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

Transcript

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Speaker 1 70% of millionaires are self-made. If you want to make money, you got to follow the map.
People that have money have one thing.

Speaker 48 Entrepreneur, investor.

Speaker 1 She's brought over 26 businesses.

Speaker 4 Cody Sanchez.

Speaker 48 I have no money. I don't really know too much about money.
Where do I start? What do I do?

Speaker 1 Most often, we're told things like, follow our passion. I think that's pretty bad advice.
If you don't have ownership, you're probably never going to be free financially.

Speaker 48 You're literally opening up a whole new doorway for people.

Speaker 48 The number one health and wellness podcast. Jay Shetty.
Jay Shetty. The one, the only Jay Shetty.

Speaker 48 Hey everyone, welcome back to On Purpose, the place you come to become happier, healthier, and more healed.

Speaker 48 I'm fascinated by our relationships with things that we grew up with, how they've changed, how they've evolved, or how they've stayed the same.

Speaker 48 I believe that our relationship with money is probably one of the most underestimated relationships that we have. And it's probably one of the relationships that we pay the least attention to.

Speaker 48 We don't treat it like a relationship. We don't think of it like a relationship.
And therefore, it falls into the binary category of I'm either good at it or I'm bad at it.

Speaker 48 Today's guest has some incredible insights for each and every one of us. Wherever you are in your financial journey, this episode is for you.
Today's guest is Cody Sanchez.

Speaker 1 Thank you. I'm blushing.
I'm excited to be here.

Speaker 48 I want to start with a question that I know you probably get a million times and I get all the time. Jay, I have no money.
I don't really know too much about money. Where do I start? What do I do?

Speaker 1 There's two things in life that I wish we were told earlier. And one is if you want to make money, you got to follow the math.

Speaker 1 And I think most often we're told things like follow our passion, you know, do what I did to make money. I made real estate money.
You should make real estate money.

Speaker 1 And I think that's pretty bad advice. I think instead we should look to where are most people rich? What makes most people rich? So I kind of go to the data.

Speaker 1 I came from really middle class, kind of, we didn't have money all the time. I remember what it was like to not have money.

Speaker 1 I remember what it was like when my debit card, you know, I was a little worried stuff wouldn't go through at the grocery store. And I didn't like that feeling.

Speaker 1 And so I kind of started looking around. I was like, wait a second, where do people have money? And after being in finance for whatever it is, 15 years, I'm going to give away my age.

Speaker 1 I realized people that have money have one thing, ownership. So the data is really clear on this.
70% of millionaires are self-made, which is interesting. I used to think maybe you just inherit it.

Speaker 1 Did they just get lucky? And then 68%

Speaker 1 of millionaires have some form of ownership. They have actually bought a business or have equity in a business or built a business.

Speaker 1 And so when I realized that, I was like, the problem is I don't have a brilliant idea. Like, I don't know how to make money.
I don't have any money to make money.

Speaker 1 But at least you have step one, which is if you don't have ownership, you're probably never going to be free financially. You got to get some skin in the game.

Speaker 1 That doesn't mean that you have to become an entrepreneur. It's really hard to do that.
It sucks many days. You know this very well.

Speaker 1 There's Fridays when you're never going to make payroll, and that is like a deep, terrible, dark hurt, actually.

Speaker 1 But 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.

Speaker 1 And back when I was young, I was a journalist originally, made $0.

Speaker 1 And

Speaker 1 I realized that I had no idea why

Speaker 1 I had opportunities and ability to make some money. And let's say the women I was covering at the time in Juarez, who are, they call it La Ciudad de Muerte, right?

Speaker 1 The city of death, which is where women are mutilated and raped and brutalized and

Speaker 1 found murdered. all over the city every single day thousands of women a year there were many that had the last name sanchez my last name happens to be Sanchez.

Speaker 1 I was like, what's the difference between us? Is it that I'm American? No, that's not it alone. I think it's also that I had some financial tools.

Speaker 1 And like money is a pushback against other people's architecture of your life. And it makes people care about you one way or the other, which is sad.

Speaker 1 But the truth of the matter is, if you are poor, you have no power. And anybody who's been poor before knows that is true.
You got to go where the game is playing.

Speaker 1 So the first thing I tell you is if you don't have any cash, you need to find a way to figure out how to speak the language of money. And that probably means you maybe go work in finance like I did.

Speaker 1 You get with a company that has smart leaders like Jay, where you can actually go and learn from them and you obsess on, can I become fluent in the thing that nobody talks about in the U.S.?

Speaker 1 Because money is supposed to be the root of all evil.

Speaker 48 Yeah, you shared a statistic with me that I thought was mind-blowing that 62% of Americans don't want to talk about money. Yeah.

Speaker 48 That is so scary, but it's also also not surprising because like you just said, we've created this narrative that money is the root of all evil.

Speaker 48 And it was so fascinating because someone actually said this to me where if you look up the actual reference, it says love of money is the root of all evil.

Speaker 1 I never knew that. Yeah.
How did we, I mean, I do wonder sometimes, how do we get programmed these ways?

Speaker 1 Because if you think about it, it's like, what are the three things you're not supposed to talk about? Politics, religion, money. Now, politics and religion, maybe I could understand.

Speaker 1 You could offend somebody. I believe this religion, you believe this

Speaker 1 political slant. And if we could collide, that could be bad.
But when it comes to money, who's like, no, I wish everybody was poor? Like, why wouldn't we be able to talk about it?

Speaker 1 And the only thing that I can determine from that is that every time we get a little bit more ownership, a little bit more money, we become harder to control.

Speaker 1 And when you're harder to control, big institutions and largely our governments, they don't like that. You know, you want a controllable populace by and large.

Speaker 1 And I think that is a big reason why people don't talk about money.

Speaker 1 It's actually that we have been programmed to be more malleable sheep in many ways, not because people are evil at the top, but because once we get power, we humans are a little funny.

Speaker 1 We don't like to give it up. No matter who we are, I would probably be the same.
And so that centralization of power, we start to think, I know better. You poor person, let me give you some charity.

Speaker 1 You can't figure it out. And instead, we should be saying, you are just as capable as I am.
And I would probably be you if I lived your life. And so instead, why don't I transfer some knowledge?

Speaker 1 Because that's where money starts.

Speaker 48 Yeah. What about people right now who are looking at the situation and just like the economy is in a bad place? We're super worried.
Paint us a picture of where America is right now.

Speaker 1 Well, I mean, let's talk first. We'll talk about how it's tough, and I'll be honest, and then we can talk about solutions.
So I promise I won't leave you in a doom scroll. But

Speaker 1 here's the truth of what's happening in the world right now. If you're young, young people today are upset about what's happening in the world around them.
And I understand why.

Speaker 1 You have wage stagnation. So we basically have not made any more money.

Speaker 1 And in fact, this generation, Gen Z, is the first generation where at their same age as their parents, they're making less money, not more.

Speaker 1 Problem is their university degrees are three to four X more expensive. Oh, by the way, so is housing.
Wait a second.

Speaker 1 Inflation is at a degree in which my dollar today is worth even substantially less than even five years ago. On top of that, yeah, we have all these jobs open.

Speaker 1 You know, 7 million working-age men supposedly are unemployed at this moment right now,

Speaker 1 even though the jobs report says that there's so many jobs. Are the jobs real? Well, largely not.

Speaker 1 They're not private sector, they're public sector, they're government jobs. And so young people are like, wait a second, I can't live, I can't eat, you know, groceries more expensive.

Speaker 1 And that's real, actually. And so the people that are making fun of young people in TikToks, you know, when they cry about their job being difficult,

Speaker 1 I don't really vibe with that because the math says it's hard right now. And not just for young people, but I think it's important to talk about them.

Speaker 1 And the truth of the matter is, though, that in any market, we can make money.

Speaker 1 And so although it's really difficult out there, there's like one silver lining that I've kind of been screaming from the rooftops for the past three years.

Speaker 1 And people, I think, are starting to see it, which is that

Speaker 1 We are thankfully, I think, going to have a marriage between baby boomers and young people that would be very unexpected.

Speaker 1 So right now, and historically, young people have said, okay, boomer, you messed up our economy, boomer. You're not employing me, boomer.
You don't understand my life.

Speaker 1 You listen to the music that young people like. They don't like that generation in a lot of ways.
Then the baby boomers are like, you guys are quiet quitting. You're not working very hard.

Speaker 1 Get out of my basement.

Speaker 1 And so these two generations have been at war in some ways, like a quiet war.

Speaker 1 And now I think with the transfer of ownership that we're seeing, and we can talk about the great wealth transfer, I think we have have an opportunity where the baby boomer generation, the richest generation that we have ever seen in the U.S., which has mimicked in all other countries around the world, by the way, that are developed countries, this generation is about to sunset.

Speaker 1 They're getting ready to retire. They're ready to move on, but they own $68 trillion in wealth in just the U.S.

Speaker 1 The interesting part is the young people think, well, that money must get transferred somehow, right? Does that mean I get a house? Does that mean I get a car? Does that mean I get inheritance?

Speaker 1 The problem is that money is not tied up in just assets. It's not tied up in houses and bank accounts.

Speaker 1 It, by and large, is tied up in small businesses because baby boomers own 60% of all small businesses.

Speaker 1 And so I think we got to find a way for the young people to take over these baby boomer businesses because otherwise, then we're in a really bad spot. Then we're Japan.

Speaker 48 Yeah. What are some of the mistakes that you think we think about what makes money?

Speaker 48 Like, what are we thinking makes money right now where we're being distracted, where actually small businesses is where you're pointing the spotlight? Yeah. But, but what are we distracted by?

Speaker 1 I think a lot of young people today chase the shiny object, right? And think about this for a second.

Speaker 1 I remember like many years ago, I had an opportunity to invest in Robinhood and I could kick myself financially because I didn't.

Speaker 1 But at the time, why I didn't is I was like, day trading stocks as amateurs and then gamifying it so we get like adrenal response every time a balloon pops because we placed a trade might be a bad idea.

Speaker 1 Like, I don't think we should probably gamify our finances that way. And I think that's what's happened to young people.
They're being told, I mean,

Speaker 1 put it in the stock market and day trade. They're being told NFTs and playing with crypto monkeys.
They're being told price speculation on crypto or even Bitcoin.

Speaker 1 They're taking margin calls out on their stock portfolios. And with the little amount of money that they have, they're trying for this get-rich scheme speculation.

Speaker 1 And the shitty part is that just never works.

Speaker 1 You know, the, 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.

Speaker 1 If you think that there is a lose-win scenario and you are the one that's going to win, I hate to tell you, you're the one holding the bag. Well said.
Yeah.

Speaker 1 And I wish people told us that more, that actually making money doesn't have to be lose-win. It could be win-win.

Speaker 1 And that is when you know you've actually found a good opportunity is when you go, okay, why would I make money on this deal?

Speaker 1 Oh, because I am solving a pain point that adds value to another human's life. And I've properly valued what my own skill set is.

Speaker 1 The problem is most of us don't even know what we're good at or how you'd value that skill.

Speaker 1 And we can play around with some exercises so that any human could figure out, okay, I, Cody, know how to market something. How do I figure out how much that is worth?

Speaker 1 And how could I transfer some of that to get a percentage of equity in somebody's company just for the skill that I have? And the last thing I want to say there is like,

Speaker 1 more than anything, I think one, we think money's bad. And then two, money's scary.
Like, I don't really know why, but I think we're scared of it.

