(NEW!) Codie Sanchez: They're Lying To You About How To Get Rich! How To Turn $1,000 Into $1M!
12 Aug 2024 (1 month ago)
Intro
- The video discusses the possibility of becoming wealthy through a salary and emphasizes that it is achievable for most people, except those who are unwilling to put in the effort.
- The speaker, Cody Sanchez, advocates for learning from successful individuals by providing value to them, even if it requires significant effort.
- Sanchez advises against focusing on wealth accumulation in one's early twenties and instead emphasizes the importance of learning and gaining experience.
- The speaker suggests maximizing income from a salary and investing in "gateway drug businesses" - simple businesses that can be run even with limited experience.
- The speaker highlights the opportunity to acquire businesses through various methods, including purchasing them outright.
- The speaker expresses gratitude to the YouTube audience and announces a monthly raffle with prizes including meetings with the speaker, event invitations, and gift vouchers for subscribers.
Who Do You Want to Help Build Wealth?
- The message is intended for individuals who feel disenfranchised and desire control over their lives.
- The message challenges the notion that ownership is inherently bad, arguing that it is a path to freedom.
- The message will not resonate with those who believe they should own everything and control others, or those who are unwilling to put in the hard work required for ownership.
Why Your Message Really Matters
- The text discusses the importance of authenticity and trust in communication, particularly in the current political and social climate.
- It highlights the declining trust in traditional institutions, including government, corporations, and media outlets.
- The text suggests that people are increasingly turning to alternative sources of information, such as social media influencers, because they perceive them as more genuine and trustworthy.
How to Make More Money and Why It Counts
- The goal of the conversation is to provide listeners with actionable advice on how to make more money and understand why it is important.
- The speaker believes that money is a tool that can be used to gain freedom, allowing individuals to say "no" more often and pursue their desired activities.
- The speaker believes that the advice offered is accessible and actionable for everyone, except for those who are unwilling to put in the effort and work.
- The speaker emphasizes that the advice is not about "get rich quick" schemes or stock tips, but rather about practical strategies that can be implemented over time.
Who Is Codie Sanchez?
- The speaker has been a finance investor for over 15 years, working in investment banking and asset management.
- During the COVID-19 pandemic, the speaker took a break from their traditional career path and began writing online about their experiences.
- The speaker's writing focused on investing in small businesses, such as laundromats and car washes, which gained popularity as people sought alternative career paths and lifestyles during the pandemic.
Top Advice for 20-Year-Olds
- Your 20s are a difficult period. You may be drinking excessively, associating with less-than-ideal people, and experiencing hormonal fluctuations. You are likely starting your career and working a job you dislike, which can be a challenging experience.
- Embrace the challenges of your 20s. Recognize that this period is temporary and will eventually lead to growth and improvement. Focus on learning and developing your skills rather than solely on earning money.
- Prioritize learning over earning. Use your early career years to gain knowledge and experience, even if it means accepting a lower salary. This investment in your skills will pay off in the long run, allowing you to earn more in the future.
Why You Must Work Harder in Your 20s
- The speaker argues that individuals should work harder in their 20s than they would in later years.
- The speaker explains that physical and mental stamina decline with age, making it more difficult to maintain a high work ethic over a long period.
- The speaker suggests that frontloading the pain of hard work in one's 20s allows for more enjoyment and success in later years.
- The speaker uses the example of their husband, a former Navy SEAL, to illustrate this point. The speaker suggests that the difficult experiences of being a Navy SEAL in one's youth set the foundation for a more comfortable and successful life later on.
How People Actually Make Money
- Economic interconnectedness: Being around wealthy individuals can positively impact one's financial future. Studies show that individuals who interact with wealthy people tend to have higher incomes later in life.
- The importance of perspective: Wealthy individuals often have a different perspective on money and risk. They are able to see further into the future and make decisions based on long-term goals.
- Money as a tool for influence: Wealth can be used to acquire positions of power and influence. The example of Bruce, who purchased an ambassadorship, illustrates how money can be used to gain access to high-level positions.
How to Attract Wealth
- The text discusses the importance of having a positive attitude towards wealth in order to attract it. It argues that negative feelings about money, such as seeing it as evil or manipulative, will repel it.
- The text uses the analogy of a woman who believes all men are bad and struggles to find a partner. Just as this woman's negative attitude repels potential partners, negative feelings about money will repel wealth.
- The text emphasizes the importance of seeing money as a tool that can be used to help others and achieve goals. It suggests that people should focus on becoming deserving of wealth by acting like a rich person would, such as working hard and surrounding themselves with successful individuals.
