Codie Sanchez on the Secret for How to Gain Financial Freedom EP 541
Passion Struck with John R. Miles
Deep Dive
Why did Codie Sanchez decide to pivot from the corporate world to championing small business ownership?
She realized she wouldn't like the person she would become if she stayed on the corporate path, leading to a decision to explore business ownership and investment in small companies.
How does investing in small local businesses differ from the corporate grind in terms of job satisfaction?
Small business employees report liking their jobs 60% of the time, compared to 85% of corporate employees disliking their jobs, due to the sense of community and importance in small businesses.
Why does Codie Sanchez believe that small businesses are being overlooked as investment opportunities?
Small businesses are overlooked because large corporations and private equity firms have more lobbying power, regulatory advantages, and buying power, making it easier for them to dominate markets and buy out small businesses.
What role does Codie Sanchez see for individuals in the battle between Main Street and Wall Street?
Individuals can play a crucial role by acquiring and owning small businesses, which not only builds personal wealth but also decentralizes ownership and prevents large corporations from dominating local economies.
What are some key factors to consider when choosing a business to invest in according to Codie Sanchez?
Factors include aligning the business with your passions, skillset, and network, understanding the business model, and ensuring it has a clear pathway from attention to product to closing capital.
How does Codie Sanchez suggest overcoming the lack of capital for business acquisitions?
She suggests using creative financing methods such as seller financing, lines of credit, HELOCs, and raising capital from third-party investors, emphasizing that the problem is often a lack of knowledge rather than money.
What advice does Codie Sanchez give for managing multiple businesses without burning out?
She recommends hiring a general manager or caretaker to run the business, ensuring it doesn't become a job but rather an investment with employees managing day-to-day operations.
Why does Codie Sanchez believe that the current market conditions are perfect for building wealth through small business ownership?
The current market conditions are favorable due to an aging demographic shift, with many baby boomers retiring and selling their businesses, creating a supply of small businesses ripe for acquisition.
- 60% of small business employees like their work vs 15% of corporate employees
- 90% of startups fail within 10 years
- Small businesses offer higher success rates and happier lives
- The path to ownership of small businesses is the way to financial freedom
Shownotes Transcript