, I'm going to give you equity in the business, but I'm going to have the right to buy you out at X term at this time.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so I would start there, whether you're gonna start learning, whether you're gonna start doing, whether you're gonna start allocating, just start because you'll make some mistakes, but you'll learn a lot from it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You should potentially maybe be giving them some smaller percentage of equity, but distributions so they don't take a huge chunk of it. So like this is the stuff that I learned on Wall Street that I didn't realize is like why the... why the people on Wall Street are so much richer than us. It's because they understand how money actually works. And we were never taught this stuff.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
What were we taught? We were taught like budget, don't buy the Starbucks, negotiate your salary once a year so that you get a 5% increase instead of a 3% increase. We weren't taught about warrants and ratchets and options and none of that. And yet, if we learned how to do that, your friends, we could be doing way smarter deals than straight up equity deals.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And the thing that you negotiate in the beginning doesn't have to be the thing you end up with. I think as Americans, too, we have this funny thing. We have this guy, Kareem, who's an investment analyst on our team. And he's the best negotiator of all time. He's Egyptian. Oh, man.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We Americans, we're not that used to negotiating. And so the other thing that's cool is you have to remember, what do the rich never really want? They don't ever want to do work. Once they've given you cash for something, they're saying, I want you to deal with it. Bill Perkins says that to me all the time. He's like, can I give you more money? I'm like, no, you want more of my life.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I know what you're trying to do here. No. And so even for those guys, you might push back and be like, We're unhappy with the percent that we have right now. We're working way too hard on this business. We're your future gross. We want you guys to take some money off the table and we want you guys to give us some additional equity. You know, we'll distribute up to this point.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But as Americans, we're not really taught to get comfortable negotiating. It feels like a retrade. It feels bad. Maybe we feel cheap, but we shouldn't. We should just know that that is what Wall Street does all day.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That's a good woman right there.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Well, they should be an asset.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Depends on what you want as a man. But I think a good woman should be a partner in life to carry the burdens through just about everything. A burden might be that she is the negotiator and you are the earner. A good woman might be that she takes care of the family and offsets a couple hundred thousand dollars in potential third party costs.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
instead of a cook, a housekeeper, a nanny, a surrogate, you got her. Or it might be somebody who also earns beside you, or maybe you do a mixture of both. But I do think that these days, the only thing that I do not like about the man versus female thing is like, listen, I'm happy to stay home. I'm happy to cook and clean and take care of everything.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
If you're working and I'm not, if we're both working and I am the one doing all of the cooking, all of the cleaning, and that's the expectation because I'm a woman and you're a man, opt out, unsubscribe, no thanks. And so I think that the idea of a traditional wife, cool, if she actually gets to be traditional.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. And it's back. But that's the only part that I get upset about gender norms. I mean, my husband and I, he loves cooking. Like I like stuff clean. We both run the business together. But like, don't tell me that I, because I'm a woman, I got to do all this extra stuff just because of it. If we're both getting up early, grinding and working, I don't like that.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I, one, I love what Jeff Bezos said, which is if I was in a third world prison, I know my wife would help get me out. Like you need to ride or die. You know, you want that person to be so aligned and so crazy that you could trust her. You know, you were like, I murdered somebody. Where's the body? That's what we're looking for. Because this is your partner for life.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's going to be the mother of your children. Like she better be able to get something done. That would be one for me.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, and super, super loyal.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No, I think that like victim mentality of a woman, I mean, real traditional women back in the day, they were some hard mother, you know?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like, so I think you can still be in your flowery dresses and hanging out in sunflower field, but feel like that woman's got your back. And then the second thing is, I do think, you know, I've seen it happen with my very wealthy guy friends, let's say. and they bring somebody on board into their relationship. And that wealth ain't doing so hot in a moment. And that woman's gone.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I can sense him a mile away. I see it up front.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh my gosh.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, 100%.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
100%.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I think that I think money kills misery a lot more than it helps happiness. It is a miserable existence to be on the poverty line, not able to figure things out, not able to take care of your family. I mean, we're seeing deaths of despair all around this country, from fentanyl usage, from antidepressants, divorce rates, lack of people having sex and getting married.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, well, two things. You never lack money, which is a weird thing to think about. You never actually lack money because all you really lack is the knowledge of how to get more money from other people. And if you look at it right now, where are we sitting today? We are sitting at record high levels of what's called sideline institutional capital.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so I think money helps a lot with decreasing our misery level. When it comes to happiness though, the funny thing about money is it's an amplifier to me. You become a lot more of whoever you are. So if you're a nasty, gnarly, unhappy human without money, you're probably gonna be a nasty, gnarly, unhappy human with money. You're just gonna be able to affect the world a little bit more.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
In a negative way. And I think that's why, like a lot of people have a hole inside of them and then they go and fill it with money. And that's why I think, you know, the Bible says that the root of all evil is the desire for money, not that money is the root of all evil. Very important word change there.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so if you desire money above all else and you try to fill your black hole inside of you with money, I don't think that makes you happy. If you love producing, helping people, changing the world, laboring, and the byproduct of that is money, then I think you're a lot happier. But no, I've met very, very many a miserable millionaire, but it wasn't because of money.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It was already there and then money makes it worse.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, I mean, you've met these people too.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I don't meet very many peaceful billionaires. I don't think I've ever met one. In order to get that level of wealth, you have to do things that no normal human would do.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
They might just never have been the peaceful type of human. That just might not be who they are. And thank God they exist in the world for a lot of things that are better for all the rest of us, actually.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
100%, the job creation, the lift. I mean, the best thing that's ever happened to poverty levels in the world is capitalism, which is crazy people who are not peaceful at all, pushing to make the world a little bit better. But I have met a lot of really joyful billionaires. So they're not peaceful, but they got a lot of joy. Because man, it's pretty fun being rich.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like, you know, it's not so much the one-off things, it's just what you can do. You're like, I wanna go build a school in Africa, do it. You know, I wanna take my family and go on the best trip they've ever been on. I wanna buy 37 catios.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That's your Oprah one day. Everybody in the audience is going to be like, I don't want this, Lewis.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But yeah, I think many billionaires are joyful but not peaceful.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I maybe met 30 or 40 billionaires, which is a lot because there's not that many of them in the world. And You know what a lot of them are? A lot of them are ass burgers, which is hysterical to me. I was talking to Joe Lonsdale about that, founder of Palantir. And I was like, you know, I've met all these tech billionaires in Austin and- A lot of them there.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, and man, some of you guys are really hard to talk to. You know? And he's like, yeah, we are all, most of us are neurodivergent in some way. We're a little like off. And so if you came at us with like a normal, hey, how you doing? What's going on? They're like, no, thanks. I have no interest in that. And when you're that rich, you don't really have to play by other people's rules.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We have more money sitting on the sidelines, sitting in cash, non-invested than we almost ever have.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So you just don't engage how you don't want to engage. I mean, think about all the things you can cut out of your life if you're a billionaire. You don't have to go to the DMV ever. You know, you're never at the airport because you're flying private. I think the airport is a great equalizer for people. You know, you're not taking the bus. You know, you're not going to the grocery store.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like everything comes to you when you're at that level. And so your ability to engage with humans, like normal everyday humans like me and you, I think really materially decreases because they just- You're just living in another world. You're living in a bottle and you get to affect the outcome. It's like when, who was it? It was Bill Gates. They're like, how much is this apple or this banana?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And he's like, 20 bucks. They're like, Jesus. It's like, he was so out of touch from reality because he has built his own world. That's one of the reasons why I'm not sure so much about living forever. Because I think what would happen is some of us would become so, so wealthy that we would become completely disconnected from what everyday normal humans were.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We've got record levels of cash.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, I think so. Or it'd be like those science fiction shows where we're like floating in the ether and everybody down below is something different.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No. No, I don't think about it much though. I'm afraid to die if I don't feel like I'm doing the things I want to do in life. That scares me.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Because I want to felt like it mattered to live here, which is interesting because theoretically it doesn't. And, you know, I'm Christian. I believe in God.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I don't think so. I mean, we're all like grains of sand at some point over time. We can try to affect the outcome in some way. And I hope that I was able to impact people over time. That's kind of the whole point of being on the Internet, I think. Otherwise, you could just get rich quietly. Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like you and I, if we want to get really, really rich, probably the best way to do it is not be on the internet. It's what I was doing before. It's private equity. It's go buy a bunch of assets, grow those assets, get third party capital, put it in there. I could become a billionaire. There's a set path. It's a high probability path.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, and everything that is considered either money market accounts or cash equivalents. So that would be like short-term debt, that might be actual cash accounts. And what's fascinating about that is that means that they actually suffer not from not enough money, but not enough deals. So if you're able to reframe your mind that way, then what are people actually looking for from you?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Because I think that that leads to maybe less joyful lives.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I think that leads to more misery. I think that leads to poorer outcomes for communities, poorer outcomes for businesses. Like walking into a Starbucks, the soul sucked out of it. It's the soul sucked out of the employees too. Walking into a corner coffee shop I love, like a local one. And so I think soul sucking. So I don't just care about money.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I want to have some impact on the world because it's fun. But there was a point where I was scared to die. And that was when I was doing something I didn't like. When I was an employee in finance at the time, I saw all of the people ahead of me with like Lambos and Ferraris and... Second and third wives and bottle service at clubs. This was kind of like old school finance days.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You know, they would have like multiple washes and kind of like show off which watch and which bottle of wine was the most expensive.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I remember one time we were flying in one of the exec's planes. And, you know, those things can get bumpy. And it wasn't so bumpy where I had like some existential crisis, but it was bumpy enough where I thought about it and thought, God bless, if I die right now as like an exec at a finance company that just makes more money for myself and these guys, like I would be pretty pissed.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I would be mad at myself because I wanted life to be this like great adventure where it mattered and I did cool things and I learned and I loved and I adventured and I was not doing that. And so that is when I was scared to die.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
38.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I feel pretty good about the scoreboard thus far. So I feel, you know, one of One of the best parts is like when you move fast continuously on life with a specific vision aligned to your ethics and moral compass, it feels like not as scary to die. Pain maybe feels scary, like being tortured to death sounds scary, but just it ending, I feel like I'm pretty proud of what we've looked here thus far.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Not done, but I'm proud. But when I wasn't living my own life, and I don't know if you've ever done that, I definitely had a period where I was not living my life.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh, yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Interesting. I didn't know that. Plus, you're big. It's like you don't have enough room in there.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, those and that moment you probably felt like.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
They don't want your last $10,000 or $100,000. And I don't think you should give it to them. Like, protect the fact that you shouldn't go into bankruptcy and that you don't have to. What do they want instead? The really, really rich, they actually want to steal your time. They do. And instead they want you to do the hard thing and they pay you to do the hard thing.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
But did you feel purpose because you were working towards your bigger goal?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Interesting.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And then what happened?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, you know, I...
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I totally agree. Yeah, I never had, I always liked my blue collar jobs. Like I did like construction, I did work on a construction site. I wasn't the worker. I was like in the little air conditioning thing doing the voices and whatever. I always liked those jobs because there was so much movement. Like you could be out, you were talking to the person, you were in the car, you were going.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I always, when I felt trapped was in my corporate job. Like I remember at Vanguard, my very first job, which is where I think dreams go to, God, it's still to this day. Vanguard? Oh God, hopefully they're not a sponsor of this video, but they used to, I would have to clock in in the morning with my little- Timestamp. Time, yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I would have to clock out every time I went to the bathroom and lunch.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I was in the call center. So I was connected directly. This would have been in 2008. So it was crisis time. I was connected directly to the phone lines. The second that you got connected, people would start calling. You'd have to pick it up. And it was chaos. I mean, it was, oh, my God, you've stolen all my money because, you know, that was in their 401k. They didn't realize what happened.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so if I was suffering from not enough capital, I don't have enough money as I was before and many times in my life, I would just be looking for where is there somebody who has money that they need to allocate to do deals? Where is there somebody who's more well off than I am, but they don't want to spend their time working. I can get the money from them.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
How could you do this? Crying people in the background. And you do whatever you could and then you'd hang up and then the next one and then the next one.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And that was I was 21 at the time when I did that. And I remember the moment that I was like, it was, you know, fluorescent lights, those drop ceilings, right? The padded wall cubicles. Oh God, it's still, that actually, that is where my hell is. Just, it's making me uncomfortable to talk about it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I remember one of my colleagues and friends at the time, she was like, she was having like mini panic attacks from it. It's a lot for a 21 year old to take on. And then that feeling of being trapped in your chair, like you can't get up.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, you had to clock in, clock out. And I remember she came to me one day and she was like, I feel better today. I'm like, great. Like, what's going on? What'd you learn? And she had started on antidepressants.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And she started gaining weight from that time. It was just like the downward spiral. And so that was the one time where I was like, I'm not doing this. I will not live this way. And so I started doing the same thing that you did. How can I acquire skills? How can I network? How can I become more valuable to other people? How can I work more on this miserable thing so I never have to do it again?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And that was when I was like, nobody will ever be able to tell me again that I have to do a miserable job that I hate and that I have to clock in and clock out without purpose. Because, you know, I think you can handle a lot of, like, I've had, I worked, that was a 40-hour work week at Vanguard. That was a 40-hour clock in, clock out, no work home with you work week. No one's calling you at home.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Nobody's, no responsibility. No boss pushing you. Just, just do kind of this and just, that's it. And then I went to Goldman where they were like on you and you're in early and where are you and you failed and we're, you know, firing these people. And I loved it. because I was like, they're making me better. I'm learning something every day.
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How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And by the time I'm done with this, I will be so good that my skillset will be so high that nobody will be able to tell me that I have to do something I don't agree with anymore.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I was there for like two years.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. And I think, I wish I could get more people to see that. Like I tell my team a lot, like, you know what you really want? You want a really hard boss. You want a boss that pushes you nonstop. I'm too nice. You are?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Actually, I could see that for you. You've got to be hard on them because, let me tell you why, that's how they get better. I mean, you know this. You're an athlete.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No, but that doesn't help. I don't think yelling is a sign of weakness in a leader.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I can do the hard labor work until the trade offsets. And then you become the person who trades somebody else's time for your money. And so I don't want anybody to go into bankruptcy doing this. I don't want you to spend your last dollar. I don't think it's necessary. And I wish somebody had told me that sooner. Nobody did. And so in the beginning, I lost lots of my own money trying all this.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Except maybe in sports. I think in sports, isn't it?
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How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, you're a scalpel.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And lots of things.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I think so, too.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. You know what's fascinating though? How about when you were younger? Like I did not understand why leadership mattered.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
No, and I kind of dismissed it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, who cares? I'm best at my job. I'm doing this. It's about me. And I think as I've gotten older, guys, it's like back in my day, walk both ways in the snow uphill. But as I've gotten older, I've realized... Man, like your ability to talk other people in to coming on board to your vision is so powerful. I mean, think about it. Who's the most powerful man in the world right now?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
President of the United States, arguably. What is his one skill set? Aligning a bunch of people behind him.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That's it.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, that's it. It's getting a bunch of people to do a thing.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And for them to think that their life will be better with you in charge. Not them.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. Yeah. through what it is. Yeah, so it's some mixture of, right? It's like sales, because you got to sell the story. It's leadership. And then it's like the capability.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
100%.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, the other thing is people are hard to fool over time, I think. So like the longer, that's one of the best things for hiring and partners too is just longevity.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
How do they react when it goes bad, when it goes good? And when they show you, believe them.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Right. And then, you know, a fascinating thing happened to me. I remember back in the day, I was an intern for a wealthy family that was friends of my parents. And I remember like not realizing that people had that much money. Like I didn't come from much. I was like, they have a BMW. Like, that's crazy. You know, they have a BMW and it was like an H2 Hummer. Remember those?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So good. Go make something a little bit better at the job you have right now. Like step number one, if that coffee shop isn't giving you what you want out of it, you're not making enough money, you don't love what you're doing, how can you actually give more to the business, which sounds counterintuitive. but I would come up with every single day, what's a little bit more that you can be doing?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Can you be going around and seeing if anybody wants some additional orders? Try to take note how much the business is making each time that you're on shift and then how much it makes after you start making these changes. Create a little list of the things you did to affect your will on the world. Show that, hey, you actually know how a business works and you want it to grow. Small little changes.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Maybe you go outside, you're starting to say hi, you hand out a little coffee sample to people. think like an owner, have an ownership mindset. Because when you have an ownership mindset, that transfers to ownership eventually. Then the second that you do that, I want you to go to the owner of the business.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And I want you to tell them just a little brief, hey, here's the stuff I've been doing at the business, no ask. I've been doing this little list of things. It seems to be working. Here's some of the experiments I've been trying. First of all, they're going to be shocked. Nobody's going to ever have done something like that to them. You are already now the 1%.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Second step, you do it for a few more weeks. At the end of a few weeks, you go, hey, I've been doing these extra things. I'd love to make some additional money here. Is that possible? Can you show me what a career progression looks like here for me to move to the next step, for me to make additional money? Here's the thing. If they say nothing, this is Starbucks. We don't hire this way.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You're stuck here. Then that's a bad company and you need to start looking elsewhere. And you need to, as you're looking for your next thing, not just have a resume, but have some case studies. Here's what I did in my last business that they didn't ask me to do. Here's how I realized that I could provide positive value. I can promise you one thing only.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
The capability is so rare and desire is even more rare. And so if you can show those two things in the world, you will go from having an owner's mindset to an owner one day.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Thanks for having me.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like back then, I thought it was the coolest thing I've ever seen in my life. And I was basically her little intern. I was running around. I drove her cars. I got them washed. I picked up the kids. I did whatever she needed for like seven bucks an hour or whatever it was. And anyway, I remember watching them work 10 years. And I worked as hard as I can for as long as I could with her.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And then I went into finance. I started to learn a few things. And then I remember I came home one Thanksgiving, actually timely. And I was talking to my parents and they had come over to my parents for like a glass of wine or something. And my parents don't come from much money. So like investing was never something we understood. They have no debt. They don't understand how to use debt.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
This like very immigrant mentality when it comes to money. And I remember saying, yeah, well, I'm working on this thing in finance and we have this deal. And the husband whose name was Robert was like, well, I'd like to invest in that. And I was like, well, I don't know. Like, I don't wanna take your money. What if I fail? What if it doesn't work out? He goes, well, that's the point.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like, I wouldn't give you enough or it would really hurt me if you failed. So I was like, well, how does that work? You would give me the money. And he's like, yeah, I would give you the money. You would take a cut of it and you would invest it in that deal.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And that was the first time when I started to understand, oh, like I'm doing him a favor by letting him into a deal that I have and he gives me money for it. What is this witchcraft?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah. I mean, if you look at returns, why do people want like private deals? Well, because the highest return over any rolling 10-year period, if you were to look at it like a bar chart, the highest return is private assets, predominantly private equity, which just means businesses that aren't listed on the public exchange, small businesses. Mm-hmm. But those businesses are also hidden.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Like they're hard to find. You can't just go E-trade and buy, right? And so because of that, the wealthy are always looking for these, it's called an asymmetric risk. Like a way to invest a dollar and potentially get a hundred as opposed to invest a dollar and get a dollar 10 with a money market encounter, putting your money in the bank.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And so if you can flip your mindset to start asking yourself instead of like, how can I work with only what I have, instead saying, how do rich people think and how can I use their money to achieve both my goal and theirs? And then we also don't have this class warfare between the rich and the rest of us because we go, oh, I'm just, that's like a conduit.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
They're like a conduit to more money for me. And so that is how I would look at it. If you don't have enough money right now, that's actually not your problem. You don't have enough knowledge about money and how to get it. And as soon as you fix that issue, then this whole new world opens up to you.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I invested in a deal with a friend, which is always a scary thing to do. I think the best friends you get from business, not the best friends are because of a business. Like you and I have a great friendship, right? And it's like, I don't really need anything from you. You don't really need anything from me.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
but I get to like learn from you because you're in business and you get to learn from me and we get to have like fun conversations about it. The second that I come to you and I'm like, Louis, the thing is we're gonna do this together. We're gonna sell it to your audience. Here's what's gonna happen next, slight red flag. And so I would just go back and if I could have done it again,
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
We have a new rule, which is that I never get into business with somebody that I haven't done and watched do business for a year. So one year, I have one year moratorium. I wouldn't get married in less than a year and I wouldn't do a business deal in less than a year. And I did that the first time and we lost several hundred thousand dollars, but more important, a friendship.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Totally lost a friendship.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
That's very true. And a lot of times you think you like somebody, but then watch what happens when times get tough. You know, you think you trust somebody, but watch what happens when your incentives and theirs are not aligned. And it's where you really get to see the kind of human that any of us are is when stuff goes bad with money. It is like deep and, you know, it's...
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's survival in the modern day world.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
I would say one, tell me about a time when everything really went wrong for you in business. What happened? And what you're looking for there is, do they say, it was this guy's fault, this guy did this, that happened, blah, blah, blah? Or do they say, I really got him. I did X, Y, Z, and I got him, and I showed him red flags. If instead they say...
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
hey, we failed in this endeavor, but you know what? We recouped the assets, we made the employees whole, we learned this, we moved on to the next one, him and I are still friends, green flag. Second question I would ask is what do you want out of this? What is like the perfect scenario that happens from this in the future? Play it forward for me, three to five years.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
What happens from today to three to five years with this deal? And what you're looking for is do you guys have the same vision of the future? And there should be no wrong answers. How I would phrase this is like, I want to make sure that I get everything out of this for you that you want. Tell me what your future looks like so that we can align.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And what you're looking for for you is like, oh, he's saying that he just wants an extra $5,000 a month and to work passively, red flag, right? If what he's saying is, I want to build something lasting forever and I'm going to work really hard at it. And here's what I think it's going to take, green flag.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And probably the third question I would ask is simply, who else were you involved with before in your business dealings? And then I would go talk to them because the best people can tell you things, but what you're really looking for is show me, don't tell me.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
And you should ask yourself those same questions too and make sure that you're the type of human somebody should want to partner with before we go judging others, you know?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Oh, yeah. And, you know, we talk about this a lot, but the only thing you have at the end of the day that will be your blocker to money forever is your reputation. And lots of people think about that like credit.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You know, if I have bad credit, or if I have a resume where I've only been places a year and a half, or if I have a bunch of failed startups, and that is all true, but it's more than that. It's what happens when you lost money for somebody else? It's what do other people say about you behind your back?
