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Codie Sanchez

May 16, 2021 • 10 tweets • 3 min read • Read on X

Oh hey there... so you wanna buy a laundromat?

I heard ya. SO - some of the tools we use to buy 'em.

Also remember - he who keeps it stupid simple wins. A thread on deal docs:

How do I know this isn't a lemon?
Oh that's a good q. You need a deal calculator.

Here's how we measure it. Super simplified but it lets you not waste time on sh*t.

It's not an IOU, it's an LOI (letter of intent):
Fancy way of saying, Hey Homie, I'd kinda like to buy your business.

BUT I'm not proposing, we're not exclusive, we're just dating. Cool?

Your biggest expenses in laundry land are:
- Water💧
- Rent🏠

It's the 80/20 rule. Control the 80% and you can handle some loss in the 20%.

Getting due "diligencey" with it (ugh, that was a stretch)
- DD is how we private equity peeps dig into deals to see if they will ROI well
- This is a sample of one of our sheets for analysis

*Sidenote: I LOVE TEMPLATES, makes it easier to never get emotional w/ a deal.

Sometimes biz owners lie about their profits (SHOCKING - I know)

- So if the tax returns don't match the profits, you go count quarters.. I honestly love this, it's so oddly rewarding stacking coin

Creating a P&L
- Basically - are you getting what you paid for, can you run it and profit, throw it into a spreadsheet and math wins.

Thought we'd get your beak a little wettttt on how these deals get done.

1st deal is always the scariest, then you realize deals at $100M or $100k rhyme.

It's not easy, they're called sweaty biz's for a reason. BUT it is doable!

Holler in comments if you want the full stack of deal docs.

Or go check out Unconventional Acquisitions...

You want these bad boys?

Get on our free email list: we got a special surprise for Contrarians this week:
contrarianthinking.co

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More from @Codie_Sanchez

Codie Sanchez

@Codie_Sanchez

Apr 25

The best owners do one thing brilliantly...

Hire.

It sounds simple. It’s not.

Here's how proper hiring allows me run 20+ businesses at once:

I've truly only founded one business.

The rest, I buy.

Why?

Because it can be a lot less stress than building a profitable startup:

So, after decades burning out in finance, I went down the acquisition rabbithole...

And crashed and burned on my first try:

Read 23 tweets

Codie Sanchez

@Codie_Sanchez

Apr 24

15 years of biz & life lessons in <500 words:

1. Marrying well is the biggest life hack of all.

2. Be the type of person who reaches out to others... when you don't need something.

3. The greatest muscle you can build is urgency.

4. Most successful people move with this mindset: Entitled to nothing, willing to earn everything.

5. Pray like it's up to God. Work like it's up to you.

6. You don't need more time, you need a deadline.

7. The success you are looking for is waiting for you in the work you are currently avoiding.

8. Biographies of billionaires teach you more than self-help books.

Read 15 tweets

Codie Sanchez

@Codie_Sanchez

Apr 20

Everyone thinks the paths to wealth are:

Building a startup. Going into finance. Investing in real estate. Inheriting it.

But there's an opportunity most overlook..

Buying a small business (yes, even a porta potty business...):

The media's led us to believe that starting a company is the best path to wealth.

• Sleep on couches & suffer, you're a saint.
• Get a multi-million funding round, you win.

But these narratives block opportunities happening right in front of you.

There's a MONUMENTAL shift in wealth creation happening to take advantage of.

Few are talking about it.

But people are starting to catch on...

Here's what it is:

Read 23 tweets

Codie Sanchez

@Codie_Sanchez

Apr 18

Most underrated business truth:

It's more profitable to sell your current customer more things than to find new customers.

The 6 secrets to increasing a biz's value:

Recurring revenue. The holy grail of business.

It's predictable, stable income that comes in month after month, year after year.

No constant hustling for new clients - just a loyal customer base paying you on autopilot...

Plus, there are a ton of other benefits.

• Higher Customer Lifetime Values (CLVs)
• for lower acquisition costs
• More predictable cashflow
• which makes budgeting & planning easier

But these benefits aren't just for you...

Read 20 tweets

Codie Sanchez

@Codie_Sanchez

Apr 13

If you don’t understand pricing, your biz will never hit $1m.

Here’s how to know if you can raise prices (hint: you’re already too late):

Today, we have 20+ small businesses in our portfolio. And there's one critical growth lever that's oddly overlooked...

Pricing.

Just listen to Y Combinator partner Kevin Hale explain why pricing is so important:

Optimizing pricing.

It's underrated. High value. And often done poorly.

The pricing strategy you employ depends heavily on the stage of your biz.

Gary Vee boils it down to a simple question: Who has the leverage?

Read 26 tweets

Codie Sanchez

@Codie_Sanchez

Apr 10

If you want to get rich, master negotiation.

• A salary raise
• An investment
• Business deals

It doesn't matter.

13 negotiation secrets from 20+ years in business (that have made me millions):

Learning negotiation was an 'aha' moment.

People think it's a niche business skill like sales. It's not.

It's a playbook to navigate human nature.

Negotiation makes you better at listening, communicating, empathizing...

Oh - and it'll make you money.

What do you picture when you hear "negotiation"?

A snappy 50th floor boardroom of suits trying to out-alpha each other?

Most think it's strategy. A set of tactics.

But it's way deeper than that.

I love ex-FBI hostage negotiator Chris Voss's explanation: