The $0 to Millions Secret: Why Codie Sanchez Avoids Startups Completely

0:00So here's something while while everyone's trying to build the next big app or crypto project Cody Sanchez went from zero to millions by buying car washes. Laundromats, boring stuff that your grandparents would actually understand. I know what you're thinking. That sounds like the least sexy way to build wealth ever. But here's where it gets interesting. The numbers tell a completely different story than what we see on social media. So here's something while while everyone's trying to build the next big app or crypto project Cody Sanchez went from zero to millions by buying car washes. Laundromats, boring stuff that your grandparents would actually understand. I know what you're thinking. That sounds like the least sexy way to build wealth ever. But here's where it gets interesting. The numbers tell a completely different story than what we see on social media. So here's something while while everyone's trying to build the next big app or crypto project, Cody Sanchez went from zero to millions by buying car washes. Laundromats, boring stuff that your grandparents would actually understand. I know what you're thinking. That sounds like the least sexy way to build wealth ever. But here's where it gets interesting. The numbers tell a completely different story than what we see on social media. While tech pros are burning through venture capital and

1:01most startups are failing spectacularly, Cody's buying businesses that actually make money every single day. And I'm not talking small money either. We're talking about businesses generating 15 to 30% annual returns while the stock market historically gives you 10. That's almost triple the returns for stuff that's way less risky than betting on the next unicorn. But how does this actually work? While tech pros are burning through venture capital and most startups are failing spectacularly, Cody's buying businesses that actually make money every single day. And I'm not talking small money either. We're talking about businesses generating 15 to 30% annual returns while the stock market historically gives you 10. That's almost triple the returns for stuff that's way less risk even betting on the next unicorn. But how does this actually work? Because when most of us think about buying a business, we imagine needing hundreds of thousands or millions in cash upfront. Turns out, that's not how it works at all. The average small business in America sells for just two to four times its annual profit. So if a business makes 50,000 a year, you might buy it for somewhere between $100,000 and $200,000. And here's the kicker that nobody talks about. Because when most of us

2:02think about buying a business, we imagine needing hundreds of thousands or millions in cash upfront. Turns out, that's not how it works at all. The average small business in America sells for just two to four times its annual profit. So if a business makes 50,000 a year, you might buy it for somewhere between $100,000 and $200,000. And here's the kicker that nobody talks about. 80% of small business sales use something called seller financing. Basically, the current owner becomes your bank. They don't want all the cash upfront either. They want steady monthly payments kind of like getting a pension. Now why is this opportunity even available? Well, over 70% of small business owners are hitting retirement age and most of them have zero succession plan. Their kids don't want to take over the dry cleaner or the storage facility. 80% of small business sales use something called seller financing. Basically, the current owner becomes your bank. They don't want all the cash upfront either. They want steady monthly payments kind of like getting a pension. Now why is this opportunity even available? Well, over 70% of small business owners are hitting retirement age. And most of them have zero succession plan. Their kids don't want to take over the dry cleaner or the

3:04storage facility. They just want out. But they also want to make sure their life's work doesn't disappear. So let me ask you this. What if instead of trying to create something from nothing, you could buy something that's already profitable and just make it better? What would that look like? Well, let's start with how you'd even find these opportunities. It's not like there's a zillo for small businesses, right? Actually, they're kind of is. They just want out, but they also want to make sure their life's work doesn't disappear. So, let me ask you this. What if instead of trying to create something from nothing, you could buy something that's already profitable and just make it better? What would that look like? Well, let's start with how you'd even find these opportunities. It's not like there's a zillo for small businesses, right ? Actually, there kind of is. There are business brokers and websites like like Biz Buy Cell where people list businesses for sale. But here's what's fascinating. A lot of the best deals never even make it to these public listings. Why not? Because most small business owners don't even know how to sell their business properly. They're great at running a plumbing company or a marketing agency, but terrible at marketing the sale of their own business. So there are business brokers and websites like Biz Buy Cell where people list businesses for sale. But here's what's fascinating.