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
It's what happens the second that you got further past someone, they were no longer useful for you. What did you do with that person? What do you treat the guy like that's in the valet line that asks you a question but can be of no use for you? And that reputation protection I think is so important.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Yeah, well, I think if you wanna earn more money, the right question is exactly what you said, which is what skills do you have today that are worth more to somebody else than they are to you? Because the first way you're gonna earn money is you're gonna be an employee. By and large, most people start out having their skills get compensated by somebody else's vision.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
So you want to figure out how can I just increase my skillset? And so that might be some of the easiest things to increase your skillset for is you want to be a profit center, not a cost center. So what does that look like? I want to know with my skills that I can easiest and fastest as possible track. For me doing X, I make the company Y.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
You know, for me providing this service, the client, you know, I can charge the client, why? And so in the beginning, some of those that are really easy are like sales, incredibly important skillset, always. Marketing, incredibly important skillset. Finance, because you understand the language of money, incredibly important skillset.
The School of Greatness
How ANYONE Can Create EXTRAORDINARY Wealth & Abundance! Stop Listening To These Money LIES | Codie Sanchez
Leadership, getting more out of each of your people that you work for or that you work with, incredibly important skill set. I think those four, if you can focus on those four skill sets up front, you'll be pretty powerful and dangerous.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Yeah, well, I don't think you can spell rich without risk. And so if you really want richness in your life, like if you want to be very, very rich, you are not gonna get there if you take no risk, unfortunately. I've never seen it done that way. Maybe you guys could tell me if I'm wrong. And if you wanna get rich, here's the stats. One thing that's cool, Stat, 79% of all millionaires in the U.S.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
are self-made. That number shocked me. Because if you heard in the news, you'd think, no, no, it's all handed down. But 60% of all millionaires own a business. So you immediately know, well, I have a 60% higher likelihood of becoming a millionaire if I own a business. And if I want to make crazy levels of money, like $30 million plus, 88% of people who are worth $30 million plus own a business.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
So first, you've got to be honest with yourself. What do I really want? If I want to be a millionaire and if I want to be worth $10 million plus, hard to get there without having some version of ownership or equity.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
I giggled because another YouTube video did a video of me and it was like,
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
make millions it's easy no work what's the title passive yeah yeah yeah i was like i'm pretty sure i've never said that in my life how many hours do you think you work a week oh a lot um i mean when i was in finance i was working 70 80 hours a week i remember one of my colleagues eduardo we were walking back from a uh we were in new york at the time and we were walking back from uh from work one day super late at night and he just passed out in the middle of the road
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And I was like, holy hell, Eduardo, are you okay? What's going on? And he just, he was exhausted. It was like passing out from exhaustion.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Yeah, and he was young. Analyst program, I was only there for two years. He would have been about the same. But just that compounding, plus it's a work hard, play hard environment.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
No, unless you are the capital. That's where you start.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Unless you got the money. Then I have many businesses that I do no work for now.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
But that's because I did risk.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And I could lose it all. And the only way you get around that is you work really hard as an employee for somebody else and you get a percentage of the company, which is something that we do for our employees and I think really important. But you've got to become valuable enough to do it.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Well, there's two ways that you can actually get equity in businesses that we learned in private equity that I think are useful for people. The first way is you can ask to buy in. So you can say, hey, I don't have a lot of cash, but we're gonna do this deal over here. Could I put $10,000 into this business deal? Hey, you're gonna do this partnership, could I buy into the partnership for 10K?
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And we're not taught how to do that as normal people, and we should think that way. Because what is that telling me? That's like, hey, you're willing to put a little risk on the table, and also you're not trying to sell me that you should get X, Y, Z entitlement, you're saying let me put some skin in the game.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Right. And that's how most private equity guys make their first dollars is they are just allowed to put some skin in the game, which is great. And then the second way is you become so valuable that the business can't see itself operating without you. And this is typically how startups do. So it's like, hey, you're so valuable, you're going to do the first stage of XYZ of the company.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Because of that, we're going to give you a percentage. And every single year, you'll get a little bit more of that percentage over like three to five years. So two ways to get a percentage of a deal. And we teach one in the book called partial acquisitions. And so basically if right now you're working, like let's say somebody's working for you or me, right?
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And if you're working for a company right now today and you love what you do and you want to stay there, but you want to get some income on the side, you have a skill set, you're a photographer, I don't know, you're a videographer. then what could you do?
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
You could go to other companies that need your skill set and you could say, hey, if I can increase the revenue of your business, if I could decrease the costs of your business, or I could decrease your pain of the business, could I get a percentage of the business? And you could do that both for distributing equity. That's where you cash flow or regular equity.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
This is what I'm teaching a lot more people to do because there's a stair step way to buy a business. Maybe you're not ready to go all in. We'll learn how to get a small percentage instead.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Not outright. Not outright. I don't think you're going to want the call on a Friday night when you're going to run out of cash.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Well, I like work. So I just worked a lot both times. I think, you know, I was probably working from seven until seven or eight or nine. As an employee. As an employee.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
I'm probably working from seven until six as an owner, but a little bit on the weekends. And maybe when I was an employee, I wasn't working on the weekends. And, you know, I think when you're an owner, your schedule kind of looks more you know, when your name's on the door, it's easier to work more hours. Like, let's be honest, it's just easier.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
It's yours. And so, but when you're the owner, it's also easier when you set the hours to work more of them. And so, you know, for me, I got no problem taking, you know, four weeks off and going to Europe and I'm checking on stuff every day a little bit, but they're mainly running the business. When I was an employee, that wasn't an option.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
But when I did go on vacation, I was an employee, wasn't checking. I was like, good luck, bye. So it really depends on how you wanna run your life. you know, too. But I think the one thing that I do want to impress upon people is like, there is nothing wrong with being an employee. Being an employee is amazing.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
It means that you do not carry all the risk and you can actually become massively wealthy as an employee if you understand how to become so valuable that you get a piece of multiple gains. Like for instance, right now we're hiring a president for one of our companies and he's from a huge company. So do we have a right, like,
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
It's not really reasonable that he would come and do this for one of my companies, given what he's done in the past.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Maybe one-fifth of that. And so why would he come work for me? Because I'm like, listen, you could go work for this one company and have one shot at goal. If that company wins, you're going to win big. But the founder's got to sell at the right time. You guys got to hit these huge milestones. The investor's got to get paid. You've got one bet.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Or with me, you can come into this company and you can take an equity bet on this company, but also a bunch of these other little bites. And so that's why I think private equity is so interesting and why people stay as private equity employees for decades. I mean, I have a friend, let's call him Frank, who's probably one of the richest guys I know.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And he has been an employee in a private equity firm for like 30 years. He's like dating celebrities, has a plane. He's an employee, but he gets little bites at the apple. And so I'm trying to really explain this to my employees.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
No risk. The only risk is getting fired. and that you have to work a lot.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Right. Well, and let's talk about the truth of the matter here is that 90% of startups fail in a 10-year period. Most startups fail in the first three to four years. And in those first three to four years, you make $0. In fact, you spend on average $30,000 to $50,000 a year attempting to make money. Oh, man.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And then when you eventually do make money in year three or four, the average entrepreneur pays themselves anywhere from $40,000 to $60,000 a year in salary.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
I think that is the question we have to ask ourselves.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
No, that's why I get excited about boring businesses, because what are the two reasons that most businesses fail? Well, 60% of businesses fail because they don't have product market fit, which means like, I had an idea. I wanted to sell these graphic mugs. These graphic mugs are amazing. I asked all my buddies, are you going to buy one, Louis? They're like, yeah, of course. Great idea.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
You should go be your own CEO of your company.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Right. Then you go and create the company. And all of a sudden, Louis is a little cheap. Nobody's buying my mugs, right? So the market didn't actually want what you were selling. And then the second reason most businesses fail, which is about 20% of the reason, is lack of cash flow. So you have this big idea, nobody wants it, you run out of cash before you get to figure it out.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And so I think we've been sold a total lie about business creation and startups, which is that employment sucks and also we should go start a business instead. And what often happens, and I hire a lot of these people, is they go start their business, they're like, oh my God, this is worse than employment, and I'm not making any money.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And so if you're gonna play the odds, if you're gonna go gamble, you can play the slots and know that you have the worst odds out there playing the slots. And if you're gonna gamble, you at least are probably gonna play blackjack if you're good at it, because you know that's where you have the best odds. Business is very similar.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
The best odds is somewhere where the business party has product market fit, and the business is already cash flowing. It's already making money. It's already profitable. And it's been doing it for years. And so that's why I'm obsessed with this idea of boring businesses and buying them because statistically it has less risk and it has more ability for you to earn over time.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
It's not no risk, but it is less risk than a startup. And nobody talks about that.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
There is a huge gap in education between asset value in business owners and ability to sell your assets. Think about it this way. If you owned a house anywhere in the country and that house was too small for you and it was still livable, it's still a house, maybe it's not the nicest house, it's not really what you want, you would never just go, let's just light that.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Fire and like walk away, right? That would be crazy. You'd be like, okay, well, let's sell it for whatever it's worth, or let's put a renter in there, or let's do something with that asset. We think about a house like an asset. In the U.S., we do not think about our businesses as assets. We do not think about our business lines and divisions as assets. And so what do we do instead?
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
We just walk away from a house that somebody else could live in. And so, you know, there was a, who was I talking to? Oh, it was Sean Rad, founder of Tinder. So him and I were chatting the other day.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Oh, good. I'll have to tell him that we're buddies. So he was funny because I was explaining this to him. And he's like, you know what's interesting? Because I went into a, I might mess this up slightly, but let's say that he went into like an old book binding shop. And in this book buying shop in LA, he looked over to the left and there were like these racks and racks and racks of books.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And he was like, these are some cool vintage books. And so he was going through them and he was like, hey, I want to buy a couple of these from you. And she's like, no, I don't want to buy them. You can just take them. And he's like, no, no, I want to pay you for them. What's the deal with these? Why do you have thousands of books here?
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And she's like, oh, well, my husband had a bookstore and he died or they got divorced. And so we shut down the bookstore. So what are all of those books? Those are assets. And if they had been thinking about their business as a house, what would she have done? She would have done an appraisal, had somebody come out, look at what the books are worth.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
She might have had somebody come and look at what the lease was worth for the business. She might have sold the whole business or done an asset sale. And so Sean ended up buying a bunch of one-off books. And then he was laughing. He's like, God, I felt bad because I went and checked them later. And I'm like, totally underpaid for these things because they were worth something.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
And so people sell their business because they don't understand the value of the business and they don't think it's sellable. And like an example that I would probably give you is like, you've done it like you've had a business line before, right? Let's say your education business and you're like, this isn't serving the current business right now. I'm going to shut it down.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Reasonable, you're like, I'm the face. It's not set up to sell. You haven't prepped a business that you created to be a business you could sell because most business owners do not know how to do that. And so you shut it down because you're like, well, reputational risk, all of these things.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
But let's say that you went through our program that we teach and we talk about prepping a business for sale like a cake. Thank you.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Thank you. Thank you. Thank you. Thank you. Thank you.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
Thank you. Thank you. Thank you. Thank you. Thank you.
The School of Greatness
5 Money Beliefs To Rewire Your Mind For Wealth
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Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
All of those services are businesses. But we were taught as a generation, you're in my generation, that if I own a handyman business and I'm a handyman, that's bad. If I go to college and I become a roofer, that's not very cool. But if I become a marketer or a graphic designer, that's cool. Here's the problem. Roofers make way more fucking money.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So I think we were sold a little bit of a bag of goods. Maybe you don't want to stay a roofer forever because it could be hard on your body, but you learn the trade, then you learn the business, then you own part of the business, then you own the whole business, then you sell it. And that is how you were able to pass off your work over time.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think a lot of reasons why these businesses are overlooked is really three things. Main Street businesses have a societal belief that they are less than. We call them blue collar, not white collar, right? They're not shiny. They are something that is done by people who don't have university degrees, and somehow that's a bad thing. So we have a societal sheen on them.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The second reason people don't love these businesses is because we've been told, well, these people don't make very much money. And these businesses don't make very much money. If I'm gonna be a banker or an accountant or an attorney, I'm gonna make more. Well, that turns out not to be true over time. And then the third reason is because these businesses don't have what's called a moat.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So there's probably, I don't know, a couple,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
thousand handyman companies maybe 10 000 handyman companies in texas there's like one facebook right and so we thought you had to have this new sexy innovative business in order to make money you don't in fact it'd be much easier to compete with your local handyman company than mark zuckerberg who's an animal and so those three reasons kept us away from main street businesses
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The other thing that's interesting about Main Street businesses is most of them are recession resistant. So you're going to use a landscaping company if you need to have your driveway shoveled during the winter, no matter what. Most of these small businesses have some version of subscription revenue, the thing that SaaS companies, tech companies love.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And most of these businesses are pretty simple to understand. Now, I don't want to idealize this. I'm not saying this is like a fast, easy, 30-day-to-million type thing. up. But these businesses have been overlooked. And anytime that happens, there's money to be made.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If I go to college and I become a roofer, that's not very cool. But if I become a marketer or a graphic designer, that's cool. Here's the problem. Roofers make way more fucking money. Ownership actually is a synonym for freedom. So the more that you own things, the less other people can tell you what to do.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You have read the book. You're gonna own a bunch of these things by the end of it. The Lindy effect is really important. It's very simple. And I think the best ways to make money are super simple. If you want to make more money, you should look at how long a business has existed.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The Lindy effect says the longer a business has been in existence, the higher likelihood it will have to continue to be in business. So essentially the opposite of what I thought was true. It was like, this thing's been around for 30 years. Oh, it must be old, outdated, not work.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But in fact, it has a higher likelihood of continuing to succeed as opposed to a brand new startup, much riskier, much higher likelihood to fail. And so if you look at businesses that have survived for over five to seven years, you have taken away anywhere from 50 to 60% failure rate. That means you're left with only 44%.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
What if I could tell you today you could start a startup and I could decrease your risk of failure by 50%? You'd be like, that's cool. Yeah, let's do that. Well, that's what you can do with these boring businesses that have existed for a long time.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So the question usually comes to me like, when am I ready to buy a business? How would I know? And my question back to you would be, one, One skill set that I have never regretted that I wish I had learned earlier was dealmaking because it will forever change how you make money.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Even if you never buy a business outright, if you understand terms, structuring, dealmaking, and how the world of money works, you will have a hard time being poor. And so because of that, I like to teach people business buying before they even think they're ready for it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So for instance, I gave my cousin this book, who's 16, and he's reading through it and he's figuring out ways to do deals right now. And the way that I think you know you're ready is basically this. If you are in business right now, it is a no-brainer. If you look at the biggest companies in the world, they grow through acquisitions. Amazon, Facebook, both of them have done over 200 transactions.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They grow faster through acquisitions than they do organically, customer by customer. So if you own a business today, you need to understand how to do deal-making. It's how you will be harder to compete with. You can acquire 100 customers at a time, while most people are acquiring one at a time. Total game changer.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you don't have a business yet, what I'd like to do is turn on what I call your reticular activating system of business buying. So your reticulator activating system is what gets turned on when your brain tells you that something is important. And so when you go and buy a car, for instance, like a Porsche, let's say, you go and buy a Porsche.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And before you bought the Porsche, you're like, I don't see these things anywhere. After you buy the Porsche, you're like, fuck, everybody has a Porsche in Austin, Texas. What happened? Nothing happened, your brain just started getting a signal to it saying that this is important and so you started noticing it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Right now we're walking around sort of in the matrix not realizing that all around us are deals, potential deals. And what I wanna do is turn on your brain so you start seeing them.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And what this might mean is if you work for a small business, you might not even realize that the owner is ready to retire and if you positioned yourself correctly, you could take over that business using seller financing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you're a solo content creator online, you might not realize that the $1,000 they want to pay you to promote XYZ product, you should actually negotiate a deal instead to get future distributions and a percentage of the company. Deals are all around you. We just want you to turn it on.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You know, I was joking with one of my favorite CEOs that I used to work for back in the day. He runs a company that does, I don't know, $300 billion in annual sales. It's a huge company. And when I was talking to him, he was pretty funny. I was like, Jim, I'm curious. He's older, so he's probably in his mid-70s. And I was like, you've been around for a long time.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You've been an investor all your life. You own all these companies. You ever met any passive income? And he was like, sure haven't, but I'm open to it. So that's what I mean that the way you get passive income is years of active work. And I think we need to be honest about that with each other. Now, that said, there's a lot of people that want to tell you two things. Either one, you can't.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It's not possible for you. Stay in your lane. It's much easier to be a hater than a hope giver. And then the second group wants to tell you, hey, it's super easy. Anybody can do it. Look at my Lambo. Look at my private plane. Look at my Gucci. And because of that, I'm really successful. You can be too. And they want to sell you something. I think the truth is somewhere in the middle.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And in fact, with small businesses, I think you should expect for the first year, you got a lot to learn, man. It is not complicated, but it is hard. It's not easy, but it is simple. And I think when you realize, oh, running a laundromat is not complicated, but it's hard work.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Running a vending machine business is actually harder than a laundromat business because you have these tiny little stores, right, machines, that have very limited cap on how much they could make per month. Let's call it max cap. I mean, if you had a $5,000 a month producing vending machine, that'd be incredible.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you have maxed this little $5,000 machine, and then you've got to figure out the logistics to go back and forth to all of them to accumulate eventually to a business that does, let's say, a million dollars a year. It's a lot of work. And so I don't like to talk about passive income.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I like to talk about horizontal income, which basically means where can you layer your income like a cake so that in any given time, your day is split between a few activities, mostly oversight as opposed to execution. So in my businesses, I run a big portfolio at Main Street Holding Company. You can see a bunch of the businesses we own there.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And part of my day is spent with like this company up here, which is Pink's. So, you know, I'm talking to the CEO, Steven, and I'm saying, hey, how is the cash flow looking? What's going on? I'm actually doing nothing in the business, but I'm at least thinking about it. So I like to be honest about that.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So a good level one business might be something like a vending machine. These are what I call people-light businesses. So it might be something where you could be the owner-operator of the business. The business is probably not making eight figures. You're talking about businesses that are one to three million and less. These businesses, on average, are what I call gateway drug-style businesses.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You can dip your toes into your first business small car wash deal, your first small laundromat, your first vending machine, your first podcast production company, but you're probably not going to get independently wealthy working on these businesses. You are in it, it will require some work, but it doesn't require as much cash. What was your first level one business?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Well, my very first one was a website called Selling South back in the day. And I tried a game that I was really bad at, which is I think we made money on ads and affiliates back then. It was really hard. It was hard. And I didn't make very much money at all, but it was a good entry drug business. And then I had a laundromat business, which I would put in this category too in the beginning.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And then I also had a consulting business, which was right on the edge of a level one, level two. Okay, moving on to level two, hands-on CEO. This business is one where you're going to potentially have an operator right along with you. You might have somebody who's actually in the business. My first business, I had a GM in the laundromat.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So he's the one actually running some of the laundromat specifics. I invest in it. I track things overall. I'm still involved in the business, but I have a little help. These businesses are slightly bigger in size. There's also a slight bigger complexity here. This could be things like multiple laundromats, let's say, for instance.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
This could be things like having a media company, what we have now. I would say most media companies fall into this category. They never get to like a huge daily wire allowance. These businesses also, on average, still have most of your time dedicated to this business and are going to have some employees, but not a ton.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Let's start with a fun one. Do you want to know who the richest woman in the world is? This is as of the end of last year when the Forbes report came out. If you saw it, maybe it's T Swift. I know she had a big tour. Wrong. She's like 34th on the list. If you thought it was Kim K, you'd also be wrong. She was like 21st on the list.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
This means you got an operator that's rocking and rolling in this business. You are in oversight mode. You basically get to do what I do, which is financial Fridays. You're reviewing what's going on. You have an operator who probably knows more than you do about the business. You've got employees underneath that operator. This business is doing millions of dollars in revenue.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And that means, alternatively, you could be doing a million plus in profit. And this is a business where you could have almost any type of business imaginable could be in this amount. So you could have a small furniture store. You could also have a roofing or an HVAC company in this amount. You start to get to the level where you're starting to do roll-ups in your business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Okay. And the way that we think about these levels is mainly, does the revenue support the employees and infrastructure that allow you to work on the business as opposed to in the business? So the first two, not as much. The third one, you start to get into it. I'm going to dig deeper on that in a second. Level four, market leader. So this means we're a big business now.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Not only do you have a CEO, but you probably have a C-suite staff. You've probably got a few other real pros in there running the business. Now we're talking about tens of employees plus. We're making real revenue and real profit in this business. And you're in a stage where you're either already at or getting to a spot where private equity might buy you, might compete with you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And these all are still in what I consider small and medium business. So this is still sort of micro PE below the level at which you're going to compete with what's called middle market and private equity.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So when we think about what is the right type of boring business to buy, really depends on who you are. But if I was to give you a framework, it would be sales, which is when I look for businesses, I look for a business that is stale. That means that it's been around for a long time. That means that the business probably hasn't done much in the way of innovation.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Might have something called the fax machine test, which is they have a fax machine still. That's crazy. Do they actually use that thing? They might take invoices on a piece of paper as opposed to putting it into QuickBooks. Then we get to the O, which is old. Has the business been around at least five to seven years? Is the Lindy effect in effect?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Can this business be one that we think has a lower risk? Because the likelihood of future success is probably based on historical success. Then we have weak. This one I really like if there are competitors that are weak in this space, and also the business itself might be semi-weak. So can I compete with a bunch of handymen in Austin, Texas? Maybe, because I don't know the name of any of them.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you thought that it was somebody like Oprah, also wrong, she doesn't even crack the top 10. Who is it actually? It is a woman who grew a roofing company to more than $15 billion in net worth. And so my point here is I think one of the biggest misconceptions with the really, really rich is that they do things that are really, really sexy.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Can I compete with Dell Computers? Hard. That is an entrenched business overall. I want to see weak competition and weak execution by the company. And finally, I want a business that is simple. So I want a business overall that is not difficult to understand, that is straightforward, so easy your grandma could do it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The fastest way to lose money in buying a business is to think that you know more than the owner of the business and to take on more complexity than you actually should. So I think about buying a business kind of like I think about maybe buying your first house to fix up and flip. You don't really want to buy a complete disaster on a street. Why?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Well, you've never done a construction project before. And so I don't know about you, but I've never heard of a construction project that comes in under budget and faster than you think. And so what I really want for your first acquisition is the first acquisition to go so well that you go, oh God, that business was like a little too small, a little too easy.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We're gonna build it up, then we're gonna sell it, then we're gonna do our next one because your first deal turned out so well. That's why I like really simple businesses for the first one. Business is complex enough, and we can layer on top of it great marketing. We can layer great advertising. We can layer a great team and culture.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But we want to make sure we don't bite off more than we can chew with our first acquisition. Unless you're a pro, in which case we teach some different things.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
