Podcast Summary
Financial freedom through ownership: Learn and provide value to those already successful to earn opportunities and build wealth through hard work and focus on growth, not quick riches.
Financial freedom comes through ownership, and it's not something easily given but earned. Cody Sanchez, a successful investor and business owner, encourages people to learn and provide value to those already successful to gain opportunities. Building wealth requires hard work, and it's essential to focus on learning and growing rather than chasing quick riches. The message is for those who feel disenfranchised and want control over their lives, not for the already wealthy or those unwilling to work hard. In today's world, trust in institutions is low, and authenticity and honesty are valued. By the end of this conversation, one should come away with practical ideas to make more money and gain more freedom. The advice is accessible to most, except for those unwilling to put in the effort.
Career in 20s: Focus on learning, surround yourself with wealthier individuals, and be open to opportunities during your 20s to set yourself up for future success.
The 20s can be a difficult phase of life, and it's important to focus on learning rather than earning during this time. The speaker, a former finance investor, shares that his 20s were painful and that he wished someone had prepared him for the reality of starting a career and the long hours that come with it. He also emphasizes the importance of being around people who are wealthier than you, as it can lead to positive growth and influence. The speaker's experience of starting a blog about small businesses during the pandemic and its success is an example of how following this advice can lead to opportunities and success later on.
Money mindset shift: Approach money with a positive mindset, lose emotional attachment, believe in worthiness, adopt growth mindset, and act as if you already have it to attract more
Money is a tool, not an evil or ugly thing. It holds power and can be used to achieve goals when approached with a positive mindset. The speaker shared the surprising discovery that ambassadors in the US can be bought, which shifted his perspective on the limitless potential for abundance. He encourages people to lose their emotional attachment to money, believe in their worthiness, and adopt a growth mindset. The speaker also noted that women, in particular, may struggle with a negative relationship with money due to societal norms and lack of normalization around discussing it openly. To attract more money, one should act as if they already have it and make bold, expansive movements when thinking about it. Ultimately, it's essential to believe in oneself and one's worthiness to attract financial abundance.
Young women building wealth: Determination, hard work, financial literacy, networking, and focusing on accessible opportunities are essential for young women to build wealth despite challenges in male-dominated industries.
Building wealth from scratch, especially when young, requires determination, hard work, and the right connections. Women, in particular, may face challenges in traditionally male-dominated industries like finance, but it's important to understand the value of money, financial literacy, and networking. Starting with those closest to you, like the richest person in your community or school, can lead to valuable opportunities and experiences. Don't be intimidated by fame or high-profile individuals; instead, focus on those who have the resources and are willing to help. Remember, the shallowest water is often where you'll find the best opportunities to learn and grow.
Providing Value: Focus on offering expertise and value through knowledge and analysis to gain attention and consideration from successful individuals. Build relationships and aim to secure first investment from mentors by following through on commitments.
Offering expertise and value, rather than menial tasks, is the key to gaining the attention and consideration of successful individuals. The speaker emphasizes the importance of providing value through knowledge and analysis, rather than offering to perform simple tasks. He also shares his personal approach of asking insightful questions to learn from mentors, and the importance of follow-through and showing appreciation. The speaker also suggests that young people should focus on learning and earning more, rather than staying in one job for too long, and that they should aim to build a relationship with their bosses and potentially secure their first investment from them. Overall, the conversation highlights the importance of providing value, building relationships, and following through on commitments.
Company and Role Understanding: Focus on targeted positions, demonstrate expertise, ask thoughtful questions, avoid negativity, and be honest about career growth intentions.
During a job interview, it's essential to demonstrate a deep understanding of the company and the role you're applying for. Instead of casting a wide net with multiple applications, focus on a few targeted positions and become an expert in those areas. Humility is key, and asking thoughtful questions shows your interest and eagerness to learn. Red flags include speaking negatively about past employers, displaying a victim mentality, and discussing work-life balance during the interview. Be prepared for the interviewer to discuss the challenges of the job and be honest about your intentions for future career growth, including the possibility of eventual ownership within the company. Additionally, avoid investing in startups until you have significant wealth, and consider earning equity through strong performance in your current role.
