#1112 Codie Sanchez On How To Get Rich During A Recession
10/31/2022 · 86 min · transcript via mlx
Tags
Key topics
— Small "boring businesses" like crime scene cleanup, ice vending, laundromats, and car washes offer recession-resistant cash flow and high margins without requiring significant capital.
— Micro-PE and deal structuring: buying undervalued businesses at 2–5x profit multiples, optimizing them with better marketing or technology, and selling at higher valuations to larger PE firms.
— Creator economy and private equity convergence: influencers with engaged audiences can build software and subscription products with recurring revenue rather than one-time consumable products.
— Career negotiation and compensation: understanding business economics, revenue drivers, and profit margins allows employees to negotiate raises and equity meaningfully.
— Decision-making and negotiation skills matter more than formal education; young professionals should prioritize ownership, skin in the game, and learning deal structuring early.
Market & price signals
— None discussed.
Actionable insights
— Before buying or joining any business, understand where profit and revenue come from and how you can become a leverage point; this changes every negotiation and career decision.
— When asking for a raise, you must demonstrate 4–10x return in revenue or profit on your increased compensation; most people fail to make this economic argument because they don't understand their own business.
— If you have no capital to start, look for distressed or "zombie" businesses (poor websites, no marketing, no pricing power) where you can add operational improvements or technology for disproportionate returns.
Episode sponsorships
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