One of the most beautiful parts about buying a business, as opposed to buying a house, is when you go buy a house, they want to know how much money you make. And they want to know how much money you make so that they can determine how big of a house you can buy. When you go to buy a business, they, meaning the lenders or the bank, they want to know how much money the business makes.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if the business makes enough for you to be able to use the revenue and profits of the business to pay the loan back. Now, there's going to be some degree of them vetting you and making sure that you seem trustworthy. And you've got to put together a little pitch to show that you are capable of buying a business and getting a loan. But the fascinating part is it's not on your salary.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It's on the business's income. And because of that, we have a unique opportunity to outkick our coverage by buying a business that would be more than we could actually afford if we were only to look at the amount of money we have or our salary. So that's one huge differential. The other is that we teach 21 ways in the book in order for you to buy a business using creative financing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But one of my favorites is seller financing. So you mentioned that 60% of all businesses bought are bought with some aspect of seller financing. And if you understand seller financing, I don't think you'll ever buy anything the same way again.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Because what it basically teaches you is that you want to invest in businesses and buy them using some portion of the future revenue and earnings of a business. Now, this isn't to say you can run around saying, I'd like to buy your $5 million business owner for $0 down. How does that sound?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
In fact, most of the richest people on the Forbes 100 list If they didn't inherit it from a boring business, they started a boring business or they bought businesses, aka finance. So I think there's a matrix kind of like this. On the vertical side of the matrix, you basically have the sexiness of a business. from artists to musicians to actors.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Just like anything in life, you have to treat a business transaction kind of like treating a dating transaction with a woman. You got to get her to trust you. You got to get her to believe that she's going to be better in your hands than anybody else. You got to get her to see that you actually care about this business and you are going to make sure it succeeds.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if you do that, then you can get really creative, unfair deals that somebody running around throwing out offers left and right isn't going to get.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We have this whole section where we show three different graphs on seller financing. And once I understood how to pitch seller financing properly so that it was a win-win, our ratio of people taking seller financing went up about 100%. And here's how I think about it. If I was going to a small business owner, here's the conversation that I would say.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I would say, all right, small business owner, this is after you've gotten to know them, after they like you, after you really understand the business, you've done all of the early stage of dating. You're not asking to take the girl home on your first coffee date encounter, right? So after you do that, you're going to have a conversation that sounds like this.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Okay, Mr. Owner, you want $2 million for your business. You think that's what it's valued at, right? And you go, right. Okay, let me show you. When I took your business to the bank, based on what you showed me, the bank said they would give you about a mil, whatever the dollar amount is. Usually businesses are not worth what the owner thinks it is.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you wanna introduce a third party saying, sorry, we're not gonna pay you for that. So we say, okay, the bank says that it's worth a million instead of two. That means that I could give you a million dollars plus I got to pay like 8% to the bank because there's an interest rate associated with it. Plus I probably got to wait like 120 days for the loan to fully go through, maybe 90 at best.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
plus you're gonna have a higher tax burden because they're gonna lump sum pay you out right now, as opposed to over time. We can't get very creative with your taxes. You're gonna pay more in taxes. Also, because we're gonna go with this loan over time, I can't pay you any of the interest. I have to pay the interest to the bank.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Now, that means that I can give you a million dollars plus these other negatives, or there's another way that we could do this through seller financing. Would you wanna talk about how we could structure it that way? And they'll probably go, okay, yeah, what do you mean? And you say, okay, other option.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I pay you 1.5 instead of one, so you get another $500,000, plus I will pay you the interest on the loan instead of the bank, except I'll pay you 4% instead of 8%, which increases the likelihood the business succeeds, because it's not as high, plus you make another 4% every single month or year, depending on how you structure the deal.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Plus, we could get this deal done in probably 30 days because we don't have to go through a traditional bank process instead of 120 days. And we will structure the payouts over time, which means you pay less because you're getting long-term capital gains and distributions as opposed to short-term capital gains and distributions.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you're getting $500K more, plus you're getting 4% a year, plus you're getting better tax savings. Would you be interested in at least us discussing what that would look like? At which point, the owner is going to say probably yes. And so that's how you nail seller financing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Let me tell you some data. So how many people actually will sell you a business today and use some version of seller financing? Well, one, I bought a boring business that was a business marketplace called BizScout and then plowed a couple million dollars into it. BizScout is now a marketplace where people buy and sell businesses.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And on the right side, you have the income or how much money you can make. And what it turns out is if you correlate the two, the sexier the industry, the fewer the people make an obscene amount of money in it. The more boring the industry, the more people make consistent high dollars in it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
When we first launched, which was maybe four weeks ago, six weeks ago, we had 30,000 listings on the platform. Today, we have 45,000 listings on the platform at BizScout. There are 45,000 people publicly listed that want to sell their business. Plus, the other interesting part about BizScout is we have this backend scraper where we scrape all the small businesses.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you could say, I want to buy a, I don't know, sales company in Atlanta, Georgia. I want to buy a car wash in Piedmont, North Dakota. And you could go and see all of the listings of those there and reach out to the owners individually. So that would mean millions and millions and millions of businesses. So I know firsthand there are tens of thousands of businesses ready to sell right now today.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The number is growing every single day. And then there are millions where the owners don't even realize they could sell. So this is happening all over the place. Now, here's what you're gonna hear from people that is great for you and me, and I love every moment of it. You're gonna hear people go, there's no businesses for sale, it's all trash on those sites.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Nobody good would sell a business like that. And I go, perfect, just stay in your lane. This is always finance bros who do this, by the way. And they'll be like, no way would this business sell for that. And then I just go scoreboard. Like, bought and sold this newsletter business. Bought and sold pinks. Bought and sold that one painter. Bought and sold garage up.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Bought and sold a brand new roofing company we're going to launch. There are businesses all around. We're doing it every single day. And our community, called Contrarian Community... People have done $260 million of deals that we've tracked. Hundreds of small businesses transacted. So while other people always tell you no, you can be the person that makes the money while they sit on the sidelines.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Again, always harder than it looks and is going to take work. These businesses are all around you guys. And anybody that's telling you they aren't either wants to buy them for themselves or wants to sound sophisticated because the negative sound smart, the positive make all the money.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you go to MSM Book, where the book's going to be located, we'll be giving away a bunch of things with the book. And one of them is a list of 130 of my favorite businesses that I love to buy. So let's rattle off some of those 130. One, I use laundromats as an example because they're easy to understand. It opens people's eyes. They go, oh, I've seen those before.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Oh, yeah, there aren't a ton of employees in there. That could make sense for me. So that was Rule one, I wanted to open people's eyes. But really what we teach is what's called deal clarity. So how do you figure out the right business for you specifically? What's the right business for you or your audience?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so there seems to be a correlation between boring traditional everyday businesses that we need nonstop and more of us making money, which I thought was interesting.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so those might be things like, for instance, I bought a podcast production company back in the day. I bought like 49% of one called Strike Fire Productions. That was a great business. I think I bought 49% for 10K and we profited five or eight or 10K a month off of it for about a year before I sold it back to the owner of the business because it wasn't a big enough business for us anymore.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So podcast production. I've bought a video production company before that's called Viral Cuts. That's another online business. We've invested in a tax and LLC business. So it's cool. They take old school accounting practices, kind of sex them up, make it really easy for people to access them. That's called Doula. We invested in a company that's called Sense.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So it's software for the laundromat industry. So everywhere you have a boring business, you have digital businesses that support them. You have advertising businesses, marketing vendors, software providers, sales systems. And those are businesses you can buy just as simply as you can buy a brick and mortar Main Street business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So if you already own businesses today, there's two ways to think about acquisition. strategic acquisitions or diversified acquisitions. So strategic acquisitions I think are the easiest for business owners to buy.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
That would be like, can you buy another agency that has talent that you're having a hard time hiring and can you insert that talent inside of your agency so you can increase your capacity? And so you can sell more. Amazon is notorious for this. And I would say the great thing about strategic acquisitions is you understand the business better.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You're gonna know if this is a shitty agency or not because you already run it. You probably already know them and have target acquisitions because you know your competitors. You also have a much higher ability to increase the revenue of that company because you're already doing the thing. And so I think strategic acquisitions are the best for current business owners to think about.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you want to create a portfolio in a holding company like I have, because my skillset is finance, I knew how to create a portfolio in a holding company because I ran a private equity firm. But if I was a great business operator, I would do more strategic acquisitions than I would diversified acquisitions.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And the reason is because you're going to have such a higher likelihood of success, and you're going to be able to increase the value of those businesses so materially. So if I was you, I'd be saying right now, and you probably have some in your head, even as we're talking about it. You're like, oh, these competitors. Oh, I hear she's kind of unhappy. I think They might shut down their business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They're growing really fast, but man, they don't have X that we have. And those are your target acquisitions where you can even overpay a little bit or use potential future revenue that you drive them to pay for those companies and close a deal faster than you ever could due diligence in a laundromat, for instance.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Yeah.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And the cool part is if you start using the terminology, that's why I like people to learn deal making. I didn't even know that. Yeah, you can sweeten the deal. In this case, you might've been saying, God, I need better production. And I want somebody who really cares about it. So I want a partner. I want them to be invested in it. I want them to be a pro.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I heard a quote once that just seared its way into my soul, which was that you are as rich as you programmed yourself to be. And if you think about it that way, there's a good and a bad side to it. The good side is, well, you can reprogram yourself. Just like a computer, you can scrap the software, keep the hardware, and realign what is inside of you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I don't want to have to pay pro salary right now because maybe my business isn't big enough. I want them to share my vision long-term so they take some risk with me. Okay, that means you want an acquihire. So you're like, huh,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I'm going to buy, acqui-hire Jason's company, and I'm really just going to use Jason's salary, which I pay over the course of the year, just like anybody else's salary, to acquire his company. Jason, congratulations, you got an exit from your business. I am going to acquire and integrate you. You also get to say, I've already done one acquisition because we did it this way.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You did an asset sale, potentially, if you bought any of his assets, and you did an acquihire because you bought him. And so a lot of the people in Silicon Valley use this term all the time. They'll be like, I sold my startup to so-and-so. They got acquihired. And we normal people don't use that same terminology. And so we don't sound as sophisticated, but we're doing the exact same thing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So I would keep your eyes open. One of the things I've been obsessing on lately is that rich people do not think the same as poor people when they think about problem solving. Poor people, when they have a problem, they say, how do I fix this problem? How, how, how, how? Relatively wealthy people think, I have a problem, who could fix this problem for me? Who, not how?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Rich people think, I have a problem. How could I buy an almost guaranteed solution to this problem? Buy, who, how? And you can start when you have a problem in your business going, all right, pause, don't go to how, pause, don't go to who, pause, how could I buy the solution? I need more revenue in my business. I need to come up with a brand new product that I could sell. Do you?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Or is there something else out there in the market that you know your audience would love and you could acquire part of that company? Do no fulfillment, not guess what a great product is, but know because people are already buying it and you already use it and just integrate that into your revenue line. And the truth of the matter is I forget my own homework all the time.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I revert back to the how constantly. And I should obsess on the buy more often too.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
A couple of things. We have a framework that we look at for every time you buy a business, what does it need to have? I think about it as two words, an income stream. You're buying a business because you want to make money, not because you're doing charity. And so when it comes to an income stream, an income stream has to cover a few things. It has to cover the interest expense on your loan.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So whatever that costs for how you bought the business. It has to cover your income. So how much money you want to make from the business. It also has to cover some version of an operator's salary. So you don't go crazy. You have a manager. You don't buy a job. You buy a business. And then it has to cover working capital.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The bad part is that the foundation on which you and I have learned money is actually one that incentivizes us to stay just sort of tracking to our spend for our entire life, which is why most people will die alone and without much in the way of resources, which is really, really sad. And so when I started thinking about writing this book, I was like, we can't make ourselves smarter very easily.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And that means a little bit extra money in case anything goes sideways or to grow the business. Those four things, if you remember that, will help you buy a profitable business. And we have a structure that breaks that down a little bit more in the book, but at a high level, that's it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The second thing that I really want you to think about if you're thinking about buying a business overall is very, very high level. You don't want to make acquisitions too complex. You want to see what do the financials tell you? Is the business profitable or not? We don't buy unprofitable businesses to start. That is asking for pain. So we want a profitable business according to its financials.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
That means it's P&Ls. We want the financials and P&L to somehow match the tax return or decrease the price so that the tax return is your de-risked price. And then we also want a breakdown of our due diligence file, kind of looking at where's the risk in the business? How many employees are there? What kind of assets do we have?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So we have a full due diligence list that we use for this, which is important. But you want to start high level with the financial and the tax return.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I'll come back on a different time and talk to you about the next book I'm writing, which we're creating some portions of it. It's about an operating system. How do good companies scale from six to seven to eight to nine figures?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And I came up with something with one of my friends, whose name is Eamon, called Nine Steps to Nine Figures. And don't take the nine figures literally. You don't have to create a nine-figure business, but the idea is a business so big, it makes profitable money for you, is fun to run, and is trusted in that it will continue to make more money. So trust, fund, profitable.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And there's really a few steps. First, if you wanna have a profitable fund to run business, you gotta know who you're selling to. This is what we call persona. So you need to be able to name and label your target market. Then you got to think about what problem are you solving for that person? Where is the pain or the nail in the foot, we call it, that is the problem you're solving?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Then you got to obsess on product. So what product are you selling this person in order to fix their pain that this person in particular really, really wants? Then I like to talk about performance. So where in your business are you tracking if you are winning or losing and what does winning look like? Then you want to have a scoreboard or operational system.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
How can I consistently run a business without a bunch of question marks and games because I have an operating system I run on? And then we want to have people. So finally, and maybe most importantly in many ways, who are the people inside the business that I am hiring, firing, and what does our culture look like?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We have nine steps, but those are like the first seven that are so important because if you have the persona, the problem, the product, if you have the performance, the operating system, and the people, then you can run a sustainable business over time. And sometimes you don't even have to have the people if you have a solo business as well.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So those things are necessary for scaling a sustainable business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So the end of the book starts talking about the exit. And the reason why is because the first business that you buy probably isn't gonna be the business that you have forever. You should do your first deal thinking like you did your first job. You know, you didn't plan on staying your first job forever. You're like, I wanna be here for two to five years, something like that.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I want it to make me money. I want to learn from it. And I either wanna scale up or I wanna scale out, right? I wanna move up to the C-suite position or I wanna go on to my next job. And it's the same with the business. So the first deal that you do should not be your last deal, in my opinion. It wasn't for me.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So since we know that, we want to start planning for the exit and the ability for us to eventually sell our business to make more money. The cool part is most of the money in buying businesses and building businesses is made on the sales. So if you have a business that does $100,000 in profit in small business land, you can sell that business for three to five X on average of the profit.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We can't make ourselves have more money than other people do up front. So what would be a way to level the playing field? And because I was in finance for 12 years, I watched what the really, really rich did. And they did something completely differently, which is they didn't innovate as often as Silicon Valley did. They didn't come up with some crazy startup and sleep on couches.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So $100,000 business sells for 300 to $500,000 to overly simplify. That means that if I buy a business for $300,000 that makes $100,000 in profit, but I am able to increase the profit to $200,000, Well, now I'm selling this business for somewhere between $600,000 and maybe $800,000. So I have taken multiple years of potential future revenue and fast-tracked them. And I moved them up.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so when it comes to thinking about exiting your business, there are really only three levers that matter. And the three levers are, can I increase the profits? Can I increase the revenue of the business? Can I decrease the risk in the business? And can I increase the systems, processes, and people in the business?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if you can do those four things, then your business can be worth more when you sell it than when you bought it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
YAP for you and any content creators listening, that's your distribution mechanism. YAP is your ability for the rest of your life to sell varying things to your audience without using a ton of capital.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you might want to keep YAP forever and layer on top of it different products to sell, layer on top of it different services to sell, layer on top of it owning part of another content creator who maybe you help distribute, but you take a percentage of future revenue from that content creator. So this is how we build big conglomerates, right?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You could do what most media companies did, which is they acquire assets. Back in the day, Ted Turner was famous at Turner News Network for acquiring assets. And he did it the old-fashioned way, which is acquire radio stations here, acquire television rights here, acquire distribution rights here. And he used to be talent, and he worked his way all the way up to complete ownership and chairman.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so the way to do that in the 21st century version is what Alex Cooper is doing right now with Call Her Daddy and Unwell. She acquired part of Alex – what's the other Alex's name? Do you remember? I have no idea.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I know. I mean, not typically when I talk about her topic, but – brilliant business mind. She looked at Dave Courtenoy at Barstool Sports and said, why doesn't this exist for women? I'm going to build it. Dave sold his company for what, 600 million or something like that? She was like, yeah, I'm going to do the same thing. And so she started acquiring up other talent.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
She also acquired and built part of a pop-up And a tour company, you see her doing tours right now all over the place. You see Alex Earl, that's the other one's name, doing the same thing. Those are smart businesswomen. Don't let the sex talk fool you. They are sharks, and I'm here for it. And that could be the way that you do it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And then at some point, you might do what Barstool does or some of these big media companies do, which is you might say, all right, talent, you want to buy back your rights? No problem. You buy back your rights. That doesn't mean you sell yachts. but you sold one of your assets. And that's how you de-link your personal brand to your business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
In fact, they wore Gucci loafers all the way to the private plane they eventually bought. And how did they do this? Because they bought other people's hard work, other people's years of hard work,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Well, first of all, Main Street Millionaire is peppered with stories of people just like me and just like you who worked in corporate for a long time and leveraged the best form of money there is, which is a salary somebody else pays into the future ownership of your business. So one, you are exactly where you're supposed to be. If you're already making revenue by a salary, that's incredible.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The first jobs that AI took were artists, copywriters, because AI lives online. You know where AI is going to take longer? Painting companies, roofing companies, plumbing companies. The best ways to make money are super simple. If you want to make more money, you should look at... And you will have a hard time being poor.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You can use that to acquire your company. In our community and in Main Street Millionaire, I would say 40% of the people in our community where we teach business buying are W-2 employees, well-paid W-2 employees that are buying their first or their second business. What Main Street Millionaire will teach you how to do is two things that I think are invaluable.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
One, negotiate with the company that you work for or with vendors that you work for for part of businesses you already fully understand. Partial equity. That could be your first tiptoe into ownership. Number two, it will teach you how do you layer on acquisitions using operators, finance, family, for instance, like my husband runs one of our companies. My mom ran another one of our companies.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
My brother and I co-own another one of our companies. So how can you use the people around you who maybe don't have your same salary for ownership? I think it's beautiful to do for husbands and wives.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The last thing that a book like Main Street Millionaire will teach you is when it comes to seeing a deal in front of you that feels so unfair it is an absolute fuck yes, you will be able to jump on it. Baron Rothschild said, buy when there's blood in the streets, especially and even when the blood is your own. He was one of the titans of American history, one of the richest men ever to live.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And then they did a little bit of what's called financial arbitrage, but basically make expenses a little bit lower, increase profits here, and apply the Wall Street mechanism for growth to most businesses. And I was like, why does Wall Street only do this?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And what's interesting, I think, is if you at all are scared about the economy, the recession, your job, your future, there is nothing better than a little shakeup in the market to get better deals.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so what I want you guys to be prepared for is that when that comes, you will already know and have turned on your reticular activating system in order to see these businesses all around you and do a smart deal.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Let me tell you what I think about AI and Main Street businesses, which is the first jobs that AI took were graphic designers, artists, copywriters, maybe even singers in some way. They were online jobs. Why? Because AI lives online. Because it's very easy for quote-unquote online digital robots to take over jobs that are mainly online.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So if right now you have a job that you can do completely from Zoom that has a lot of automated processes in it, where sometimes you feel like you do a lot of automated tasks, be wary of AI because that will come for you first as it already has for many people in the digital world. You know where AI is gonna take longer?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
painting companies, roofing companies, plumbing companies, the hardware is going to take longer to catch up than the software will. And so I feel very strongly that the trades are going to flip as one of the more powerful industries in the world, just in the same way that people are no longer paying graphic designers the same amount because we have AI tools that we can use to augment their work.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so think long and hard about AI in the fact of Where can I have a moat built around me? where it is not as easy for a digital component to take over. And that's what I think about it. And the only other thing I'll say there is I'm a techno-optimist. I think by and large, our world is better mathematically because we have more technology today, not with technology hurting us.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think that we can reprogram ourselves to be rich by realizing that we just have to copy other people's homework from those who have already achieved the thing we want in life. And that's kind of what I strive to do.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It has helped increase longevity. It has helped decrease poverty levels. I think you can make a very hard argument, except perhaps in the US with anxiety and depression rates, that technology is largely good. So I think AI will continue to be really useful for us.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And with the businesses out there, man, think about how much we're going to be able to increase our profit margin by using AI right alongside us.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Yeah. Hopefully we don't have ads just straight mainlining into our brain. Most likely that will happen.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
One of my favorite mentors, Bill Perkins, told me why he thought he was so successful. Where did his billions come from? And he said that he does one thing differently than everybody else. He moves fast. By the time that other people have thought about an idea, brought it up to their friends, considered it, Bill has already taken action, made three mistakes, and found a better way.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think the faster you move, the more money that you make. The faster you move, the larger your bank account. So whatever you're going to do, take action more often than you think and quicker than you think.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The best deal I've ever done was the one I did with my husband. It sounds cheesy, except it's true. And so I think you are going to spend the rest of your life With one human, and I wish I would have known earlier how important it is to choose somebody who had a growth mindset, wanted to continue to progress, and that profits come from profitable relationships done well.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so, especially if you have young women listeners, obsess about becoming a better human so you attract better humans. And two people is so much more powerful than one. So, Cody, where can everybody learn more about you and everything that you do? I think most important is Main Street Millionaire. That's the name of the book. You can find it at msmbook.com.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The idea is we're going to put tons of resources and tools for anybody who picks up the book so that we can all become a little bit more unemployable and have control of our life. That's the idea anyway.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Thank you. You'll have to tell me if you buy a business. I'll help you any way you need. Thank you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think ownership actually is a synonym for freedom. So the more that you own things, the less other people can tell you what to do. If your listeners are like you and I, you and I, we're probably pretty unemployable, right? We're a pain in the ass, which is why we became entrepreneurs. We are just on the other side of diva, which is like, I think we should do it this way.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
