Podcast Summary: The Learning Leader Show With Ryan Hawk | Episode 611: Codie Sanchez - How To Build Extraordinary Wealth Through Ordinary Businesses (Main Street Millionaire)

Release Date: December 2, 2024

Introduction to Cody Sanchez

In Episode 611 of The Learning Leader Show, host Ryan Hawk welcomes Cody Sanchez, a renowned entrepreneur and author of Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses. Cody is the founder and CEO of Contrarian Thinking, a financial advice platform boasting over 2.5 million subscribers. Additionally, she co-founded Unconventional Acquisitions, which focuses on small business acquisitions. The conversation delves into Cody's unique approach to wealth-building, her career trajectory, and insights into effective leadership.

Influences of Upbringing and Parents

Cody attributes much of her success to the profound influence of her parents, particularly her father. She recalls, “[03:59] Cody Sanchez: My dad always said that I could do things on my own... You are an independent center of gravity and you should add massive value to the world and to those around you.”

Her father emphasized independence and resilience, reinforcing the belief that she could achieve greatness through hard work and value addition. Cody shares anecdotes illustrating her father's entrepreneurial spirit and his encouragement to challenge societal norms, such as teaching her to respect and value others.

Early Career and Transition from Journalism to Finance

Cody's career began in journalism, where she worked along the US-Mexico border, covering intense and often heartbreaking stories about border conflicts and cartel violence. She recounts, “[05:25] Cody Sanchez: I saw things that I'll never forget as a young woman... I remember the first time I saw a body dangling from an overpass.”

Despite earning awards for her impactful reporting, Cody felt disillusioned when recognizing that her journalism didn’t effect tangible change. This realization led her to consult with a law professor, sparking her interest in understanding money as a tool for building and influencing change. She transitioned from journalism to the corporate ladder of Wall Street firms, seeking to grasp financial mechanisms that could empower her entrepreneurial ambitions.

Building Contrarian Thinking and Media Company

Drawing inspiration from Christopher Hitchens' Letters to a Young Contrarian, Cody founded Contrarian Thinking. She explains, “[09:24] Cody Sanchez: I named my company Contrarian Thinking because Hitchens emphasized the importance of questioning everything, even ourselves.”

Contrarian Thinking evolved from a blog into a comprehensive media and business education company encompassing video, audio, communities, academies, courses, and books. Cody emphasizes the significance of obsession in finding commercialization opportunities, stating, “[10:57] Cody Sanchez: If you're obsessed enough with something, you can find the commercialization in it, you can find the money.”

The Role of Writing in Clarifying Thinking

Cody underscores writing as the ultimate tool for clarifying and refining thoughts. She shares, “[13:45] Cody Sanchez: When I'm writing, I have to be a better version of the thinker that I am... I obsess a little bit on can we be clear and can we be brief.”

She contrasts written communication with verbal, highlighting the necessity for precision and clarity in writing. This discipline enhances her ability to think critically and articulate complex business strategies effectively.

Lessons on Leadership and Energy Management

A significant portion of the conversation addresses effective leadership. Cody emphasizes the importance of energy management in leadership roles:

• Setting the Tone: Reflecting on a study, she explains, “[33:09] Cody Sanchez: Negative energy transfer can decrease your happiness at work. So we mimic others to bring awareness to their behavior.”

• No Longer Being Energy Neutral: She echoes Ryan’s sentiment, “[34:00] Cody Sanchez: You are no longer allowed to be energy neutral. You have to lift the room up or do the opposite.”

Cody elaborates on how real leaders are those who inspire and elevate their teams, leaving others better than they found them. She stresses the necessity of pushing boundaries and continuously improving to prevent stagnation.

Advice for Aspiring Business Buyers

Cody offers a structured approach for individuals interested in buying businesses:

1. Maintain Your Day Job: She advises, “[36:30] Cody Sanchez: Don't quit your job... Until you have plenty of cushion and a strong belief in yourself, keep your corporate role while exploring business acquisitions.”

2. Learn the Process: Her 3912 Method outlines a year-long plan:

   • First 3 Months: Learn the ten-step methodology of buying a business.
   • Next 9 Months: Search for suitable businesses and potentially engage in small deals.
   • Final 12 Months: Stabilize and optimize the acquired business.

3. Focus on Cash Flow and Product-Market Fit: Cody emphasizes choosing businesses with proven cash flow and established customer bases to mitigate common failure risks.

Significance of Main Street Millionaire and Choosing Businesses

The title Main Street Millionaire reflects the idea of building wealth through "ordinary" businesses rather than flashy startups. Cody introduces the Boring vs. Sexy Curve, explaining, “[44:48] Cody Sanchez: The sexier the industry, the fewer at the top make substantial money. In contrast, boring industries like porta potty businesses have higher percentages of owners making consistent income.”

She advocates for selecting businesses based on profitability and stability rather than personal passion, suggesting that "profit plus obsession eventually leads to passion."

General Career and Life Advice

Cody provides valuable insights for those at various stages of their careers:

• For Mid-Level Corporate Leaders: She advises leveraging their stable incomes to explore business acquisitions without jeopardizing their financial security.

• For New Graduates: Cody recommends engaging with local small business owners to understand the intricacies of running a business and to gain hands-on experience.

• On Overcoming Imposter Syndrome: Cody contends, “[27:13] Cody Sanchez: Imposter syndrome is real and healthy to an extent... It drives continuous improvement.”

She highlights the importance of self-doubt in fostering growth and resilience, noting that even high achievers benefit from questioning their abilities.

Notable Quotes

• On Choosing Where to Play:
  “[00:06] Cody Sanchez: I think the best way to get into a game is to go where the game's already played. There's always really room for greatness done slightly differently.”

• On Leadership Energy:
  “[34:00] Cody Sanchez: You are no longer allowed to be energy neutral. You have to lift the room up or do the opposite.”

• On Business Selection:
  “[44:48] Cody Sanchez: The more boring the industry, the higher the percentage of people in that industry make all of their money from said industry.”

• On Overcoming Imposter Syndrome:
  “[27:13] Cody Sanchez: Imposter syndrome is real and healthy to an extent... It drives continuous improvement.”

Conclusion

Cody Sanchez's journey from journalism to becoming a successful entrepreneur underscores the power of contrarian thinking, continuous learning, and strategic business acquisition. Her insights offer a practical roadmap for individuals seeking to build substantial wealth through ordinary businesses, emphasizing the importance of stability, clear thinking, and effective leadership. Through Main Street Millionaire and her endeavors with Contrarian Thinking, Cody provides invaluable guidance for aspiring business owners aiming to achieve extraordinary financial success.

Key Takeaways:

• Strategic Business Acquisition: Focus on profitable, stable businesses rather than trendy startups to build consistent wealth.

• Continuous Learning: Dedicate time to understanding the intricacies of business acquisition and management.

• Effective Leadership: Lead with positive energy, inspire your team, and continuously push your boundaries.

• Overcoming Self-Doubt: Embrace healthy self-doubt to foster growth and resilience in your entrepreneurial journey.

For those interested in building wealth through ordinary businesses and enhancing their leadership skills, this episode offers actionable strategies and inspiring insights from Cody Sanchez.