Codie Sanchez: From Wall Street to Washing Machines

68 snips

Dec 10, 2024

Codie Sanchez, Founder and CEO of Contrarian Thinking, shares her journey from the finance grind to entrepreneurial freedom by acquiring laundromats. She reveals eye-opening stats on the decline of business ownership in America and discusses how accessible Main Street businesses can be for aspiring owners. Codie breaks down unique financing options and introduces her RICH framework for finding the perfect business fit. With a focus on cash-flowing enterprises, she challenges conventional success definitions, promoting profitability over prestige.

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ANECDOTE

First Laundromat

Codie Sanchez bought her first laundromat during a "midlife crisis", seeking an exit strategy from her demanding finance job.
This small, sub-six-figure investment taught her how to generate five-figure profits independently.

ADVICE

Verify Cash Business Revenue

Verify cash business revenue by physically counting cash (e.g., quarters in a bucket for laundromats).
Compare these numbers with reported financials and tax returns to uncover discrepancies.

INSIGHT

Main Street Opportunity

Private equity's growing ownership of small businesses creates an opportunity for individuals.
Codie believes "the rich know a secret: there's no way to get rich without ownership."

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#565: When Codie Sanchez worked in finance, she wasn't planning to buy a laundromat. But facing 60-70 hour workweeks and realizing she didn't want her boss's job, she started looking for an exit strategy. Instead of buying a fancy car during her "midlife crisis," she purchased that first laundromat - a decision that would lead her to acquire multiple laundromats, car washes, and other local businesses.

Codie joins us to break down how regular people can buy and run profitable local businesses, even without previous ownership experience. These "Main Street" businesses - think laundromats, car washes, landscaping companies, and other local services - often generate steady cash flow without requiring complex technology or massive scale.

She shares eye-opening stats about business ownership in America: while 80 percent of Americans owned a business in the 1800s, today that number has dropped to just 6 percent. Meanwhile, private equity firms have increased their ownership of small businesses from 4 percent in 2000 to 20 percent by 2020.

But there's good news for aspiring business owners. Codie breaks down 21 different ways to finance a business acquisition, from seller financing to equipment loans. She explains that 60 percent of businesses sell with some form of seller financing, making ownership more accessible than many realize.

Want to avoid common pitfalls? Codie introduces her RICH framework:

- Research: Define what type of business fits your goals and skills

- Invest: Get skin in the game, but never risk bankruptcy

- Command: Use systems and metrics to avoid accidentally buying yourself a job

- Harness: Build toward bigger goals if desired

She emphasizes starting small — master one business before attempting to build an empire. A successful acquisition requires understanding the "roadmap to making money" - the 5-7 key steps that drive profit in any business.

The numbers tell an encouraging story: while 90 percent of startups fail within 10 years, small business acquisitions have a 75-95 percent success rate. Codie attributes this to buying proven business models rather than starting from scratch.

Perhaps most importantly, she challenges the notion that "boring" businesses can't generate serious wealth. From a roofing company founder becoming one of the world's wealthiest women to a garbage collection entrepreneur building a billion-dollar enterprise, Main Street businesses have created numerous millionaires and billionaires.

Want to learn more? Check out Main Street Millionaire.

For more information, visit the show notes at https://affordanything.com/episode565

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