Speaker 1 And we're scared that we might not be able to make it. And we're scared, what if we lose it? And what if our self-worth is tied up in it? And should we actually ask for it?

Speaker 1 So we have all these fears surrounding money, which is probably why we don't talk about it too. And we got to kind of work through that because money is just a tool.

Speaker 48 So it's just like if you want to build a house, do you want to use uh you know a bunch of tiny little nails and your own hammer or do you want to have a screw gun and like in this instance i want to have the bigger gun yeah i want to look at three scenarios of our audience and where they sit and look at what your advice would be for them at that point so let's say we have a listener who just graduated from college What should they be doing first?

Speaker 48 What should they be thinking about right now?

Speaker 1 Yeah. Well, here's how I think about making money.

Speaker 1 We have a four-step process that I think, if you don't have money now, here is how you make it consistently over time and you have your money go out and bring back friends with it.

Speaker 1 The first is you've got to learn. We've got to obsess in the beginning about one thing only.
It's not what your salary is.

Speaker 1 It's how can I cram as much information as humanly possible in my brain in order for me to then do the next thing, which is increase my skill stack.

Speaker 1 After I learn, can I increase my skills so that my skills are more valuable today than they were yesterday? And the third is, how can I increase my income?

Speaker 1 So before you go thinking about investing in things overall, how can I just make make more money currently with what I'm doing? And then finally, we can get to invest.

Speaker 1 So after we do these three steps, the final one is how do I take my money and make my money work for me? But in the beginning, you don't have money. You know, you don't really have skills.

Speaker 1 You probably don't have a ton of connections. And so what you actually want to do is use your sweat equity and your experience and time as a

Speaker 1 really maybe hungry individual to get money to eventually be able to invest the money. And I think that's the other thing young people were told that's a lie is that

Speaker 1 you can go out as a young person and, you know, Fendi, Gucci, Prada, Lamborghini on the internet, make a bunch of fast cash and Airbnb arbitrage or whatever.

Speaker 1 Man, I wish somebody had told me earlier on that's a terrible thing to do.

Speaker 48 Yeah.

Speaker 48 And I think what's really interesting though, is when you're talking about improving of skills, I think when we graduate college, you think that that was the skill, like that your degree was the investment in the skill.

Speaker 48 But really what you're talking about are high value skills, talents, abilities that actually make an impact in a workplace. And those are really different.

Speaker 48 And so I'd meet a lot of young people who sadly have spent so much money on their degree, are really smart academically,

Speaker 48 but then that skill doesn't translate into knowing how to make their company more money, knowing how to lead people really well, knowing how to build functions, systems, processes.

Speaker 48 And therefore, it's like, well, wait a minute, I just studied all these years, but it doesn't translate.

Speaker 1 Yeah, I think you're exactly right. I mean, for a long time, we employed people from the top universities and financial firms.

Speaker 1 We would go out and we would hand select them because that would be an indicator of their grit, perseverance, and potentially their intellect, their IQ.

Speaker 1 Now, by and large, you're starting to see a lot of the top institutions bypass that.

Speaker 1 You know, Google doesn't mandate that you have a college degree if you're going into an engineering degree, actually. And I think that should be really liberating for us.

Speaker 1 It's basically breaking down this barrier that's a six-figure barrier that allowed for the few, the elites, to stair-step over everybody else. And now it's actually saying, how bad you want it?

Speaker 1 And don't tell me what you learned. Show me what you can do.
Or even better, show me what you did.

Speaker 1 And so I think the resume of the future is actually, if somebody came to you, Jay and they were like, I just graduated from Wharton. I am very smart.

Speaker 1 You know, I also did my undergraduate degree at Harvard. I now want to come work for you.
You'd be like, what do you know how to do? Do you know how to market?

Speaker 1 Do you know how to grow a beverage company? Do you know how to increase our investment return? Oh, you kind of like theoretically have looked about how to do that in a case study.

Speaker 1 That's probably less interesting to you than somebody that goes, you know what?

Speaker 1 I was part of the beverage team at Erewhon and Whole Foods, and I figured out sort of across the country how they buy different pieces of inventory.

Speaker 48 Yeah, you got my attention already.

Speaker 1 Right, exactly. And maybe because I want to help you grow this individual business, which I know you care about because I see it on your socials, I put together this little spreadsheet for you.

Speaker 1 Here's the things they care about. about.
Could I come work for you for free for three or six months? And if that works out, could we do something better and bigger?

Speaker 1 The problem that people usually have on the internet when I throw out the word work for free is young people are like, remember that part where you told us that we are broke and we don't have any money?

Speaker 1 So I'm not trying to dismiss that at all, but I do think we have to be honest about the fact that when we're young, you're going to have to work harder than you think, longer than you think, doing stuff you don't like with people you probably don't like until eventually you get the right to do something really interesting.

Speaker 1 But like you don't die in your first job from it being really hard and challenging. You die from the absolute monotony and the low-level tasks you have to do for basically pennies on the dollar.

Speaker 48 Yeah, definitely. Definitely.
Absolutely. I fully agree.
Let's say someone's 30 years old. Yeah.
They've, or 30 to 35. They worked 10, 15 years after graduating.
They've been at the same company.

Speaker 48 Maybe they've moved once.

Speaker 48 I was actually talking to someone like this yesterday. She's been at this one company for six years.
It's a great company, great on her resume, but she's like, I don't really want to be here.

Speaker 48 I don't think this is where I see my future, but I'm so scared of quitting.

Speaker 48 I don't know how to invest. I probably didn't save that much anyway.
Now I feel bad about it. I'm probably feeling a bit of shame and guilt that I didn't save that much over the last 10 years.

Speaker 48 What would I do, Cody?

Speaker 1 Well, one, I would say these days you do not have to have money to make money, which is incredibly powerful. So when I think about it, if I'm 30 and I am at a company like that, what would I do today?

Speaker 1 Well, I would actually probably sit down and figure out what am I actually skilled at that somebody else would pay me for.

Speaker 1 Once you know what somebody else would pay you for, which is really just like, do people ask for your opinion on this? Could you actually get jobs in this space?

Speaker 1 If it was me, because I'm kind of unemployable, like you don't want me to work for you. Like I got my own ideas.
I want to do things this way.

Speaker 1 If she's like that, then what you want to do is you want to try to partner with somebody where you can be the solution to their problem.

Speaker 1 And because you understand what I call deal making, which is really the language of money, you can negotiate an ability for you to own part of a thing in order for you to have one of three outcomes.

Speaker 1 If she can figure out if she can help a business grow.

Speaker 1 its revenue, make more money, if she can help a business cut its costs, or if she can help decrease the pain of a business owner, you can negotiate your way into a business and have equity in it and upside.

Speaker 1 And I wish somebody had taught me that earlier, because this is what consultants do. This is what private equity firms do.
This is what some of the largest institutions in the world do.

Speaker 1 I call it expertise to equity. But if I was her, I'd say, don't go find another job.

Speaker 1 And if you don't have a brilliant idea that you're like, I would die for the want of creating this thing in the world, if you have that, please go do it.

Speaker 1 But if you're like, I don't have that, I just want to make money and I want to feel respected and I want to feel like my skills fit somewhere and I'm able to have an outsized income.

Speaker 1 If that's you, then I think you should try to value your skill set. Then you should try to negotiate for an upside deal with somebody.

Speaker 1 And you should try try your hand at this game called ownership, which is where you say, hey, small business, I know how to market. Can I help you market at the side while I'm working on this company?

Speaker 1 And because I help you grow your revenue by 50%,

Speaker 1 could I keep 10% of the 50% I grow? Do you think a small business owner would say yes to that? Of course they would

Speaker 1 because there's no downside. And I think more often than not, we think that the only risk you can take in making money in business is putting your own cash down.
That's a risk.

Speaker 1 Or starting a business, aka dedicating your life to something. The last part, I'll get a little statistic on us is 90% of startups fail inside any rolling 10-year period.
We know that statistic.

Speaker 1 Most startups make $0 for the first three years.

Speaker 1 After that, the average entrepreneur makes about $46,000 a year, which is great, but not when you've been making zero for three years.

Speaker 1 And then on top of that, we've got this nation of people who have all these bills to pay, and they are betting on hopes and dreams as opposed to realities.

Speaker 1 And so my commentary is, can you figure out how to value your skills so you can negotiate a little bit more upside for that day where you can't work anymore?

Speaker 48 Hey everyone, it's Jay Shetty and I'm thrilled to announce my podcast tour. For the first time ever, you can see my on-purpose podcast live and in person.

Speaker 48 Join me in a city near you for meaningful, insightful conversations with surprise guests. It could be a celebrity, top wellness expert, or a CEO or business leader.

Speaker 48 We'll dive into experiences designed to inspire growth, spark learning and build real connections. I can't wait to see you there.
Tickets are on sale now. Head to jshetty.me and get yours today.

Speaker 48 Yeah, definitely.

Speaker 48 I'm so happy to hear such like

Speaker 48 smart, honest advice because I do think you're so right. For so long, we keep telling everyone, like, Follow your passion, like just quit your job, like jump over.

Speaker 48 And, you know, it's, it's hard because, like you said, that business may not work your skills may be better off here you might not be an entrepreneur you might be someone who's gonna work with an entrepreneur and build i wanted to address something though i do find a lot of leaders and a lot of founders of small businesses or up-and-coming businesses to also be quite resistant to recognizing the value of sharing.

Speaker 48 So I'll give an example of what I mean by this. Like when I was starting out, I remember speaking to people who were much more established than I was.

Speaker 48 And I said, hey, I've got a person I'm going to work with. I'm going to split things 75, 25.

Speaker 48 And

Speaker 48 they're going to get 25% of profits. I'm going to keep 75 because they have a skill set I don't have and it will be complementary.

Speaker 48 And I remember everyone telling me it was a really bad idea because they're like, Jay, like, no, you, you're building a platform. You should own 100% of it.

Speaker 48 And I was like, but no, they're going to manage stress for me. They're going to manage teams.
I want to see them grow. I want them to feel like they've got skin in the game.
And now, you know,

Speaker 48 eight years later, since that decision, I'm so much happier. And I have a great relationship with my, one of my business partners.
We have a great relationship.

Speaker 48 He's as invested as he is, as he was then. Things have grown really well.
And I'm like, the people that were trying to hold on to that last 5% to 10%

Speaker 48 actually haven't grown. And so.

Speaker 48 It was really interesting to me, though, that I see that again and again and again, where even founders and new leaders are actually scared of parting with something.

Speaker 48 How would you encourage them to think about that differently?

Speaker 1 Well, I actually would say be scared of partnerships. Oh, great.
Because 50% of marriages end divorce, but 100% of business marriages typically end because no business lasts forever, right?

Speaker 1 And so at some point, you're going to have a rift with your business partner by and large. And probably you'll have a few rifts with them.
So I would actually say it's cool to be scared about that.

Speaker 1 You should be.

Speaker 1 The thing that I want people to think about is like, I want to make risk a non-four letter word because I think that the key to wealth is actually risk, taking some of it.

Speaker 1 The question is: if you're like me, I'm kind of a wuss. Like, I stayed in a corporate job for 12 years because I was too scared to do things by myself.