Business partnership or investment: Demonstrating commitment and indispensable contributions can lead to business partnerships or investments, while having a salary may not be enough to amass significant wealth. Ownership is often the fastest path to wealth.
Becoming a business partner or investing in a business requires dedication, responsibility, and proving your value to the company. Jim Bowen and Warren Buffett are examples of individuals who became partners by demonstrating their commitment and indispensable contributions to their respective businesses. While having a salary can help you make a living, it may not be enough to amass significant wealth. To get rich, consider having a backup plan, such as owning rental properties or starting a side business. For those new to business, determining your unique skills, network, and passions can help guide you in finding a business that aligns with your strengths and interests. The fastest path to wealth often involves some type of ownership.
Sweat Equity and Seller Financing: Sweat equity allows individuals without significant cash to acquire a business through expertise, time, or a combination of both. Seller financing is a common method for small business transactions, where the buyer pays a percentage of future profits instead of upfront cash.
Buying a business isn't always about having a large amount of cash. Instead, you can use your expertise, time, or a combination of both to acquire a business. This concept is known as "sweat equity." For instance, a young person without much cash but with a strong work ethic and a solid business idea could partner with someone who has the necessary experience to run the business. The experienced partner could agree to sell the business to the young person using a seller financing model, where the buyer pays a percentage of future profits instead of upfront cash. This approach allows the young person to own a business and learn the ropes while minimizing the initial investment. Seller financing is a common method for selling small businesses, accounting for around 60% of such transactions. It's a trust-based trade, requiring both parties to believe in each other's ability to grow the business. Ultimately, having a strong belief in one's ability to shape the world and make things happen is essential to achieving success.
Action Bias: Having a bias towards action and speed can lead to significant advantages in life and business, including faster decision-making, execution, and effective communication.
Time is a valuable currency in life and business, and having a bias towards action and speed can lead to significant advantages. Faster decision-making and execution can help individuals and teams win in their respective fields, even without being richer, smarter, or better than competitors. Effective communication is also crucial for high performers, who value efficiency and dislike wasting time on unimportant matters. Ultimately, being quick and decisive can lead to success and productivity, while procrastination and overthinking can hinder progress.
Obsession in hiring and career advancement: Finding and hiring individuals with intense focus and passion for their work can lead to exceptional outcomes. Identifying and focusing on areas of genuine obsession can lead to career advancement. Starting small and acquiring retiring business owners' enterprises can provide a foundation for learning and gaining experience.
Finding and hiring individuals who are obsessed with the work at hand can lead to exceptional outcomes. Obsession doesn't mean being interested, but rather having an intense focus and passion that drives individuals to put in extra effort and think of it as hardly working. This can be applied to career advancement by identifying and focusing on areas of genuine obsession. Additionally, starting with simple, low-risk businesses can provide a foundation for learning essential skills and gaining experience, ultimately leading to greater opportunities. The current trend of baby boomers retiring and selling their businesses presents a significant opportunity for individuals to acquire these businesses and preserve generational wealth.
Buying a Business: Find a business that aligns with your skills, desired revenue, and preferred industry through research and reflection. Utilize resources like M&A MBA programs and online platforms to expand your options. Consider off-market strategies to increase chances of finding a good fit.
When considering buying a business, it's essential to find one that suits your unique skills and experience. This process involves reflection on your strengths, desired revenue, and preferred industry. However, taking the first step can be challenging. It's recommended to learn the ins and outs of buying a business through resources like a 90-day M&A MBA program before making a deal. Finding the right business involves researching and filtering through potential options, and there are various online platforms to help with this process. Additionally, consider using off-market strategies like directly contacting business owners to increase your chances of finding a good fit. Remember, the key is to avoid making a bad first deal by investing time in learning the process and thoroughly evaluating potential businesses.
Social media investment: Young entrepreneurs can take advantage of their social media expertise to invest in small businesses, but they should first evaluate the business's profit margin, growth potential, product quality, and team before offering equity.
