Codie SanchezFounder @ Contrarian Thinking

The Venmo Challenge: How to Start From $0

11 Sept 2024 · 1 min

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A step-by-step method (the 'Venmo Method') by Codie Sanchez for starting/acquiring a small business from zero within a year by leveraging personal payment history on Venmo to identify reachable small vendors, pitching growth-for-equity deals, and taking ownership only of the incremental growth she generates (performance-for-equity model). The clip includes a concrete script and an example from Sanchez's own podcast-production acquisition.

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Here's exactly what I would do, step by step. If I had to start my business from zero and do it all in less than one year, called the Venmo Method, I would right now go to my Venmo and I'd pull up all the vendors I've paid lately and see which of them are small enough where I could get to the owner. I'd ping them to meet quickly by saying, hey, I love your product or service and I use it all the time. I wanted to talk to you about this in particular because I'm looking to buy a small business. Would you be open to talk? I need to know 1. How much revenue do you do a year? 2. Do you own the business outright? 3. Do you want to grow your business? And if they say yes, I say I'm helping increase one small business each quarter or year. How? Well, right now let's say you do 10k a month in sales. I'll grow that. And anything I grow above your 10k I'd like to take as ownership in the business at a pro rata discount. So if I double your sales to 20k, I only take half of the additional percentage I make. If I drive nothing. It costs you nothing. But are you open to at least talking about that and you're off to the races. It's actually how I bought part of my podcast production business back in the day.