Young and Profiting (YAP) with Hala Taha

Codie Sanchez: How to Make Extraordinary Wealth Buying Boring Businesses | E319

Dec 2, 2024

Codie Sanchez, founder of Contrarian Thinking and co-founder of Unconventional Acquisitions, is an expert in acquiring small businesses. She discusses how investing in 'boring businesses' like laundromats can lead to financial freedom and challenges the glamorization of flashy startups. Codie highlights the importance of ownership, smart deal-making, and the stability of traditional service industries. She also explains creative financing techniques and the role of AI in enhancing these businesses, encouraging listeners to embrace unconventional paths to wealth.

01:16:03

Episode guests

Codie Sanchez

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Investing in 'boring businesses' like laundromats and vending machines can provide steady, recession-resistant income and significant profit potential.

Ownership empowers individuals to achieve financial freedom by generating passive income and dictating their financial destinies instead of following corporate structures.

Creative financing strategies, such as seller financing, can help aspiring entrepreneurs acquire established businesses with more favorable terms and lower barriers to entry.

Deep dives

The Value of Boring Businesses

Businesses categorized as 'boring,' such as laundromats and landscaping services, offer lucrative investment opportunities that are often overlooked. These types of businesses tend to be recession-resistant and provide steady, reliable income due to their essential nature. The misconception that these businesses are less valuable than 'sexier' industries has led many potential investors to miss out on significant profit potential. By focusing on acquiring these established ventures, investors can benefit from stable cash flow and long-term success.

Intro

1min

The Power of Boring Businesses

16min

The Hidden Value of Main Street Businesses

3min

Understanding the Lindy Effect: Investing in Longevity

6min

Mastering Deal-Making and Business Ownership

21min

Unlocking Boring Businesses

7min

Navigating Business Acquisitions

17min

Leveraging AI and Relationships for Personal and Financial Success

2min

Embracing Ownership: The Path to Financial Freedom through Small Businesses

3min

Codie Sanchez started out on the traditional corporate path, working long hours and steadily rising through the ranks. But she soon noticed a pattern: the wealthiest people weren't just starting flashy tech companies—they were buying "boring businesses." Codie decided to break away from the corporate world to invest in steady, everyday businesses that others ignored, like laundromats and vending machines, building her wealth that way. In today’s episode, Hala and Codie dive into how these unglamorous businesses can be your ticket to financial freedom and why sometimes the smartest move is going against the grain.

In this episode, Hala and Codie will discuss:

(00:00) Introduction

(01:58) Wealth Myths Shattered

(05:55) The Power of Ownership

(10:59) True Entrepreneurship vs. Just Another Job

(15:14) Main Street Businesses: The Hidden Wealth Builders

(25:03) How to Prep to Buy a Business

(32:49) Creative Financing Secrets

(38:20) Where to Hunt for Business Deals

(43:00) Go Strategic or Diversify?

(47:42) Key Financials Before You Buy

(49:56) Scaling Smarter, Not Harder

(52:00) Plotting the Perfect Exit Strategy

(59:43) AI & The Future of “Boring” Business

Codie Sanchez is the founder of Contrarian Thinking and co-founder of Unconventional Acquisitions, focusing on small business acquisitions and roll-ups in the micro-PE space. She runs a holding company of service-based SMBs under $10M EBITDA, emphasizing "boring businesses." She previously led First Trust’s $1B Latin America business and held leadership roles at Goldman Sachs, State Street, and Vanguard. She started her career as an award-winning journalist and has since become a recognized investor and thought leader. She holds an MBA from Georgetown University and serves on boards like Permian Investment and Magma Partners.

Connect with Codie:

Codie’s Website: https://www.codiesanchez.com/#intro

Codie’s LinkedIn: https://www.linkedin.com/in/codiesanchez/

Codie’s Twitter: https://twitter.com/codie_sanchez

Codie’s Instagram: https://www.instagram.com/codiesanchez/

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