How come we can't do this? Let's go faster. What do you mean I can't make more? That's what a good entrepreneur is. And so I think if you are also like that, you are set up to succeed in some ways. which is that you will fail at being an employee for a long time. And the best entrepreneurs are failed employees.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so you will eventually get to a path where you realize that you can own the equity in the business, that you have distributions in the business over a long term, and it can be on legally binding contracts. You can take it with you as opposed to your W-2. And the only little caveat there I like to put out there, Hala, is I loved being an employee, actually.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The tail end of my career, where I was a partner at a few private equity companies, I really liked what I did. I could have done that forever at one company in particular. I just wanted to do it my way. And so I was annoyed at their speed. And because of that, I ended up going and doing my own thing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But what I wished I could realize at the time is that I could have had even my own business on the side and I could have negotiated for more equity and distributions in a business so that you could stay an employee too if you want and own a business. And so I think there's lots of ways to get to the end game of ownership.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
There's so many people on the internet now, and you're not one of them because you've done this game too, but there's so many people on the internet who want to tell you, go be your own boss, be an entrepreneur. And that's fine. I do think that that's great for many people. However, there's risk associated with pure ownership, where you own the entirety of the business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so one, don't assume that in order to buy a business, you have to buy the whole thing. You don't. You can actually just own part of it, and you can use other things besides your money to buy it. That's really cool. We talk about that in the book.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But number two is there is no better way to learn the game of business than by getting a salary, learning under somebody else's tutelage, and eventually, if you're a great employee, getting a percentage of their company or getting them to invest in your business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And this is actually fascinating because people on the internet don't always love to hear this, but in finance, most of the companies that we start, so if I left a finance firm, like when I left Goldman, I was too young, they wouldn't have given it to me. But when I left my last firm, which was EEC, they asked if they could invest in whatever my next venture was.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They wanted to give me my first checks. And I think more often than not, if we kill it as an employee, we can actually push that into capital in our next venture.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Oh, yeah, I love that. I think you're really smart because a lot of young entrepreneurs don't understand a few words that will change your life when it comes to making money and ownership, which is vesting equity, aka you can give somebody a percentage of your company, but they don't take it right away. They get it over years of work, a little bit at a time each year. which is called a cliff.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So nothing earned in the first year until they make it to the end of the first year. And if they're successful, then they earn a portion. Same thing with year two, year three. We talk about lots of the lingo in the book. Another thing that you mentioned that I think is really important is she was a high performer. She kept growing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so you were rewarding what you had already seen as positive behavior. not trying to incentivize future better behavior. So I think a lot of times what people don't realize is they give a carrot to somebody who is underperforming or sort of flat.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And they say, you could earn equity in my business if you do X and Y and Z. What you really should do instead is say, wow, you're the fastest greyhound on the track. You're crushing it right now for me. I want to reward you for what you're already doing now over a multi-year period. The best predictor of future behavior is past behavior.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So your high performers are more likely to continue performing than you changing the mindset of a poor performer.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think we were sold a great lie. And the great lie was essentially this. First, we owned our businesses back in the day. When we first started in this country, we didn't pay a ton in taxes, and we owned our own businesses. And then we apprenticed to eventually take over those businesses.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Then one day, big corporations came around, and they said, instead of you owning these little things, come work for us. We have this big, huge opportunity. You can come work inside of our sphere. Then we worked in corporations and realized the only place that padded walls should be is insane asylums, and I don't want to work in cubicles anymore under fluorescent lights.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So we said, wait a second, startups, that's what it is. It's Silicon Valley-backed venture rocket ships We'll go to do those." So then we went and did that as a society, and that's what we glamorized.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The problem there is nobody told us nine out of 10 of those startups would fail miserably, and they would leave a bunch of us with a mess on our hands, with companies that were failing, with heartache, right? And the people who would win would be venture capitalists who got to sprinkle tons of dollars across many companies. And also fueled a ton of innovation. But it's not for everybody.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It's a very hard path. And then finally, we were like, no more venture. I don't want to do that. So we were like, YOLO into freelance, and I own my own company, or what I'll call solopreneurship. Solopreneurship is the way. Well, you've done this before, too. I think the road to hell is paved with individual Zoom meetings back and forth between yourself and no help.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so we didn't realize that all we did actually was now go work at the behest of an Uber or at the behest of a Substack where they still own us. Silicon Valley still owns us. We just make a smaller percentage of our total profits as a solopreneur. And now we're like, man, we're not even making enough money in solopreneurship anymore and we don't really like this.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So I think the solopreneur movement is actually not as glamorous as we thought it was. And so my hope is the next movement is this Main Street movement.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Can we go back to the thing we were originally talked out of, which is let's own a portion of small businesses all around this country that are already profitable, that have existed for a long time, that don't have crazy volatility of online businesses, and that are simple. And that you're going to pay even if it's in a recession because you want your plumbing to work even if it's a downturn.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And that's my belief.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Everybody wants equity, right? That sounds good. But the problem with equity is you can't eat it. Meaning, what are you gonna do? I can't take my equity and go pay for something or put a down payment on a house. It's sort of like up in this ether, this thing that I can't touch.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if you went and looked at a bunch of Silicon Valley startup employees, you'd see, oh man, most of them thought they were being compensated like this, very high, because they had a lot of equity, and realized, wow, my equity wasn't worth anything like that. And so I think there's a better way, which is equity plus distributions. So that means, hey, I get a percentage of a company.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You can't really take that away from me unless I do something fraudulent or crazy. I own, I don't know, 10% of XYZ company that I work at. But because I need to eat and make money, there's something called equity. distributions, which happen for all owners of a business. If the owner takes $100,000 out of the business, then that means that I get what's called my pro rata.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So my percentage that I own of the business, I get distributed to. So let's say the owner is going to take $100,000, I might get $5,000 if I own 5% of the business. And that way we can eat as we move along and get equity. That is equity done right. Distributions today, future profits tomorrow.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So Main Street business is the business that you pay right now every single month, but you kind of ignore it. It's your landscaping business. It's your house cleaners. It's your roofing companies. It's services like your podcast production company that you pay as a vendor. These are businesses that are the opposite of Silicon Valley. They're not something new and innovative.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They're continuous and compounding. And so when I think about Main Street businesses, I look all around our small community and I realize, man, it's not just the local coffee shop that's interesting. It's also the street sweeping business that cleans up the streets. It's the person who does line painting in the middle of the streets to make sure that there are parking spaces.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There is a road to follow. But nothing I talk about is like click a button and oh, by the way, you've got an Airbnb arbitrage model and you're just off to making hundreds of thousands. That doesn't work. It doesn't work. If it worked, nobody would tell you about it. They would just do it all by themselves. And so I talk about horizontal income. Vertical income is like your salary.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you work at a company, you're there eight to five, you make money when you're there. horizontal income means you might have a little bit of your time, like along the top, kind of like this. Some time always involved basically no matter what, but you could stack lots of them because you could have a real estate portfolio over here. You could have a stock portfolio over here.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You could have a boring business that you find an operator to run, so it only takes you a few hours a week, but there will be an upfront cost. All right, thanks for coming to my TED Talk. That's my rant on passive income.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Thanks. I'm excited to be here. Finally, actually, since we messed up earlier, but now we're going to crush it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Totally. You know, my father said something that always sticks with me, which he was like, you haven't actually been an entrepreneur or run a company until you've woken up at two in the morning in the middle of the night and sat in your living room on your couch in the absolute darkness and wondered, how are you going to figure any of this out?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And until you've had that moment where you just are not sure, you are living in a cloud of uncertainty and that uncertainty feels catastrophic, you've probably never run something and you've probably never built something. I think we can decrease that likelihood, but at some point,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
For almost anybody who's willing to do a hard thing, like own their life and own their outcome and own their own business, there will be a moment. And so I think you're exactly right. It's like, can we ready people for that? But tell them that it's so worth it. Just like you're going to feel sore after you do a workout, but you're going to be glad you did it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Yeah. Well, I'm friends with Alex and Layla, so I love them. I think there's multiple things. One, I just don't like risk. I want to never have a likelihood where I can't pay my mortgage or pay my rent. I don't want you to sit there wondering if you're going to have to pack up and move the kids out because you have taken one huge swing and you have fallen down short.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
What we forget is what the numbers tell us. I go back to the numbers and the numbers tell us that most small businesses fail, that most startups never even make it to their first million dollars. For every case on Twitter showing you how easy it is to start something, if you go to the numbers, it tells you that that is an anomaly by and large.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so for me, somebody asked me the other day in one of our groups where we talk about buying businesses, they were like, I have a $250,000 job. I'm working at a company, but I really want to focus on buying a small business. I don't know if I can do both at once. Should I quit my job? I was like, absolutely not. Absolutely not.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You should keep that income and take a small incremental risk that allows you to get to the next step. The hard work is like, yeah, why don't you work two jobs for a period? I'm not saying there's like a free lunch thing, but don't put yourself in a position where you're not able to feed your family or yourself. I don't think that's necessary. Now, to their point,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There's something called the 80-20 rule, right? Or Pareto's law, which is basically that 80% of your outcomes will come from the 20% of the things that you do and almost everything in life. And so I do think they're right in that focus is critical. In my business right now, I own 26 businesses, but 80% of my time goes to one business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
idealism, really. You're young and you want to save the world, but you haven't even figured out your own life. And I think that was me. And so if you're young and listening, I imagine there's a moment in time where you think everything's screwed up, nothing's the way it should be, and I'm going to be the one to fix it. That was me at a young age.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And the rest of those businesses are operating with independent operators like a private equity model. If I had to split focus between 26 businesses, I wouldn't be here. And so there's this balance where two things can be true and have nuance, which is if you feel something so strongly that you couldn't sleep for the want of it, you have to build it, then do it and focus on that thing exclusively.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But for a lot of people, they're like, man, I just want to spend three more weeks this summer with my kids. Or I just want to go on one more vacation than I can. Or like, I'd like to just not have to worry about the price of guacamole and avocados on the side. And so for me, wouldn't it be nice if I could just have this little extra?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so anytime anybody's listening to anyone, including me, I think you should be asking yourself, do I just want this because that's what she is saying? As that's what he is saying? Or do I actually want this myself? And where can I question everything and find the truth for me? Because there is no one truth. There is just what is appropriate for you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Yeah. So what I really want people to do is learn the framework. So I want you to be able to buy your first business that either supplements your salary if you want to exit your company or supplements your expenses.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so I want to teach people how do you buy a small business that can either replace what I'm making right now or that can replace my expenses so that I can continue to do the work if I want to at my job, but I never have to. I can have my fuck you fund that's funded from something else. And so that's the first step.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And then what you'll quickly realize is once you buy a business, and the average person who goes through our program buys a business typically in 11 months, and that business is somewhere between $100,000 to $10 million in total revenue. And we screen people because not everybody should do this. And so we screen them to kind of make sure, are you sure you're ready for this?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what I've found is what happens is you'll buy your first business and then you'll spend anywhere from 90 days to a year, a year and a half, kind of stabilizing that business, running through it. But then you're going to add different, what I call revenue lines that could be income lines to an individual through your business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I thought, it doesn't seem right that so many people don't have while few have. It doesn't seem right that I'm Latina and a bunch of Latinos are hanging out to dry along the US-Mexico border, and maybe I could make an impact. And I think that was a noble, beautiful idea in a lot of ways, but also pretty ridiculous in some, which is that I really hadn't figured out life in general.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you're going to say, all right, I bought a laundromat and now I want to increase the revenue of the laundromat. So I'm going to add vending machines as another revenue line. And then because I see how that works, I'm going to add vending machines for soap. And then because I see how that works, I'm going to add a wash and fold service. And then I'm going to add a delivery service.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what you're basically doing is you're diversifying your revenue streams through one business. So there is a focus or a through line to your business, but you're being really smart in acquiring your new profit centers. That's something I wish I learned earlier because I always thought you had to grow organically. Like I've got to go and I've got to get this one customer or this one client.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But what if instead you could acquire the clients and wrap them up inside of your business? And that's what I tend to do again and again. But the only caveat I would say there is that I do think you need to focus on skills early as opposed to income. So I have a model that says, learn, earn, invest. Most people go, I want to invest. I want to invest and make money.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But really what you have to do is first you have to, let's say you wanted to buy a boring business. You need to spend a minute learning about buying a boring business. 90 days, some people take a year, but let's say that one year trial period of really learning how to execute on deal making.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And while you're doing that, I want you to earn money and I want you to learn how to increase your earnings potential. So whether that's negotiating for a higher salary, or whether that's getting a better job with a better salary, or whether that's doing commissions.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And after you've done those two things, then I want you to use that money and I want you to invest it in something or invest your time or expertise. That's kind of how I push people to start thinking about diversification of revenue lines.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I was counting them the other day. I think there's six paths to buy a business with $0. So let me share that with you first. And then it'll kind of tell you what type of person can do what, because it differs. So if you want to buy a business with $0, you can buy a business... basically by using seller financing. So you can say, hey, I'd really love to buy your podcast.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You don't want to do it anymore. How about I take over the business, your business makes 100K a year, I'll pay you 300K for the business over the next three years. You take all the profits, I'll grow the business, anything that's the delta is mine, and I own the business at the end of the year. So that's called seller financing, super common. Then you have revenue share.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you might say, hey, your podcast is doing awesome, but I bet you could monetize it better. What if I came on board? And whatever your podcast is making right now, I don't want any of that. But if your podcast, if I could make you an extra 20% or an extra $200,000 a year, I'd like 25% of that in perpetuity. And maybe we could negotiate for a percentage of your business, like 5% of your business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so I don't have to put any money in, but I've just given you $200,000 more for just my sweat equity and revenue share. And you can do that same thing with profit share. You could be like, I'm not going to do it from top line revenue. Instead, only when you put dollars in your actual pocket, will I take 20% of the profits that I grow you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'd like to take a small piece of equity in the business too. So I get to continue to be paid in perpetuity. And then you could also say, okay, what about if you are a business right now and you have assets? So let's say you have a trucking company or something. You have a bunch of trucks. Why don't I go get a loan on the trucks?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And it's hard to give much if you don't know much. And so at that time, I was in school. I graduated about a year early from Harvard of the West, really, aka Arizona State. And I was looking for what my purpose was going to be in life. And I needed to make some money because I didn't have any either.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And because I do a loan on the trucks, I can buy your business with this capital. And then the fifth way would be like, I go raise money. I hear Cody's got some money. I hear Alex and Layla are flush with cash. So I'm going to go ask them for some money. I'm going to buy your business. They're going to take a part of it. I'm going to take a part of it. And then the last one is like an asset sale.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So like, oh man, a bunch of businesses are going under with COVID. What if I reached out to my other podcast friends that aren't going to do their podcasts anymore? And they actually had some sponsors and info products that they're just shutting down What if instead I kept those going and I just paid them a commission on that?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I'm going to let them have 10% of those products for the next three years and the rest goes to me and I'll run it all. Don't worry about it. And so we could do an asset purchase. And so when the people come into the group, what I say to them is it really depends on what type of purchase you're going to do.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You could buy a business tomorrow with very little risk if you do a revenue share, a profit share, an asset sale. There's no skin in the game. And if you go bankrupt or the company fails or anything, you're not going to go bankrupt. You're going to be fine.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Now, if you're going to put your own money on the line or get a loan, we need to make sure that you have enough money and understanding of running a business so you're not going to go under. And those are the things that I try to talk people into. Typically, if you've run a business before, you should be able to buy a business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
If you've been an exec at a company before, you should be able to buy a business. If you've done real estate before, you should be able to buy a business. And if you have some excess cash so that no deal can ever go sideways enough and ruin what momentum you already have, you could buy a business. But I'm really conservative, again, because I hate risk.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I'm always like, please, dear Lord, just don't come over even and talk to me if you're not ready to do the work, because it does take some.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Exactly. And then what you want them to do, this is where it's fun, and we can always talk about this later in case this is too technical for all your people. But what's really fun is for somebody like you, you also have a different type of purchase you can do, which is audience. So lots of people like you do sponsorship deals or ad deals, and that's great.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You have a high level of integrity, so you only do things that are great for your audience. But you know what a better play would be? Is you look for a few companies that you really like, and you say, I want to do distributing equity deal with you. I'm not going to take any cash up front or I'm going to take a decreased cash rate. And instead, I don't know, I love this notebook company.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so notebook company, I want to put you as the sponsor for all of our podcasts or for some of our podcasts. And that would typically cost you $100,000 in ad spend. Instead of that, you're going to give me $100,000 in value in the company as I drive XYZ metric. And I want a percentage payout every quarter based on the ownership percentage I have in the company.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so I got a grant from the Howard Buffett Foundation and decided that I was going to go cover border issues along the US-Mexico border. And I did that for a while until I really realized there is a difference between being the one that tells the stories and getting someone's story rewritten. I wasn't rewriting anyone's story.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I want a profit share or a rev share. Because you don't really want to do just an equity deal because then you end up not making any money and you still got to pay your employees and everything. You need some cash to come in. And so distributing equity is a really cool way to do a deal if you have an audience.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Really varies. I mean, the cool thing about businesses is you can go as big as you want. I mean, I was doing deals when I was in private equity and running my own funds that were hundreds of millions of dollars. And I've been a part of billion dollar deals, although I didn't lead that deal. So it can totally vary. What I would say is if you want to use your own cash, it's a good metric to think,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I'm probably going to have to put something like at least 10 to 25K down to buy a small business. Can I put 10 to 25K down? Then I can use my cash and I can buy a small business using seller finance. Like you can do that for sure.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
If you want to get creative and not use any of your own cash, which I was just talking to Alex and Layla about, how do we do more transactions without a bunch of cash up front? Then technically you don't have to have cash. You could just do a deal using sweat equity, rev share, Or the fact there are these 11 million small businesses and they're looking for homes. These people need to sell.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
We had a guy the other day, actually, who was in unconventional acquisitions. It was so cool. So he worked in Phoenix, Arizona, and he was a general contractor. He was in the construction trade. I can't remember if he was general contractor or not. And he worked for a guy. And he had worked for a guy for 10 years in this construction business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But the gentleman who headed the company was getting old. And he listened to one of my things. And then on our next Monday call, because we do a call every Monday, he got on
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And he's like, you know, I went to my boss essentially and I sat him down and I said, hey, I don't know if you were ever thinking about this, but if you ever were going to retire from the business or think about selling the business, I'd love to talk to you about it because I would love to buy this business from you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'd have to figure out a creative way to get cash to do it because I don't have a lot. But if you're ever looking for somebody to take over your business, I'd love to have that conversation. And his boss basically was like, oh, this is great. I'm ready to retire. I just, none of my kids wanted this. I didn't really have any idea.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Would you want to start figuring out a plan inside the next 30 days? He's like, I only really, I want to work like two days a week, but I don't want to work five. You could just use the profits from the business to buy it from me. I can watch and make sure you're doing a good job. And if you hit all your metrics within 90 days, we start to transition over. He literally had the whole plan.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
for his employee. And that doesn't happen every time, but you'd be so surprised, or actually you wouldn't probably, but people listening would be surprised how often running a business is so tiring after 10, 20, 30, 40 years. They're like, please, dear God, take the thing. But I don't want to just shut it because it's my baby too.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I was just telling them in an almost voyeuristic way to a void of humans that really didn't make much change. And that didn't sit well with me. And so I thought, I better figure out how to become something besides a journalist or I'm going to become very jaded, very young.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
It's so true. I think you never sell anyone anything. You only find people who are already predisposed to want what you're selling. You find people who are ready to sell. You don't teach people that they need to sell. In that case, they kind of look like this. There's two archetypes, if you could think about it. there's you. You are a young entrepreneur.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You've only been doing it for five years or less. You're excited. Your business is growing. It's in a cool industry. Your brand's associated with it. There's all this optionality.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You might take some cash as investment if you wanted to accelerate your company, but you're probably not ready to sell your business because you're still excited and there's all this room for growth and you have a cool curve. The opposite, what we're looking for is somebody who's probably over 50. They've run the business for five years or more.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
The business has very marginal growth, 3% to 5% growth a year. They've been running this business in an area that's pretty commoditized. Think roofing companies, landscaping, accounting, and they don't have a big growth plan for the business, they work a lot typically, or they're looking for change because of death, divorce, disease, unhappiness.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There's a different word for it, but I always forget the D for it. And also disaster. They call them like the five Ds of selling. And if one of those is happening, then you are primed and ready as a motivated seller.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think there's three things you need to get 80% of the way to a deal. And the devil is in the 20%. But if you want to get 80% of the way to figuring out what a business is worth, and maybe should you buy it, you need these three things. And they are first, you need a profit and loss statement. So what does the business make and what does the business spend each month?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And typically, you want that to be expanded so you can look at it weekly and monthly. You don't just want an annual one because some businesses have a lot of what's called seasonality, so variability in their sales or expenses. Then the second thing you want is their tax return because they put together the P&L, but the IRS puts together the tax return.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so very seldom is a small business owner going to pay the IRS more because they lied about their business making more than it really did. So you want to match those two up. And then the third thing that you typically need is there's, in almost all businesses, there is some, there's that 80-20 rule again. There's like the 20% that really matter. So let's do an example of like a car wash.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Your lease really matters or the cost of the real estate really matters because that's one of your biggest expenses. The utilities really matter because electricity and water are one of your biggest expenses. So you want to find out what is the other 20% that is going to drive 80% of the success of your purchase.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
We're learning a new skill as is here, right? We're learning deal-making, how to buy a business, how to do a deal. If we don't have to layer on another skill, which is an industry-specific skill and an industry that's hyper-complicated, that's a win. Keeping deals simple wins deals.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think the worst thing that you can do is allow a really fancy PowerPoint to come into the mix here and give you a bunch of false hope and projections about what could be as opposed to what is. And so I like really simple businesses because then it's easy for me to understand.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think most deals go wrong because if the deal doesn't make sense on the back of a piece of paper or on a napkin, then the deal probably doesn't make sense in general. So most people in our world in finance, you know this too, you know, people in finance want things to seem complicated so they can charge you a lot of money for them to solve it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But the truth of it is, it's usually a lot simpler than we talk about. Nobody's curing cancer here. You can understand how a laundromat works, how a car wash works, how a roofing company works. It just takes some work to understand it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So that's why I don't like anything that says proprietary on it or bioengineering or complex patents or even complex attorney companies because there's too much ability for me to not understand what's happening. Keep it stupid simple.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
It's amazing how fast 12 years flashes, which is something only old people say, which apparently I'm nearing. But the beautiful part about working in corporate America is you learn on somebody else's dime. And I'm a huge advocate for failing often without the ability to bankrupt yourself.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
These days, there's so much entrepreneurship porn about how you have to sleep on somebody's couch and you've got to do it the hard way. And if you weren't homeless for a minute, you're never going to make it. And I don't actually think that's true.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I believe in buying companies based on reality, it's not hopes and dreams. That's the difference, really, if you think about it, private equity versus venture capital. Private equity, which is what I do, sort of buy these boring businesses.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Private equity buys businesses based on the money they make today, and they apply a very small idea to the money they think they could make in the future, but they buy it based on what it makes today. Venture capitalists invest in a company now with a hope that the company becomes something else in the future. If the company...