4:05A lot of the best deals never even make it to these public listings. Why not? Because most small business owners don't even know how to sell their business properly. They're great at running a plumbing company or a marketing agency, but terrible at marketing the sale of their own business. So they end up talking to their accountant, their lawyer, maybe mentioning it to a customer who might know someone. This is where Cody's approach gets really interesting. Instead of waiting for businesses to be listed, she goes direct. She actually reaches out to business owners and asks if they'd ever consider selling. None the pushy way, but more like, Hey, I noticed you've been running this digital marketing agency for 15 years. Have you ever thought about what your exit strategy might look like? Most people would never think to do this. It feels too forward, too salesy, but think about it from the business owners perspective. They're probably stressed about what I think. You might think about what you're going to do. I'm not going to think about it, it's not going to be a bad deal. But I think that's the only way to do that. I think it's the only way to do that. I think it's the only way to do that. I think it's the only way to do that. They're probably stressed about what happens to their business when they retire.

5:08Having someone approach them with a genuine offer to take over and grow with a built, that might actually be a relief. But let's get practical here. What does a good deal actually look like? Have you ever thought about what your exit strategy might look like? Most people would never think to do this. It feels too forward, too salesy, but think about it from the business owners perspective. They're probably stressed about what happens to their business when they retire. Having someone approach them with a genuine offer to take over and grow with a built, that might actually be a relief. But let's get practical here. What does a good deal actually look like? Cody looks for businesses that have what she calls boring moats. These are competitive advantages that aren't sexy, but they're really hard for competitors to overcome. Take a laundromat, for example. The barrier to entry isn't just money. You need the right location, the right zoning permits, utility connections that can handle industrial washers and dryers. It's not like anyone can just decide to compete with you next week. Cody looks for businesses that have what she calls boring moats. These are competitive advantages that aren't sexy, but they're really hard for competitors to overcome. Take a laundromat, for example. The barrier to entry isn't just money.

6:08You need the right location, the right zoning permits, utility connections that can handle industrial washers and dryers. It's not like anyone can just decide to compete with you next week. Same thing with storage facilities, car washes, even some service businesses that have long-term contracts with their customers. And here's something that surprised me when I started looking into this. Many of these boring businesses have profit margins of 20 to 40 percent. Meanwhile, all those trendy tech startups everyone's obsessing over, most of them operate at losses for years, burning through investor money and hoping to eventually figure out profitability. So why doesn't everyone do this? Well, partly because it's not glamorous. There's no story about changing the world or disrupting entire industries. You're not going to get featured on the cover of Forbes for buying a small town's only dry cleaner. But you might make more money than the entrepreneur who's constantly chasing the next big thing. But let's push back on this a bit. What are the real risks here? Because buying an existing business isn't guaranteed money, right? Why doesn't everyone do this? Well, partly because it's not glamorous. There's no story about changing the world or disrupting entire industries.

7:09You're not going to get featured on the cover of Forbes for buying a small town's only dry cleaner. But you might make more money than the entrepreneur who's constantly chasing the next big thing. But let's push back on this a bit. What are the real risks here? Because buying an existing business isn't guaranteed money, right? You could buy something and completely screw it up. That's absolutely true. And this is where due diligence becomes crucial. You need to understand why the business is profitable, whether that's sustainable and what could go wrong. Is the business dependent on one big customer who could leave is the owner the only person who knows how to run everything? Are there regulatory changes coming that could hurt the industry? You could buy something and completely screw it up. That's absolutely true. And this is where due diligence becomes crucial. You need to understand why the business is profitable, whether that's sustainable. And what could go wrong? Is the business dependent on one big customer who could leave? is the owner, the only person who knows how to run everything? Are there regulatory changes coming that could hurt the industry? Cody talks about something she calls operator risk. A lot of small businesses are really dependent on the owner being there every day. If you buy a business where the current owner is the face of everything,

