Codie Sanchez breaks down her "core four" framework for buying businesses: pick the right type, learn from experienced handlers, use a "flat hand" approach to let deals come to you, and focus due diligence on tax returns. The goal is to control risk through leverage, not eliminate it.
Chapters
This is an ancient predator. One sting attacks your nervous system. But right now, because I know this secret, it's not going to strike me. In business, I call this the core four. And it's how you find a business to buy that is quote unquote, harmless. One is know your species, this emperor scorpion. Pretty harmless. They're commonly kept and have milder venom. It's like the way I buy businesses. I want mild and dependable, then I'm in a controlled environment. You can't see them, but I got some handlers over here who are telling me all the things they need to do. These are the tricks from pros. Over time, I steal their 10,000 hours. Then I also use the flat hand method. Let the scorpion walk on my hand rather than grabbing it. Which mimics a predator from above. This is why we do due diligence and analyze a business by tax returns, not fives. So negotiation is like holding a scorpion. You can grab it anywhere, and then you might get stung. But if you know exactly where to grab the deal, you control it. This is the ownership control framework. Risk, you don't understand fear. Risk, you can measure. Math risk, you can structure leverage. Cause owners don't eliminate risk, but we pin it down.
