Codie Sanchez: How to Make Money if You Don’t Have Money (4 Step Process to Make Money Today)

In a compelling discussion, Jay Shetty hosts Cody Sanchez, a successful entrepreneur known for acquiring over 26 businesses. Sanchez emphasizes the importance of ownership in achieving financial freedom, challenging the common advice of merely following one's passion. She highlights that 70% of millionaires are self-made, with 68% owning or having equity in a business. Sanchez advocates for learning the "language of money," acquiring financial skills, and leveraging one's expertise to gain equity in businesses. She also underscores the potential in acquiring small, often overlooked businesses, which can be lucrative investments.

• The relationship with money is often overlooked but is crucial for financial freedom.
• Financial success is linked to ownership, with 70% of millionaires being self-made and 68% having ownership in businesses.
• Learning the "language of money" is essential for gaining financial power and independence.

"If you don't have ownership, you're probably never going to be free financially. You gotta get some skin in the game."

• Emphasizes the importance of ownership for financial independence and success.

"If you realize ownership is the name of the game, then you should probably obsess on one thing more than anything else, which is learn the language of money."

• Stresses the necessity of understanding financial concepts to achieve financial freedom.

• Many people are misled by the idea that money is inherently evil, which discourages open discussions about it.
• The real phrase is "the love of money is the root of all evil," highlighting the importance of context.
• A societal narrative discourages talking about money, potentially to maintain control over the populace.

"62% of Americans don't want to talk about money."

• Indicates a widespread reluctance to discuss financial matters, possibly due to societal conditioning.

"Every time we get a little bit more ownership, a little bit more money, we become harder to control."

• Suggests that financial independence reduces external control over individuals.

• Young people face wage stagnation, expensive education, and inflated housing costs.
• Despite job availability, many positions are in the public sector, not the private sector.
• The economic landscape is challenging, but opportunities exist, particularly in the transfer of ownership from baby boomers to younger generations.

"Gen Z is the first generation where at their same age as their parents, they're making less money, not more."

• Highlights the financial struggles faced by the current younger generation compared to previous ones.

"Baby boomers own 60% of all small businesses."

• Points out the potential for younger generations to acquire businesses as baby boomers retire.

• Young people often chase quick money through day trading, NFTs, and speculative investments, which are risky.
• Real financial growth comes from adding value and solving problems, not from speculative ventures.

"The one sure thing I know about money is that you're never going to make it if your solution is, hey, I'm going to win at money because that guy's going to lose."

• Warns against speculative financial strategies that rely on others' losses for personal gain.

"Making money doesn't have to be lose-win, it could be win-win."

• Advocates for creating value and mutually beneficial financial opportunities.

• Focus on learning and skill development before seeking high income or investments.
• High-value skills that impact a workplace are crucial for financial success.
• Degrees are not the sole determinant of skill; practical, demonstrable abilities are more valued.

"The first is you've got to learn. We've got to obsess in the beginning about one thing only."

• Emphasizes the importance of learning as the foundational step in building wealth.

"I think the resume of the future is actually...show me what you did."

• Highlights the shift from formal education credentials to proven skills and achievements.

• For those in mid-career feeling stuck, identify skills that can be monetized or used to gain ownership.
• Consider partnerships and negotiate equity based on contributions to business growth.
• Avoid starting a new business without a clear plan and understanding of potential risks.

"You do not have to have money to make money, which is incredibly powerful."

• Encourages leveraging skills and opportunities rather than relying solely on capital.

"I call it expertise to equity."

• Suggests using skills to negotiate ownership stakes in businesses rather than starting from scratch.

• Partnerships can be risky but are necessary for growth; negotiate terms that minimize risk.
• Risk should not be feared but managed to ensure favorable outcomes.

"I want to make risk a non-four-letter word because I think that the key to wealth is actually risk-taking."

• Encourages embracing calculated risks as part of wealth-building strategies.

"Make the founder a deal so good that they would feel dumb saying no to it."

• Advises structuring deals that are mutually beneficial and minimize risk for both parties.

• Importance of negotiation in business relationships and setting clear terms.
• Concept of earn-in or milestone-based deliverables to manage risk.
• Cultural differences in negotiation skills, with examples from various regions.

"What you want to do is say, hey, I love you, you love me, we're going to be together forever. In the off chance that you see a hot little side piece and you run off with them, I want an ability to get the business back."

• This quote illustrates the need to have contingency plans in business partnerships to protect one's interests.

"Wealthy negotiate everything and the poor take price while the rich set price."