Speaker 1 Even though I was like pretty highly skilled, I had a decent amount of cash. I was like,

Speaker 1 definitely not going to make it. I don't think I'm, I don't think I'm capable.
Like, it took me a long time to get there.

Speaker 1 And so, what I did is, I'm all about risk mitigation, which is like a fancy, you know, financy word to say, how can I just make the outcome so in my favor that even if I'm not as smart as I think I am, it's almost like a win-win, no matter what.

Speaker 1 And so in that instance, I would probably say,

Speaker 1 make the founder a deal so good that they would feel dumb saying no to it. And so if I was coming to you, Jay, and Jay was just starting out, I wouldn't do this to somebody who has a big platform.

Speaker 1 They have way too much, too many resources. You need to go with somebody that's more accessible to you, that doesn't have a lot of resources, that's more on your level.

Speaker 1 But when you find that person, you go, hey, win-win deal. Don't give me a cent unless I provide X value.
Like literally literally nothing. Don't give me a percentage of the company right away.

Speaker 1 I never give a percentage of my companies right away anymore. I did once.
It cost me a million bucks. I was pissed.
I didn't do it again. So

Speaker 1 you can do what's called an earn in or milestone-based deliverables, which I know sounds like a little maybe boring of people.

Speaker 1 It's the right way to do it.

Speaker 48 I'm so glad you're giving this advice. It's great.
Yeah.

Speaker 1 I mean, 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.

Speaker 1 I want an ability to get the the business back, right? And so in that way, I am going to instead say, hey, I'm taking all the risk in this business for the most part. I'm putting in the capital.

Speaker 1 Unless you're going to put in money that is equal to me, you only get the equity in the business or the upside in the business if you, it's either duration or it's execution.

Speaker 1 So either you're here for one, two, three years, which is called cliff-based investing, or you're here for the first million that you helped me get in and then the second million and the the third million.

Speaker 1 And if you help me hit those milestones, you get the equity. If you don't, I wish you well, you wish me well, but we've already signed a prenup and this is how it works.

Speaker 1 And so I think we need to start thinking like that. And it's very non-American.
We're not so used to negotiating.

Speaker 1 Probably non-British too. Actually, Indians, incredible at negotiation.
Same with a lot of people in the Middle East, but British and American people, not so good at negotiating.

Speaker 1 We think that it's like a low-level signal on average.

Speaker 1 So like when I was young my mom we call her the pipple she's amazing and she would all always negotiate everything my dad's an incredible businessman like totally pull himself up by his own bootstraps but my mom would go negotiate and i don't know if you ever felt like this but i remember sometimes you know my mom would be like negotiating for a different price i'd be like mom oh all the time like please stop you just pay it and she would look at me and she would say like Once it's your money, you pay it, but it's my money.

Speaker 1 So like, get out of here if you don't want to deal with this. And I used to think it was so embarrassing.
And now I realize, oh, that's very smart.

Speaker 1 And it's actually the thing the wealthy do more than anything else that the poor do not, which is the wealthy negotiate everything and the poor take price while the rich set price.

Speaker 48 Well, I've never thought about it like that. Set price versus taking a price.

Speaker 48 And I love your mindful habits on mitigating risk in a business relationship, both sides.

Speaker 48 I think it's, I'm glad that you laid it out that way because I completely agree with you, the amount of business relationships that have challenges and issues and everything.

Speaker 48 I want to go back a few moments to when you were saying you were stuck for 12 years.

Speaker 48 And the reason why I want to talk about that is because now when I see you and whether someone sees you online or writing your book or, you know, you're on all these awesome podcasts and you're talking so confidently and you're so clear, but to hear that you had doubt and it took you a long time to get over it.

Speaker 48 Walk me through what was going on in your mind during that 24-month period, 12-month period before you actually managed to quit. What was going inside Cody's head? Oh, yeah.

Speaker 1 I think I would have stayed an employee forever, Jay.

Speaker 48 Me too. That's why I'm asking.

Speaker 1 And I also think if you're listening right now and you ever feel less than for being an employee, you tell that person a pound sand because I guarantee you, Cheryl Sandberg is worth a lot more than many entrepreneurs.

Speaker 1 And she was an entrepreneur. She worked inside of a business and amassed massive wealth, prestige, status, and impact from it.
And so I don't like when people make employees feel less than.

Speaker 1 You and I couldn't do what we do if we didn't have people who also wanted to build a vision with a team as opposed to an individual.

Speaker 1 So one, you can make a ton of money, whether you're an employee or whether you are the founder of the business. You just got to get a little skin in the game and upside.

Speaker 1 And you get skin in the game and upside when you have more value. You don't just ask for it.
You've got to be able to earn it. And so

Speaker 1 when I was

Speaker 1 thinking those last two years in the business, I was running a business in Latin America. I had taken the business from zero to a billion dollars in assets under management.

Speaker 1 I had done it in a place that I had never lived, Mexico, Chile, Colombia, Peru. I didn't have contacts there.
I'd like built something from nothing. And I was really proud of that.

Speaker 1 But I wasn't very good at doing deals back then. And maybe that's why I'm obsessed with it now, because I did a shitty deal with a guy that I respect a lot, but he was just better than me.

Speaker 1 And he ran the company.

Speaker 1 And I built up this huge thing, but basically I had no way to take the assets of the business with me the only thing that i could do is stay at that business and continue to get partnership until they eventually sold i was like gosh i don't want to be here for 30 years and at the time again i respected the ceo a lot but we didn't believe in the same world like i believe in a world in which we can all get rich together he believed in a world in which he told me we get rich quietly And he believed that if you told people that you were rich, they came after you, which sometimes they do.

Speaker 1 And because of that, he wanted to protect himself and be quiet. And I said,

Speaker 1 I don't want to live in that world. And so we fought about that.
I thought we should run the business this way. He thought we should run the business that way.

Speaker 1 And so for those last two years, if he hadn't finally taken me on a beach for a walk, him and I went, he runs a multi, hundreds, hundreds, hundreds of billions of dollar company.

Speaker 1 We're still friends to this day. But he essentially gave me an ultimatum.
He said, listen, I want to row left. You want to row right.
The problem is you need to get your own chips.

Speaker 1 You got to get your own boat. You're on my boat and you're trying to row this way.
And we're going this way. So you got to make a decision.
And at the time, I was so mad.

Speaker 1 I was like, I built this from nothing. You guys can't even speak Spanish.
I'm down here. Do it.
Like I was mad. I was super entitled.

Speaker 1 Then I realized, Cody, did you put any of the money on the table to build this business? No. You know, did, did you take the risk? No, besides coming here, like that was his.
And so he was right.

Speaker 1 And, um, and I couldn't take anything with me. I did put my old number two in charge of that business, which is cool.
She still runs it to this day. But I was really like mad at myself myself and sad.

Speaker 1 And so

Speaker 1 before I left there, I had done a lot of little investments. I call them throwing out my chips.

Speaker 1 So, you know, once you start to make a little money, I think it's really helpful to start investing in the things that you want to eventually earn from.

Speaker 1 So I knew I wanted to get into some venture capital like things. So I started investing in some venture capital firms.

Speaker 1 And so when he finally gave me that ultimatum, I jumped ship, went to another company, and I didn't even have the balls to do it by myself then. I partnered up with a few other people.
And man,

Speaker 1 like a lot of terrible things can happen to you when you don't believe in yourself. And I think the universe, like

Speaker 1 it 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, I'll just kick you in the face. And like, that's my experience.

Speaker 1 You probably have a nicer experience with the universe, but it's kind of like, come on, we should do this. We should do this.
And it just pushes you off the cliff.

Speaker 1 And so with me, I raised a ton of money for this company. I had these couple of partners.
And at the end, like, it didn't work out between us. And again, unemployable.
I wanted to go left.

Speaker 1 They wanted to go right. And I didn't really do that good of a deal.
And so twice this happened. But that last time, I did a better deal.
And so I said, you guys have to pay me out for what I did.

Speaker 1 And I'm going to go do this new business. And I want to take some of our investors.

Speaker 1 And so if somebody hadn't pushed me out of a company and if somebody else hadn't also said, No, we don't want to do this with you. I never would have done it by myself.

Speaker 1 And so I think it's, it's okay if somebody's listening and you're stuck in a corporate job, quote unquote stuck for a long time. That's okay.
And it's also okay if it takes you a few tries.

Speaker 1 And I don't think that the only way to make money is to go be a entrepreneur and founder and do it all by yourself and never work in corporate America.

Speaker 1 I'm very grateful for the money that they spent on me for decades.

Speaker 48 Yeah, absolutely. And I think there's plenty of good examples, as you said, of entrepreneurs.
And I think that's, it's, it's more a mindset thing.

Speaker 48 What I'm hearing from you is it's getting skin in the game. It's negotiating well.
It's being an owner, right? Like that, that's really what I'm hearing.

Speaker 48 And I think if people take those three things away from what we've talked about so far, that's what you want to put your attention to rather than this idea of, oh, I've got to start a business, I've got to become an entrepreneur, I've got to learn how to invest.

Speaker 48 It's like, no, no, no, this is it. This is what it is.

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Speaker 1 You're right. Yeah.
Lots of people focus on the tactics, but they don't focus on the foundation.

Speaker 1 The foundation is, do you believe that you have ownership and responsibility for the things you spend more time doing than anything besides sleeping, which is working?

Speaker 1 And if you have what we call an owner's mindset, so the type of human that's like, I'm, I'm putting like respect and dignity into what I do every day to the point that I start to value my own worth and I understand why I'm valued, then you will finally be able to negotiate for the only thing that nobody can take from you.

Speaker 1 Somebody can take a job, somebody can take a salary, nobody can take contractual ownership in a business. And I think that's really important in today's world because it really allows you.

Speaker 1 Then, when somebody that you work for does something you don't like, you just go, yeah, I'm not doing that, you know?

Speaker 1 And you become, it's what I call my you fund in my ladylike fashion, which is like, hey, I have a certain amount of money, and because I have it, I will never compromise on a few things.

Speaker 1 But

Speaker 1 the owner's mindset is kind of rare, you know? And so I think for young people today, so often, and I was one, it's like, my boss is bad, my job sucks, you know, I don't have upward mobility.

Speaker 1 And if I could tell young Cody one thing differently, it would be like, what would the opposite side of that story say? And which one do you think would make you more money?

Speaker 1 And it would be like, probably the one in which you're like, hey, this is all kind of in my control. And if I make some serious changes in my life, I bet I could be richer than I am today.

Speaker 1 And I wish more people thought that way.

Speaker 48 Yeah.

Speaker 48 How do you have that conversation with your boss?

Speaker 1 I remember once, I was at an event and I was just listening in the crowd and it was actually a finance event for women. So it was a bunch of like kind of well-off ladies.

Speaker 1 And we were in the audience and the person in front asked everybody to close their eyes. So we all closed our eyes.
And then they said, nobody's looking.

Speaker 1 I want you to have your body have a physical representation of what you feel when you think of money. So I was like, this is weird hippies.
Like, what are we doing?

Speaker 1 So I was like, I don't know, you know, know, and you can't see me, but like, I was like, throwing up my hands. I'm like, okay, money.
I like it. Like, give it to me.
Keep it going.

Speaker 1 You know, these are like my internal monologues, right?

