Codie SanchezFounder @ Contrarian Thinking

How To Buy A Business #shorts

2 Feb 2023 · 1 min

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Codie Sanchez presents a short pitch arguing that retiring baby boomers create a large, overlooked opportunity to build generational wealth by buying small, "boring" businesses. She cites that over 10,000 boomers retire each day and that 8–10% of them own small businesses, notes she personally bought 26 businesses, and outlines a seven-step playbook: (1) buy a small business, (2) use outside money or seller financing, (3) add a website and social reviews, (4) raise prices, (5) add a subscription option, (6) upsell/add services to existing clients, and (7) buy a competitor and repeat — claiming these changes can lead to selling the business for 2–3x more within ~3 years.

Chapters

This one statistic is going to lead to generational wealth and everybody's ignoring it. I don't think you should. Over 10,000 boomers retire every day. 8 to 10% of them own a small business. That creates a problem and yet also a massive opportunity. Millennial or Gen Z? Kids like us want to be YouTube stars. They do not want to take over a plumbing company, even if that company is doing millions of dollars in profits. I capitalized on this by buying 26 boring businesses that generate lots of income. There's a seven step framework that I use to buy these businesses explicitly. Step 1 you buy a small business. Step 2. You use outside money or seller financing. Step 3. You add a website social reviews. Step 4 raise your prices. Step 5 add a subscription option. Step 6 offer more services to the same exact clients. Step 7 buy a competitor and repeat the cycle. Then you sell your business for 2 to 3x more in three years after following those seven steps. That's why Main Street's better than Wall Street.