Codie SanchezFounder @ Contrarian Thinking

Make Money Outside of Your 9-5: The Lindy Effect

15 Jul 2024 · 1 min

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Codie Sanchez made $67,000 outside her day job by buying businesses that had already survived 10+ years. She uses the Lindy Effect: the longer something has been successful, the more likely it stays that way. About 45% of businesses fail by year 10, so she targets the ones that made it past that mark.

Questions this video answers

$67,000

"The longer that something has been successful, the more likely it is to continue to be successful."

20% of new businesses fail during the first two years of being open.

"They're 25% more likely to fail during the first five years of being open."

About 45% have already failed by year 10.

Chapters

Understanding this, one thing is how I made my first $67,000 outside of my 9 to 5. Called the Lindy Effect. The longer that something has been successful, the more likely it is to continue to be successful. Time and money. What you want is to have this area be your safe zone. The data shows that 20% of new businesses fail during the first two years of being open. They're 25% more likely to fail during the first five years of being open, and by year 10, they're about 45% that have already failed. But if we follow the Lindy effect, businesses in this zone actually decrease in likelihood of failing. That's why I usually buy in this zone. These are businesses that are 10 years old, likely with an older owner, that have consistent cash flow. Follow me Cody Sanchez for more of where data makes dollars.