Speaker 1 Yeah. Like, I, I'll take some.
And so anyway, I'm chilling. I'm like this.
I'm like, nobody's looking. And then they're like, now don't move, but open your eyes.

Speaker 1 And when I looked out, I was like, whoa, because the rest of the audience, not the rest, but let's call it 80%

Speaker 1 were like this. They're like the, they were tight to the chest.
They were like, kind of like maybe small arms to the side. In some instances, I was like, it looked like they had been hit.

Speaker 1 They had been harmed. And, uh, and I thought that was so fascinating.
And then they let us shake it off.

Speaker 1 And I was like, oh man, if your representation of money that you feel in your body is closed off, you know, kind of scared, whatever, I don't know, might be hard for you to earn it.

Speaker 1 So I think for some reason, being in finance helped me realize, I mean, you guys, if you met some of the guys who were worth $100 million that I did in finance, you'd go, I could do that too.

Speaker 1 Like that guy did it, really and so i think once you meet a bunch of those people you go oh like this isn't this isn't as impossible as people say it is and so i learn a lot from not seeing people achieve it and going how could they how could they it's instead going wow that guy didn't i think if he could do it i could do it too and that taught me to keep going okay he did it he did it and it's like arms would raise arms would raise arms would raise and so maybe that's what i would try to tell people is like every time 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.

Speaker 48 Yeah.

Speaker 1 And you, you can, now, don't get me wrong, intelligence levels, network, how you're born, where you're born, real things.

Speaker 1 But if you're living in a first world country,

Speaker 1 in today's day and age, with the internet and what we have at our fingertips, I think you're in a better position than you've ever been in order to make a lot of money today.

Speaker 1 And I promise you only one thing, which is you'll make less money if you think you will.

Speaker 48 Yeah. I wanted you to talk about the difference between what you just said and how we cultivate that mindset because you're so right.

Speaker 48 I know a lot of people, a lot of friends as well, they'll look at someone who's doing well for themselves and they'll be like, that guy's so dumb. Like I could do that.

Speaker 48 I could do that with my eyes closed. But it's actually in a condescending way to that person rather than like, oh, that guy can do it.
Oh, great. Okay.
Well, I've got this skill.

Speaker 48 I went to, I can do it. You know, and so what is that mindset shift? Because I think we're good at looking at other people.
Yeah.

Speaker 48 But often we either fall prey to to being envious instead of studious of them. Like

Speaker 48 instead of studying them, we envy them. Or we end up being condescending of them of like, oh, well, you know, he's not even that smart.
Or

Speaker 48 it's not even that great, right? We kind of justify that. So how do you shift that? Because I think that's at the core of what you're saying.

Speaker 1 Yeah. And don't get me wrong, I fall prey to all of these things too.
I still to this day play the game of comparison. Like, ah, they're doing that.

Speaker 1 Come on, team. Where are we going? You know, I do it.

Speaker 48 Yeah, me too. Yeah, yeah.

Speaker 1 And I wish I didn't, but I still do. But I do think cash loves curiosity.
If you remember anything else, it's that money is really attracted to the type of human that keeps asking questions.

Speaker 1 You don't actually have to know the answers often to make money. You need to ask the right questions.

Speaker 1 So I kind of trained myself every time I saw somebody with money or I got to know somebody with money.

Speaker 1 I didn't need to know anything else besides like, can I just ask them a lot of questions continuously?

Speaker 1 And it was funny because I was talking to, I think, another mutual friend of ours, Jesse Eitzler, the other day.

Speaker 1 And Jesse talks about how he used to go to a hotel here and he would just ask questions in the lobby or at the lunch table. He was like living not in a nice place.
He had no cash whatsoever.

Speaker 1 But when he saw people that he thought looked rich or interesting, he would just ask them questions. And I think with the internet, sometimes we

Speaker 1 we think that questions don't matter anymore and we go to the internet to get answers. And if instead you can make a human connection and get curious about them, they'll give things to you.

Speaker 1 And so one of my, I played a game when I was really young, which is I kind of started collecting mentors who never knew they were my mentor.

Speaker 1 And I think this is a really clever thing to do. And I remember one in particular, Bob Kendall, and BK is what we call him.

Speaker 1 He was super high up at, I don't know if it was Goldman or Credit Suisse at the time, one of the companies. And he was so like out of my range.

Speaker 1 Like, you know, when somebody else is in a company and I was basically the intern and he was the big dog. But I got a couple of chances to interact with him.

Speaker 1 And I would just ask him questions, like very simple ones, like, oh, you just took over this area of the business. Like, why did, what did you see there?

Speaker 1 As opposed to this other area where a lot of people are going, I would just kind of be quite curious.

Speaker 1 And then I would do a thing that I think probably helped me make more mentors than anything else, which is I would get their contact information. I would never ask them for anything.

Speaker 1 I would largely just say, hey, that piece of advice that you gave me the other day, that was really useful. And I applied it this way.
Thank you for doing that.

Speaker 1 Or I'd see if his name was written somewhere. He had done a research paper or something.
I might send it to him, like with a couple highlighted things. Like these lines were incredible.

Speaker 1 Thank you for doing that. Then after I had done that a few times, I might give them one question like, hey, you know, I'm thinking about going into

Speaker 1 marketing or sales. And I'm trying to figure out how do you decide which career path is more interesting to you? Do you have just like a one sentence about it?

Speaker 1 Or do you have one book that you'd like to read? Like really short.

Speaker 1 And I remember I sat down with BK years later and he was like, you know, the funny thing about you? And I was like, oh, what?

Speaker 1 You know, and he was like, you like somehow made me your mentor, mentor, but you never asked.

Speaker 1 And then I started caring about what happened to your career, but I kind of never meant to, which is like a very Asperger's y finance thing to do. And he's like, did you do that on purpose?

Speaker 1 And I was like, I got, you know, I don't know. I was young then, so I don't know, but maybe that tiny transfer of, hey, I have advice and somebody actually takes it.

Speaker 1 uses it continuously, wants nothing from me for it, and then gives me a positive feedback loop that I'm making change on their life is so rare. So smart.

Speaker 48 Right? That's genius. That's actually the best mentorship advice I think I've ever heard.

Speaker 48 Because I think so many of us, when we want someone to be our mentor, the first mistake is we ask them to be our mentor.

Speaker 1 I don't do that. That also makes me die on the inside.
If somebody asked me that, I'm like, that's such a huge responsibility. What if I f you up? Exactly.

Speaker 48 Or what if I don't have time? What if I can't respond? Like, that's, that's the natural reaction. Right.
And same with me. I've always had mentors that don't know they're my mentors.

Speaker 48 It's the only way. But what I love about your advice, which I've never, ever heard before, is also how you asked for advice.
I think the second mistake.

Speaker 48 So the first mistake we say is, can you be my mentor? The second mistake we make is we send our whole life story

Speaker 48 with one like really big, profound question. So it's like, I went from this, then I did this, then I dropped out, then I did this, then I did this.
How do I discover my purpose?

Speaker 48 And it's like, and it's like the person on the other side has no idea how to compute all of that algorithmically and give you a really profound answer back that they genuinely believe will help you, which means they probably won't respond.

Speaker 48 Or if they do respond, it'll be extremely short. And then you'll feel disgruntled and upset that they didn't value your whole life story.
And then now you probably lose touch.

Speaker 48 Whereas your advice was just so perfect because the idea that you were sending them their own work with a couple of highlights, one sentence question, one piece of insight, and then that person, like you said, becomes invested in your life.

Speaker 48 That is such great advice, Cody. I really

Speaker 48 mean that. I've never heard mentorship advice better than that.

Speaker 1 Yeah, I think it worked for me.

Speaker 1 And I also think the other piece of advice that was useful i never went for like the top dog yeah you know i would never go to the president of goldman lloyd blank fat back in the day and be like lloyd the thing is talk to me can i have your email of course not i would go to like one or two levels past what was comfortable for me right so it was like i could still get to the person yes and then you can use it as like a a leapfrog and the last thing i'll say is i totally disagree with the advice today that a lot of like kind of well-known people give which is um

Speaker 1 once you outgrow people, leave them behind you, you know. And a lot of people say, Well, they were my mentor, but I've superseded all my mentors.

Speaker 48 Oh, no, yeah.

Speaker 1 And I hear that often from like the business community. You know, it's like, you're the average of the five people you surround yourself with, so make sure they're awesome.

Speaker 1 And it's like, yeah, but also don't forget how you got there because you never know. Mentorship has like multi-layers to it.
You can get mentored from above, but also below.

Speaker 1 I mean, your team was teaching us beforehand how to not sound like boomers, right? So, like, there's that.

Speaker 1 You know, you can also have somebody that's a hire that, like, for instance, I think a lot about the idea that like

Speaker 1 Peter Thiel, whether you like him or not, really rich guy, gives money to Mark Zuckerberg, right? Whether you like him or not. Mark Zuckerberg then goes to become richer than Peter Thiel.

Speaker 1 Now, is Peter mad because Mark made more money than him? I highly doubt it because Mark made Peter a ton of money.

Speaker 1 And at one point, you know, the imbalance was Peter was way up here and Mark was down here. And now it's probably flipped.

Speaker 1 And how cool is that that like somebody who used to be sort of below you, you've helped in some way get above you. Yeah.
And then you get to like value transfer the other way.

Speaker 1 So I will say like, maybe if I gave one other piece of advice on mentorship, it would be collect and keep with you the people even after you've superseded them.

Speaker 48 That's beautiful.

Speaker 1 You know, and try to be their best mentor. Absolutely.
Like, I mean, mentee. I always try to like have them.
I want them to be able to brag about me. Yeah.

Speaker 1 Like, no matter what you teach me, I want to be the best mentee to the point that they're like, like, hey, look how smart I am because of that.

Speaker 1 And I want to give them all the credit on it.

Speaker 1 And when you do that, then they introduce you to their really successful friends too. So it's a twofer.

Speaker 48 Yeah, definitely. And I want to add what you were saying earlier as well, this idea of you have to act on the advice.
And I think there's a lot of requesting of advice.

Speaker 48 There's a lot of looking for answers.

Speaker 48 being a great mentee is taking the advice, putting it into action, and then reporting the result and saying, hey, I took your advice. This is as you were saying.

Speaker 48 And I think that's so core to what was different about mentorship, where like you're saying now in this TikTok, Instagram world, I think there's just so much advice everywhere that we're not really getting the opportunity to digest it, put it into practice, and then report on it as well.

Speaker 48 And I love your idea of gratitude. I mean,

Speaker 48 I remember when I joined a company as an intern years ago, and I was only there for like a summer internship, but they put up the pictures of the founders of the company.

Speaker 48 And then they were like, yeah, but we don't care about them. They're old guys anyway.

Speaker 48 And I remember realizing, like, I was just like, wow, that's really ungrateful because none of us would be here right now if it wasn't for them. And yes, they're not alive anymore.

Speaker 48 And yes, that was a long time ago. But I fully agree with you that.
And also, you just don't know when you're on the way up, when you're on the way down.

Speaker 48 Your mentors generally, if they're older than you in the beginning, even if you become more successful than them materially, I believe they have so much more spiritual wisdom to give you over time.

Speaker 48 Like I've got mentors same way who helped me out when I was in my late 20s. And

Speaker 48 today they're so much more helpful when they talk to me about what it feels like being a dad.