- The text acknowledges that many people have negative beliefs about themselves and money, which can hinder their ability to attract wealth. It suggests that overcoming these negative beliefs is crucial for achieving financial success.
Dealing With Money Imposter Syndrome
- Money Imposter Syndrome: Some individuals experience a sense of guilt or undeservedness when they acquire wealth, often stemming from societal expectations or personal experiences. This can manifest as a feeling of being an imposter, particularly when comparing oneself to others who have worked hard but earned less.
- Body Language and Money: The speaker emphasizes the connection between body language and beliefs about money. They describe an event where participants were asked to visualize money and express their feelings physically. Many women displayed a small, protective posture, suggesting a negative association with money.
- Embracing Abundance: The speaker advocates for using physical movements to shift one's mindset about money. They suggest making large, expressive gestures that convey a sense of abundance and deservingness, as opposed to small, fearful movements. This approach aims to influence the brain's perception of money by changing the body's physical response.
Money and Gender: Key Differences
- The speaker observes that their audience is predominantly male, and it is difficult to engage women in discussions about money.
- The speaker believes that women may perceive discussions about money as "cringe" due to a lack of normalization of such conversations among women.
- The speaker emphasizes the importance of financial literacy for all individuals, particularly women, regardless of their career choices.
- The speaker suggests that women should understand their family's finances, including income, expenses, and investments.
- The speaker highlights the empowering experience of earning one's first dollar independently.
- The speaker questions whether money, investing, and wealth creation are perceived as masculine concepts.
Is Money a Masculine Thing?
- The finance industry, particularly investment banking, is dominated by men.
- This disparity is attributed to historical factors, such as women having less access to the workforce for a longer period.
- Finance is a highly competitive and lucrative industry with high barriers to entry, which may contribute to the gender imbalance.
Building Wealth From Scratch
- The text discusses the importance of finding a mentor who is already successful and willing to provide guidance and opportunities. This mentor can be someone who has the life you desire and is willing to invest in your growth.
- The text emphasizes the value of intense competence and hard work, especially when you are young. It suggests that young people should be willing to put in the effort and go above and beyond to prove their worth.
- The text highlights the importance of finding a mentor who can provide access to resources and connections. This can be crucial for overcoming common business constraints such as lack of money, attention, or ideas.
How to Get a Rich Person’s Attention
- Start with concentric circles: When trying to connect with wealthy and influential individuals, begin by reaching out to those closest to you. This could be the wealthiest person in your neighborhood, community, or even your school.
- Focus on value, not fame: Avoid approaching famous or influential people directly, as they are likely overwhelmed with requests. Instead, target individuals who are successful but less well-known.
- Offer expertise and value: Instead of offering to clean floors or perform menial tasks, demonstrate your value by providing insights or solutions that the individual might find useful. For example, analyze their work, offer data-driven suggestions, or connect them with potential collaborators.
- Practice the 10x rule: Give generously before asking for anything in return. Offer valuable information, insights, or assistance without expecting anything in return.
- Follow through and demonstrate impact: After offering help, follow up to show how your advice or assistance has been implemented and the positive impact it has had. This demonstrates your commitment and value.
- Build relationships over time: Cultivate relationships with individuals by consistently providing value and demonstrating your commitment to their success. This can lead to opportunities for mentorship and collaboration.
What to Do When You’re Starting Out
- Job Hopping: The speaker advocates for leaving jobs when there is no opportunity for growth or increased earnings. They suggest that staying in a job for an extended period is only worthwhile if it provides continuous learning and financial advancement.
- Learning from Others: The speaker advises against starting entrepreneurship too early. They recommend gaining experience and knowledge by working for established entrepreneurs for several years before venturing out on their own. This approach allows individuals to learn from others' successes and failures without risking their own capital.
- Seeking Investment from Former Employers: The speaker highlights the practice of former employers investing in their employees' ventures. They believe this is a beneficial practice that encourages employee growth and fosters a positive relationship between employers and former employees.
- Identifying Red Flags in Interviews: The speaker emphasizes the importance of recognizing red flags during job interviews. They suggest that these red flags can help individuals avoid potentially problematic work environments.
Best Behaviors for Job Interviews
- To impress in an interview, demonstrate a deep understanding of the company. This can be achieved by asking insightful questions about the company's decisions and initiatives, showcasing your knowledge and genuine interest.
- Avoid negativity and victim mentality. Speaking poorly about past employers or attributing failures solely to external factors creates a negative impression and suggests a lack of accountability.
