611: Codie Sanchez - How To Build Extraordinary Wealth Through Ordinary Businesses (Main Street Millionaire)
Dec 2, 2024
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Codie Sanchez, an entrepreneur and founder of Contrarian Thinking, shares her unique take on wealth-building through acquiring small businesses. She emphasizes the importance of resilience in daughters and the power of presence in personal relationships. Codie reflects on her non-linear career journey and the significance of genuine curiosity and networking. She debunks myths about wealth by showcasing success in ordinary industries, encouraging listeners to pursue financial independence with perseverance and a long-term mindset.
Identifying a niche and ensuring product market fit are essential for acquiring ordinary businesses and building significant wealth.
A strong foundation in financial literacy is critical for business owners to navigate complexities and foster strategic growth effectively.
Understanding the difference between passion and obsession can shape a profitable business mindset, allowing for deeper engagement and success.
Deep dives
Finding Your Niche in Business
Identifying a niche in the business landscape is crucial for success. The speaker emphasizes the potential for significant wealth through the purchase of ordinary businesses, highlighting that both the niche and product market fit are vital for profitability. Understanding one’s strengths and interests can lead to discovering opportunities that may not be immediately apparent. Focusing on the characteristics of a business, such as its ability to cover debt service and operational costs, aids in making a sound investment choice.
The Importance of Financial Literacy
Gaining a thorough understanding of money management and financial literacy is essential for aspiring business owners. The speaker shares that comprehension of finance not only empowers individuals to navigate the complexities of business transactions but also positions them for strategic growth. By educating oneself on cash flow, credit access, and investment strategies, individuals can break free from common misconceptions regarding wealth accumulation. An informed approach to finance ultimately allows for building a prosperous business without taking undue risks.
Obsessed About Success
The distinction between passion and obsession in business is critical for success. The speaker suggests that individuals should prioritize profit when choosing a business, allowing a deep obsession with that business to eventually fuel passion. Being obsessed means dedicating time and effort to understand the nuances of a business deeply, thus improving its profitability. This mindset can transform a seemingly mundane business into a passionate venture, creating a rewarding entrepreneurial journey.
Creating Value Through Relationships
Cultivating genuine curiosity and forming effective relationships are key strategies for career advancement. The speaker recounts how asking questions and following up with mentors can open doors to opportunities even in competitive environments. This approach not only demonstrates engagement but also establishes a connection that can lead to job offers or valuable mentorship. Realizing that leadership involves setting the energy in the room can significantly impact how one is perceived as a potential team member or leader.
Navigating Career Transitions
Transitioning from a corporate job to business ownership can be daunting, yet it is achievable with the right steps. The speaker advises aspiring entrepreneurs to retain their corporate jobs while exploring business opportunities, using the time outside of work to acquire knowledge and experience in small business ownership. The process involves a structured timeline of learning, seeking out potential deals, and gradually stabilizing investments over time. This balanced strategy helps minimize risks associated with entrepreneurship while allowing individuals to build the skills necessary for success.
Codie Sanchez is an entrepreneur and investor known for founding Contrarian Thinking, a media and business education company. She has a diverse background, including entrepreneurship, finance, and journalism. Through her book "Main Street Millionaire," she advocates for wealth-building by acquiring small businesses and shares her insights on financial independence and business success. Codie emphasizes practical, contrarian approaches to wealth and leadership.
Notes:
Her dad always said to her: ‘You’re not going to be a princess, you’re going to be the president’ – It’s a great reminder of the power we have as leaders to believe in someone and raise their level of expectations because you see something special in them. Codie was glowing while talking about her dad.
How Codie earned a job at Vanguard. She went to conferences. She met people. She got IN THE ROOM and took action. And then when she got her opportunity, she led with her curiosity, asked questions from the woman she met with, learned, read the books she told her to read, and followed up. Showing up, doing extra, and following up are a great way to earn a job that you might not be qualified for.
How you start and end your meetings. What type of energy do you bring to the space? Remember, you no longer get to be energy-neutral as a leader. You’re either lifting the room up or taking it away. We want to add energy additives to the rooms we enter.
One of Codie's favorite books – Letters to a Young Contrarian by Cristopher Hitchins. “What I like about Christopher Hitchens, he pushed back against the common narrative in a time where to be an activist was really frowned upon”
“He was what the people these days that say they're activists actually are. He really had no loyalty to any type of thought; he was simply trying to find the truth. He was the inspiration for contrarian thinking”
Career Path – “I don’t believe that humans have linear paths ever. Anyone who has had an interesting career in my opinion has had a completely divergent set of experiences.
High Performers:
They hate small talk.
Are not okay with wasting your time.
Do what they say they’re going to do.
Do it with urgency.
Are obsessed, not just interested.
Goal Setting: “If you want to be a person who hits your goals: Skip setting goals and set sacrifices. What are you willing to give up to get what you want? That is the missing piece to winning. Every one of your goals has a price."
Codie's Anti-Goals: Being an employee/work for others, Selling other people's products, Speaking for free, Coffee meetings.
The richest self-made woman in the US is… Diane Hendricks (co-founded the largest wholesale roofing, siding, and window distribution company). There are billions in the boring.
Writing = Clarifying Your Thinking
Writing helps Codie think clearly and organize her thoughts.
The process of writing demands coherence and structure, unlike verbal communication.
4 Parts to buy a business - Cover debt, Cash to have an operator, Money to make a salary, Operating cash.
3, 9, 12 method - Learn the 10 steps in the first 3 months. Get in on a deal. Stabilize.
Boring Businesses - Laundromats, car washes, and port-a-potty services can be very profitable. They are less glamorous but have a higher success rate compared to sexier industries.
Advice - Meet with a small business owner. Ask to shadow them. Get curious. 42% of the population works for or in a small business.
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