BigDeal Podcast Summary: Codie Sanchez on The Hustle Daily Show

Release Date: July 2, 2025

Introduction

In this insightful episode of BigDeal, host Codie Sanchez joins John Weigel on The Hustle Daily Show to delve into the often-overlooked world of "boring businesses." These are enterprises that may not grab headlines but offer substantial profitability and stability. Codie shares her expertise on acquiring, scaling, and optimizing these businesses to achieve financial freedom and sustainable success.

News Segment Recap

Before diving into the main discussion, John Weigel provides a brief overview of recent business and tech news:

• Buc EE's Legal Battle: Texas-based convenience store chain Buc EE's is suing South Carolina clothing company Born United over a logo dispute involving a cartoon beaver. Buc EE's has a history of being litigious, having previously sued another convenience store brand over a similar logo issue.

• Lululemon's Market Decline: Despite a strong quarterly revenue growth of 7%, totaling $2.4 billion, Lululemon experienced an $8 billion drop in market capitalization. Contributing factors include tariffs and a steady yet cautious job market, with May's job additions slightly down from April.

• Summer Games Fest Announcements: The event showcased various gaming announcements, including "Resident Evil 9 Requiem," a "Game of Thrones" strategy game, a new trailer for "Death Stranding 2," and "Rise of the Deceiver," which features collaboration with the Wu-Tang Clan.

Main Discussion: Scaling Boring Businesses

Timestamp: [03:20]

Defining Boring Businesses

Codie Sanchez defines "boring businesses" as those that are simple, repeatable, and often overlooked yet consistently profitable. Examples include laundromats, landscaping companies, car washes, and other service-based enterprises that cater to everyday needs.

"I think of it like it's the roofing company that you pay for, but you don't really think of as a business that you would want to run." – Codie Sanchez [04:07]

Case Study: Laundromat Acquisition

Codie highlights her first significant acquisition—a laundromat purchased for approximately $100,000, yielding a profit of $67,000. She emphasizes the accessibility and understandability of such businesses, making them ideal entry points for aspiring entrepreneurs.

"If I had stopped at that one laundromat, it would have been a nice side hustle. But the key is once you find something that works like Bezos says, exploit it mercilessly." – Codie Sanchez [04:23]

She also shares a cautionary tale about another acquisition involving outsourced virtual assistants (VAs) that turned out to be fraudulent, resulting in a loss of a couple of hundred thousand dollars. This underscores the importance of thorough analysis and due diligence.

Implementing Operating Systems

A cornerstone of Codie's strategy is the establishment of robust operating systems (OS) within businesses to ensure scalability and consistency. She introduces the "contrarian operating system" (COS), inspired by private equity practices, which standardizes operations across all acquired businesses.

"Most entrepreneurs cannot tell you how they operate their business in one sentence and then their team can certainly not repeat it. And so we put all of our businesses on something we called the COS, the contrarian operating system." – Codie Sanchez [06:15]

First 90 Days Playbook

Codie outlines a structured approach to the first 90 days post-acquisition, divided into three phases:

1. Transfer and Transition (Days 1-30): Focus on immediate wins by engaging employees, conducting a financial health audit, and implementing standard operating procedures (SOPs).

2. Stabilize and Systematize (Days 31-60): Strengthen the business core through profit margin analysis and transforming the business model from cash-suck to cash-flow.

3. Power Up (Days 61-90): Make strategic changes such as price adjustments, introducing tiered pricing, establishing recurring revenue models, and hiring top-tier talent.

"These three phases, each broken down in 30 days, is how you make sure that your baby doesn't die if you acquire a business." – Codie Sanchez [08:36]

Pricing Strategies Without Losing Customers

When discussing price increases in local, service-based businesses, Codie introduces the "three Cs" strategy:

1. Compare: Assess current pricing against competitors to determine if the business is underpriced.
2. Contrast: Differentiate the business by highlighting superior services and unique value propositions.
3. Compete: Identify areas to outperform competitors, such as adding additional revenue streams.

"You have a fear inside of yourself as an entrepreneur that if you raise your prices, clients are gonna leave you." – Codie Sanchez [10:30]

She emphasizes that higher prices can signify higher value, challenging the common misconception that low prices equate to low quality.

Managing Multiple Businesses

Codie discusses the normalization of owning multiple businesses within the private equity sector and shares her approach to managing them efficiently:

• Hire Competent Leaders: Employ CEOs and managers who can independently run businesses without constant oversight.
• Scorecard-Based Management: Utilize systems that provide real-time insights into each business's performance, eliminating the need for frequent check-ins.

"When you set up your business that way, it also allows you to just stress a little bit less." – Codie Sanchez [13:39]

She advocates for a hands-off approach, trusting employees to manage operations while maintaining oversight through strategic management tools.

Future Investments and Trends

Looking ahead, Codie expresses excitement about two main investment areas:

1. SMB Tech (Small Business Infrastructure Technology): Investing in technology solutions that enhance the efficiency and scalability of small businesses, such as CRM systems and payment processing tools.

2. Service-Based Businesses: Continuing to invest in and support service-oriented enterprises like window cleaning, painting, and handyman services. She predicts that these "boring businesses" will generate more millionaires over the next decade compared to trendy sectors like AI and SaaS.

"There will be more millionaires made with boring everyday businesses over the next 10 years than there will be with AI tools and vibe marketing." – Codie Sanchez [16:09]

Codie underscores the enduring value and stability of service-based businesses, particularly in a landscape where internet businesses face significant scalability challenges.

Conclusion

Codie Sanchez's conversation on The Hustle Daily Show offers a comprehensive guide to identifying, acquiring, and scaling "boring businesses." Her emphasis on operational systems, strategic management, and targeted pricing strategies provides valuable insights for entrepreneurs seeking sustainable and profitable business ventures. By focusing on everyday needs and optimizing operations, Codie demonstrates a pathway to financial freedom and long-term success.

Notable Quotes:

• "I think of it like it's the roofing company that you pay for, but you don't really think of as a business that you would want to run." – Codie Sanchez [04:07]

• "Exploit it mercilessly." – Codie Sanchez [04:23]

• "Most entrepreneurs cannot tell you how they operate their business in one sentence and then their team can certainly not repeat it." – Codie Sanchez [06:15]

• "These three phases...is how you make sure that your baby doesn't die if you acquire a business." – Codie Sanchez [08:36]

• "You have a fear inside of yourself as an entrepreneur that if you raise your prices, clients are gonna leave you." – Codie Sanchez [10:30]

• "There will be more millionaires made with boring everyday businesses over the next 10 years than there will be with AI tools and vibe marketing." – Codie Sanchez [16:09]

This summary encapsulates the key discussions, strategies, and insights shared by Codie Sanchez, providing a comprehensive overview for those interested in scaling ordinary yet profitable businesses.