- Focus on work ethic and commitment. Discussing work-life balance or excessive time off during an interview can be perceived as a lack of dedication and may not align with the company's culture.
- Be upfront about the challenges of the role. Presenting a realistic picture of the job's demands and potential difficulties can help attract candidates who are truly committed and prepared for the challenges.
Ask This to Make Employees More Money
- Ask your employer about ownership opportunities. If you are a top performer, consistently exceeding expectations and making yourself valuable to the business, ask your employer if you can get ownership in the company or in other ventures they are involved in. This is a common practice in private equity, where managers are given the opportunity to invest in the best deals.
- Maximize your salary and invest in side deals. Before starting your own business, focus on earning as much as possible from your current salary and invest that money in side deals. This allows you to gain experience and learn from mistakes without risking your entire livelihood.
- Avoid investing in early-stage startups until you are a millionaire. Investing in startups is risky, with a high failure rate. It is best to wait until you have a significant amount of capital to invest, as you can afford to lose some money in order to potentially make large gains.
- Focus on investments that generate cash flow. Instead of investing in startups, consider investing in businesses that are already profitable and generating cash flow. This can include investments in bonds, equity deals in cash-flowing businesses, or even opportunities within your own company.
- Demonstrate your value to the company. To be considered for ownership in a company, you need to prove your worth. This means consistently exceeding expectations, taking on more responsibility, and demonstrating that the business would be worse off without you.
- Be patient and build a long-term relationship with your employer. Ownership opportunities are often reserved for employees who are seen as long-term partners in the business. This means demonstrating your commitment to the company and building a strong relationship with your employer.
Salary vs. Owning a Business: Get Rich
- The text discusses the potential for wealth creation through both salary and business ownership.
- It acknowledges that individuals can become wealthy through traditional employment, citing the example of a high-earning Goldman Sachs employee.
- The text emphasizes the importance of having a backup plan, particularly in the face of potential job loss or industry disruption.
- It suggests that owning assets like Airbnbs or engaging in real estate investments can provide a source of passive income and financial security.
- The text acknowledges the volatility of certain markets, such as the Airbnb market, and emphasizes the importance of risk management.
- It advocates for a strategy of minimizing losses and maximizing potential returns through multiple investments.
- The text concludes by suggesting that individuals should consider developing a backup plan to ensure financial stability in retirement.
Where Should You Invest Your Money?
- Senior care centers are a good investment opportunity. The speaker highlights the growing need for senior care facilities due to the aging population and the potential for government grants and allowances. They suggest starting small with an independent living house and building from there.
- Service-based businesses with low upfront capital are another good option. The speaker recommends businesses like window cleaning, pressure washing, and painting, which can be started with minimal investment. They emphasize the importance of testing the market before committing to a full-time business.
- Gateway drug businesses, such as laundromats and car washes, are also viable options. However, these businesses require a higher initial investment.
- The speaker emphasizes the importance of self-awareness and understanding one's own skills, network, and interests. They introduce the concept of an "unfair advantage Venn diagram" which helps individuals identify their strengths and opportunities.
- The speaker encourages individuals to find a business that aligns with their skills, network, and passions. They believe that the fastest path to wealth is through ownership and that starting or buying a business is a good way to achieve financial success.
3 Smart Ways to Buy a Business
- Using Sweat Equity: Individuals with limited capital can acquire businesses by offering their time, effort, and expertise in exchange for ownership or partnership. This approach involves working closely with the current owner to learn the business and contribute to its growth.
- Partnering with Existing Owners: Individuals can propose a partnership with existing business owners, offering to manage or operate the business in exchange for a share of future profits. This strategy allows for acquiring a stake in the business without significant upfront capital.
- Seller Financing: A common method for acquiring small businesses, seller financing involves the seller accepting a portion of future profits as payment for the business. This allows buyers with limited capital to purchase a business by gradually paying the seller over time.
What’s the Banister Effect?
- The text discusses the idea that some people have a deep internal belief that they can "bend the world" to their will, while others believe the world is fixed and they must fit into it.
- The speaker suggests that this difference in belief is due to exposure to individuals who have demonstrated the ability to "bend the world," such as Steve Jobs.
- The speaker refers to Steve Jobs' ability to inspire others to achieve seemingly impossible goals as his "reality distortion field," which is likened to the "Force" from Star Wars.
The One Skill for Major Success
- The importance of speed and urgency in achieving success: The text emphasizes the value of a bias towards action and a quick decision-making process. It suggests that individuals who are faster in their thinking and execution are more likely to succeed, as they can make mistakes and learn from them more quickly.