Speaker 48 Like I'm not a dad right now, but he's been a dad and his kids are in their mid-20s and he has a great relationship with them. I'm like, I'm not there at that level.

Speaker 48 So mentorship also takes across not just financial, but relationships, you know, emotionally, mentally. There's so many other areas.
Oh, yeah. So leaving someone behind is terrible advice.

Speaker 1 Yeah, I agree. And, you know, it's one thing if somebody's negative or or they're unhelpful,

Speaker 1 which I still believe very much so.

Speaker 1 Like Arthur Brooks, who I just think so highly of, and I remember back before I knew him as a friend and I was just a fan, last time I was in New York with him, he, I was having like, you know, when somebody's mean to you online, does that ever happen to you?

Speaker 1 Probably sometimes.

Speaker 1 Of course. Well, there was one person that was like, really mean and I don't know why it got to me somehow.
It bothered me. And, you know, this was a while ago.

Speaker 1 And I remember telling him for some reason. And often it only bothers me if I feel like there's a kernel of truth to it so if they like really nail my imposter syndrome or they really nail like

Speaker 1 you know is she as smart as she thinks she like something that I'm like that I worry about too if they get that I'm like dang it I'm paying attention now that's not good but I remember I said to him like you know I'm just bothered and I want to do something about it and he was like are you gonna listen to me and I was like maybe what are we what are you gonna tell me to do and he's like I want you to

Speaker 1 picture this guy having all the success in the world. I want you to wish him so much well, it becomes like a bit bizarre.
And I want you to actually feel it. And again, I'm not that touchy-feely.

Speaker 1 I'm pretty spreadsheety. So when he told me that, I'm like, fine, but like, I don't think there's going to be an outcome here like that.
And he's a wonky, very smart guy. So it's not.

Speaker 1 Anyway, so I did it and I like really thought about it. I was like walking in New York and I was like, you know what?

Speaker 1 I do wish this guy well because I bet it is sad if you are like, if you're in a place where all you're doing is hating on somebody online all the time, I bet you are kind of sad.

Speaker 1 So I started like empathizing with him and thinking thinking about it. Anyway, not two weeks later, the guy does a public apology for like, no, and does this long DM to me.

Speaker 1 You know, my husband has like a long memory. So he's like, no, you know, let's get that guy.
But I was like, I just learned such a lesson. And maybe it doesn't always work like that.

Speaker 1 And maybe they're still mean to you later. But

Speaker 1 I really think sometimes you learn just as much from your haters as you do from your mentors.

Speaker 1 And so don't underestimate not only the saying where we kind of get all hot and bothered, like, you know, if you don't got hate, you're not doing anything maybe but also wow you can learn a lot from the type of feelings you get when people doubt you and i think that's just as important and i wouldn't be where i was today if i didn't have some big haters that i felt like i needed to prove wrong yeah well said i want to dive into the heart of this book because what made it so unique for me is I don't think I've ever heard anyone really talk about buying ordinary businesses.

Speaker 48 And that's the crux of so much of your work and why it's different and how you're getting people to think differently about ownership.

Speaker 48 You had this video that I remember watching that got like 11 million views talking about this vending machine business.

Speaker 48 Like, what are some of the most unusual businesses you've seen people make money from? Because I think it goes back to what we were speaking about earlier. We're all after this sexy, shiny money.

Speaker 48 And most people are making loads of money through really unsexy, random things, vending machines being a case in point.

Speaker 48 Walk us through some of the most unusual businesses you've discovered people making money in.

Speaker 1 Yes, let's do it. And also, realize first, like, most of the people who are really shiny on the internet don't actually make much money.
In fact, a lot of celebrities make no money.

Speaker 1 And you know this all too well being here. There's a lot of show, and it's actually quite hard to make money in the shiny things.

Speaker 1 The richest guy you know probably started a landscaping or sprinkler head company. In fact, that was the case for my family.

Speaker 1 When I was growing up, I meant, I interned for a woman who was my brother's friend's mom. And they were worth what I thought was a a bajillion dollars back then.

Speaker 1 And it was from an equipment rental company. So this guy was worth somewhere near $50 million from one idea.

Speaker 1 I buy some like landscaping equipment, some tractors, et cetera, and not, I don't sell them, I don't flip them, but I realized that construction companies only want to use them part-time.

Speaker 1 So I actually rent them out. And so this guy would make the cost of a piece of equipment back inside of 90 days.

Speaker 1 And so instead of getting whatever difference is between him buying the equipment and selling it for a little bit more, he would make the entire purchase price over every 90-day cycle.

Speaker 1 And I remember like thinking back in the day when I saw that, you can make money doing anything.

Speaker 1 And in fact, you probably make it more often in the things that nobody thinks about because you have less competition because it also sounds really boring.

Speaker 1 And, you know, the Mark Zuckerbergbergs and brilliant minds of the world, they don't want to mess around with equipment rental.

Speaker 1 But people like me who are maybe like kind of smart, but not that smart, could make a lot of money doing it. And so there are three types of businesses that I obsess about.

Speaker 1 I call them overarchingly mainstream businesses. So the idea is basically, what if all the money is actually made in community businesses that we use every single day?

Speaker 1 Your roofing company, your podcast production company, you send outsourced editing clips to, you know, the cobbler. uh that actually cleans up shoes on the corner store.

Speaker 1 All of these businesses, when you see that they've been in business for 30 years, it's not because they were making money and because they were losing money, and it's not because they got venture capital because they didn't so these things actually are profitable which is kind of rare so main street businesses and then underneath it i call them three different types the first one is the gateway drug business which basically i use that as a little bit of a joke but it's like a vending machine Well, everybody understands how a vending machine works, right?

Speaker 1 You get the machine, you take the cash out, you input the things. It's a straightforward business.
It doesn't need a lot of people.

Speaker 1 And I think it's a great place for like young people to start because you learn the game of business.

Speaker 1 A similar one might might be what I call a people light business, which might be like a laundromat. So a laundromat is like in some ways, a slightly bigger vending machine, right?

Speaker 1 You put clothes in, the clothes get washed, you take the clothes out, you put coins in and return, right?

Speaker 1 And that doesn't have a lot of employees and they're not super, super expensive on the scale of it.

Speaker 1 And so you go, okay, we got gateway drug businesses, we got assets, we've got people light businesses. And then finally, we get into what I call the trades businesses overall or boring businesses.

Speaker 1 And these are things like we own a company called Resi Brands that has a window cleaning company called Pinks,

Speaker 1 a roofing company, a painting company called That One Painter.

Speaker 1 And what's wild is with these businesses, if you were to look right now, Jay, at like the Forbes 100 list of the richest people in the world and you were to see what they made their money from, they're not celebrities.

Speaker 1 They're not singing songs. They're not doing YouTube.
Like we're not even touching the amount of wealth they have.

Speaker 1 What do most of them have in common more than anything else finance and business ownership and the businesses they own are largely boring businesses richest woman in the world kim kardashian no

Speaker 1 roofing magnate literally the richest woman in the world this was as of 2022 so we we should see if the numbers are updated but um is a woman who started a very large roofing company and so

Speaker 1 you know i i wish somebody told us this when we were younger because instead you know who knows this the private equity guys.

Speaker 1 And I don't mean to villainize anybody. I know I was in private equity.
I know plenty of good people in that industry. But again, centralization of power.

Speaker 1 Private equity companies in 2000 owned 4% of the companies in the US. Now they own 20%.

Speaker 1 It's almost one out of every four companies in the U.S. is owned by private equity.
You know what they're buying like crazy?

Speaker 1 The trades, the service businesses, the boring businesses that print money that service our community. And I think this is our chance to take those things back.

Speaker 48 You're literally opening up a whole new doorway for people. Like, I don't think I've ever even thought about it.

Speaker 48 Like, it's so far off from what I think we were all trained to believe would make us successful, safe, stable, wealthy. Like, you're not thinking about these areas.

Speaker 48 And therefore, like you said, they're not very competitive.

Speaker 48 There's not a lot of new entrants in there.

Speaker 48 When I hear you say that, the thing that comes to my mind is, what skills and talents do people need to be able to run those businesses? How much industry knowledge do they need?

Speaker 48 What business skills are core and important? Because I think the mistake is, again, with the kind of world we live in right now, it's someone goes, oh, I love what Cody's saying. I get it.

Speaker 48 I'm going to go buy vending machines. And then all of a sudden, you've got a garage full of like 20 vending machines and you don't know what to do with them because you don't understand business.

Speaker 48 So what business, core business skills are needed and what should we be developing in order to run any of these businesses? How much industry knowledge do we need?

Speaker 15 Pendo Agent Analytics is the first tool to connect agent prompts and conversations to downstream outcomes like time saved, so you know what's working and what to fix.

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Speaker 22 That's pendo.io/slash podcast.

Speaker 42 Visit primallifeorganics.com and use code DIRTYMOUTH for 15% off.

Speaker 45 That's primallifeorganics.com.

Speaker 50 My name is Nicholas Hertz, founder of Montera Therapeutics. We started working with JPMorgan early on because of their expertise in life sciences.

Speaker 50 They've supported us as we try to make a real difference in patients' lives. Visit jpmorgan.com/slash grow without limits.
JPMorgan is the bank of the innovation economy.

Speaker 1 Yeah, it's a great question. Well, first of all, what I would think about is there's two different things we need to know in buying businesses or growing businesses.

Speaker 1 And the first thing is you've got to learn how to do deal making and how to actually speak the language of money, which is what we talk about in the book before you buy a business.

Speaker 1 So please don't just hear me and go buy a business. Read the book or go to our free newsletter online, but spend a decent amount of upfront time learning.
I promise you'll make more money that way.

Speaker 1 You know, I kind of think about sometimes people go, well, why don't I use X amount of dollars I have instead of learning just buying the business? And I go, does that ever work out well?

Speaker 1 Where we like don't know what we're doing, but we plow a bunch of money into it because we want to just go do the thing. It doesn't work out.
So spend your time learning how to execute first.

Speaker 1 Now, that said, I really think there's just three key skills that we need to learn to grow a business. The first one is deal making.
We got to understand how to do a deal.

Speaker 1 The second one is really a mixture of grit and endurance. So it's actually not tactics.
It's how hard am I willing to work? What am I willing to sacrifice for the things that I want?

Speaker 1 And for how long am I willing to do that? And so Angela Duckworth, famously, University of Pennsylvania, popularized grit is the most important thing to measure success.

Speaker 1 So it's basically like, how much pain can you tolerate? And if you can tolerate a lot of pain, turns out you have a higher likelihood of making money.

Speaker 1 Business is really just like elongated periods of low-level pain. Sometimes you have like what's called an acute or like a big jump in pain.
But for the most part, you know this.

Speaker 1 It's like, what is, what is running a business or starting a business? It's like, well, you're looking at your statements pretty much often. You're like messing around with marketing.

Speaker 1 It's kind of like low-level pain. And so that's the second point.
And the third point is actually maybe a little rare too, which is just a lot of people obsess on how.

Speaker 1 So what skills do I have to have exactly? How do I start a business? How do I tax structure the business? How do I get my first customers? All important and good questions. But the real pros know,

Speaker 1 you don't ask how, you ask who. Who can I go to who already has 10,000 hours where I can steal their homework? So now in business, if I go, hey,

Speaker 1 I don't know how to do our taxes. I go find somebody else who has done taxes for us.
And it doesn't mean you have to pay for them.