• Highlights the mindset difference between wealthy individuals who negotiate terms and those who accept set prices, impacting financial outcomes.

• Discussion on the value of being an employee vs. an entrepreneur.
• Importance of having skin in the game and earning upside in a business.
• Recognition of the diverse paths to success, including intrapreneurship.

"Sheryl Sandberg is worth a lot more than many entrepreneurs. And she was an intrapreneur."

• Emphasizes that significant wealth and impact can be achieved within a corporate structure, not just through entrepreneurship.

"I don't think that the only way to make money is to go be an entrepreneur and founder and do it all by yourself."

• Reiterates the idea that success can be found in various roles, not solely through founding a business.

• The journey of overcoming self-doubt and the fear of leaving a corporate job.
• The role of external pushes and personal reflection in making career changes.
• The impact of mindset on financial success and personal fulfillment.

"A lot of terrible things can happen to you when you don't believe in yourself."

• Reflects on the consequences of self-doubt and the importance of self-belief in pursuing one's goals.

"The universe will tell you kind of what you need to do. And then if you don't listen, it'll annoy you for a while, and then at some point, it'll just kick you in the face."

• Metaphor for how life circumstances push individuals toward necessary changes when they resist initial signs.

• The significance of having an owner's mindset in one's career.
• How ownership and responsibility contribute to negotiating better terms.
• The value of seeing oneself as an owner, regardless of position.

"If you have what we call an owner's mindset... Then you will finally be able to negotiate for the only thing that nobody can take from you."

• Describes the empowerment that comes with adopting an owner's mindset, leading to better negotiation outcomes.

"I have a certain amount of money. And because I have it, I will never compromise on a few things."

• Illustrates the freedom and leverage that financial independence provides in decision-making.

• Strategies for acquiring mentors without formal requests.
• Importance of curiosity and asking questions to learn from successful individuals.
• The role of gratitude and feedback in building lasting mentor-mentee relationships.

"I kind of started collecting mentors who never knew they were my mentor."

• A unique approach to mentorship by learning from others without formalizing the relationship.

"I would never ask them for anything. I would largely just say, hey, that piece of advice that you gave me the other day, that was really useful."

• Highlights the importance of expressing gratitude and showing the impact of advice to strengthen mentor relationships.

• Addressing the mindset shift from envy to learning from others' success.
• The impact of comparison and how to use it constructively.
• Encouragement to see potential in oneself by observing successful people.

"Cash loves curiosity. If you remember anything else, it's that money is really attracted to the type of human that keeps asking questions."

• Emphasizes the value of curiosity in attracting opportunities and financial success.

"When you see somebody that has a lot of money and you see the humanity in them, just remember, like, we're all kind of the same."

• Encourages recognizing commonalities with successful individuals to inspire self-belief and growth.

• Reflecting on the personal growth that can come from empathizing with critics and learning from negative feedback.
• The significance of understanding the emotions and circumstances of those who criticize or hate on others.
• The potential for personal development by proving detractors wrong and using their criticism as motivation.

"I really think sometimes you learn just as much from your haters as you do from your mentors."

• This quote emphasizes the value of criticism as a tool for personal growth, suggesting that both positive and negative feedback can be equally informative and transformative.

• Introduction to the idea of investing in ordinary, often overlooked businesses, such as vending machines, which can be highly profitable.
• The concept of "Main street businesses" as a lucrative investment opportunity due to lower competition and stable demand.
• Examples of profitable yet unglamorous businesses include equipment rental, landscaping, and laundromats.

"The richest guy, you know, probably started a landscaping or sprinkler head company."

• This quote illustrates the idea that significant wealth often comes from investing in mundane businesses rather than flashy, high-profile ventures.

• Discussion of three main types of small businesses: gateway drug businesses, people light businesses, and trades businesses.
• Gateway drug businesses like vending machines are simple and require minimal management.
• People light businesses, such as laundromats, operate with few employees and are straightforward to manage.
• Trades businesses, including roofing and painting companies, are often overlooked but can be highly profitable.

"If you were to look right now... at like, the Forbes 100 list... they're not celebrities... What do most of them have in common more than anything else? Finance and business ownership."

• This quote highlights the commonality among wealthy individuals: ownership of businesses, particularly those in less glamorous industries.

• The importance of acquiring foundational skills in deal-making and understanding the language of money before investing in or buying a business.
• The role of grit and endurance in business success, as popularized by Angela Duckworth.
• The strategy of leveraging existing expertise and networks to find solutions and grow businesses.

"Learn how to do deal making and how to actually speak the language of money... spend a decent amount of upfront time learning."

