Codie Sanchez says focus on cash flow, not the business type. She breaks down three strategies: vertical (buying suppliers or tools for your business), horizontal (acquiring competitors), and platform plays (buying complementary businesses to build an ecosystem). The goal is stacking revenue streams like sponsorships, events, and merch.
Chapters
Where most people go wrong is they go, I want to own this type of small business. It actually doesn't matter because Nicole, is your life's mission to own a nail salon? No. Why do you want to own a nail salon? I just want cash flow. So it doesn't actually matter that you own a nail salon or you own a podcast production company or you own a laundromat. You just like an extra 200k a year. So you have the things that are your startups that would be increasing the number of revenue lines on your current business. Okay. The business of beyond and Nicole, it's a podcast right now around the podcast is like sponsorships and maybe there's also events that you pay for and maybe there's also merch. That's your little ecosystem. When you do acquisitions, there's really three types of acquisitions. Vertical acquisitions, which means I own a car wash, so I'm also going to own the SaaS company that car wash runs on our CRM. There's horizontal acquisitions. I own a podcast, so I'm going to buy another podcast. And then you have platform acquisitions, which like code. I own a media company that is focused on boring businesses and finance. On top of that, I'm going to buy an accounting firm that will be an add on acquisition to this company.