Speaker 1 It just means you have to talk to them and often people will help you. And so I find my who second.
And then the third tier is buy.

Speaker 1 So the really, really rich, when they have a problem, they don't think, how do I fix it? They don't think who can fix it. They think, how do I buy the solution to my problem?

Speaker 1 Because if I can buy the business, if I can buy the solution, then it's almost, it's a higher guarantee of winning. And so that last one is really about your connections.

Speaker 1 and so i think if you understand deal making you you are honest with yourself about how much work you're willing to do one way or the other and you are willing to ask people for help i think just about anybody can run a business now

Speaker 1 can anybody run amazon no of course not could anybody run your businesses which are quite big no of course not it's really like the level of skill to the level you're at but we don't say to people you know well

Speaker 1 not anybody could buy an individual apartment and live in them. We ask, like, what do you want? And how are you willing to work in order to get it? And so I think the same thing with businesses.

Speaker 1 It's like, okay, we have what's called a deal box, which is a little slightly technical, but basically the idea is Oracle of Delphi says, know thyself, right? Most important thing we can do.

Speaker 1 And in business, you basically want to have your little deal box of what you want. So do you want income of X amount? Do you want it to be located in LA?

Speaker 1 Do you want it to scratch an artistic itch and make you money? And you sort of fill out this box, you know what you want.

Speaker 1 And then again, you know, the universe, I think, a lot of times wants to help us out, but we don't know what we want. So, how is it going to help us? Because we can't tell it one way or the other.

Speaker 1 And I think it's the same with business. Yeah.
You know, because we could go 15 ways from sideways.

Speaker 1 I'm like, we have something called the nine P's, which are like the nine ways you scale a business to nine figures. But I don't want to stop people.

Speaker 1 I want them to start small and reasonable and know that the biggest thing in between you and the thing that you want is the knowledge on learning the language of money, on

Speaker 1 getting after it kind of intensely, and then on asking for help. And like, if you have those three things, you can at least start.

Speaker 1 And I don't want people to stop because they don't have XYZ leadership skill. Like, I believe in your ability to figure it out.

Speaker 48 Yeah. Yeah.
And you might make some mistakes along the way. You will.
Oh, I will.

Speaker 1 Yeah, for sure. Yeah.
Just don't make mistakes. Like the only rule that I really have is don't do a deal so big that it can wipe you out.

Speaker 1 Make sure your first deal is reasonable or you help other people bring on risk to level it out. So like if I'm young and I have no cash, should I go buy a million dollar business? Of course not.

Speaker 1 What would I do? I might go and I might partner with a couple friends and I might say, hey, do you want to pool our capital together? Let's buy this little business together.

Speaker 1 If it doesn't work out, it's not going to murder us. It's going to hurt, but we're going to learn a lot and we're going to diversify our risk amongst us and we're going to do it together.

Speaker 1 Or maybe you partner with your dad or maybe you partner with your dad's friends or your mom's friends or whatever.

Speaker 1 And so don't think that you have to do this game of entrepreneurship and acquisition by yourself. You don't.
The big boys in private equity don't. You don't have to either.

Speaker 48 How do you find someone who wants to sell a business?

Speaker 48 Because,

Speaker 48 yeah, I feel like that would be my next question of like, how do I even know someone? How do I find someone? Because it must be going great for them. Why would they sell it to me?

Speaker 48 Especially when I maybe know nothing about owning a hair salon or vending machines or whatever it may be.

Speaker 1 Right. Well, you probably already know this.
How many people offer you businesses or stakes in businesses now? Yeah, a lot. I bet a lot.
A lot, yeah. Why?

Speaker 1 Because you have a very high value skill stack that's very evident.

Speaker 1 People can directly attribute, if I partnered with Jay Shetty, then he's probably going to market my stuff. He's going to give me brand recognition.
There's a high level of trust.

Speaker 1 So there's what's called a trust transference. So the higher level of skill you have, the easier it is for you to find businesses.
In fact, they'll often come to you.

Speaker 1 The thing is, though, when even when we have a higher level of skill, we often don't really know what to do when it comes to us. We don't know how to do zero risk deals to us.

Speaker 1 And so I like learning deal making, even if you have a ton of skills and a ton of money, because you can do a deal that seems unfair, but because you recognize your value, the deal is incredibly fair.

Speaker 1 In fact, the richer you are and the more audience you have, money you have, which I call capital, the more coding ability you have, aka like tech, Jeff Bezos, engineering capability, or labor you have access to, so employees or people that work with you, the better deals you can do.

Speaker 1 And that's like the 202, 303 level.

Speaker 1 And anybody who's listening who actually has access to money and capital, you are crazy if you're not thinking about doing deals and learning it because it is the ultimate positive form of leverage.

Speaker 1 So

Speaker 1 I wish that we learned this earlier. This is how so many celebrities get screwed, by the way.

Speaker 1 And, you know, they get screwed because they do a deal, they don't understand the terms they signed their agent understands the terms they signed their agent isn't actually incentive aligned with them long-term and so they end up getting screwed like it broke my heart when i watched that documentary with val kilmer like i haven't seen it oh god first of all you would love it it's beautiful the documentary is beautiful he wrote it produced it and directed it and starred in it and it's just a beautiful piece of art.

Speaker 1 But also, he lost everything. I mean, he has basically no money now.
No way.

Speaker 1 And the reason why is because of a series of deals that he did where other people made it and he didn't.

Speaker 1 And so even if you have a ton of money, you got to be really careful about how you structure things in order to keep it. And the bigger that you get, the bigger target you have.

Speaker 1 And so it's important to think about that. And like the Russian proverb, trust but verify, which is like trust nobody.

Speaker 1 I'm sorry, trust everybody, but verify that they are actually on your best terms, which is why it always doesn't count unless you've signed on the line that is dotted in the words of Alec Baldwin.

Speaker 1 So if you

Speaker 1 don't have deals coming at you because you don't have massive fame or money or whatever, like a normal person, then the easiest way is to find deals, it's called origination and private equity.

Speaker 1 So, in private equity, if you think about what they do, they go around and they cold call small businesses.

Speaker 1 So, they literally will cold call a plumbing company up all over the Midwest and ask, Hey, you guys want to sell? Or I get them all the time because I own these.

Speaker 1 So, our small businesses, hey, can we buy your landscaping company? So, one, one way you find deals is called off-market deal searching.

Speaker 1 So you basically turn on what I call your reticular activating system, which is basically just a system inside of your brain that is trained from the African savannah to say, if I keep repeating this thing, brain, it means it's important and I might die if I don't pay attention to it.

Speaker 1 And so in real life, what happens to you is once you play the game of business enough and once you like deals, like, have you ever gone into somebody else's podcast studio?

Speaker 1 And because you probably are obsessed with podcasting, you walk in and you're like, hmm, that's an interesting way to do that setup.

Speaker 1 I don't think I would do that. Oh, I like that they did that.
Let's steal that, right?

Speaker 1 Your reticular activating system is so turned on to podcasts that you can't help but notice all around you things you would do differently or that you like.

Speaker 1 The same thing happens with business and deals. So now I, when I go into like a corner store or when I go into a restaurant, I go, or a gym, gyms get me for some reason.

Speaker 1 It's like, you have me, you have my credit card, you have recurring revenue. I come in here every single day.
Sell me more shit. Why don't you sell me more things? You definitely should.

Speaker 1 And so one i will say as you learn deal making i can promise you only really one thing when it comes to you becoming a better deal maker your reticular reticular activating system comes on so what's going to happen in deal finding yes you could cold call just like private equity but instead kind of steep yourself in the type of deal you are looking for steep yourself in what skills you actually have and then you're going to see them all around you won't be able to turn it off it'll be like when you buy a car all of a sudden the car's all over the place after you bought it you're like did everybody everybody was it a was it a sale no your brain starts making you notice it and so the best way to find deals is you start just having conversations with guys because again cash loves curiosity every time you go into a small business you just go like oh amazing you go i mean la is full of them you walk into a cool retail shop oh that's cool man this is your store oh it is I mean, probably 50% of the time, it's theirs.

Speaker 1 And then you say to the guy, like, how long have you been doing this? A while? Do you want to keep

Speaker 1 doing this? Like, how's business going? You You guys make a lot of money? How long have you been around? Is a kid going to take over? Are you going to keep going? Oh, this is so cool. I love this.

Speaker 1 Maybe I buy a little something. And then maybe I decide I want to own one of these businesses with them.

Speaker 1 All of a sudden, I get to know the owner and I start getting into the curiosity where I get them to maybe consider that a young hustler who is really aggressive might be good for their business.

Speaker 48 Absolutely. Yeah.
No, I had a really interesting experience of this last,

Speaker 48 maybe a couple of years ago. I was in a store that curates beautiful sets of books.
And that's not what they do professionally. They sell clothes, but they also have books in the store.

Speaker 48 And I walked in there and I was,

Speaker 48 I love, I really enjoy books and I enjoy collecting. And so I was looking around and these were all like new books.
They're all newly published. They're beautiful.

Speaker 48 And I bought a ton and they were just like, and then one person at that store just said to me, oh, by the way, like, do you love books? I was like, yeah.

Speaker 48 And I was like, I'm really looking for vintage books though. It'd be cool to own some like antique books and things like that.

Speaker 48 And she said, well, oh, there's this random store around the corner and it's like a printing press, like an old school binding book. But I've seen books in there before.
Why don't you go check it out?

Speaker 48 So I literally go walk into this books. And basically, actually, first of all, I walk outside.
It looks like no one operates it. It looks completely run down.

Speaker 48 You wouldn't walk past it and think, oh, cool shop. You'd walk past it and not even, you'd think no one, no one's inside it.
So I'm kind of looking around. I'm like knocking on the door just to see.

Speaker 48 I do see some books.

Speaker 48 And this, this lady opens the door and she's got like an old school binding press in there, an old school, you know, all the old school tools that how books were bound in the past.

Speaker 48 And then she's got this bookshop and I said, oh, I heard you might sell books. Like, could I take a look? And she was like, oh, no, I just have these books because I got divorced a few years back.

Speaker 48 My husband owned a bookstore. He left me with like 50,000 books or something crazy.
And she goes, most of them at home, but there's probably like, I don't know, a thousand here, whatever it is.

Speaker 48 You can take whatever you want. And I was like, I'm happy to pay you, but sure.
So I spent like two, three hours and I was like getting really, you know, I loved it.

Speaker 48 It was like, it was literally like being inside of a secret cave of books. And I was like finding all this stuff.

Speaker 48 So I got a stack of maybe like 20 books and I was like, hey, look, I'd love to pay you for them. Like, you know, I'm good for it.
And I'm grateful that you've even allowed me in.

Speaker 48 And I forced her a little bit. She finally took some money.
And

Speaker 48 then there was one book while she was going through. And she was like, I've been looking for this book for like five years.
And she goes, I can't sell this one to you.

Speaker 48 And I was like, sure, like, I'm never going to, you know have it whatever anyway i come home and i started checking all these books out online they were all worth like at least a hundred dollars each i probably paid like five to ten dollars each for them and it was just a really good example to me of like this random place that and and i wanted the books so i kept them but it was just this random place that was like this treasure trove of all of this great material and had someone wanted to go in and buy 50 000 books and sell them online or sell them anywhere there was a real business there And it was a smaller, it was a very simple example of just how easy it was to come across something that, that I wouldn't even, I wasn't even looking for it.