• This quote underscores the necessity of learning and preparation in business investment, advocating for a strategic approach to acquiring business skills.

• Emphasis on the importance of deal-making skills and understanding risk management to avoid significant financial losses.
• Strategies for minimizing risk, such as partnering with others and avoiding overly large deals.
• The significance of leveraging skills, connections, and resources to make favorable deals.

"Don't do a deal so big that it can wipe you out. Make sure your first deal is reasonable."

• This quote advises caution in business ventures, stressing the importance of starting with manageable investments to mitigate risk.

• Techniques for identifying potential business acquisitions, including leveraging personal networks and engaging in off-market deal searching.
• The concept of the reticular activating system and its role in recognizing business opportunities.
• Encouragement to engage in conversations and express curiosity to uncover potential business deals.

"The best way to find deals is you start just having conversations with guys... cash loves curiosity."

• This quote suggests that being inquisitive and engaging with others can lead to discovering lucrative business opportunities.

• Recognition of the value in building relationships that are not purely transactional, especially in business contexts.
• The benefits of understanding and valuing others' perspectives and needs in business dealings.
• The idea that personal interactions and empathy can lead to unexpected business opportunities.

"Our generation is highly transactional... but as we get older... you become invisible."

• This quote reflects on the societal shift towards transactional relationships, advocating for a more personal and empathetic approach in business interactions.

• Many business owners, especially from the baby boomer generation, underestimate the value of their businesses.
• A profitable business, even if the owner does not see its potential, might still hold significant value in various aspects such as assets, brand, or intellectual property.
• Recognizing the hidden value in a business can lead to better financial outcomes when selling or shutting down a business.

"A business that is doing a couple millions of dollars in revenue and a couple of millions of dollars in profit is worth millions of dollars."

• This quote highlights the potential financial value of a business that owners might overlook.

"Every business has a value... if you can find the business where the value to the owner is not as much as the value is to you, then you got a really good deal."

• The quote emphasizes the importance of recognizing and leveraging the undervalued aspects of a business for profitable opportunities.

• Shifting focus from problems to small wins can change one's perspective and lead to positive changes.
• Acknowledging small victories can help in achieving larger goals and maintaining a positive outlook.
• Personal narratives about one's abilities, especially regarding math and finance, can hinder financial success.

"One thing that helps me when I need a change in perspective is acknowledging the small wins in life."

• This quote underlines the importance of recognizing small achievements to stay motivated and positive.

"I wish that I didn't have stories to myself about me being bad at math and money."

• The quote reflects the impact of personal beliefs on financial confidence and success.

• Developing financial literacy and skills is crucial for managing money effectively.
• Many people avoid dealing with finances due to fear, but understanding basic financial math is accessible to everyone.
• Paying attention to financial matters is essential for wealth retention and growth.

"Money is a cruel mistress. She'll leave you if you don't pay attention to her."

• This quote emphasizes the need for continuous attention to financial matters to maintain wealth.

"It's really not possible to be bad at this type of math."

• The quote reassures that financial math is simple and manageable for everyone, countering common fears.

• Successful investment pitches require preparation, including a concise summary of the opportunity and why it's a good investment.
• Key elements of a pitch include the people involved, the process, and expected performance.
• Choosing the right business partners involves ensuring complementary skills and a shared vision.

"A tear sheet or a one sheet... is basically like a baseball card with all the stats on the baseball card but for the deal."

• This quote explains the importance of having a clear and concise summary of the investment opportunity.

"You don't get married on the first date, don't do a deal or start a business on the first date."

• The quote advises caution and due diligence when forming business partnerships.

• Scarcity mindset around money can be detrimental to financial success.
• Investing in health can lead to better energy and productivity, indirectly benefiting financial outcomes.
• The biggest financial mistakes often relate to people choices rather than monetary decisions.

"The biggest mistakes I've ever made are always not things I did or bought, but people I chose."

• This quote highlights the impact of personal relationships on financial outcomes.

"If you think money's hard and scarce, then you're probably not going to get it."

• The quote challenges the scarcity mindset and encourages a more abundant view of money.

• Wealth creation is closely tied to individual initiative and entrepreneurship.
• Excessive centralization of financial power can hinder individual freedom and innovation.
• Builders and entrepreneurs play a crucial role in societal progress and should be supported.

"The only way that money, and thus freedom, is created is from individual humans who build things."

• This quote underscores the importance of individual contribution to wealth creation and societal development.

"3% of Americans own a business. We need more of you builders out there in the world."

• The quote calls for more entrepreneurship to drive economic growth and innovation.