99% of Business Owners Make This Mistake
Added: May 8, 2024
In this podcast episode, Codie Sanchez, a successful business investor and content creator, shares her insights on buying businesses. Throughout the conversation, Sanchez emphasizes the importance of simplicity in business, preferring profitable and established businesses over complex ones. She advises aspiring entrepreneurs to focus on businesses with cash flow and a history of profitability, highlighting the benefits of starting with something familiar and avoiding industries like restaurants, retail, and hotels, which she believes are overhyped and challenging to succeed in.Key takeaways
Simplicity in business is crucial. Codie Sanchez emphasizes the importance of focusing on profitable and established businesses rather than complex ones.
The 3-9-12 principle is a structured approach to buying businesses, involving three months of learning, nine months of searching, and twelve months of closing the deal.
Finding the best operators involves selling a compelling dream and hiring individuals with a proven track record of success.
Capitalizing on AI integration services represents a lucrative future business opportunity, especially for tech-savvy entrepreneurs.
Choosing fulfillment over financial success can lead to greater happiness and satisfaction in one's career, as shared by Sanchez from her personal experience.
Structured Approach to Buying Businesses
Sanchez shares her journey of buying businesses, starting with a cross-market exchange and a laundromat. She delves into the economics of a laundromat, discussing factors such as lease expenses, utilities, and cash collection. She introduces the 3-9-12 principle for buying businesses, which involves spending three months learning how to buy a business, nine months searching for a deal, and twelve months closing the transaction. This structured approach can help aspiring entrepreneurs navigate the process of acquiring a business successfully.
Keys to Finding the Best Operators
When it comes to finding the best operators for a business, Sanchez advises selling a compelling dream to potential employees and looking for competency. She recommends hiring individuals with a track record of excellence and success in their past roles. She also emphasizes the importance of gaining hands-on experience in running a business before delegating operational responsibilities to others. This practical approach can help ensure the success and growth of the business in the long run.
Keys to Business Success
Sanchez also discusses potential business opportunities, such as productized services or businesses offering high-ticket items. She advises against spreading oneself too thin and emphasized the importance of mastering one business before moving on to the next venture. She stresses the value of surrounding oneself with the right people and hiring individuals who can contribute to the growth of the business, highlighting the significance of teamwork and collaboration in achieving success.
Capitalizing on AI Integration Services
Looking towards the future, Sanchez predicts that services related to AI would be a lucrative business opportunity, especially for young entrepreneurs well-versed in technology and AI applications. By offering AI integration services to help businesses increase revenue, reduce costs, and address operational challenges, individuals can capitalize on the growing demand for technological solutions in various industries. This forward-thinking approach can position entrepreneurs for success in the evolving business landscape.
Keys to Financial Success
The conversation also touches on common mistakes that young people make that hinder their financial success. Sanchez cautions against taking advice from individuals who have not achieved the desired level of success and prioritizing leisure over hard work. She highlights the detrimental impact of distractions on productivity and suggests focusing on self-accountability and deep work to maximize efficiency. By prioritizing ownership, both in business endeavors and personal growth, individuals can take control of their success and happiness.
Choosing Fulfillment Over Financial Success
Sanchez shares her personal experience of reevaluating her career path and choosing to leave a lucrative but unfulfilling job in finance. She emphasizes the importance of surrounding oneself with inspiring and supportive individuals and working for someone whose lifestyle and values align with one's aspirations. By prioritizing ownership in both business endeavors and personal growth, individuals can take control of their success and happiness, ultimately leading to fulfillment and satisfaction in their careers.
