Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)

Codie Sanchez illuminates the importance of developing an "owner's mindset" and the wealth-building power that comes with having "skin in the game" in a business.

Adopting an owner's mindset rather than an employee mindset is critical for building wealth.

Owning equity in a business, even a small one, provides long-term upside and control that a job or investments alone cannot match.

Sanchez stresses that an owner's mindset is essential to acquiring wealth, as reflected by data showing that 70% of millionaires are self-made, and 68% have ownership in a company. This indicates that having control over a part of a business, even a small one, provides long-term financial benefits and autonomy that a job or investments alone cannot provide. Sanchez urges individuals to shift their perspective, fostering a positive and open stance towards money, aligning more with an "owner's mindset" that can ease the path to acquire wealth.

Sanchez implores those seeking financial freedom to start small in business, not to be daunted by inexperience or a lack of specific skills. She emphasizes the need to understand and leverage personal worth and outlines that accumulating "skin in the game" in a business, such as equity, over time is vital.

The wealthy tend to be business owners and dealmakers, not just employees or investors.

Getting "skin in the game" by negotiating for equity in a business, even if you don't have capital to invest, can be a powerful path to wealth.

Sanchez points out that wealth predominantly resides among entrepreneurs and investors who have taken calculated risks through business ownership or investments. She elaborates that one doesn’t need to start as an entrepreneur to gain ownership; rather, focusing on acquiring "skin in the game" is the crux of wealth-building.

Jay Shetty shares a personal anecdote, explaining how opting to share profits with a business partner enabled their vested interest, ultimately supporting his bus ...

Codie Sanchez shares insights into better dealmaking practices when acquiring or investing in small businesses. She underscores the importance of diligence in evaluating potential deals and partnerships, advocating for a methodical and relationship-driven approach to business.

Building relationships and actively looking for acquisition opportunities, rather than waiting for them to come to you, is key.

Codie Sanchez emphasizes the importance of building a network and actively seeking out business acquisition opportunities. She played a game when she was young where she would 'collect mentors' by asking them questions without expecting anything in return, fostering relationships that could lead to opportunities.

Developing a "reticular activating system" to recognize potential deals all around you takes practice but can pay off.

By engaging with the business world and nurturing an interest in deals, one’s brain becomes better at spotting potential business opportunities, Sanchez explains. She likens this to developing a “reticular activating system” in the brain, training it to recognize useful details in one’s environment like those related to business deals.

Evaluating potential deals objectively based on value, not just emotions or gut feel, is critical.

Structuring "win-win" deals that benefit both the buyer and seller, with appropriate risk mitigation

Codie Sanchez explains that one should objectively evaluate potential deals based on their inherent value and alignment with personal business goals outlined in a "deal box". She suggests structuring compelling "win-win" deals and using milestone-based deliverables for risk mitigation to ensure the deal is beneficial for both parties.

Sanchez advises being tactical when raising money for investments and stresses the importance of negotiations as a common practice among the wealthy. She also cautions against partnering with someone who is not fully invested or is distracted by multiple ventures, emphasizing the focus required for success.

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Codie Sanchez and Jay Shetty discuss the often-overlooked potential of small "main street" service businesses as reliable wealth generators.

Many of the wealthiest people have made their money from "main street" service businesses, not high-tech startups

Sanchez educates youth on the importance of seizing the opportunity to take over baby boomer businesses. With baby boomers owning 60% of all small businesses, totaling $68 trillion in wealth in the US, there lies an evident potential for wealth transfer to younger generations. Sanchez emphasizes that while younger individuals are drawn to day trading stocks, NFTs, and cryptocurrency speculation, a more stable and lucrative alternative could be investing in small service businesses.

She introduces the concept that "boring businesses," such as a vending machine business, applauding their surprising profitability. Sanchez argues that these ordinary businesses often have stable cash flows, low competition and can be acquired or grown relatively easily, countering the misconception that wealth is often created in more "shiny" industries. She references her family member’s success with an equipment rental company as a prime example of obtaining wealth in what many might consider a dull industry.

Overcoming the bias that wealth only comes from exciting, innovative businesses is important

Sanchez points to the Forbes 100 list, where many of the wealthiest individuals made their money in stable, if mundane, industries. The richest woman in the world, as per the 2022 list, began a sizable roofing company, dismissing the notion that only "glamorous" industries bring significant wealth. This is further emphasized by Sanchez's observation that private equity firms are purchasing these businesses more frequently, moving from owning 4% of US companies in 2000 to 20%.

Shetty underscores the need for a cultur ...