Young and Profiting with Hala Taha (Entrepreneurship, Sales, Marketing)
Codie Sanchez, 7 Boring Businesses to Replace Your Income | Entrepreneurship | YAPClassic
Fri, 06 Dec 2024
After climbing the ranks of the high finance ladder, Codie Sanchez felt lost. She was no longer in charge of her day-to-day life, despite her years of schooling and hard work. She decided to use the insights she had gained to build her own portfolio of what she calls “boring businesses.” Now, she is out to help others do the same, quickly becoming one of the biggest female business influencers in the world. In this episode, Codie breaks down her step-by-step approach to identifying, buying, and scaling small businesses that most people ignore but yield big returns. In this episode, Hala and Codie will discuss: (00:00) Introduction (03:18) From Journalism to Finance (05:11) Breaking Corporate Chains (08:09) Battling Bias as a Woman in Finance (11:21) Unorthodox Wealth Creation Strategies (20:00) Should You Really Diversify Your Income Streams? (24:06) Wealth from Boring Businesses (27:09) Six Creative Strategies to Buy a Business (35:11) Spotting Motivated Sellers (37:05) Key Metrics for Evaluating Businesses (40:27) Finding Hidden Gem Businesses (53:53) Codie’s Secrets to Success 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. Resources Mentioned: Contrarian Thinking: https://contrarianthinking.co/ Unconventional Acquisitions: https://unconventionalacquisitions.com/ Sponsored By: Airbnb - Find yourself a co-host at airbnb.com/host. Mint Mobile - To get a new 3-month premium wireless plan for just 15 bucks a month, go to mintmobile.com/profiting Found - Try Found for FREE at https://found.com/profiting Working Genius - Get 20% off the $25 Working Genius assessment at www.workinggenius.com/ with code PROFITING at checkout Shopify - Sign up for a one-dollar-per-month trial period at youngandprofiting.co/shopify Indeed - Get a $75 job credit at indeed.com/profiting Active Deals - youngandprofiting.com/deals Key YAP Links Reviews - ratethispodcast.com/yap Youtube - youtube.com/c/YoungandProfiting LinkedIn - linkedin.com/in/htaha/ Instagram - instagram.com/yapwithhala/ Social + Podcast Services: yapmedia.com Transcripts - youngandprofiting.com/episodes-new All Show Keywords: Entrepreneurship, entrepreneurship podcast, Business, Business podcast, Self Improvement, Self-Improvement, Personal development, Starting a business, Strategy, Investing, Sales, Selling, Psychology, Productivity, Entrepreneurs, AI, Artificial Intelligence, Technology, Marketing, Negotiation, Money, Finance, Side hustle, Startup, mental health, Career, Leadership, Mindset, Health, Growth mindset. Career, Success, Entrepreneurship, Productivity, Careers, Startup, Entrepreneurs, Business Ideas, Growth Hacks, Career Development, Money Management, Opportunities, Professionals, Workplace, Career podcast, Entrepreneurship podcast
What inspired Codie Sanchez to leave journalism for finance?
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.
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.
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.
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.
Yeah. Seller financing is something that we really don't think about often. So it's very interesting. And something else to your point right now is finding a highly motivated person who wants to sell their business. So talk to us about what we should look for and why it's so important to find somebody who's actually highly motivated to sell their business.
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.
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.
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.
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.
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