In this episode of The School of Greatness, guest Codie Sanchez presents a wealth-building mindset focused on increasing earning potential over mere saving. She advocates acquiring existing businesses rather than starting new ones, and outlines a structured process for successful acquisitions.
Sanchez also explores the importance of cultivating meaningful relationships and carefully managing one's inner circle as success grows. She shares insights on balancing professional connections with personal bonds, highlighting the value of loyal friendships beyond business ties.
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According to Codie Sanchez, the key to building wealth lies in increasing one's earning potential rather than merely saving. She believes that while saving is helpful, truly wealthy individuals focus on expanding their earnings through negotiations and obtaining equity stakes in businesses.
Codie advocates for shifting the mindset from concentrating on saving to actively pursuing higher earnings. She compares making money to an enjoyable game, emphasizing the importance of loving the process and seeing it as a competition to be won.
Codie advocates purchasing established, cash-flowing businesses over starting new companies from scratch. She criticizes startup culture and highlights the stability of proven franchises and vertically integrated businesses.
Sanchez outlines a comprehensive 10-step approach to acquiring a small business, covering deal origination, financing, negotiation, due diligence, and post-purchase integration. She emphasizes thoroughly understanding the process to avoid pitfalls and learning from each deal, even if it doesn't go through.
Codie suggests starting with smaller acquisitions like laundromats to gain experience. She differentiates between online and physical businesses, favoring the latter for their customer stickiness and long-term sustainability. Deal structuring is vital, and Codie introduces "the contrarian way" for business analysis and integration.
As one becomes more successful, Codie Sanchez stresses the need to curate one's inner circle carefully. She cautions against surrounding oneself with insincere people and emphasizes the importance of having truth-telling friends over sycophants.
While "deal friends" provide professional value, Codie believes maintaining "useless friends"—those without business ties but who bring joy—is equally crucial for overall happiness and balance.
Codie advises being straightforward in relationships and valuing loyalty over popularity. She shares examples from her own life, highlighting the need to separate business from personal connections and the strain caused by mishandled situations.
Overall, Codie underscores proactively nurturing meaningful relationships and cautiously managing one's circle of influence to support both professional success and personal fulfillment.
1-Page Summary
Codie Sanchez presents a contrarian perspective on wealth-building, focusing on earning potential rather than mere saving tactics, advocating for a mindset shift to truly achieve financial success.
Codie Sanchez reiterates that saving alone isn't enough to become rich. She states, "It's never gonna get you to rich. It's way easier to earn more than it is to save everything." She points out that once a person masters earning, they become unstoppable. Codie also says, "You can only save your way to zero," emphasizing that earning more is what unlocks true wealth.
Codie emphasizes that to accumulate substantial wealth, like reaching $10 million, one must look beyond just working for others. She suggests earning through skin in the game—investments and ownership that provide upside potential beyond mere wages or salaries.
Codie views money as a form of freedom, suggesting that with more money comes the power to exert your will upon the world. She encourages loving the "game" of making money, advising that one should enjoy making money and treat it like a scoreboard in a competition rather than a source of stress.
Codie again stresses the importance of seeing money-making as a game that one should love playing — she compares it to a scoreboard in a competition. She implies that this type of perspective can transform the act of earning money into an enjoyable challenge rather than a burden.
Codie warns against the excessive focus on saving as it could foster a ...
Mindset and approach to building wealth
Codie Sanchez offers a comprehensive viewpoint on strategies for achieving success in business and entrepreneurship, advocating for acquiring existing businesses over starting new ones and outlining a detailed 10-step process for successful acquisitions.
Codie Sanchez criticizes the startup culture and the idolization of equity options, which often become worthless due to the high failure rate of startups. She suggests that investing in existing, cash-flowing businesses, such as franchises or businesses in a vertical one currently does business with, is a more stable path to wealth. Sanchez stresses the importance of cash flow and highlights the advantages of proven businesses, like franchises, which provide systems and a blueprint for success. She suggests that buying a business with an established track record and cash flow is a lower-risk path to wealth compared to starting from scratch.
Codie outlines her approach for acquiring businesses, emphasizing a thorough understanding of the process to avoid pitfalls. She explains that a bad first deal can be discouraging and stresses the need to learn the technical aspects of deal-making, such as understanding opportunity, deal clarity, selling yourself, origination, financing, negotiation, structuring, closing documents, due diligence, and what to do in the first 90 days after purchase. She further underscores the importance of due diligence, ensuring no deceit from the seller before finalizing a purchase.
Codie mentions the importance of being willing to walk away from a deal if it's not the right fit, highlighting Warren Buffett's quote about once-in-a-lifetime opportunities to emphasize that the business often turns out better than expected after closing. She also acknowledges that not all businesses evaluated will be bought and that it's valuable to learn from experience even if a deal does not go through.
Sanchez ...
Strategies for business and entrepreneurship
Codie emphasizes the need to be selective about who you allow into your inner circle, especially as you become more successful. Her advice highlights a proactive approach to creating and maintaining social connections that contribute to both professional and personal growth.
Codie Sanchez and Lewis Howes discuss the importance of being cautious with social circles, especially in the face of success. Codie cautions against the dangers of being surrounded by "yes-men" and sycophants—a lesson she correlates with the historical example of the fall of Rome and Caesar's downfall. She stresses the need for a small group of loyal, truth-telling friends over those who are only there for personal gain.
Codie and her husband Chris prioritize a balance between work and play in their relationship. They have structured their lives and relationships to support growth and ambition, while also making time for fun and recreation. Chris balances Codie's work-focused side by encouraging her to have fun. They play roles within their business interactions with Chris often considering potential downsides, which complements Codie's optimistic approach and creates balance.
Codie discusses the distinction between "deal friends" and "useless friends"—the latter being those who are there just for the enjoyment of the relationship and not for any material gain. These "useless friends" are crucial for maintaining happiness and balance, according to Codie.
Through discussions with Lewis Howes, Codie advises on being straightforward and honest in relationships, holding value in friends who will communicate the truth, even when it is uncomfortable. Together, they underline the importance of friendship based on loyalty and truth over popularity or avoidance of confrontation.
Codie illustrates that as one's success grows, the need for a more insulated and selective ...
Importance of relationships and social connections
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