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think you right now could be working in a corporate job and feel like you are stuck because your lifestyle has crept up to the point where it matches or sometimes even exceeds what you're making, even if you're making a decent amount of money.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
that a venture capitalist invests in stays the same the day that they invest in it as the day they go to sell the company, big, huge issue. That means the investor is not going to make any money. If a small business stays the same the day that I bought it as the day that I sell it, that's okay because I anticipated that and I just cash flow on that bad boy for some amount of time.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that's really the difference between the two.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I always call it the fax machine test. Every time I see a fax machine, I get all tingly because it basically means that they haven't spent much money on technology, probably haven't done much marketing. And that's something that's called value add. It basically is just the same as a piece of real estate in which you're like, oh, look at this awful shag carpet.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And then you peel up the corner and you're like, beautiful, original hardwoods. Awesome. Like they don't even realize what they have. Oh, they boarded up this room and made it into something ridiculous when in fact, when I peel it back, the room's way bigger. Look, there's a window underneath here. I don't even have to add the window. That's what a lot of these boring businesses are.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
They're kind of a pain when you first take them over because there's nothing systematized, right? A lot of these guys have their tax returns in paper folders scattered around their office. So it's not hard to do, but it's a lot of work to systematize that.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And then you get to layer on the fun stuff like, gosh, could you imagine if a company actually paid attention to reviews and had software to get them at the top of Google reviews? I could instigate that. This company's never once tried to get a review, and I think we could change the company.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so we have something called the three M's, which basically talks about markets, marketing, and measurements. And those three things all have all of these different variables in them. So like markets, if you own a business and you are located in... I don't know, you're a baby, you're a toddler. What are those called where you go and you like take kids? Daycare.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And those handcuffs will tie you to a job you hate, working for people you don't like on things you don't want, where you are no longer the architect of your life. And that's what happened to me and what I mean by golden handcuffs. They're self-imposed, but they're still there.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So say you're a daycare for toddlers and you're like, okay, at this point, we don't take newborns. Well, a new market might be you start to take newborns. Another market might be that you add a preschool in the back. Another market might be you just add another one 25 miles away in a new location.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you think about what are all the different markets we're not serving that we could get revenue lines on? And then you go to marketing, which might be like, we don't use Facebook ads. We don't use TikTok. Why don't we have a YouTube? What about if we had cold call outreach? And then measurements is what inside the business are we not actually measuring right now?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Where if we measured something, then we actually usually outperform in it. And so we apply this 3M strategy to all the businesses that we run.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Well, if you can spell unconventional acquisitions, which is actually harder than you think, there's a lot of I's in that. then you can go to unconventionalacquisitions.com. And there's a free blog. I think everybody should get on it. It's called The Boring Business Brief. And every week, we basically break down a different idea of business to buy, a deal done, lessons learned.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
That one's really good. And then if you also go to contrainthinking.co slash recession, there's a really good piece that we have. I think you download it. It's basically all the ways to make money on buying businesses, starting businesses in a recession. useful.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Laundromat? Well, how about this? I bought my first laundromat for 100K, made me 67K a year, then ended up buying two more laundromats, rolling those up, and we sold that for close to a million bucks. You can buy a laundromat typically for less than $100,000 all the way up to a million dollars. And you can do seller financing on these as well.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You typically pay three to six X the profit of the business for a laundromat. They're what I call the gateway drug, good business to start with and learn with. For you, I'd say don't buy a laundromat. You can do a higher ROI and a higher returning deal, but a good one for a person who's just like, I want to do this for the first time ever without a big, huge business.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what are the cons of a laundromat? What do we have to look out for? The biggest con, I think, is that you can't typically make like tens of millions of dollars with a laundromat. You can make a couple hundred K to maybe a million or two. The second con is the customer that you're serving can be challenging. You've been to laundromats before. They're typically not in the nicest neighborhoods.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You typically have machinery that can get broken into. I haven't really had any vandalized, but that can happen. So your customer segment is not Tiffany's. This is a different customer segment. And so you have to be thoughtful on that. And then the other thing about laundromats that's just worth noting is they take a lot of equipment.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so if you're going to buy one, you really got to make sure you understand what that equipment is worth. Otherwise, you could get into a point where you buy a laundromat with all these machines, but the machines are all old. They're not going to work anymore. So you got to do some work on the equipment and get an appraisal.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Vending machines are great because this is a very cheap business to start or buy. I see people buy vending machine businesses for anywhere from $3,000 to maybe $300,000. So it's a really good, again, entry-level business. The problem with vending machines is that you can't sell very much out of one location. So they're not very efficient.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You might make a couple hundred bucks per day per vending machine, but you'd have to travel all around to go both fill them up again and collect the money. So they're not a very efficient business where you can just go to one location. They require some logistics, putting money in, taking gear out. The second problem with vending machines is they don't scale very well for reason one.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So there are some companies that have scaled vending machines, but not very many. And then the third issue with vending machine businesses, I think, is it's basically like a mini real estate place. You have to go negotiate deals with every single location that you go to. And they could take those deals away or they could require more cash.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you have to make sure you know how to negotiate and the right way to talk to a seller of the location. The good parts about vending machines, though, are they're very cheap to start. They're really easy to run. Again, easy, not simple. Important caveat between the two.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And there's a bunch of technology now that allow you to track your expenses, your inventory, and all of that remote, which didn't used to exist. So that makes them a lot easier.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So if I had to look at these three in order, I'd say vending machine, easiest business, least cost, probably the least profitable. These are all averages. Second business would be laundromats, medium cost, medium expenses, medium revenue. The car washes, most expensive, potentially the highest revenue of the three.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so the good part about Car Wash is all three of these businesses can be relatively automated businesses, and you don't have to be on location all day in all of those businesses, which is really nice. Car Wash has that same characteristic. They also can scale pretty easy. So Car Wash's You can add multiple bays to them. You can offer in-person service. I don't do that with mine.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I mean, I was a young idiot, just like the rest of us. When I was first investing, I thought I knew everything until I lost my first dollar and then a couple dollars and then a couple more dollars. And so big corporations are soul-sucking in many ways.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I like it better when it's just a location and you can self-serve, which also means you make less money, obviously. The thing to know about car washes is the equipment's extremely expensive. It's the most expensive of any of them. So you really have to make sure you analyze the equipment and make sure that it's in working order. And then it's really real estate.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You've got to just look at the location, location, location, location. Do you have at least 10,000 cars that drive by per day? That's called your car count. Do you also understand your utilities and water bill? Because that'll be really big for a car wash. And also, are there any taxes? Sometimes they levy taxes on those types of businesses. But I've owned all three.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I think all three have a place, maybe not for everybody, but to start.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Right now, the businesses that are most exciting for me are probably... I really like buying professional services. Like right now, I'm buying accounting firms, typically just bookkeeping. I like the reoccurring revenue component of them. So every single month, you pay somebody to do your books. I like that. I also like businesses and professional services that do things like insurance.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Again, reoccurring revenue. It also has something that's, this is like very nerdy, but if any of these terms, you guys don't know them. I think of money has its own language. You teach people this all day long. Money has its own language. And if you don't learn to speak it, you're certainly never going to get much of it.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so if you don't know words like reoccurring revenue, or what I was going to say is CapEx, which means capital expenditures, aka the cost to build a car wash. Things like insurance companies and accounting firms or bookkeeping have less of that. And so for somebody that doesn't have a bunch of cash to throw around, those businesses are kind of nice.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I've been playing a lot in the professional services realm right now.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But one thing they do well is they usually invest a lot in their employees because they understand the numbers, which is simply that if you hire somebody and then that person doesn't work out, you typically spend at least twice the cost of anywhere from three to six months of their salary. In some companies, it could even be a year.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I've found that the most critical person to you will be that person you see in the mirror every day. And most people try to compete based on follower count or bank account. And I think the only account that actually matters is the one that stares right back at you.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So about maybe a year ago, I started realizing that I was letting my days slip away from me and that I was going along with whatever was happening as opposed to what I wanted to happen. And so I started posting a selfie each day and the selfie was just me in the mirror. And then it was my outline of things that I have going on that day.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And the reason that I did it was a little bit of accountability. So am I actually going to do the thing I try to do, which is 1% better every day because compounding is magical. And I thought maybe this is a good way to do it. People do it a lot for working out, but I don't see very many people hold themselves accountable to what do they do with their time, their most precious commodity.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that's my idea.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So there's a saying among pilots that basically for every one degree that you go off course at any given time, at the end, you'll end up 60 miles away from the course of destination. And so when I heard about this, I started thinking about it from a daily action perspective. What if that's also true in the things we do each day?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
What if we have a plan, but every day we just get slightly moved off course, one degree off course? Would we also end up tens of miles or hundreds of miles away from where we wanted to be? And I think the answer that we all know inside is that yes, that actually is what happens. And so when I realized that, I like to put things into practice by putting them on my calendar.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I put on my calendar pretty much every week that I can a little time for me to sit down with a notebook and I talk about what are my outcomes that I want to have happen that week. And I ask myself a series of questions and those questions lead me to hopefully steer myself straight each week.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think it's less important what questions you ask and how you do it and what day of the week that you do it. but that you have a practice where each week you're going to course correct slightly for every degree that you get off.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You know what it actually is? The piece of advice I would give is that you don't actually need advice. You need to figure out your to-do list. And most people spend so much time listening to what other people say they should do with their lives when they know inside the things one through 10 they need to do to have a different outcome. And instead of trying to perfect, why don't you try to do?
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'll listen to my own advice on that too.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you basically waste hundreds of thousands of dollars for every employee you hire that doesn't work out. And so they do a lot to try to train the people that they have in the seats that they need them. And I benefited from that. One of the companies I was at, Vanguard, they told us, who knows if that's true, that they spent about $100,000 on the training of the
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
The best deal I ever did was my partner. It was my husband. It's also the deal that was the most costly to me ever with my ex-husband.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So when you're still young and you have this option, be really careful who you tie your life to because whether that person is your significant other or that person is your business partner or that person is a senior executive that you bring on or somebody you decide to do a startup with, your partner will be the single largest impact on the human that you become.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And most people don't pay enough attention to that. So choose your partners carefully. I love that.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Contrarianthinking.co. Join the newsletter. That's hands down the best place. And then I'm Cody Sanchez, C-O-D-I-E, on all the internet of things, whether you like Twitter, TikTok, Instagram, or YouTube, we're on every single one.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
group that I was in, which was this accelerated development program. So I actually think you can learn a ton by working for somebody else.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And you've probably seen this too, because in internet land, there are a bunch of people that have never worked for anybody, that have never been an employee, never had an employee, never had a boss, never really been a boss, except maybe to vendors or some one-off individuals. And they're almost kind of like these cute little morons running around with no idea how real business works.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I think it's a huge disservice to them. And if they had just spent like a few years working for or with somebody else, then they could go jump to the next level and build something big, as opposed to what happens is they build something kind of big fast, but then they don't know how to sustain it, what a business is, what a P&L is.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that's actually all hard to learn while you're on the rocket ship.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Yeah. I mean, I've had my ass grabbed more times than I can count in finance, for sure. That was 12 years ago. So could you imagine like 20 or 30? I mean, it must have just been... No wonder those women are kind of hard. I remember when I was coming up and there were a few, very few women above me in finance. I was always like, oh, I don't want to turn into her. She seems kind of mean and mad.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I kind of get why. actually, because there was allowed to be one. It wasn't a real rule, but it was kind of there. On the flip side, though, I do think you get to choose your reality. And the reality that I chose was I look different than everybody else. You look different than everybody else. So every Chad, Brad, Tom, Matt, Larry is going to be forgotten in their gray, blue, or black suit.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'm going to be probably remembered just for having a name that's a little bit different. And I look slightly different than them. And the way that I communicate my skill set comes across differently. So I think there's huge benefit to being slightly outside the norm.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And our lizard brains just don't realize it because we still think that we're on the Savannah and could be eaten by a lion at any point when it feels slightly uncomfortable to not fit in. But it took me a long time to get that.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I mean, I remember one time, I'm sure you have stories like this too, but I remember one time I kind of was giving somebody a hard time about the way they were acting at a company event and they had been drinking and I thought that they were making some poor life choices. And so I said something like that to one of them, a gentleman, and he was like, and this is why we don't hire women.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I was like, whoa.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There it is. Yeah. But on the same vein, at that point, I was just kind of like, hey, fuck you, man. Like, what a dumb thing to say. You've been drinking too much. Go home. And then the next day he comes in, he's like, I'm super embarrassed. What a silly thing to say. And so I think there's always colors or shades of gray to the fact that for a long time, men have been in charge of much.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But I also have an incredible dad and an incredible husband and incredible guy friends that have lifted me up. And so I try not to paint too broad of strokes for one particular sex or the other.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
It started in 2020 when what I really wanted to do was I wanted humans to question any of the narratives that were being thrown at them. At that point, I'm really big on one thing, which is freedom for every human to make their own personal life choices as often as they can. And my understanding at a baseline from starting in Latin America was,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
The difference between me, last name Sanchez, and all these other last name Sanchezes was really that I had some economic freedom. I was born like lower middle class in the US. And so I had more opportunity than a lot of these people do. And so I thought, gosh, if finance is the cornerstone to financial freedom, if it's at the bottom, then the next level is physical freedom.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So like you can do what you want, where you want, with whom you want. And then at the top of it is philosophical freedom, aka I can think what I want. I can do what I want. I can't get people to think for themselves until they feel safe and secure for the most part. It's hard for most people to do that. They need a roof over their head. They need to know they can pay their rent.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so contrarian thinking came from this idea of, I want people to think differently, but my Trojan horse is money. It's if I can tell you how to become really ridiculously wealthy, Then, and I can kind of glean that towards humans that I think are by and large good because they also believe in freedom, which I find as an underlying principle is really important.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Then that means finally, once these people become financially free, they can share this pervasive mentality I have, which is we should question the world around us and that should be okay. And so at Contrarian Thinking, that's what we do. We talk about civilizing the mind. We talk about building the bank account and we talk about making savage the body.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Because you need to have a strong bank account to have a strong mind. And in order to have a strong mind and bank account, it often really doesn't make any sense if you're unhealthy and sick and overweight and fat. And so let's try to have this kind of third degree black belt in three areas of our life. And that is a life's pursuit that I think is worthy.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Sure. I can't remember. It's a famous investor, but I can't remember which. It might have been Carl Icahn or it could have been Warren Buffett. But one of them said, in order to make a lot of money in investing, you have to do two things. You have to be contrarian and then you have to be right. And that tends to be true, but very hard to do, although simple to say.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what I've found is that you don't have to be the most intelligent person out there if you can find where the narrative is different from the numbers. And what do I mean by that? These days, the narrative is what you hear on Twitter and Instagram everywhere, which is AI is incredible. And the next GPT launch and my new startup that's raised $50 million from these venture capitalists.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
This is the altar at which we pray as Americans in capitalism right now. And so if that's the narrative, then I started looking at the numbers and I said, okay, well, I kind of get it from a venture capitalist perspective, the people giving the cash out, they make a lot of money because they give it a lot of money to a lot of people.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And like two out of 10 of every their portfolio companies make it big. And those two out of 10 have to hit a hundred X to wipe out the fact that the other eight largely lost. And so I was like, huh, that's the truth. Then we have eight founders in that mix that spent on average three to 10 years hating their life, sleeping on floors, making no money and eventually failing in their startups.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that is what it takes to innovate at a venture capital level. So I thought, well, where are the numbers different for founders and entrepreneurs? If that game has 80% potential failure rate, where is there an 80% potential win rate? And what I found is they're in something called boring everyday businesses. When you buy a business that's already profitable, that is already operating as is,
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
and that business has been in existence for more than three years, in some cases, 20 years, and you know that that business has done X for the past three or 20 years, the likelihood of it to continue to do X for the next three or 20 years is pretty high.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So as long as you don't spend too much money acquiring it, and you structure the deal right, and you know how to analyze it, you're de-risked as opposed to a startup where you have to pray hopes and dreams that you can succeed. And so that's the way we think about contrarian investing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Right now, I think the trade is in these boring everyday businesses, but it's really finding that difference between the noise and the narrative.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Can I interrupt for one second? Of course. There's two words you said there that I'm so particular on these days. Passive income. I know you don't actually live by the mantra that so many people on the internet does because you're an entrepreneur. You've built something. It's a profitable thing. You've been in businesses. You've been an exec at high-level companies.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But I think these days, those words used to not bother me, and now they do. Because what passive income meant back then was your time wasn't tied to making money. And so if you own a piece of real estate and somebody lives in that, but you don't, you could make money that is unrelated to the work you are doing.