Speaker 1 Well, yeah. And, you know, it's a funny thing I do sometimes.
One, it's so lovely. And also, how happy was she probably at the value you found in it? Yeah.

Speaker 1 Like, did you feel like you were taking advantage of her or did she feel like, wow, are you sure? Like, I'm glad you're spending time with me.

Speaker 48 Absolutely. Absolutely.
She was so happy.

Speaker 1 And I think this is something we don't realize because our generation is is highly transactional. We're a highly transactional generation with immediate feedback loops, a.k.a.
social media,

Speaker 1 with a high

Speaker 1 status game that we play with a lot of attention on us because you get a lot of attention when you're young and hungry and moving. But as we get older, I mean, women will tell you this all the time.

Speaker 1 They'll warn you that as you get older, you become invisible. Like a middle-aged woman will say, often nobody sees me.
And like one of our copywriters, she was so lovely. She said a thing to me.

Speaker 1 I was like, oh, she dyed her hair blue. And I was like, Marcel, it looks great.

Speaker 1 Like she's an older woman probably like mid 50s and i was like looks great like you know what was the impetus and she's like you know as you get older i realized that like nobody would talk to me and i feel like they were looking through me and she's like so she's like so i was with my one of my little nieces and i we dyed our hair little strips of it pink together and she was like and i was walking across the street and this young man uh kind of yelled over to me and he's like hey mama like the hair and she's like i can't remember the last time a young man talked to me she's like so i anytime i now feel a little out out of it i dye my hair blue and to be fair like in the past sometimes when i saw people do that i was like really what's going on here like what's what's the move and then i realized oh like

Speaker 1 just because we value something one way doesn't mean that everybody else values it the other way and so in order to break your frame and to see businesses all around you don't assume that the same things you value other people do it's like i've never really believed in the golden rule which is treat others how you want to be treated it's like by and large treat them how they want to be treated unless that breaks how you want to be treated.

Speaker 1 And I think that's the same with business owners.

Speaker 1 I mean, my uncle Eb, which is one of the main reasons I started publicly about business, talking about businesses online, he had a business, did a couple million dollars a year in revenue.

Speaker 1 And you can, it's called Ebb Homes Plumbing. It was in Phoenix, Arizona.
And

Speaker 1 he got sick with cancer and

Speaker 1 decided he wanted to shut the business down. You know, he's in his 70s and was like, you know, I'm ready to be done.

Speaker 1 And what he didn't know at the time is that 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.

Speaker 1 And so this man who spent his life building up a plumbing company that probably would have thought honestly, like if he was here, he would say, Cody, I couldn't have sold that thing.

Speaker 1 Like that wasn't really, you know, it was, it was sort of, and, and this is what most baby boomer business owners think. They're like, who's going to buy this?

Speaker 1 Because how many times have you had a business where you didn't want to be in it before? Have you ever had that before? Yeah, absolutely.

Speaker 1 Of course, like if you're in a room, sometimes I go out to speaking stages and just for shits and giggles, because people will always go, if a business was profitable and it was going to continue to be profitable, nobody would sell it.

Speaker 1 And I go, okay, let's play a game. Business owners, raise your hand.
Everybody raises their hand. That's a business owner.
I go, cool. Keep them up.

Speaker 1 If you would sell your business at the right price and the right terms, if it came along, keep your hand up. What happens?

Speaker 1 Everybody's up, not one. If you go down and I go, liars, and I laugh.

Speaker 1 Because the truth of the matter is you haven't been in the game long enough if you put your hand down um but if you've been in the game long enough you go absolutely now i wouldn't sell every one of my businesses

Speaker 1 but there is at some point one business and if you caught me on the right day maybe i would so i think we have to like change our programming to realize all around us every business has a value that book selling business that shut down I bet there was a value in the lease that they had.

Speaker 1 It might have been in California. Sometimes they have leases that are locked in.
There could have been value in just just the lease contract to transfer it.

Speaker 1 There could have been value in the assets, the books. There could have been value in the employees because you can do an Aqua hire.
There could have been value in the website listing.

Speaker 1 What about the Yelp and Google reviews? There could have been value in the IP. What about the logos and the brand and the name?

Speaker 1 What if they had one of those old school original, you know, codi.com websites before? Like, we now have to have websites that are like 452 words, right? And so every single business has some value.

Speaker 1 And 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.

Speaker 48 So well said. Cody, I'm just like, you know, I'm so happy that you're breaking this down for everyone because I think it's such a,

Speaker 48 it's just not what I'm hearing. It's not what people are talking about.
It's not the, it's not the,

Speaker 48 and I'm glad because it's not the get rich quick solution either. It's not the, hey, you can be really rich in 12 months and not worry about anything and that kind of thing.
I wish.

Speaker 48 Yeah, yeah, you wish. And I think I really appreciate you nailing it by just saying it's grit, right? That's what's required.
That's deeply required.

Speaker 48 What's a skill that you think you wish you'd known you had to develop at the beginning of this journey that you learned too late?

Speaker 42 Visit primallifeorganics.com and use code DIRTYMOUTH for 15% off.

Speaker 45 That's primallifeorganics.com.

Speaker 50 My name is Nicholas Hertz, founder of Montera Therapeutics. We started working with JPMorgan early on because of their expertise in life sciences.

Speaker 50 They've supported us as we try to make a real difference in patients' lives. Visit jpmorgan.com/slash grow without limits.
JPMorgan is the bank of the innovation economy.

Speaker 1 I wish that I didn't have stories to myself about me being bad at math and money. I think most people have a story when they're younger about how bad they are at math.

Speaker 1 I have one that I think really messed me up. I was in middle, no, no, no, it was high school.
I was at Arcadia High. And

Speaker 1 I had a math teacher and

Speaker 1 I wasn't very good at math. Like I struggled.
I think I might have a little bit of dyslexia. I'm not sure.
But I just couldn't get the numbers to stay in my head correctly.

Speaker 1 And so I was sort of struggling. And I remember one day the teacher was getting really frustrated with me and teaching is a hard job.

Speaker 1 So I get it, but he looked at me in front of the class and he said, man, I think Helen Keller would have a better shot at winning an archery contest than you would at winning in finance.

Speaker 1 And at the time, I was like heartbroken about this and like embarrassed, you know, and did it in the way teenagers do, which is like,

Speaker 1 I don't care, whatever. But I was like very sad about it.
And then I love my parents deeply, but my parents always used to say to my brother, you're so smart. You're so smart.
You're so smart.

Speaker 1 You're so smart. And to me, they would always say, you work so hard.
You work so hard. You work so hard.
And at the time, I was kind of mad. I'm like, I'm also smart.
What about me?

Speaker 1 And they would always be like, well, Cody's not very good at math. In the same way that they would say, I'm not very good at singing.
The singing is true. I'm not good at that one.

Speaker 1 But, but that math thing stuck with me for a long time. And so I always thought that it was big and hard and scary to be quote unquote good at math.

Speaker 1 And when it comes to making money, the math is really simple, guys.

Speaker 1 And I'm bad at making math so bad that helen keller would be better at archery than i am and so if if any part of this skill is scaring you i think it often starts with like oh my god i look at a spreadsheet and i panic yeah you know i have to calculate something and i panic i look at a calculator and i panic and i would say just like lean into that slightly because I think in finance, we do a very sneaky thing, which is I think we try to make it seem really scary and hard for the average person to become rich.

Speaker 1 Why? Because if it's scary and hard for you to do it, guess what I get to do? I get to charge a lot of money for it. And so that's why most of us take our money and like think about it for a second.

Speaker 1 We take our money and we give it to other people to take care of. Now, when you give your kids to other people to take care of 100%,

Speaker 1 like there are opinions about that. People say, no, you got to take care of your kids.
You got to grow your kids. But with wealth, we can just say, no, no, I don't understand anything.

Speaker 1 I just give it to this guy over here and he figures it out. That's really not how we should treat money.
And so the main skill that I think you should think about is one of my mentors said to me,

Speaker 1 Money is a cruel mistress. She'll leave you if you don't pay attention to her.

Speaker 1 And I think about that a lot: like, just give the money a little attention, give the math a little attention, you're more capable than you think you are.

Speaker 1 And it's really not possible to be bad at this type of math. So, if in your head, you think I'm bad at math, I'm bad at spreadsheets, it's really not possible.

Speaker 1 I'm bad at calculus, but you can figure this stuff out.

Speaker 48 Cody,

Speaker 48 you are awesome, and I love that advice.

Speaker 48 And I think everyone who's listened and watched this episode now has a game plan of how to negotiate something at their workplace, figure out how to invest in a company or a small business, recognize if you're at that place of, I just want to get over the fear that I'm bad at math or that money is bad.

Speaker 48 And I can't wait for everyone to dive into Main Street Millionaire. This is the book that...
Cody's got out right now. I want you to go grab a copy if you've enjoyed today's discussion.

Speaker 48 This is one of those books that I hope you read with your friends, share insights. Maybe you'll invest in something together, build something together.

Speaker 48 It's a great book to pass on to a family member or a friend who's been struggling with money, thinking about it.

Speaker 48 Please do not hesitate with this because it's so easy to keep pushing money off and keep having it be a source of anxiety in your life.

Speaker 48 And I think Cody's broken it down and make it really simple based on how to overcome your fears and go create something brilliant. So Cody, thank you for putting your heart and soul into this work.

Speaker 48 And we end every episode of On Purpose with a final five. These are a fast five where you have to answer each question in one word to one sentence maximum.
So Cody Sanchez, these are your final five.

Speaker 48 The first question is, what is the best financial advice you've ever heard or received?

Speaker 1 That other people's money is actually feasible.

Speaker 1 People think that passive income is a lie, that getting other people's money is a lie, but they tell you that because they are usually the ones on the other side of the coin.

Speaker 1 So if you want to see about other people's money, look to private equity and mimic it.

Speaker 48 Let's go off piece for a second on that because I think we didn't touch on that. If you want to raise investment, for people who want to gain investment, maybe you've got a cool new idea.

Speaker 48 Maybe you've been tinkering someone, got a deck.

Speaker 48 What should you have if you're going to go and ask for someone's money?

Speaker 1 Oh, that's a really good point. It's really simple.
A couple tactical things. One, something called a tear sheet or a one sheet.

Speaker 1 So this is basically like, think about it, like a baseball card with all the stats on the baseball card, but for the deal that you're going to put. So it's like, here's why I think it's good.

Speaker 1 Here's why I think we'll make money. Here's what that's based off of.
Here's what a summary it is. Here's why I'm good at it too.
And you should invest in me.

Speaker 1 And here's why I think you should be the one to invest. That's called a one sheet or a tear sheet.
The second one is a pitch deck.

Speaker 1 From Goldman, I learned something called the three Ps, which is people process performance. So I do that in all my pitch decks, which basically is like, why us? Why should you bet on us?

Speaker 1 Because at the end end of the day, if you're asking for somebody's money, it's about the opportunity for sure, but it's really like, do I want to invest in Jay? Do I believe in Jay?

Speaker 1 And then second is process. So like, what is the opportunity? What is the way we're structuring this? What are we investing in?

Speaker 1 What is the process by which you're going to take our money and go bring it back with friends? And then lastly, is performance. So if I give you this, why do you think that I'm going to make money?