8:10the main sales person, the only one who knows key customers personally, you're not really buying a business. You're buying yourself a job and probably a more stressful job than whatever you're doing now. The best businesses to buy are ones that can run somewhat independently. Cody talks about something she calls operator risk. A lot of small businesses are really dependent on the owner being there every day. If you buy a business where the current owner is the face of everything, the main sales person, the only one who knows key customers personally, you're not really buying a business. You're buying yourself a job and probably a more stressful job than whatever you're doing now. The best businesses to buy are ones that can run somewhat independently, where there are systems, processes, maybe even other employees who can handle day-to-day operations. Or where you can put those systems in place pretty quickly. Here's a real example that illustrates this perfectly. Cody acquired a digital marketing agency that was struggling with operations but had incredible client relationships and long-term contracts. The owner was brilliant at client work but terrible at running the business side. Cody didn't need to reinvent their service. She just needed to bring in better operations. Maybe some technology to streamline things. And suddenly, a struggling business became highly profitable.

9:12Or take that couple who bought a laundromat for $150,000. They put $30,000 down and the seller financed the rest. The business was already cash flow positive, but they improved it by adding better machines, extending hours, maybe adding some convenient services, nothing revolutionary, just competent business management, applied to an existing operation. Now, critics of this approach do raise some valid points. They argue that these businesses often have limited growth potential. A laundromat in a small town is probably never going to become a billion dollar empire. You're trading the possibility of massive upside for steadier, more predictable returns. There's also the question of your time and attention. Even if you're not working in the business every day, you still need to manage it. You need to understand the financials, make strategic decisions, deal with problems when they come up. It's not as passive as just buying index funds and forgetting about them. And some of these industries are facing real headwinds. Physical retail businesses are competing with e-commerce. Some service industries are getting disrupted by technology. You need to be thoughtful about which industries and which specific businesses have staying power. But here's what I find compelling about Cody's perspective.

10:13She's not saying everyone should quit their job and buy a car wash tomorrow. She's saying that for people who want to build wealth and are willing to learn some basic business skills, this might be a more reliable path than trying to create something from scratch or just hoping your stock portfolio performs well. And the numbers seem to back this up. Her portfolio companies are generating those 15-30% annual returns I mentioned earlier. That's not speculative returns based on hoping someone will pay more for your stock. That's actual cash flow coming from real customers paying for real services. Plus, there's something to be said for businesses that people actually need. A laundromat provides a service that people in apartment buildings absolutely require. A storage facility helps people when they're moving or downsizing. These aren't luxury purchases that disappear when the economy gets tough. Before we wrap up, let me share something practical you could actually do if this interests you. First, start paying attention to the small businesses around you differently. Instead of just being a customer, start thinking like a potential buyer. What do you notice about how they operate? What could be improved? What would you want to know about their finances and customer base? Second, if you're serious about exploring this, you could start by just browsing those business listing websites I mentioned.

11:15Bus buy sell, loop net for commercial properties, even just searching business for sale in your area. You're not committing to anything, but you'll start to get a sense of what's available and what different types of businesses are selling for. Third, consider talking to a business broker or even an accountant who works with small businesses. They can give you a realistic picture of what's involved and help you understand the local market. But honestly, the biggest takeaway here might just be expanding your definition of what wealth building looks like. We're so conditioned to think it's either get rich, quick schemes, or slow and steady stock market investing. But there's this whole middle ground of buying cash flowing assets that can generate real wealth over time. The key insight from Cody's approach is that boring can be beautiful when it comes to money. While everyone else is trying to reinvent the wheel, maybe the smarter move is to just buy the wheel factory. It's not gonna make you famous, but it might make you financially free. And that's something we're thinking about. Because at the end of the day, the goal isn't to have the most exciting investment story. It's to have enough money to live the life you actually want. Sometimes the path to that freedom runs right through the local car wash. Thanks for listening. Talk to you soon.