Young entrepreneurs, leveraging their native understanding of social media, can approach small business owners with unique offers to grow their businesses in exchange for equity. To determine if a business is worth investing in, entrepreneurs should first identify its profit margin and potential for growth. Additionally, a business's product quality is crucial, as marketing efforts will only be effective if the product is worthy of referrals and positive reviews. Hiring the right team is also essential, and LinkedIn can be an effective tool for sourcing top talent. Ultimately, focusing on creating a great product with strong network effects can lead to a self-sustaining business with high retention and growth.
Product Development vs Marketing: Invest in high-quality product development first for long-term gains, identify true supporters through referrals and positive reviews, and be persistent with improvement and patience for success.
Building a successful business requires a balance between creating a great product and focusing on marketing and sales. However, it's important to prioritize creating a high-quality product first, even if it takes longer. This upfront investment in product development will lead to long-term gains. Additionally, it's essential to be aware that not all customers are advocates for your brand, and true supporters can be identified through referrals and positive reviews. The process of building a business is like laying the foundational bricks, and taking shortcuts can lead to unsustainable foundations. Examples like Tesla and Elon Musk illustrate the importance of patience and laying the groundwork for success, even if it takes time. Ultimately, the key to success is to be persistent, focus on improving, and have the patience to see long-term gains.
Choosing and sticking with opportunities: Focusing on a few opportunities, staying consistent, and aiming for bigger goals can lead to significant success and the ability to work with influential people.
The combination of grit, consistency, and time, along with the ability to identify and pursue bigger opportunities, can lead to significant success. The speaker shared a personal story of being given a challenge to grow a company to 10 million users, which led him to meet and work with influential people who later helped him in his career. He reflected on the importance of choosing a few things and sticking with them, as well as aiming for bigger opportunities. The speaker also emphasized the importance of applying one's skill set to different markets where it is scarce and in high demand, leading to outsized returns. By focusing on these principles, individuals can increase their chances of making a significant impact and achieving success.
Skills and Industry Matching: Identifying unique skills and finding industries where they create the most value can lead to financial success. Research industry profitability to maximize earnings potential.
Identifying your unique skills and finding the industry or business sector where those skills can create the most value can lead to significant financial success. To do this, write down your skills on one side of a whiteboard and potential sources of income on the other. Then, research the profitability of different industries and businesses to determine where your skills could yield the highest earnings. For example, a medical writer in the biotech industry may earn significantly more than a copywriter in a general marketing firm. Additionally, consider negotiating a salary with a percentage of the upside to maximize your potential earnings.
Deal structuring: Understanding deal structuring can lead to substantial returns, even without owning a business. Start with 'Main Street Millionaire' and explore further resources online.
Expanding your knowledge in deal structuring can significantly increase your earning potential. This was exemplified in the speaker's experience in the biotech industry, where they were paid in options in an IPO and saw a substantial return despite only working for six months. The speaker emphasizes that even without buying a business, understanding deal-making is a valuable skill set. They recommend starting with the book "Main Street Millionaire" to learn the basics and then exploring further resources online. The speaker also encourages a positive mindset towards challenges, such as prejudice, and viewing them as opportunities instead of limitations. By focusing on the potential benefits, individuals can overcome adversity and potentially increase their wealth and success.
Authenticity and honesty: Being authentic and honest, even if imperfect or unpopular, can lead to greater connection and success in relationships. Dishonesty can have serious consequences in today's world of heightened scrutiny.
Being authentic and honest, even if it means being imperfect or unpopular, can lead to greater connection and success in both personal and professional relationships. The speaker shared her experience of being open about her work ethic and values, which was met with surprise and appreciation from some, but could have sparked outrage in the past. She also discussed the importance of not pretending to be something you're not and the potential consequences of dishonesty in today's world of social media and heightened scrutiny. The speaker also shared her aspiration to write a book that tells truths through a story, as she believes stories have the power to transcend and teach in a way that resonates deeply with people. Overall, the conversation highlighted the value of authenticity, vulnerability, and the power of storytelling.