Speaker 1 How much money am I going to make?

Speaker 1 And why should I invest in you instead of all these other things?

Speaker 1 So if you have those two things that is the like typical one-on-one for raising money great answer no i think it's really important for people to know because i think so many times we just kind of turn up and hope 100 and i wish people would have told me that it's like sometimes when you have those little easy tactics you're like okay now i feel good you know there's more to it than that but at least you know like hey if i want to drive a car i need the car and i need some gas and so now you guys got that yeah and i think sometimes we're so

Speaker 48 focused on convincing someone that we have the best idea and not focused on convincing someone we understand understand how to execute it.

Speaker 48 And I think anyone who's looking to give you money is looking to whether they think you can execute it. Because I hear good ideas all the time.

Speaker 48 The best investors in the world hear amazing ideas all the time. And ideas are just not the thing that works.
Like, you know, you always talk about like Google was like the 21st search engine.

Speaker 48 Like they weren't the first search engine. It wasn't a unique idea.
It was just that they had a great way of executing and why they've evolved into this mega, mega, mega business now.

Speaker 1 Yeah, exactly. Best predictor of future behavior is past behavior.
So if you can show them you have a history of winning

Speaker 1 and even show them some instances where you didn't win, why, and how you're never going to replicate that again, people are going to bet on the hustler who is on a winning streak.

Speaker 1 You know, oftentimes, right, you know, this, if you go to gamble on a game in sports, you don't gamble on the person that's have a losing streak. Why? Because it's actually quite hard to break.

Speaker 1 And so I think also if you can show a history of winning, and that's a narrative you can frame, you're more likely to get cash too.

Speaker 48 That's great. Second question: What is the worst financial advice you've ever heard or received?

Speaker 1 That money is scarce and hard to get.

Speaker 1 If you think money's hard and scarce, then you're probably not going to get it. And I think people want you to think that.
And that does not serve you at all.

Speaker 48 Question number three: the best $500 investment you ever made?

Speaker 1 Ooh.

Speaker 48 Or $2,000, $500, $2,000.

Speaker 1 I think this is a little cliche, but health and wealth are super tied. And

Speaker 1 the best money I've ever spent are probably two things, a sauna and a cold plunge.

Speaker 1 And I know that sounds like super tech bro Twitter, but the truth of the matter is, is that if I can get a little bit more energy in the beginning of the day, it seems to carry through the rest of my day and make me more money.

Speaker 1 So whatever your sauna and cold plunge is, and I think I bought mine on Amazon for literally like a thousand bucks each,

Speaker 1 then

Speaker 1 that's money well spent.

Speaker 48 Great. Question number four, the biggest waste of money you've ever spent?

Speaker 48 Not the amount, but like something that was a complete waste.

Speaker 1 The biggest mistakes I've ever made are always not things I did or bought, but people I chose.

Speaker 1 It was, it's always about the people, the good things and the best things.

Speaker 1 So be careful those you partner with, spend time with, and invest in, and know that those will often be the things that give you the most heartache or make you the most money.

Speaker 48 Let's side note on that too.

Speaker 48 How does, we talked a bit about it before too, but for someone who's like thinking about finding the right business partner, knowing whether you can trust someone, obviously you never know anything.

Speaker 48 We talked about it. Like,

Speaker 48 how do you set yourself up for success? Beyond the negotiation that we discussed?

Speaker 1 I have a couple different rules. One rule is

Speaker 1 You don't get married on the first date. Don't do a deal or start a business on the first date, which means I have a one-year rule.

Speaker 1 I do not get into a long-term partnership with anybody that I haven't known for at least a year in business.

Speaker 1 A lot of times there's this, you know, that rosy phase you have when you're first dating with somebody, you're like, the thing is we're in love and we were meant to be.

Speaker 1 And then about six months later, you're like, also no. And so same thing with business partners.
Give yourself a nice 12-month window. It's hard to hide who you are for a year.

Speaker 1 The second thing when doing business deals is when you partner with somebody, you don't actually want to partner with somebody that's just like you. It's the same with marriage.

Speaker 1 It's why dating apps are so tough. I mean, I was talking to Sean Radd about that, the founder of Tennow the other day.

Speaker 1 I was like, the thing is, you don't realize what you did, but you allowed people to self-select for people that are just like them. And it turns out.

Speaker 1 The statistics all show that we do not last in marriages as long or relationships as long when our person is just like us.

Speaker 1 We actually have to have this like creative difference between the two of us. There's a yin to the yang in everything in the universe.

Speaker 1 And so the studies tell us you need two different types in order to succeed long term.

Speaker 1 Some overlap is necessary, obviously, but you don't actually want to date yourself. It's the same with a partner.

Speaker 1 Make sure that if you're a great salesperson, you're not pairing it with another salesperson. You got a great operational person and a great salesperson.
Maybe that works.

Speaker 1 And the last thing about great partnerships is everything else is figure outable. if there is enough drive.
And so my, but my father says, you can lead a horse to water, but you can't make them drink.

Speaker 1 And so I always over-optimize on this idea of desire.

Speaker 1 like why do you want to partner with me and do i believe that that why is so big that we can overcome anyhow and if your why is like i kind of want to make a couple dollars on the side but i might do this but i might do this but i might do this i call you a toe tapper you're actually not all the way in you're not fully in with me and so at our company we just had one of these people the other day a young kid he's a stud but he came to us and he was like yeah i want to do this job with you but i also have these other things and you know once you've interviewed i've interviewed thousands and thousands of people by now so you know i can kind of get to the heart of it.

Speaker 1 And I remember Tanner was sitting in the interview with me and Tanner's face was just falling as he was listening to it because I was kind of ferreting out a few things.

Speaker 1 And the young, the young guy was like, well, I have this channel and I want to grow this and I want to do that.

Speaker 1 And I was like, why do you want to be here then? Like, if you want to do all those other things, like, no, no, no, I want to do this too. And we can do it all together.

Speaker 1 And I said, the thing in life that I wish somebody had told me earlier is when you're starting out, you can never be excellent at multiple things at once.

Speaker 1 Eventually, you can have excellence in multiple things because you can attract top talent. But in the beginning, you're either all in or you are a barely concealed series of distractions.

Speaker 1 And so a partnership, make sure they are all in and their why is super, super big. Otherwise, they should go find their why and it's not you.

Speaker 48 Yeah, well said.

Speaker 48 Fifth and final question. If you could create one law that everyone in the world had to follow, What would it be?

Speaker 1 Oh, God, that's a hard one. Just one.
One law in the world that everybody in the world had to follow.

Speaker 48 Take your time.

Speaker 1 How would we we'd have to think legally about some of the caveats to this.

Speaker 1 We'd want to make sure we crafted the language correctly in order to not have perverse incentives, second and third order effects. But it would be something to the tune of like, it would probably be

Speaker 1 something about taxes. It'd be like, don't allow centralization of tax power above a certain amount.
And the reason why is kind of technical, but basically

Speaker 1 we want to give as much money as possible back to you, the builders. The only way that money and thus freedom is created is from individual humans who build things.
Governments cannot build things.

Speaker 1 Governments can take capital from somewhere else and they can allocate it to other things and equalize. And that is great and wonderful and necessary.

Speaker 1 But I would be really careful about what I see as like core to our society today, which is, are we allowing too few of people to control too much of us and it starts with our money.

Speaker 1 And I know there are lots of other things we could care about when it it comes to politics and that's very important too.

Speaker 1 But I was in Argentina when they closed my business and made it illegal overnight because they nationalized it. And I have seen countries fall apart at the floor of taxation and nationalization.

Speaker 1 And so I guess it would be a government is never allowed to nationalize and a government is never allowed to overly tax.

Speaker 1 And every chance we get, let's believe in the builder and the individual and not the big, huge entity. Like you guys can figure out.
You don't need them all the time.

Speaker 48 I love it. Cody Sanjez, the book's called Main Street Millionaire.
Everyone, make sure you follow Cody on social media if you don't already.

Speaker 48 Subscribe on YouTube, follow on Instagram, TikTok, get the book. Cody, I hope you'll come on many, many more times.

Speaker 48 It was amazing talking to you. Honestly, you've opened my mind.
I'm sure you've blown everyone else's mind.

Speaker 48 And I want to thank you for doing the work you do and really appreciate how practical, tactical, and accessible that you're making this world of money that's been so hidden and kept aside.

Speaker 48 So, thank you so much. Well, thank you.

Speaker 1 And maybe the only thing, can I add one thing to the audience? Of course, the only thing I would add is: like, anybody who is out there building right now, I hope you know how important you are.

Speaker 1 You know, it is, it is so critical to have builders in this world, and it is so hard, and you're never alone, and you are so necessary, and without you, the world literally stops.

Speaker 1 And so, 3% of Americans own a business. 3%.

Speaker 1 We need more of you, builders, out there in the world. And so, everything we do is to

Speaker 1 try to create more humans who have skin in the game, who are creating things with your beautiful brains and your hands. And like, I'm in awe of you.

Speaker 1 So every time I meet like the laundromat owner, the car wash owner, the entrepreneur that's building something inside of a business, like, I just hope you know there's so much dignity in the world.

Speaker 1 And it's because of the work you do. And without you, you know, it's actually not good to go back to the stone age.
Like we have all the things we have today because of each of you.

Speaker 1 And that includes you and building this business.

Speaker 48 So thank you for having me i just want to say that i've appreciated you so deeply offline

Speaker 48 uh and your work online of course speaks for itself it's been so successful and congratulations and so to be able to dive into this theme with you that I think is so important for the world right now is a real blessing.

Speaker 48 So thank you.

Speaker 1 Well, thank you. I think, you know, you meet a lot of people in real life that you kind of know online.

Speaker 1 And so at a certain point, I think you can kind of tell when the human is going to match the human. And that's what I felt with you.

Speaker 1 So it's cool for the people listening to you got to to question everything.

Speaker 1 And sometimes you meet people that you look up to and you're like, dang it, you know, not quite what I thought it was going to be. And so

Speaker 1 like real respect to you for that.

Speaker 48 I love it. Thanks, Cody.
Yay. That was awesome.
Thank you so much for listening to this conversation.

Speaker 48 If you enjoyed it, you'll love my chat with Adam Grant on why discomfort is the key to growth and the strategies for unlocking your hidden potential.

Speaker 48 If you know you want to be more and achieve more this year, go check it out right now.

Speaker 51 You set a goal today, you achieve it in six months, and then by the time it happens, it's almost a relief. There's no sense of meaning and purpose.

Speaker 51 You sort of expected it and you would have been disappointed if it didn't happen.

Speaker 42 Visit PrimalLifeOrganics.com and use code DIRTYMOUTH for 15% off.

Speaker 45 That's PrimalLifeOrganics.com.

Speaker 46 Hey, audiobook lovers. I'm Cal Penn.

Speaker 16 I'm Ed Helms.

Speaker 46 Ed and I are inviting you to join the best sounding book club you've ever heard with our new podcast, Earsay, the Audible and iHeart Audiobook Club.

Speaker 47 Each week, we sit down with your favorite iHeart podcast hosts and some very special guests to discuss the latest and greatest audiobooks from Audible.

Speaker 46 Listen to Iarsay on America's number one podcast network, iHeart. Follow IarSay and start listening on the free iHeart radio app today.

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

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