- The correlation between speed and communication: The text highlights the importance of clear and concise communication, particularly in high-level positions. It suggests that individuals who communicate quickly and effectively are more likely to be successful in their careers.
- The difference between high and low performers: The text contrasts the work habits of high and low performers. High performers are characterized by their focus on results, their aversion to wasted time, and their desire to move forward with projects. Low performers, on the other hand, are more likely to engage in unproductive activities and lack a sense of urgency.
Why Obsessed People Win
- Obsession is strongly correlated with success. People who are obsessed with their work are more likely to achieve high levels of success.
- Obsession is not about having a photographic memory; it's about being intensely focused on a particular subject or activity.
- To find your true obsessions, consider what you spend your time on, what you think about, and what keeps you up at night.
- You can't fake obsession. It must be genuine and authentic.
- Obsession can be cultivated. You can learn to be obsessed with the aspects of your business or career that are important to you.
- Obsession can be triggered by winning. Experiencing success can lead to a desire for more, fueling your obsession.
- A "gateway drug business" is a simple business that can help you develop the skills and experience needed to succeed in a more complex business.
What’s a Drug Gateway Business?
- Simple businesses are ideal for beginners. These businesses, such as laundromats and car washes, are easy to understand and operate, even for those with no prior business experience. They require minimal employees, moving parts, and changes, making them manageable for new entrepreneurs.
- Simple businesses provide a learning opportunity. While these businesses may not generate significant profits, they offer valuable experience in running a business. This includes learning about profit and loss statements, marketing, and generating revenue.
- Simple businesses can be a stepping stone to larger ventures. After gaining experience with a simple business, entrepreneurs can move on to more complex and potentially more profitable ventures. The ability to sell a simple business provides capital for future investments.
Buying “Boring” Businesses
- A significant number of small businesses are owned by Baby Boomers who are reaching retirement age. Many of these businesses lack a transition plan, leading to a potential wave of business closures.
- There are millions of small businesses for sale in the US, but a large percentage will likely never be sold due to various factors, including lack of attractiveness or finding a buyer.
- The transfer of wealth from Baby Boomers to the next generation is often discussed in terms of bank accounts and money being handed down, but a significant portion of this wealth is tied up in small businesses.
- If these businesses are not acquired, the wealth they represent could evaporate, potentially leading to larger corporations like BlackRock and Blackstone acquiring them and gaining control of communities.
- Individuals should consider targeting businesses owned by older individuals who may be open to seller financing and willing to transition ownership. These businesses may not be ideal in terms of profitability or structure, but they offer an opportunity to acquire a business or learn the ropes through apprenticeship.
- When choosing a business to acquire, individuals should consider their skills and experience to find a business that aligns with their strengths and allows them to maximize their potential.
- It is important to take the first step and acquire a business, even if it's not the perfect fit initially. Focusing on the ideal industry or sector can lead to procrastination.
- The key to successful business acquisition is to avoid making a bad first deal, as it can discourage future ventures. Spending time learning about the process and mitigating risks is crucial.
How to Avoid Bad Deals
- It is important to learn how to negotiate and understand the language of money, such as equity and ownership, before buying a business.
- This knowledge is crucial for determining the valuation of a business and ensuring that the seller is not providing false information.
- The process of finding the right business to buy is similar to dating, where one should look at multiple options before making a decision.
Where to Find Profitable Businesses
- The current market for buying small businesses lacks a reliable online platform for finding suitable businesses. Existing platforms like BizBuySell are considered inadequate due to their low quality listings.
- A new platform is being developed to address this issue, offering a more comprehensive and curated selection of businesses for sale.
- The platform will feature various functionalities, including:
- Screening potential buyers to ensure they are qualified and serious about purchasing.
- Identifying businesses that are open to seller financing.
- Utilizing AI to curate listings and filter out fraudulent or low-quality options.
- The platform will generate revenue through various methods, such as charging buyers and sellers for access to the platform, and providing leads to brokers.
- In the absence of this platform, potential buyers can explore options like BizBuySell or directly contacting local businesses.
Best Hacks to Own a Business Cheaply
- Off-market deals are a good way to buy businesses cheaply. This is similar to finding off-market real estate deals, where you look for properties that are not listed publicly.
- One strategy for finding off-market business deals is to review your personal Profit and Loss (P&L) statement. This involves looking at your expenses and identifying vendors that are small enough and profitable enough that you could potentially buy into or acquire the entire business.