Young and Profiting (YAP) with Hala Taha
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Now I like to use the word horizontal income because passive income has become used by a bunch of 20-year-olds on the internet telling you you can get rich in 36 or 90 days if you follow my foolproof plan. Although, oh, by the way, I only make money by telling you about my foolproof plan, not actually doing the thing. Huge issue. And you've seen them too. This shit is not easy, but it is simple.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
All of those services are businesses. But we were taught as a generation, you're in my generation, that if I own a handyman business and I'm a handyman, that's bad. If I go to college and I become a roofer, that's not very cool. But if I become a marketer or a graphic designer, that's cool. Here's the problem. Roofers make way more fucking money.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So I think we were sold a little bit of a bag of goods. Maybe you don't want to stay a roofer forever because it could be hard on your body, but you learn the trade, then you learn the business, then you own part of the business, then you own the whole business, then you sell it. And that is how you were able to pass off your work over time.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think a lot of reasons why these businesses are overlooked is really three things. Main Street businesses have a societal belief that they are less than. We call them blue collar, not white collar, right? They're not shiny. They are something that is done by people who don't have university degrees, and somehow that's a bad thing. So we have a societal sheen on them.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The second reason people don't love these businesses is because we've been told, well, these people don't make very much money. And these businesses don't make very much money. If I'm gonna be a banker or an accountant or an attorney, I'm gonna make more. Well, that turns out not to be true over time. And then the third reason is because these businesses don't have what's called a moat.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So there's probably, I don't know, a couple,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
thousand handyman companies maybe 10 000 handyman companies in texas there's like one facebook right and so we thought you had to have this new sexy innovative business in order to make money you don't in fact it'd be much easier to compete with your local handyman company than mark zuckerberg who's an animal and so those three reasons kept us away from main street businesses
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The other thing that's interesting about Main Street businesses is most of them are recession resistant. So you're going to use a landscaping company if you need to have your driveway shoveled during the winter, no matter what. Most of these small businesses have some version of subscription revenue, the thing that SaaS companies, tech companies love.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And most of these businesses are pretty simple to understand. Now, I don't want to idealize this. I'm not saying this is like a fast, easy, 30-day-to-million type thing. up. But these businesses have been overlooked. And anytime that happens, there's money to be made.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If I go to college and I become a roofer, that's not very cool. But if I become a marketer or a graphic designer, that's cool. Here's the problem. Roofers make way more fucking money. Ownership actually is a synonym for freedom. So the more that you own things, the less other people can tell you what to do.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You have read the book. You're gonna own a bunch of these things by the end of it. The Lindy effect is really important. It's very simple. And I think the best ways to make money are super simple. If you want to make more money, you should look at how long a business has existed.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The Lindy effect says the longer a business has been in existence, the higher likelihood it will have to continue to be in business. So essentially the opposite of what I thought was true. It was like, this thing's been around for 30 years. Oh, it must be old, outdated, not work.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But in fact, it has a higher likelihood of continuing to succeed as opposed to a brand new startup, much riskier, much higher likelihood to fail. And so if you look at businesses that have survived for over five to seven years, you have taken away anywhere from 50 to 60% failure rate. That means you're left with only 44%.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
What if I could tell you today you could start a startup and I could decrease your risk of failure by 50%? You'd be like, that's cool. Yeah, let's do that. Well, that's what you can do with these boring businesses that have existed for a long time.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So the question usually comes to me like, when am I ready to buy a business? How would I know? And my question back to you would be, one, One skill set that I have never regretted that I wish I had learned earlier was dealmaking because it will forever change how you make money.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Even if you never buy a business outright, if you understand terms, structuring, dealmaking, and how the world of money works, you will have a hard time being poor. And so because of that, I like to teach people business buying before they even think they're ready for it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So for instance, I gave my cousin this book, who's 16, and he's reading through it and he's figuring out ways to do deals right now. And the way that I think you know you're ready is basically this. If you are in business right now, it is a no-brainer. If you look at the biggest companies in the world, they grow through acquisitions. Amazon, Facebook, both of them have done over 200 transactions.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They grow faster through acquisitions than they do organically, customer by customer. So if you own a business today, you need to understand how to do deal-making. It's how you will be harder to compete with. You can acquire 100 customers at a time, while most people are acquiring one at a time. Total game changer.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you don't have a business yet, what I'd like to do is turn on what I call your reticular activating system of business buying. So your reticulator activating system is what gets turned on when your brain tells you that something is important. And so when you go and buy a car, for instance, like a Porsche, let's say, you go and buy a Porsche.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And before you bought the Porsche, you're like, I don't see these things anywhere. After you buy the Porsche, you're like, fuck, everybody has a Porsche in Austin, Texas. What happened? Nothing happened, your brain just started getting a signal to it saying that this is important and so you started noticing it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Right now we're walking around sort of in the matrix not realizing that all around us are deals, potential deals. And what I wanna do is turn on your brain so you start seeing them.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And what this might mean is if you work for a small business, you might not even realize that the owner is ready to retire and if you positioned yourself correctly, you could take over that business using seller financing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you're a solo content creator online, you might not realize that the $1,000 they want to pay you to promote XYZ product, you should actually negotiate a deal instead to get future distributions and a percentage of the company. Deals are all around you. We just want you to turn it on.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You know, I was joking with one of my favorite CEOs that I used to work for back in the day. He runs a company that does, I don't know, $300 billion in annual sales. It's a huge company. And when I was talking to him, he was pretty funny. I was like, Jim, I'm curious. He's older, so he's probably in his mid-70s. And I was like, you've been around for a long time.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You've been an investor all your life. You own all these companies. You ever met any passive income? And he was like, sure haven't, but I'm open to it. So that's what I mean that the way you get passive income is years of active work. And I think we need to be honest about that with each other. Now, that said, there's a lot of people that want to tell you two things. Either one, you can't.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It's not possible for you. Stay in your lane. It's much easier to be a hater than a hope giver. And then the second group wants to tell you, hey, it's super easy. Anybody can do it. Look at my Lambo. Look at my private plane. Look at my Gucci. And because of that, I'm really successful. You can be too. And they want to sell you something. I think the truth is somewhere in the middle.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And in fact, with small businesses, I think you should expect for the first year, you got a lot to learn, man. It is not complicated, but it is hard. It's not easy, but it is simple. And I think when you realize, oh, running a laundromat is not complicated, but it's hard work.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Running a vending machine business is actually harder than a laundromat business because you have these tiny little stores, right, machines, that have very limited cap on how much they could make per month. Let's call it max cap. I mean, if you had a $5,000 a month producing vending machine, that'd be incredible.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you have maxed this little $5,000 machine, and then you've got to figure out the logistics to go back and forth to all of them to accumulate eventually to a business that does, let's say, a million dollars a year. It's a lot of work. And so I don't like to talk about passive income.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I like to talk about horizontal income, which basically means where can you layer your income like a cake so that in any given time, your day is split between a few activities, mostly oversight as opposed to execution. So in my businesses, I run a big portfolio at Main Street Holding Company. You can see a bunch of the businesses we own there.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And part of my day is spent with like this company up here, which is Pink's. So, you know, I'm talking to the CEO, Steven, and I'm saying, hey, how is the cash flow looking? What's going on? I'm actually doing nothing in the business, but I'm at least thinking about it. So I like to be honest about that.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So a good level one business might be something like a vending machine. These are what I call people-light businesses. So it might be something where you could be the owner-operator of the business. The business is probably not making eight figures. You're talking about businesses that are one to three million and less. These businesses, on average, are what I call gateway drug-style businesses.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You can dip your toes into your first business small car wash deal, your first small laundromat, your first vending machine, your first podcast production company, but you're probably not going to get independently wealthy working on these businesses. You are in it, it will require some work, but it doesn't require as much cash. What was your first level one business?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Well, my very first one was a website called Selling South back in the day. And I tried a game that I was really bad at, which is I think we made money on ads and affiliates back then. It was really hard. It was hard. And I didn't make very much money at all, but it was a good entry drug business. And then I had a laundromat business, which I would put in this category too in the beginning.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And then I also had a consulting business, which was right on the edge of a level one, level two. Okay, moving on to level two, hands-on CEO. This business is one where you're going to potentially have an operator right along with you. You might have somebody who's actually in the business. My first business, I had a GM in the laundromat.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So he's the one actually running some of the laundromat specifics. I invest in it. I track things overall. I'm still involved in the business, but I have a little help. These businesses are slightly bigger in size. There's also a slight bigger complexity here. This could be things like multiple laundromats, let's say, for instance.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
This could be things like having a media company, what we have now. I would say most media companies fall into this category. They never get to like a huge daily wire allowance. These businesses also, on average, still have most of your time dedicated to this business and are going to have some employees, but not a ton.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Let's start with a fun one. Do you want to know who the richest woman in the world is? This is as of the end of last year when the Forbes report came out. If you saw it, maybe it's T Swift. I know she had a big tour. Wrong. She's like 34th on the list. If you thought it was Kim K, you'd also be wrong. She was like 21st on the list.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
This means you got an operator that's rocking and rolling in this business. You are in oversight mode. You basically get to do what I do, which is financial Fridays. You're reviewing what's going on. You have an operator who probably knows more than you do about the business. You've got employees underneath that operator. This business is doing millions of dollars in revenue.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And that means, alternatively, you could be doing a million plus in profit. And this is a business where you could have almost any type of business imaginable could be in this amount. So you could have a small furniture store. You could also have a roofing or an HVAC company in this amount. You start to get to the level where you're starting to do roll-ups in your business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Okay. And the way that we think about these levels is mainly, does the revenue support the employees and infrastructure that allow you to work on the business as opposed to in the business? So the first two, not as much. The third one, you start to get into it. I'm going to dig deeper on that in a second. Level four, market leader. So this means we're a big business now.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Not only do you have a CEO, but you probably have a C-suite staff. You've probably got a few other real pros in there running the business. Now we're talking about tens of employees plus. We're making real revenue and real profit in this business. And you're in a stage where you're either already at or getting to a spot where private equity might buy you, might compete with you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And these all are still in what I consider small and medium business. So this is still sort of micro PE below the level at which you're going to compete with what's called middle market and private equity.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So when we think about what is the right type of boring business to buy, really depends on who you are. But if I was to give you a framework, it would be sales, which is when I look for businesses, I look for a business that is stale. That means that it's been around for a long time. That means that the business probably hasn't done much in the way of innovation.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Might have something called the fax machine test, which is they have a fax machine still. That's crazy. Do they actually use that thing? They might take invoices on a piece of paper as opposed to putting it into QuickBooks. Then we get to the O, which is old. Has the business been around at least five to seven years? Is the Lindy effect in effect?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Can this business be one that we think has a lower risk? Because the likelihood of future success is probably based on historical success. Then we have weak. This one I really like if there are competitors that are weak in this space, and also the business itself might be semi-weak. So can I compete with a bunch of handymen in Austin, Texas? Maybe, because I don't know the name of any of them.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you thought that it was somebody like Oprah, also wrong, she doesn't even crack the top 10. Who is it actually? It is a woman who grew a roofing company to more than $15 billion in net worth. And so my point here is I think one of the biggest misconceptions with the really, really rich is that they do things that are really, really sexy.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Can I compete with Dell Computers? Hard. That is an entrenched business overall. I want to see weak competition and weak execution by the company. And finally, I want a business that is simple. So I want a business overall that is not difficult to understand, that is straightforward, so easy your grandma could do it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The fastest way to lose money in buying a business is to think that you know more than the owner of the business and to take on more complexity than you actually should. So I think about buying a business kind of like I think about maybe buying your first house to fix up and flip. You don't really want to buy a complete disaster on a street. Why?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Well, you've never done a construction project before. And so I don't know about you, but I've never heard of a construction project that comes in under budget and faster than you think. And so what I really want for your first acquisition is the first acquisition to go so well that you go, oh God, that business was like a little too small, a little too easy.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We're gonna build it up, then we're gonna sell it, then we're gonna do our next one because your first deal turned out so well. That's why I like really simple businesses for the first one. Business is complex enough, and we can layer on top of it great marketing. We can layer great advertising. We can layer a great team and culture.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But we want to make sure we don't bite off more than we can chew with our first acquisition. Unless you're a pro, in which case we teach some different things.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
One of the most beautiful parts about buying a business, as opposed to buying a house, is when you go buy a house, they want to know how much money you make. And they want to know how much money you make so that they can determine how big of a house you can buy. When you go to buy a business, they, meaning the lenders or the bank, they want to know how much money the business makes.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if the business makes enough for you to be able to use the revenue and profits of the business to pay the loan back. Now, there's going to be some degree of them vetting you and making sure that you seem trustworthy. And you've got to put together a little pitch to show that you are capable of buying a business and getting a loan. But the fascinating part is it's not on your salary.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It's on the business's income. And because of that, we have a unique opportunity to outkick our coverage by buying a business that would be more than we could actually afford if we were only to look at the amount of money we have or our salary. So that's one huge differential. The other is that we teach 21 ways in the book in order for you to buy a business using creative financing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But one of my favorites is seller financing. So you mentioned that 60% of all businesses bought are bought with some aspect of seller financing. And if you understand seller financing, I don't think you'll ever buy anything the same way again.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Because what it basically teaches you is that you want to invest in businesses and buy them using some portion of the future revenue and earnings of a business. Now, this isn't to say you can run around saying, I'd like to buy your $5 million business owner for $0 down. How does that sound?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
In fact, most of the richest people on the Forbes 100 list If they didn't inherit it from a boring business, they started a boring business or they bought businesses, aka finance. So I think there's a matrix kind of like this. On the vertical side of the matrix, you basically have the sexiness of a business. from artists to musicians to actors.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Just like anything in life, you have to treat a business transaction kind of like treating a dating transaction with a woman. You got to get her to trust you. You got to get her to believe that she's going to be better in your hands than anybody else. You got to get her to see that you actually care about this business and you are going to make sure it succeeds.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if you do that, then you can get really creative, unfair deals that somebody running around throwing out offers left and right isn't going to get.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We have this whole section where we show three different graphs on seller financing. And once I understood how to pitch seller financing properly so that it was a win-win, our ratio of people taking seller financing went up about 100%. And here's how I think about it. If I was going to a small business owner, here's the conversation that I would say.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I would say, all right, small business owner, this is after you've gotten to know them, after they like you, after you really understand the business, you've done all of the early stage of dating. You're not asking to take the girl home on your first coffee date encounter, right? So after you do that, you're going to have a conversation that sounds like this.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Okay, Mr. Owner, you want $2 million for your business. You think that's what it's valued at, right? And you go, right. Okay, let me show you. When I took your business to the bank, based on what you showed me, the bank said they would give you about a mil, whatever the dollar amount is. Usually businesses are not worth what the owner thinks it is.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you wanna introduce a third party saying, sorry, we're not gonna pay you for that. So we say, okay, the bank says that it's worth a million instead of two. That means that I could give you a million dollars plus I got to pay like 8% to the bank because there's an interest rate associated with it. Plus I probably got to wait like 120 days for the loan to fully go through, maybe 90 at best.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
plus you're gonna have a higher tax burden because they're gonna lump sum pay you out right now, as opposed to over time. We can't get very creative with your taxes. You're gonna pay more in taxes. Also, because we're gonna go with this loan over time, I can't pay you any of the interest. I have to pay the interest to the bank.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Now, that means that I can give you a million dollars plus these other negatives, or there's another way that we could do this through seller financing. Would you wanna talk about how we could structure it that way? And they'll probably go, okay, yeah, what do you mean? And you say, okay, other option.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I pay you 1.5 instead of one, so you get another $500,000, plus I will pay you the interest on the loan instead of the bank, except I'll pay you 4% instead of 8%, which increases the likelihood the business succeeds, because it's not as high, plus you make another 4% every single month or year, depending on how you structure the deal.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Plus, we could get this deal done in probably 30 days because we don't have to go through a traditional bank process instead of 120 days. And we will structure the payouts over time, which means you pay less because you're getting long-term capital gains and distributions as opposed to short-term capital gains and distributions.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you're getting $500K more, plus you're getting 4% a year, plus you're getting better tax savings. Would you be interested in at least us discussing what that would look like? At which point, the owner is going to say probably yes. And so that's how you nail seller financing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Let me tell you some data. So how many people actually will sell you a business today and use some version of seller financing? Well, one, I bought a boring business that was a business marketplace called BizScout and then plowed a couple million dollars into it. BizScout is now a marketplace where people buy and sell businesses.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And on the right side, you have the income or how much money you can make. And what it turns out is if you correlate the two, the sexier the industry, the fewer the people make an obscene amount of money in it. The more boring the industry, the more people make consistent high dollars in it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
When we first launched, which was maybe four weeks ago, six weeks ago, we had 30,000 listings on the platform. Today, we have 45,000 listings on the platform at BizScout. There are 45,000 people publicly listed that want to sell their business. Plus, the other interesting part about BizScout is we have this backend scraper where we scrape all the small businesses.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you could say, I want to buy a, I don't know, sales company in Atlanta, Georgia. I want to buy a car wash in Piedmont, North Dakota. And you could go and see all of the listings of those there and reach out to the owners individually. So that would mean millions and millions and millions of businesses. So I know firsthand there are tens of thousands of businesses ready to sell right now today.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The number is growing every single day. And then there are millions where the owners don't even realize they could sell. So this is happening all over the place. Now, here's what you're gonna hear from people that is great for you and me, and I love every moment of it. You're gonna hear people go, there's no businesses for sale, it's all trash on those sites.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Nobody good would sell a business like that. And I go, perfect, just stay in your lane. This is always finance bros who do this, by the way. And they'll be like, no way would this business sell for that. And then I just go scoreboard. Like, bought and sold this newsletter business. Bought and sold pinks. Bought and sold that one painter. Bought and sold garage up.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Bought and sold a brand new roofing company we're going to launch. There are businesses all around. We're doing it every single day. And our community, called Contrarian Community... People have done $260 million of deals that we've tracked. Hundreds of small businesses transacted. So while other people always tell you no, you can be the person that makes the money while they sit on the sidelines.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Again, always harder than it looks and is going to take work. These businesses are all around you guys. And anybody that's telling you they aren't either wants to buy them for themselves or wants to sound sophisticated because the negative sound smart, the positive make all the money.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you go to MSM Book, where the book's going to be located, we'll be giving away a bunch of things with the book. And one of them is a list of 130 of my favorite businesses that I love to buy. So let's rattle off some of those 130. One, I use laundromats as an example because they're easy to understand. It opens people's eyes. They go, oh, I've seen those before.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Oh, yeah, there aren't a ton of employees in there. That could make sense for me. So that was Rule one, I wanted to open people's eyes. But really what we teach is what's called deal clarity. So how do you figure out the right business for you specifically? What's the right business for you or your audience?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so there seems to be a correlation between boring traditional everyday businesses that we need nonstop and more of us making money, which I thought was interesting.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so those might be things like, for instance, I bought a podcast production company back in the day. I bought like 49% of one called Strike Fire Productions. That was a great business. I think I bought 49% for 10K and we profited five or eight or 10K a month off of it for about a year before I sold it back to the owner of the business because it wasn't a big enough business for us anymore.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So podcast production. I've bought a video production company before that's called Viral Cuts. That's another online business. We've invested in a tax and LLC business. So it's cool. They take old school accounting practices, kind of sex them up, make it really easy for people to access them. That's called Doula. We invested in a company that's called Sense.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So it's software for the laundromat industry. So everywhere you have a boring business, you have digital businesses that support them. You have advertising businesses, marketing vendors, software providers, sales systems. And those are businesses you can buy just as simply as you can buy a brick and mortar Main Street business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So if you already own businesses today, there's two ways to think about acquisition. strategic acquisitions or diversified acquisitions. So strategic acquisitions I think are the easiest for business owners to buy.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
That would be like, can you buy another agency that has talent that you're having a hard time hiring and can you insert that talent inside of your agency so you can increase your capacity? And so you can sell more. Amazon is notorious for this. And I would say the great thing about strategic acquisitions is you understand the business better.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You're gonna know if this is a shitty agency or not because you already run it. You probably already know them and have target acquisitions because you know your competitors. You also have a much higher ability to increase the revenue of that company because you're already doing the thing. And so I think strategic acquisitions are the best for current business owners to think about.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
If you want to create a portfolio in a holding company like I have, because my skillset is finance, I knew how to create a portfolio in a holding company because I ran a private equity firm. But if I was a great business operator, I would do more strategic acquisitions than I would diversified acquisitions.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And the reason is because you're going to have such a higher likelihood of success, and you're going to be able to increase the value of those businesses so materially. So if I was you, I'd be saying right now, and you probably have some in your head, even as we're talking about it. You're like, oh, these competitors. Oh, I hear she's kind of unhappy. I think They might shut down their business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They're growing really fast, but man, they don't have X that we have. And those are your target acquisitions where you can even overpay a little bit or use potential future revenue that you drive them to pay for those companies and close a deal faster than you ever could due diligence in a laundromat, for instance.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Yeah.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And the cool part is if you start using the terminology, that's why I like people to learn deal making. I didn't even know that. Yeah, you can sweeten the deal. In this case, you might've been saying, God, I need better production. And I want somebody who really cares about it. So I want a partner. I want them to be invested in it. I want them to be a pro.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I heard a quote once that just seared its way into my soul, which was that you are as rich as you programmed yourself to be. And if you think about it that way, there's a good and a bad side to it. The good side is, well, you can reprogram yourself. Just like a computer, you can scrap the software, keep the hardware, and realign what is inside of you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I don't want to have to pay pro salary right now because maybe my business isn't big enough. I want them to share my vision long-term so they take some risk with me. Okay, that means you want an acquihire. So you're like, huh,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I'm going to buy, acqui-hire Jason's company, and I'm really just going to use Jason's salary, which I pay over the course of the year, just like anybody else's salary, to acquire his company. Jason, congratulations, you got an exit from your business. I am going to acquire and integrate you. You also get to say, I've already done one acquisition because we did it this way.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You did an asset sale, potentially, if you bought any of his assets, and you did an acquihire because you bought him. And so a lot of the people in Silicon Valley use this term all the time. They'll be like, I sold my startup to so-and-so. They got acquihired. And we normal people don't use that same terminology. And so we don't sound as sophisticated, but we're doing the exact same thing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So I would keep your eyes open. One of the things I've been obsessing on lately is that rich people do not think the same as poor people when they think about problem solving. Poor people, when they have a problem, they say, how do I fix this problem? How, how, how, how? Relatively wealthy people think, I have a problem, who could fix this problem for me? Who, not how?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Rich people think, I have a problem. How could I buy an almost guaranteed solution to this problem? Buy, who, how? And you can start when you have a problem in your business going, all right, pause, don't go to how, pause, don't go to who, pause, how could I buy the solution? I need more revenue in my business. I need to come up with a brand new product that I could sell. Do you?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Or is there something else out there in the market that you know your audience would love and you could acquire part of that company? Do no fulfillment, not guess what a great product is, but know because people are already buying it and you already use it and just integrate that into your revenue line. And the truth of the matter is I forget my own homework all the time.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I revert back to the how constantly. And I should obsess on the buy more often too.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
A couple of things. We have a framework that we look at for every time you buy a business, what does it need to have? I think about it as two words, an income stream. You're buying a business because you want to make money, not because you're doing charity. And so when it comes to an income stream, an income stream has to cover a few things. It has to cover the interest expense on your loan.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So whatever that costs for how you bought the business. It has to cover your income. So how much money you want to make from the business. It also has to cover some version of an operator's salary. So you don't go crazy. You have a manager. You don't buy a job. You buy a business. And then it has to cover working capital.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The bad part is that the foundation on which you and I have learned money is actually one that incentivizes us to stay just sort of tracking to our spend for our entire life, which is why most people will die alone and without much in the way of resources, which is really, really sad. And so when I started thinking about writing this book, I was like, we can't make ourselves smarter very easily.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And that means a little bit extra money in case anything goes sideways or to grow the business. Those four things, if you remember that, will help you buy a profitable business. And we have a structure that breaks that down a little bit more in the book, but at a high level, that's it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The second thing that I really want you to think about if you're thinking about buying a business overall is very, very high level. You don't want to make acquisitions too complex. You want to see what do the financials tell you? Is the business profitable or not? We don't buy unprofitable businesses to start. That is asking for pain. So we want a profitable business according to its financials.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
That means it's P&Ls. We want the financials and P&L to somehow match the tax return or decrease the price so that the tax return is your de-risked price. And then we also want a breakdown of our due diligence file, kind of looking at where's the risk in the business? How many employees are there? What kind of assets do we have?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So we have a full due diligence list that we use for this, which is important. But you want to start high level with the financial and the tax return.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I'll come back on a different time and talk to you about the next book I'm writing, which we're creating some portions of it. It's about an operating system. How do good companies scale from six to seven to eight to nine figures?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And I came up with something with one of my friends, whose name is Eamon, called Nine Steps to Nine Figures. And don't take the nine figures literally. You don't have to create a nine-figure business, but the idea is a business so big, it makes profitable money for you, is fun to run, and is trusted in that it will continue to make more money. So trust, fund, profitable.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And there's really a few steps. First, if you wanna have a profitable fund to run business, you gotta know who you're selling to. This is what we call persona. So you need to be able to name and label your target market. Then you got to think about what problem are you solving for that person? Where is the pain or the nail in the foot, we call it, that is the problem you're solving?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Then you got to obsess on product. So what product are you selling this person in order to fix their pain that this person in particular really, really wants? Then I like to talk about performance. So where in your business are you tracking if you are winning or losing and what does winning look like? Then you want to have a scoreboard or operational system.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
How can I consistently run a business without a bunch of question marks and games because I have an operating system I run on? And then we want to have people. So finally, and maybe most importantly in many ways, who are the people inside the business that I am hiring, firing, and what does our culture look like?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We have nine steps, but those are like the first seven that are so important because if you have the persona, the problem, the product, if you have the performance, the operating system, and the people, then you can run a sustainable business over time. And sometimes you don't even have to have the people if you have a solo business as well.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So those things are necessary for scaling a sustainable business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So the end of the book starts talking about the exit. And the reason why is because the first business that you buy probably isn't gonna be the business that you have forever. You should do your first deal thinking like you did your first job. You know, you didn't plan on staying your first job forever. You're like, I wanna be here for two to five years, something like that.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I want it to make me money. I want to learn from it. And I either wanna scale up or I wanna scale out, right? I wanna move up to the C-suite position or I wanna go on to my next job. And it's the same with the business. So the first deal that you do should not be your last deal, in my opinion. It wasn't for me.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So since we know that, we want to start planning for the exit and the ability for us to eventually sell our business to make more money. The cool part is most of the money in buying businesses and building businesses is made on the sales. So if you have a business that does $100,000 in profit in small business land, you can sell that business for three to five X on average of the profit.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
We can't make ourselves have more money than other people do up front. So what would be a way to level the playing field? And because I was in finance for 12 years, I watched what the really, really rich did. And they did something completely differently, which is they didn't innovate as often as Silicon Valley did. They didn't come up with some crazy startup and sleep on couches.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So $100,000 business sells for 300 to $500,000 to overly simplify. That means that if I buy a business for $300,000 that makes $100,000 in profit, but I am able to increase the profit to $200,000, Well, now I'm selling this business for somewhere between $600,000 and maybe $800,000. So I have taken multiple years of potential future revenue and fast-tracked them. And I moved them up.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so when it comes to thinking about exiting your business, there are really only three levers that matter. And the three levers are, can I increase the profits? Can I increase the revenue of the business? Can I decrease the risk in the business? And can I increase the systems, processes, and people in the business?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if you can do those four things, then your business can be worth more when you sell it than when you bought it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
YAP for you and any content creators listening, that's your distribution mechanism. YAP is your ability for the rest of your life to sell varying things to your audience without using a ton of capital.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So you might want to keep YAP forever and layer on top of it different products to sell, layer on top of it different services to sell, layer on top of it owning part of another content creator who maybe you help distribute, but you take a percentage of future revenue from that content creator. So this is how we build big conglomerates, right?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You could do what most media companies did, which is they acquire assets. Back in the day, Ted Turner was famous at Turner News Network for acquiring assets. And he did it the old-fashioned way, which is acquire radio stations here, acquire television rights here, acquire distribution rights here. And he used to be talent, and he worked his way all the way up to complete ownership and chairman.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so the way to do that in the 21st century version is what Alex Cooper is doing right now with Call Her Daddy and Unwell. She acquired part of Alex – what's the other Alex's name? Do you remember? I have no idea.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I know. I mean, not typically when I talk about her topic, but – brilliant business mind. She looked at Dave Courtenoy at Barstool Sports and said, why doesn't this exist for women? I'm going to build it. Dave sold his company for what, 600 million or something like that? She was like, yeah, I'm going to do the same thing. And so she started acquiring up other talent.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