- Another strategy is the "Venmo Challenge," which involves looking through your Venmo or PayPal transactions to identify small businesses you've made cash payments to. You can then approach these business owners and offer to help them grow their business in exchange for a stake in the company. This strategy is particularly helpful for individuals who have never owned a business before.
Is Your Business Failing? Fix It Now
- To determine if a business needs marketing help or has a product problem, assess its referral and review rate. If a business has a low referral and review rate, it likely has a product problem, not a marketing problem.
- Focus on building a product that customers will naturally recommend and review positively. This indicates a strong product that solves a real problem for customers.
- Treat existing customers as marketing and sales assets. Encourage them to refer new customers and leave positive reviews.
- Prioritize hiring the right people. The quality of a company's team is crucial to its success.
- Utilize LinkedIn Jobs to find qualified candidates. LinkedIn Jobs is a valuable resource for sourcing professionals, even those who are not actively seeking new jobs.
Why Retention Is Key in Business
- Retention is crucial for business success. A strong product or service leads to customer satisfaction, referrals, and repeat business, which in turn increases lifetime value (LTV).
- Focusing on product quality over marketing is essential for long-term growth. While marketing can drive initial growth, a truly great product will naturally attract customers and generate word-of-mouth marketing.
- Building a strong foundation is key to long-term success. This includes focusing on referrals, reviews, and retention. Investing in these areas upfront will save time and money in the long run, as opposed to constantly relying on expensive marketing efforts.
- Hiring the right people is essential for building a successful business. Investing time and effort in finding exceptional employees will pay off in the long run, as they will contribute to a strong company culture and drive growth.
- Patience and a long-term vision are crucial for building a successful business. It's tempting to take shortcuts, but focusing on building a solid foundation will lead to greater success in the long run.
Turn Contacts Into Business Partners
- The text discusses the importance of building relationships and networking with potential business partners throughout one's career. It highlights how seemingly casual interactions can later become valuable connections.
- The text emphasizes the significance of consistency and grit in pursuing one's goals. It suggests that focusing on larger, more challenging problems can lead to greater success and financial rewards.
- The text advocates for applying one's skillset to different markets where it is scarce and valuable. This can lead to higher returns and greater impact compared to staying within a saturated market.
Cross-Pollination for Business Growth
- Cross-pollination of ideas is key to wealth creation. Combining seemingly unrelated ideas can lead to significant growth and financial success. This is achieved by identifying and leveraging unique skill sets and applying them to high-value sectors.
- Identifying your unique skill set is crucial. To find your "unfair bet," you need to identify your unique skills and strengths. This can be done by brainstorming with a trusted friend or mentor.
- Matching skills to high-value sectors is essential. Once you've identified your skills, you need to find sectors that offer the potential for high revenue and profit margins. This involves researching the average revenue and profit margins of different industries and identifying those that align with your skills.
Ways to Maximize Your Income
- Maximize Income by Specializing Skills: Individuals can increase their earning potential by focusing on highly specialized skills within their field. For example, a writer can specialize in medical writing, which is in high demand and commands higher salaries than general writing.
- Negotiate for Upside Potential: When seeking employment, individuals should negotiate for a percentage of the revenue generated by their work, in addition to a base salary. This allows them to share in the success of the company and earn significantly more than a fixed salary.
- Structure Deals for Equity: Individuals can maximize their earnings by negotiating for equity in companies they work for, particularly in high-growth industries. This can lead to substantial returns, especially if the company goes public or is acquired.
- Learn the Art of Deal-Making: Understanding how to structure deals is a valuable skill that can be applied in various aspects of life, from negotiating salaries to securing investments. This skill is essential for maximizing earnings and achieving financial success.
The Book You Need for Deals
- The text discusses a book about deal-making, which is described as a concise and accessible guide for beginners.
- The book is intended to bridge the gap in understanding for those new to deal-making and is recommended for anyone interested in learning more about the subject.
- The text highlights the importance of addressing prejudice in business and life, acknowledging the experiences of women and minorities in these contexts.
The Last Guest Question
- The discussion centers around the topic of prejudice and how to navigate it in a business setting. It is suggested that instead of viewing prejudice as a weakness or obstacle, individuals should reframe it as a strength, highlighting their unique perspective and making them more memorable.
- The conversation then shifts to the concept of "wokeness" and its potential negative impact on success. It is argued that being overly woke or victimized can be off-putting to others, and that authenticity and honesty are more valuable in today's world.
- The discussion concludes with a question about a business idea the speaker has always wanted to pursue. The speaker expresses a desire to write a fictional story that subtly imparts truths and guidance to readers, similar to the impact of the Bible.