She also acquired and built part of a pop-up And a tour company, you see her doing tours right now all over the place. You see Alex Earl, that's the other one's name, doing the same thing. Those are smart businesswomen. Don't let the sex talk fool you. They are sharks, and I'm here for it. And that could be the way that you do it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And then at some point, you might do what Barstool does or some of these big media companies do, which is you might say, all right, talent, you want to buy back your rights? No problem. You buy back your rights. That doesn't mean you sell yachts. but you sold one of your assets. And that's how you de-link your personal brand to your business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
In fact, they wore Gucci loafers all the way to the private plane they eventually bought. And how did they do this? Because they bought other people's hard work, other people's years of hard work,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Well, first of all, Main Street Millionaire is peppered with stories of people just like me and just like you who worked in corporate for a long time and leveraged the best form of money there is, which is a salary somebody else pays into the future ownership of your business. So one, you are exactly where you're supposed to be. If you're already making revenue by a salary, that's incredible.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The first jobs that AI took were artists, copywriters, because AI lives online. You know where AI is going to take longer? Painting companies, roofing companies, plumbing companies. The best ways to make money are super simple. If you want to make more money, you should look at... And you will have a hard time being poor.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You can use that to acquire your company. In our community and in Main Street Millionaire, I would say 40% of the people in our community where we teach business buying are W-2 employees, well-paid W-2 employees that are buying their first or their second business. What Main Street Millionaire will teach you how to do is two things that I think are invaluable.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
One, negotiate with the company that you work for or with vendors that you work for for part of businesses you already fully understand. Partial equity. That could be your first tiptoe into ownership. Number two, it will teach you how do you layer on acquisitions using operators, finance, family, for instance, like my husband runs one of our companies. My mom ran another one of our companies.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
My brother and I co-own another one of our companies. So how can you use the people around you who maybe don't have your same salary for ownership? I think it's beautiful to do for husbands and wives.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The last thing that a book like Main Street Millionaire will teach you is when it comes to seeing a deal in front of you that feels so unfair it is an absolute fuck yes, you will be able to jump on it. Baron Rothschild said, buy when there's blood in the streets, especially and even when the blood is your own. He was one of the titans of American history, one of the richest men ever to live.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And then they did a little bit of what's called financial arbitrage, but basically make expenses a little bit lower, increase profits here, and apply the Wall Street mechanism for growth to most businesses. And I was like, why does Wall Street only do this?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And what's interesting, I think, is if you at all are scared about the economy, the recession, your job, your future, there is nothing better than a little shakeup in the market to get better deals.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so what I want you guys to be prepared for is that when that comes, you will already know and have turned on your reticular activating system in order to see these businesses all around you and do a smart deal.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Let me tell you what I think about AI and Main Street businesses, which is the first jobs that AI took were graphic designers, artists, copywriters, maybe even singers in some way. They were online jobs. Why? Because AI lives online. Because it's very easy for quote-unquote online digital robots to take over jobs that are mainly online.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So if right now you have a job that you can do completely from Zoom that has a lot of automated processes in it, where sometimes you feel like you do a lot of automated tasks, be wary of AI because that will come for you first as it already has for many people in the digital world. You know where AI is gonna take longer?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
painting companies, roofing companies, plumbing companies, the hardware is going to take longer to catch up than the software will. And so I feel very strongly that the trades are going to flip as one of the more powerful industries in the world, just in the same way that people are no longer paying graphic designers the same amount because we have AI tools that we can use to augment their work.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so think long and hard about AI in the fact of Where can I have a moat built around me? where it is not as easy for a digital component to take over. And that's what I think about it. And the only other thing I'll say there is I'm a techno-optimist. I think by and large, our world is better mathematically because we have more technology today, not with technology hurting us.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think that we can reprogram ourselves to be rich by realizing that we just have to copy other people's homework from those who have already achieved the thing we want in life. And that's kind of what I strive to do.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It has helped increase longevity. It has helped decrease poverty levels. I think you can make a very hard argument, except perhaps in the US with anxiety and depression rates, that technology is largely good. So I think AI will continue to be really useful for us.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And with the businesses out there, man, think about how much we're going to be able to increase our profit margin by using AI right alongside us.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Yeah. Hopefully we don't have ads just straight mainlining into our brain. Most likely that will happen.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
One of my favorite mentors, Bill Perkins, told me why he thought he was so successful. Where did his billions come from? And he said that he does one thing differently than everybody else. He moves fast. By the time that other people have thought about an idea, brought it up to their friends, considered it, Bill has already taken action, made three mistakes, and found a better way.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think the faster you move, the more money that you make. The faster you move, the larger your bank account. So whatever you're going to do, take action more often than you think and quicker than you think.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The best deal I've ever done was the one I did with my husband. It sounds cheesy, except it's true. And so I think you are going to spend the rest of your life With one human, and I wish I would have known earlier how important it is to choose somebody who had a growth mindset, wanted to continue to progress, and that profits come from profitable relationships done well.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so, especially if you have young women listeners, obsess about becoming a better human so you attract better humans. And two people is so much more powerful than one. So, Cody, where can everybody learn more about you and everything that you do? I think most important is Main Street Millionaire. That's the name of the book. You can find it at msmbook.com.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The idea is we're going to put tons of resources and tools for anybody who picks up the book so that we can all become a little bit more unemployable and have control of our life. That's the idea anyway.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Thank you. You'll have to tell me if you buy a business. I'll help you any way you need. Thank you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think ownership actually is a synonym for freedom. So the more that you own things, the less other people can tell you what to do. If your listeners are like you and I, you and I, we're probably pretty unemployable, right? We're a pain in the ass, which is why we became entrepreneurs. We are just on the other side of diva, which is like, I think we should do it this way.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
How come we can't do this? Let's go faster. What do you mean I can't make more? That's what a good entrepreneur is. And so I think if you are also like that, you are set up to succeed in some ways. which is that you will fail at being an employee for a long time. And the best entrepreneurs are failed employees.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so you will eventually get to a path where you realize that you can own the equity in the business, that you have distributions in the business over a long term, and it can be on legally binding contracts. You can take it with you as opposed to your W-2. And the only little caveat there I like to put out there, Hala, is I loved being an employee, actually.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The tail end of my career, where I was a partner at a few private equity companies, I really liked what I did. I could have done that forever at one company in particular. I just wanted to do it my way. And so I was annoyed at their speed. And because of that, I ended up going and doing my own thing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But what I wished I could realize at the time is that I could have had even my own business on the side and I could have negotiated for more equity and distributions in a business so that you could stay an employee too if you want and own a business. And so I think there's lots of ways to get to the end game of ownership.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
There's so many people on the internet now, and you're not one of them because you've done this game too, but there's so many people on the internet who want to tell you, go be your own boss, be an entrepreneur. And that's fine. I do think that that's great for many people. However, there's risk associated with pure ownership, where you own the entirety of the business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so one, don't assume that in order to buy a business, you have to buy the whole thing. You don't. You can actually just own part of it, and you can use other things besides your money to buy it. That's really cool. We talk about that in the book.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
But number two is there is no better way to learn the game of business than by getting a salary, learning under somebody else's tutelage, and eventually, if you're a great employee, getting a percentage of their company or getting them to invest in your business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And this is actually fascinating because people on the internet don't always love to hear this, but in finance, most of the companies that we start, so if I left a finance firm, like when I left Goldman, I was too young, they wouldn't have given it to me. But when I left my last firm, which was EEC, they asked if they could invest in whatever my next venture was.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They wanted to give me my first checks. And I think more often than not, if we kill it as an employee, we can actually push that into capital in our next venture.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Oh, yeah, I love that. I think you're really smart because a lot of young entrepreneurs don't understand a few words that will change your life when it comes to making money and ownership, which is vesting equity, aka you can give somebody a percentage of your company, but they don't take it right away. They get it over years of work, a little bit at a time each year. which is called a cliff.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So nothing earned in the first year until they make it to the end of the first year. And if they're successful, then they earn a portion. Same thing with year two, year three. We talk about lots of the lingo in the book. Another thing that you mentioned that I think is really important is she was a high performer. She kept growing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so you were rewarding what you had already seen as positive behavior. not trying to incentivize future better behavior. So I think a lot of times what people don't realize is they give a carrot to somebody who is underperforming or sort of flat.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And they say, you could earn equity in my business if you do X and Y and Z. What you really should do instead is say, wow, you're the fastest greyhound on the track. You're crushing it right now for me. I want to reward you for what you're already doing now over a multi-year period. The best predictor of future behavior is past behavior.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So your high performers are more likely to continue performing than you changing the mindset of a poor performer.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
I think we were sold a great lie. And the great lie was essentially this. First, we owned our businesses back in the day. When we first started in this country, we didn't pay a ton in taxes, and we owned our own businesses. And then we apprenticed to eventually take over those businesses.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Then one day, big corporations came around, and they said, instead of you owning these little things, come work for us. We have this big, huge opportunity. You can come work inside of our sphere. Then we worked in corporations and realized the only place that padded walls should be is insane asylums, and I don't want to work in cubicles anymore under fluorescent lights.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So we said, wait a second, startups, that's what it is. It's Silicon Valley-backed venture rocket ships We'll go to do those." So then we went and did that as a society, and that's what we glamorized.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
The problem there is nobody told us nine out of 10 of those startups would fail miserably, and they would leave a bunch of us with a mess on our hands, with companies that were failing, with heartache, right? And the people who would win would be venture capitalists who got to sprinkle tons of dollars across many companies. And also fueled a ton of innovation. But it's not for everybody.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
It's a very hard path. And then finally, we were like, no more venture. I don't want to do that. So we were like, YOLO into freelance, and I own my own company, or what I'll call solopreneurship. Solopreneurship is the way. Well, you've done this before, too. I think the road to hell is paved with individual Zoom meetings back and forth between yourself and no help.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And so we didn't realize that all we did actually was now go work at the behest of an Uber or at the behest of a Substack where they still own us. Silicon Valley still owns us. We just make a smaller percentage of our total profits as a solopreneur. And now we're like, man, we're not even making enough money in solopreneurship anymore and we don't really like this.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So I think the solopreneur movement is actually not as glamorous as we thought it was. And so my hope is the next movement is this Main Street movement.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Can we go back to the thing we were originally talked out of, which is let's own a portion of small businesses all around this country that are already profitable, that have existed for a long time, that don't have crazy volatility of online businesses, and that are simple. And that you're going to pay even if it's in a recession because you want your plumbing to work even if it's a downturn.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And that's my belief.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
Everybody wants equity, right? That sounds good. But the problem with equity is you can't eat it. Meaning, what are you gonna do? I can't take my equity and go pay for something or put a down payment on a house. It's sort of like up in this ether, this thing that I can't touch.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
And if you went and looked at a bunch of Silicon Valley startup employees, you'd see, oh man, most of them thought they were being compensated like this, very high, because they had a lot of equity, and realized, wow, my equity wasn't worth anything like that. And so I think there's a better way, which is equity plus distributions. So that means, hey, I get a percentage of a company.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
You can't really take that away from me unless I do something fraudulent or crazy. I own, I don't know, 10% of XYZ company that I work at. But because I need to eat and make money, there's something called equity. distributions, which happen for all owners of a business. If the owner takes $100,000 out of the business, then that means that I get what's called my pro rata.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So my percentage that I own of the business, I get distributed to. So let's say the owner is going to take $100,000, I might get $5,000 if I own 5% of the business. And that way we can eat as we move along and get equity. That is equity done right. Distributions today, future profits tomorrow.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
So Main Street business is the business that you pay right now every single month, but you kind of ignore it. It's your landscaping business. It's your house cleaners. It's your roofing companies. It's services like your podcast production company that you pay as a vendor. These are businesses that are the opposite of Silicon Valley. They're not something new and innovative.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | Finance | E320
They're continuous and compounding. And so when I think about Main Street businesses, I look all around our small community and I realize, man, it's not just the local coffee shop that's interesting. It's also the street sweeping business that cleans up the streets. It's the person who does line painting in the middle of the streets to make sure that there are parking spaces.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There is a road to follow. But nothing I talk about is like click a button and oh, by the way, you've got an Airbnb arbitrage model and you're just off to making hundreds of thousands. That doesn't work. It doesn't work. If it worked, nobody would tell you about it. They would just do it all by themselves. And so I talk about horizontal income. Vertical income is like your salary.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you work at a company, you're there eight to five, you make money when you're there. horizontal income means you might have a little bit of your time, like along the top, kind of like this. Some time always involved basically no matter what, but you could stack lots of them because you could have a real estate portfolio over here. You could have a stock portfolio over here.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You could have a boring business that you find an operator to run, so it only takes you a few hours a week, but there will be an upfront cost. All right, thanks for coming to my TED Talk. That's my rant on passive income.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Thanks. I'm excited to be here. Finally, actually, since we messed up earlier, but now we're going to crush it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Totally. You know, my father said something that always sticks with me, which he was like, you haven't actually been an entrepreneur or run a company until you've woken up at two in the morning in the middle of the night and sat in your living room on your couch in the absolute darkness and wondered, how are you going to figure any of this out?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And until you've had that moment where you just are not sure, you are living in a cloud of uncertainty and that uncertainty feels catastrophic, you've probably never run something and you've probably never built something. I think we can decrease that likelihood, but at some point,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
For almost anybody who's willing to do a hard thing, like own their life and own their outcome and own their own business, there will be a moment. And so I think you're exactly right. It's like, can we ready people for that? But tell them that it's so worth it. Just like you're going to feel sore after you do a workout, but you're going to be glad you did it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Yeah. Well, I'm friends with Alex and Layla, so I love them. I think there's multiple things. One, I just don't like risk. I want to never have a likelihood where I can't pay my mortgage or pay my rent. I don't want you to sit there wondering if you're going to have to pack up and move the kids out because you have taken one huge swing and you have fallen down short.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
What we forget is what the numbers tell us. I go back to the numbers and the numbers tell us that most small businesses fail, that most startups never even make it to their first million dollars. For every case on Twitter showing you how easy it is to start something, if you go to the numbers, it tells you that that is an anomaly by and large.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so for me, somebody asked me the other day in one of our groups where we talk about buying businesses, they were like, I have a $250,000 job. I'm working at a company, but I really want to focus on buying a small business. I don't know if I can do both at once. Should I quit my job? I was like, absolutely not. Absolutely not.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You should keep that income and take a small incremental risk that allows you to get to the next step. The hard work is like, yeah, why don't you work two jobs for a period? I'm not saying there's like a free lunch thing, but don't put yourself in a position where you're not able to feed your family or yourself. I don't think that's necessary. Now, to their point,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There's something called the 80-20 rule, right? Or Pareto's law, which is basically that 80% of your outcomes will come from the 20% of the things that you do and almost everything in life. And so I do think they're right in that focus is critical. In my business right now, I own 26 businesses, but 80% of my time goes to one business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
idealism, really. You're young and you want to save the world, but you haven't even figured out your own life. And I think that was me. And so if you're young and listening, I imagine there's a moment in time where you think everything's screwed up, nothing's the way it should be, and I'm going to be the one to fix it. That was me at a young age.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And the rest of those businesses are operating with independent operators like a private equity model. If I had to split focus between 26 businesses, I wouldn't be here. And so there's this balance where two things can be true and have nuance, which is if you feel something so strongly that you couldn't sleep for the want of it, you have to build it, then do it and focus on that thing exclusively.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But for a lot of people, they're like, man, I just want to spend three more weeks this summer with my kids. Or I just want to go on one more vacation than I can. Or like, I'd like to just not have to worry about the price of guacamole and avocados on the side. And so for me, wouldn't it be nice if I could just have this little extra?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so anytime anybody's listening to anyone, including me, I think you should be asking yourself, do I just want this because that's what she is saying? As that's what he is saying? Or do I actually want this myself? And where can I question everything and find the truth for me? Because there is no one truth. There is just what is appropriate for you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Yeah. So what I really want people to do is learn the framework. So I want you to be able to buy your first business that either supplements your salary if you want to exit your company or supplements your expenses.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so I want to teach people how do you buy a small business that can either replace what I'm making right now or that can replace my expenses so that I can continue to do the work if I want to at my job, but I never have to. I can have my fuck you fund that's funded from something else. And so that's the first step.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And then what you'll quickly realize is once you buy a business, and the average person who goes through our program buys a business typically in 11 months, and that business is somewhere between $100,000 to $10 million in total revenue. And we screen people because not everybody should do this. And so we screen them to kind of make sure, are you sure you're ready for this?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what I've found is what happens is you'll buy your first business and then you'll spend anywhere from 90 days to a year, a year and a half, kind of stabilizing that business, running through it. But then you're going to add different, what I call revenue lines that could be income lines to an individual through your business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I thought, it doesn't seem right that so many people don't have while few have. It doesn't seem right that I'm Latina and a bunch of Latinos are hanging out to dry along the US-Mexico border, and maybe I could make an impact. And I think that was a noble, beautiful idea in a lot of ways, but also pretty ridiculous in some, which is that I really hadn't figured out life in general.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you're going to say, all right, I bought a laundromat and now I want to increase the revenue of the laundromat. So I'm going to add vending machines as another revenue line. And then because I see how that works, I'm going to add vending machines for soap. And then because I see how that works, I'm going to add a wash and fold service. And then I'm going to add a delivery service.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what you're basically doing is you're diversifying your revenue streams through one business. So there is a focus or a through line to your business, but you're being really smart in acquiring your new profit centers. That's something I wish I learned earlier because I always thought you had to grow organically. Like I've got to go and I've got to get this one customer or this one client.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But what if instead you could acquire the clients and wrap them up inside of your business? And that's what I tend to do again and again. But the only caveat I would say there is that I do think you need to focus on skills early as opposed to income. So I have a model that says, learn, earn, invest. Most people go, I want to invest. I want to invest and make money.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But really what you have to do is first you have to, let's say you wanted to buy a boring business. You need to spend a minute learning about buying a boring business. 90 days, some people take a year, but let's say that one year trial period of really learning how to execute on deal making.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And while you're doing that, I want you to earn money and I want you to learn how to increase your earnings potential. So whether that's negotiating for a higher salary, or whether that's getting a better job with a better salary, or whether that's doing commissions.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And after you've done those two things, then I want you to use that money and I want you to invest it in something or invest your time or expertise. That's kind of how I push people to start thinking about diversification of revenue lines.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I was counting them the other day. I think there's six paths to buy a business with $0. So let me share that with you first. And then it'll kind of tell you what type of person can do what, because it differs. So if you want to buy a business with $0, you can buy a business... basically by using seller financing. So you can say, hey, I'd really love to buy your podcast.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You don't want to do it anymore. How about I take over the business, your business makes 100K a year, I'll pay you 300K for the business over the next three years. You take all the profits, I'll grow the business, anything that's the delta is mine, and I own the business at the end of the year. So that's called seller financing, super common. Then you have revenue share.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you might say, hey, your podcast is doing awesome, but I bet you could monetize it better. What if I came on board? And whatever your podcast is making right now, I don't want any of that. But if your podcast, if I could make you an extra 20% or an extra $200,000 a year, I'd like 25% of that in perpetuity. And maybe we could negotiate for a percentage of your business, like 5% of your business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so I don't have to put any money in, but I've just given you $200,000 more for just my sweat equity and revenue share. And you can do that same thing with profit share. You could be like, I'm not going to do it from top line revenue. Instead, only when you put dollars in your actual pocket, will I take 20% of the profits that I grow you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'd like to take a small piece of equity in the business too. So I get to continue to be paid in perpetuity. And then you could also say, okay, what about if you are a business right now and you have assets? So let's say you have a trucking company or something. You have a bunch of trucks. Why don't I go get a loan on the trucks?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And it's hard to give much if you don't know much. And so at that time, I was in school. I graduated about a year early from Harvard of the West, really, aka Arizona State. And I was looking for what my purpose was going to be in life. And I needed to make some money because I didn't have any either.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And because I do a loan on the trucks, I can buy your business with this capital. And then the fifth way would be like, I go raise money. I hear Cody's got some money. I hear Alex and Layla are flush with cash. So I'm going to go ask them for some money. I'm going to buy your business. They're going to take a part of it. I'm going to take a part of it. And then the last one is like an asset sale.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So like, oh man, a bunch of businesses are going under with COVID. What if I reached out to my other podcast friends that aren't going to do their podcasts anymore? And they actually had some sponsors and info products that they're just shutting down What if instead I kept those going and I just paid them a commission on that?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I'm going to let them have 10% of those products for the next three years and the rest goes to me and I'll run it all. Don't worry about it. And so we could do an asset purchase. And so when the people come into the group, what I say to them is it really depends on what type of purchase you're going to do.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You could buy a business tomorrow with very little risk if you do a revenue share, a profit share, an asset sale. There's no skin in the game. And if you go bankrupt or the company fails or anything, you're not going to go bankrupt. You're going to be fine.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Now, if you're going to put your own money on the line or get a loan, we need to make sure that you have enough money and understanding of running a business so you're not going to go under. And those are the things that I try to talk people into. Typically, if you've run a business before, you should be able to buy a business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
If you've been an exec at a company before, you should be able to buy a business. If you've done real estate before, you should be able to buy a business. And if you have some excess cash so that no deal can ever go sideways enough and ruin what momentum you already have, you could buy a business. But I'm really conservative, again, because I hate risk.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I'm always like, please, dear Lord, just don't come over even and talk to me if you're not ready to do the work, because it does take some.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Exactly. And then what you want them to do, this is where it's fun, and we can always talk about this later in case this is too technical for all your people. But what's really fun is for somebody like you, you also have a different type of purchase you can do, which is audience. So lots of people like you do sponsorship deals or ad deals, and that's great.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You have a high level of integrity, so you only do things that are great for your audience. But you know what a better play would be? Is you look for a few companies that you really like, and you say, I want to do distributing equity deal with you. I'm not going to take any cash up front or I'm going to take a decreased cash rate. And instead, I don't know, I love this notebook company.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so notebook company, I want to put you as the sponsor for all of our podcasts or for some of our podcasts. And that would typically cost you $100,000 in ad spend. Instead of that, you're going to give me $100,000 in value in the company as I drive XYZ metric. And I want a percentage payout every quarter based on the ownership percentage I have in the company.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so I got a grant from the Howard Buffett Foundation and decided that I was going to go cover border issues along the US-Mexico border. And I did that for a while until I really realized there is a difference between being the one that tells the stories and getting someone's story rewritten. I wasn't rewriting anyone's story.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I want a profit share or a rev share. Because you don't really want to do just an equity deal because then you end up not making any money and you still got to pay your employees and everything. You need some cash to come in. And so distributing equity is a really cool way to do a deal if you have an audience.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Really varies. I mean, the cool thing about businesses is you can go as big as you want. I mean, I was doing deals when I was in private equity and running my own funds that were hundreds of millions of dollars. And I've been a part of billion dollar deals, although I didn't lead that deal. So it can totally vary. What I would say is if you want to use your own cash, it's a good metric to think,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I'm probably going to have to put something like at least 10 to 25K down to buy a small business. Can I put 10 to 25K down? Then I can use my cash and I can buy a small business using seller finance. Like you can do that for sure.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
If you want to get creative and not use any of your own cash, which I was just talking to Alex and Layla about, how do we do more transactions without a bunch of cash up front? Then technically you don't have to have cash. You could just do a deal using sweat equity, rev share, Or the fact there are these 11 million small businesses and they're looking for homes. These people need to sell.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
We had a guy the other day, actually, who was in unconventional acquisitions. It was so cool. So he worked in Phoenix, Arizona, and he was a general contractor. He was in the construction trade. I can't remember if he was general contractor or not. And he worked for a guy. And he had worked for a guy for 10 years in this construction business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But the gentleman who headed the company was getting old. And he listened to one of my things. And then on our next Monday call, because we do a call every Monday, he got on
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And he's like, you know, I went to my boss essentially and I sat him down and I said, hey, I don't know if you were ever thinking about this, but if you ever were going to retire from the business or think about selling the business, I'd love to talk to you about it because I would love to buy this business from you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'd have to figure out a creative way to get cash to do it because I don't have a lot. But if you're ever looking for somebody to take over your business, I'd love to have that conversation. And his boss basically was like, oh, this is great. I'm ready to retire. I just, none of my kids wanted this. I didn't really have any idea.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Would you want to start figuring out a plan inside the next 30 days? He's like, I only really, I want to work like two days a week, but I don't want to work five. You could just use the profits from the business to buy it from me. I can watch and make sure you're doing a good job. And if you hit all your metrics within 90 days, we start to transition over. He literally had the whole plan.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
for his employee. And that doesn't happen every time, but you'd be so surprised, or actually you wouldn't probably, but people listening would be surprised how often running a business is so tiring after 10, 20, 30, 40 years. They're like, please, dear God, take the thing. But I don't want to just shut it because it's my baby too.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I was just telling them in an almost voyeuristic way to a void of humans that really didn't make much change. And that didn't sit well with me. And so I thought, I better figure out how to become something besides a journalist or I'm going to become very jaded, very young.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
It's so true. I think you never sell anyone anything. You only find people who are already predisposed to want what you're selling. You find people who are ready to sell. You don't teach people that they need to sell. In that case, they kind of look like this. There's two archetypes, if you could think about it. there's you. You are a young entrepreneur.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You've only been doing it for five years or less. You're excited. Your business is growing. It's in a cool industry. Your brand's associated with it. There's all this optionality.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You might take some cash as investment if you wanted to accelerate your company, but you're probably not ready to sell your business because you're still excited and there's all this room for growth and you have a cool curve. The opposite, what we're looking for is somebody who's probably over 50. They've run the business for five years or more.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
The business has very marginal growth, 3% to 5% growth a year. They've been running this business in an area that's pretty commoditized. Think roofing companies, landscaping, accounting, and they don't have a big growth plan for the business, they work a lot typically, or they're looking for change because of death, divorce, disease, unhappiness.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There's a different word for it, but I always forget the D for it. And also disaster. They call them like the five Ds of selling. And if one of those is happening, then you are primed and ready as a motivated seller.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think there's three things you need to get 80% of the way to a deal. And the devil is in the 20%. But if you want to get 80% of the way to figuring out what a business is worth, and maybe should you buy it, you need these three things. And they are first, you need a profit and loss statement. So what does the business make and what does the business spend each month?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And typically, you want that to be expanded so you can look at it weekly and monthly. You don't just want an annual one because some businesses have a lot of what's called seasonality, so variability in their sales or expenses. Then the second thing you want is their tax return because they put together the P&L, but the IRS puts together the tax return.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so very seldom is a small business owner going to pay the IRS more because they lied about their business making more than it really did. So you want to match those two up. And then the third thing that you typically need is there's, in almost all businesses, there is some, there's that 80-20 rule again. There's like the 20% that really matter. So let's do an example of like a car wash.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Your lease really matters or the cost of the real estate really matters because that's one of your biggest expenses. The utilities really matter because electricity and water are one of your biggest expenses. So you want to find out what is the other 20% that is going to drive 80% of the success of your purchase.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
We're learning a new skill as is here, right? We're learning deal-making, how to buy a business, how to do a deal. If we don't have to layer on another skill, which is an industry-specific skill and an industry that's hyper-complicated, that's a win. Keeping deals simple wins deals.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think the worst thing that you can do is allow a really fancy PowerPoint to come into the mix here and give you a bunch of false hope and projections about what could be as opposed to what is. And so I like really simple businesses because then it's easy for me to understand.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think most deals go wrong because if the deal doesn't make sense on the back of a piece of paper or on a napkin, then the deal probably doesn't make sense in general. So most people in our world in finance, you know this too, you know, people in finance want things to seem complicated so they can charge you a lot of money for them to solve it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But the truth of it is, it's usually a lot simpler than we talk about. Nobody's curing cancer here. You can understand how a laundromat works, how a car wash works, how a roofing company works. It just takes some work to understand it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So that's why I don't like anything that says proprietary on it or bioengineering or complex patents or even complex attorney companies because there's too much ability for me to not understand what's happening. Keep it stupid simple.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
It's amazing how fast 12 years flashes, which is something only old people say, which apparently I'm nearing. But the beautiful part about working in corporate America is you learn on somebody else's dime. And I'm a huge advocate for failing often without the ability to bankrupt yourself.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
These days, there's so much entrepreneurship porn about how you have to sleep on somebody's couch and you've got to do it the hard way. And if you weren't homeless for a minute, you're never going to make it. And I don't actually think that's true.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I believe in buying companies based on reality, it's not hopes and dreams. That's the difference, really, if you think about it, private equity versus venture capital. Private equity, which is what I do, sort of buy these boring businesses.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Private equity buys businesses based on the money they make today, and they apply a very small idea to the money they think they could make in the future, but they buy it based on what it makes today. Venture capitalists invest in a company now with a hope that the company becomes something else in the future. If the company...
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think you right now could be working in a corporate job and feel like you are stuck because your lifestyle has crept up to the point where it matches or sometimes even exceeds what you're making, even if you're making a decent amount of money.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
that a venture capitalist invests in stays the same the day that they invest in it as the day they go to sell the company, big, huge issue. That means the investor is not going to make any money. If a small business stays the same the day that I bought it as the day that I sell it, that's okay because I anticipated that and I just cash flow on that bad boy for some amount of time.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that's really the difference between the two.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I always call it the fax machine test. Every time I see a fax machine, I get all tingly because it basically means that they haven't spent much money on technology, probably haven't done much marketing. And that's something that's called value add. It basically is just the same as a piece of real estate in which you're like, oh, look at this awful shag carpet.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And then you peel up the corner and you're like, beautiful, original hardwoods. Awesome. Like they don't even realize what they have. Oh, they boarded up this room and made it into something ridiculous when in fact, when I peel it back, the room's way bigger. Look, there's a window underneath here. I don't even have to add the window. That's what a lot of these boring businesses are.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
They're kind of a pain when you first take them over because there's nothing systematized, right? A lot of these guys have their tax returns in paper folders scattered around their office. So it's not hard to do, but it's a lot of work to systematize that.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And then you get to layer on the fun stuff like, gosh, could you imagine if a company actually paid attention to reviews and had software to get them at the top of Google reviews? I could instigate that. This company's never once tried to get a review, and I think we could change the company.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so we have something called the three M's, which basically talks about markets, marketing, and measurements. And those three things all have all of these different variables in them. So like markets, if you own a business and you are located in... I don't know, you're a baby, you're a toddler. What are those called where you go and you like take kids? Daycare.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And those handcuffs will tie you to a job you hate, working for people you don't like on things you don't want, where you are no longer the architect of your life. And that's what happened to me and what I mean by golden handcuffs. They're self-imposed, but they're still there.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So say you're a daycare for toddlers and you're like, okay, at this point, we don't take newborns. Well, a new market might be you start to take newborns. Another market might be that you add a preschool in the back. Another market might be you just add another one 25 miles away in a new location.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you think about what are all the different markets we're not serving that we could get revenue lines on? And then you go to marketing, which might be like, we don't use Facebook ads. We don't use TikTok. Why don't we have a YouTube? What about if we had cold call outreach? And then measurements is what inside the business are we not actually measuring right now?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Where if we measured something, then we actually usually outperform in it. And so we apply this 3M strategy to all the businesses that we run.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Well, if you can spell unconventional acquisitions, which is actually harder than you think, there's a lot of I's in that. then you can go to unconventionalacquisitions.com. And there's a free blog. I think everybody should get on it. It's called The Boring Business Brief. And every week, we basically break down a different idea of business to buy, a deal done, lessons learned.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
That one's really good. And then if you also go to contrainthinking.co slash recession, there's a really good piece that we have. I think you download it. It's basically all the ways to make money on buying businesses, starting businesses in a recession. useful.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Laundromat? Well, how about this? I bought my first laundromat for 100K, made me 67K a year, then ended up buying two more laundromats, rolling those up, and we sold that for close to a million bucks. You can buy a laundromat typically for less than $100,000 all the way up to a million dollars. And you can do seller financing on these as well.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You typically pay three to six X the profit of the business for a laundromat. They're what I call the gateway drug, good business to start with and learn with. For you, I'd say don't buy a laundromat. You can do a higher ROI and a higher returning deal, but a good one for a person who's just like, I want to do this for the first time ever without a big, huge business.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what are the cons of a laundromat? What do we have to look out for? The biggest con, I think, is that you can't typically make like tens of millions of dollars with a laundromat. You can make a couple hundred K to maybe a million or two. The second con is the customer that you're serving can be challenging. You've been to laundromats before. They're typically not in the nicest neighborhoods.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You typically have machinery that can get broken into. I haven't really had any vandalized, but that can happen. So your customer segment is not Tiffany's. This is a different customer segment. And so you have to be thoughtful on that. And then the other thing about laundromats that's just worth noting is they take a lot of equipment.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so if you're going to buy one, you really got to make sure you understand what that equipment is worth. Otherwise, you could get into a point where you buy a laundromat with all these machines, but the machines are all old. They're not going to work anymore. So you got to do some work on the equipment and get an appraisal.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Vending machines are great because this is a very cheap business to start or buy. I see people buy vending machine businesses for anywhere from $3,000 to maybe $300,000. So it's a really good, again, entry-level business. The problem with vending machines is that you can't sell very much out of one location. So they're not very efficient.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You might make a couple hundred bucks per day per vending machine, but you'd have to travel all around to go both fill them up again and collect the money. So they're not a very efficient business where you can just go to one location. They require some logistics, putting money in, taking gear out. The second problem with vending machines is they don't scale very well for reason one.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So there are some companies that have scaled vending machines, but not very many. And then the third issue with vending machine businesses, I think, is it's basically like a mini real estate place. You have to go negotiate deals with every single location that you go to. And they could take those deals away or they could require more cash.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you have to make sure you know how to negotiate and the right way to talk to a seller of the location. The good parts about vending machines, though, are they're very cheap to start. They're really easy to run. Again, easy, not simple. Important caveat between the two.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And there's a bunch of technology now that allow you to track your expenses, your inventory, and all of that remote, which didn't used to exist. So that makes them a lot easier.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So if I had to look at these three in order, I'd say vending machine, easiest business, least cost, probably the least profitable. These are all averages. Second business would be laundromats, medium cost, medium expenses, medium revenue. The car washes, most expensive, potentially the highest revenue of the three.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so the good part about Car Wash is all three of these businesses can be relatively automated businesses, and you don't have to be on location all day in all of those businesses, which is really nice. Car Wash has that same characteristic. They also can scale pretty easy. So Car Wash's You can add multiple bays to them. You can offer in-person service. I don't do that with mine.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I mean, I was a young idiot, just like the rest of us. When I was first investing, I thought I knew everything until I lost my first dollar and then a couple dollars and then a couple more dollars. And so big corporations are soul-sucking in many ways.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I like it better when it's just a location and you can self-serve, which also means you make less money, obviously. The thing to know about car washes is the equipment's extremely expensive. It's the most expensive of any of them. So you really have to make sure you analyze the equipment and make sure that it's in working order. And then it's really real estate.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You've got to just look at the location, location, location, location. Do you have at least 10,000 cars that drive by per day? That's called your car count. Do you also understand your utilities and water bill? Because that'll be really big for a car wash. And also, are there any taxes? Sometimes they levy taxes on those types of businesses. But I've owned all three.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I think all three have a place, maybe not for everybody, but to start.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Right now, the businesses that are most exciting for me are probably... I really like buying professional services. Like right now, I'm buying accounting firms, typically just bookkeeping. I like the reoccurring revenue component of them. So every single month, you pay somebody to do your books. I like that. I also like businesses and professional services that do things like insurance.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Again, reoccurring revenue. It also has something that's, this is like very nerdy, but if any of these terms, you guys don't know them. I think of money has its own language. You teach people this all day long. Money has its own language. And if you don't learn to speak it, you're certainly never going to get much of it.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so if you don't know words like reoccurring revenue, or what I was going to say is CapEx, which means capital expenditures, aka the cost to build a car wash. Things like insurance companies and accounting firms or bookkeeping have less of that. And so for somebody that doesn't have a bunch of cash to throw around, those businesses are kind of nice.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I've been playing a lot in the professional services realm right now.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But one thing they do well is they usually invest a lot in their employees because they understand the numbers, which is simply that if you hire somebody and then that person doesn't work out, you typically spend at least twice the cost of anywhere from three to six months of their salary. In some companies, it could even be a year.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I've found that the most critical person to you will be that person you see in the mirror every day. And most people try to compete based on follower count or bank account. And I think the only account that actually matters is the one that stares right back at you.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So about maybe a year ago, I started realizing that I was letting my days slip away from me and that I was going along with whatever was happening as opposed to what I wanted to happen. And so I started posting a selfie each day and the selfie was just me in the mirror. And then it was my outline of things that I have going on that day.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And the reason that I did it was a little bit of accountability. So am I actually going to do the thing I try to do, which is 1% better every day because compounding is magical. And I thought maybe this is a good way to do it. People do it a lot for working out, but I don't see very many people hold themselves accountable to what do they do with their time, their most precious commodity.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that's my idea.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So there's a saying among pilots that basically for every one degree that you go off course at any given time, at the end, you'll end up 60 miles away from the course of destination. And so when I heard about this, I started thinking about it from a daily action perspective. What if that's also true in the things we do each day?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
What if we have a plan, but every day we just get slightly moved off course, one degree off course? Would we also end up tens of miles or hundreds of miles away from where we wanted to be? And I think the answer that we all know inside is that yes, that actually is what happens. And so when I realized that, I like to put things into practice by putting them on my calendar.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So I put on my calendar pretty much every week that I can a little time for me to sit down with a notebook and I talk about what are my outcomes that I want to have happen that week. And I ask myself a series of questions and those questions lead me to hopefully steer myself straight each week.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I think it's less important what questions you ask and how you do it and what day of the week that you do it. but that you have a practice where each week you're going to course correct slightly for every degree that you get off.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
You know what it actually is? The piece of advice I would give is that you don't actually need advice. You need to figure out your to-do list. And most people spend so much time listening to what other people say they should do with their lives when they know inside the things one through 10 they need to do to have a different outcome. And instead of trying to perfect, why don't you try to do?
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'll listen to my own advice on that too.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So you basically waste hundreds of thousands of dollars for every employee you hire that doesn't work out. And so they do a lot to try to train the people that they have in the seats that they need them. And I benefited from that. One of the companies I was at, Vanguard, they told us, who knows if that's true, that they spent about $100,000 on the training of the
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
The best deal I ever did was my partner. It was my husband. It's also the deal that was the most costly to me ever with my ex-husband.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So when you're still young and you have this option, be really careful who you tie your life to because whether that person is your significant other or that person is your business partner or that person is a senior executive that you bring on or somebody you decide to do a startup with, your partner will be the single largest impact on the human that you become.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And most people don't pay enough attention to that. So choose your partners carefully. I love that.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Contrarianthinking.co. Join the newsletter. That's hands down the best place. And then I'm Cody Sanchez, C-O-D-I-E, on all the internet of things, whether you like Twitter, TikTok, Instagram, or YouTube, we're on every single one.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
group that I was in, which was this accelerated development program. So I actually think you can learn a ton by working for somebody else.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And you've probably seen this too, because in internet land, there are a bunch of people that have never worked for anybody, that have never been an employee, never had an employee, never had a boss, never really been a boss, except maybe to vendors or some one-off individuals. And they're almost kind of like these cute little morons running around with no idea how real business works.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I think it's a huge disservice to them. And if they had just spent like a few years working for or with somebody else, then they could go jump to the next level and build something big, as opposed to what happens is they build something kind of big fast, but then they don't know how to sustain it, what a business is, what a P&L is.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that's actually all hard to learn while you're on the rocket ship.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Yeah. I mean, I've had my ass grabbed more times than I can count in finance, for sure. That was 12 years ago. So could you imagine like 20 or 30? I mean, it must have just been... No wonder those women are kind of hard. I remember when I was coming up and there were a few, very few women above me in finance. I was always like, oh, I don't want to turn into her. She seems kind of mean and mad.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I kind of get why. actually, because there was allowed to be one. It wasn't a real rule, but it was kind of there. On the flip side, though, I do think you get to choose your reality. And the reality that I chose was I look different than everybody else. You look different than everybody else. So every Chad, Brad, Tom, Matt, Larry is going to be forgotten in their gray, blue, or black suit.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I'm going to be probably remembered just for having a name that's a little bit different. And I look slightly different than them. And the way that I communicate my skill set comes across differently. So I think there's huge benefit to being slightly outside the norm.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And our lizard brains just don't realize it because we still think that we're on the Savannah and could be eaten by a lion at any point when it feels slightly uncomfortable to not fit in. But it took me a long time to get that.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
I mean, I remember one time, I'm sure you have stories like this too, but I remember one time I kind of was giving somebody a hard time about the way they were acting at a company event and they had been drinking and I thought that they were making some poor life choices. And so I said something like that to one of them, a gentleman, and he was like, and this is why we don't hire women.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And I was like, whoa.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
There it is. Yeah. But on the same vein, at that point, I was just kind of like, hey, fuck you, man. Like, what a dumb thing to say. You've been drinking too much. Go home. And then the next day he comes in, he's like, I'm super embarrassed. What a silly thing to say. And so I think there's always colors or shades of gray to the fact that for a long time, men have been in charge of much.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But I also have an incredible dad and an incredible husband and incredible guy friends that have lifted me up. And so I try not to paint too broad of strokes for one particular sex or the other.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
It started in 2020 when what I really wanted to do was I wanted humans to question any of the narratives that were being thrown at them. At that point, I'm really big on one thing, which is freedom for every human to make their own personal life choices as often as they can. And my understanding at a baseline from starting in Latin America was,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
The difference between me, last name Sanchez, and all these other last name Sanchezes was really that I had some economic freedom. I was born like lower middle class in the US. And so I had more opportunity than a lot of these people do. And so I thought, gosh, if finance is the cornerstone to financial freedom, if it's at the bottom, then the next level is physical freedom.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So like you can do what you want, where you want, with whom you want. And then at the top of it is philosophical freedom, aka I can think what I want. I can do what I want. I can't get people to think for themselves until they feel safe and secure for the most part. It's hard for most people to do that. They need a roof over their head. They need to know they can pay their rent.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And so contrarian thinking came from this idea of, I want people to think differently, but my Trojan horse is money. It's if I can tell you how to become really ridiculously wealthy, Then, and I can kind of glean that towards humans that I think are by and large good because they also believe in freedom, which I find as an underlying principle is really important.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Then that means finally, once these people become financially free, they can share this pervasive mentality I have, which is we should question the world around us and that should be okay. And so at Contrarian Thinking, that's what we do. We talk about civilizing the mind. We talk about building the bank account and we talk about making savage the body.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Because you need to have a strong bank account to have a strong mind. And in order to have a strong mind and bank account, it often really doesn't make any sense if you're unhealthy and sick and overweight and fat. And so let's try to have this kind of third degree black belt in three areas of our life. And that is a life's pursuit that I think is worthy.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Sure. I can't remember. It's a famous investor, but I can't remember which. It might have been Carl Icahn or it could have been Warren Buffett. But one of them said, in order to make a lot of money in investing, you have to do two things. You have to be contrarian and then you have to be right. And that tends to be true, but very hard to do, although simple to say.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And what I've found is that you don't have to be the most intelligent person out there if you can find where the narrative is different from the numbers. And what do I mean by that? These days, the narrative is what you hear on Twitter and Instagram everywhere, which is AI is incredible. And the next GPT launch and my new startup that's raised $50 million from these venture capitalists.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
This is the altar at which we pray as Americans in capitalism right now. And so if that's the narrative, then I started looking at the numbers and I said, okay, well, I kind of get it from a venture capitalist perspective, the people giving the cash out, they make a lot of money because they give it a lot of money to a lot of people.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And like two out of 10 of every their portfolio companies make it big. And those two out of 10 have to hit a hundred X to wipe out the fact that the other eight largely lost. And so I was like, huh, that's the truth. Then we have eight founders in that mix that spent on average three to 10 years hating their life, sleeping on floors, making no money and eventually failing in their startups.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
And that is what it takes to innovate at a venture capital level. So I thought, well, where are the numbers different for founders and entrepreneurs? If that game has 80% potential failure rate, where is there an 80% potential win rate? And what I found is they're in something called boring everyday businesses. When you buy a business that's already profitable, that is already operating as is,
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
and that business has been in existence for more than three years, in some cases, 20 years, and you know that that business has done X for the past three or 20 years, the likelihood of it to continue to do X for the next three or 20 years is pretty high.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
So as long as you don't spend too much money acquiring it, and you structure the deal right, and you know how to analyze it, you're de-risked as opposed to a startup where you have to pray hopes and dreams that you can succeed. And so that's the way we think about contrarian investing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Right now, I think the trade is in these boring everyday businesses, but it's really finding that difference between the noise and the narrative.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Can I interrupt for one second? Of course. There's two words you said there that I'm so particular on these days. Passive income. I know you don't actually live by the mantra that so many people on the internet does because you're an entrepreneur. You've built something. It's a profitable thing. You've been in businesses. You've been an exec at high-level companies.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
But I think these days, those words used to not bother me, and now they do. Because what passive income meant back then was your time wasn't tied to making money. And so if you own a piece of real estate and somebody lives in that, but you don't, you could make money that is unrelated to the work you are doing.
Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Now I like to use the word horizontal income because passive income has become used by a bunch of 20-year-olds on the internet telling you you can get rich in 36 or 90 days if you follow my foolproof plan. Although, oh, by the way, I only make money by telling you about my foolproof plan, not actually doing the thing. Huge issue. And you've seen them too. This shit is not easy, but it is simple.