BigDeal - BigDeal presents: Codie Sanchez on The Hustle Daily Show

Episode Date: July 2, 2025

Today we want to introduce you to another incredible podcast: The Hustle Daily Show, from HubSpot Media. The Hustle Daily Show offers up your daily dose of irreverent, offbeat, and informative takes on business & tech news. Codie dropped by THDS to give her take on small business ownership and wealth creation, in an episode titled "Scaling unsexy businesses into real profit with Codie Sanchez," which is what you're about to listen to if you just... tap... that... play button. Enjoy! Want help scaling your business to $1M in monthly revenue? ⁠Click here⁠ to connect with my consulting team. MORE FROM BIGDEAL: 🎥 ⁠YouTube⁠ 📸 ⁠Instagram⁠ 📽️ ⁠TikTok⁠ MORE FROM CODIE SANCHEZ: 🎥 ⁠YouTube⁠ 📸 ⁠Instagram⁠ 📽️ ⁠TikTok⁠ OTHER THINGS WE DO: ⁠Our community⁠ ⁠Free newsletter⁠ ⁠Biz buying course⁠ ⁠Resibrands⁠ ⁠CT Capital⁠ ⁠Main St Hold Co⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, Cody here. We're doing things a little differently today and sharing an episode I recently guested on that you will not want to miss. So I sat down with the host, John Weigel for an interview on the Hustled Daily Show, which is your daily dose of business, tech, and original stories to keep you on the loop on what's trending in business. Some of my favorite parts were how tactical we got in this interview. Like if you want real steps to buy a business, build a business, and scale so that you actually make money and have a good time, you're going to love this episode and you should definitely stick around to listen to this entire interview. And then catch up on the latest. and greatest and biz by subscribing to the Hustle Daily Show wherever you get your podcasts. I'm a big

fan. I think you will be too. Good morning, everybody. Today's Monday, June 9th. I'm John Wigel here with Cody Sanchez from the Big Deal podcast and so much more. And this is the Hustle Daily show. While everyone's chasing the next unicorn startup, millionaires are quietly buying laundromats and plumbing companies. Cody Sanchez has a portfolio of boring businesses that most investors wouldn't touch with a 10-foot pole, and now she's on a mission to create a million financially free humans who never have to ask permission for a vacation day ever again. Today, we're picking her brain on how to actually scale that boring local business that you've been hired. We'll get to all that in a bit, but first, let's give you the news in business and tech. Starting us off today,

Buckys, the Texas-based convenience station chain with a cult following is suing South Carolina clothing company Born United for selling, quote, tack buck apparel featuring a bee that's strikingly similar to Bucky from Buckees, a cartoon beaver in a red cap, but this beaver is in tactical gear and holding a gun, a little different. Buckies has been litigious in the past suing another convenience store brand for using a beaver logo and preventing a chain called Buckees with a CKY from expanding into Texas, so they are on a tear. Next up, Lulu Lemon might have lost $8 billion from its market cap last week.

The legging and sportswear giants saw 20% drop. in its stock price, and that's all despite a strong quarter with revenue growing 7% 2.4 billion dollars. The reason for the stock decline? Take one guess, yes, it is tariffs. Over to the job market. Although it may not seem like it right now, the Bureau of Labor Statistics reported that 139,000 jobs were actually added in May. This also may seem like a large gain, but in April we saw 147,000 jobs added. Economists are describing the current labor market as, quote, steady but cautious, which sounds not so great, to be honest. And finally, summer Games Fest featured several gaming announcements this weekend,

including Resident Evil Nine Requiem, a Game of Thrones strategy game, a new trailer for Death Stranding 2 on the beach, which comes out this month, and Wu-Tang Rise of the Deceiver in which you could play alongside the Wu-Tang clan. Sounds cool, all of it. On to our main segment today, we are joined by Cody Sanchez to talk all about scaling boring businesses. You're going to want to hear this one. Let's get into it. All right, Cody, welcome to the show. Thanks for being here. Thanks for having me. Yeah. So let's talk about boring businesses. First, I've heard you describe boring businesses

as things with proprietary information, no patents, no sophisticated technology. Can you talk about what a boring business is to you and what the advantage is for buyers of a boring business? To me, a boring business is one that's simple, repeatable, and overlooked, but kind of quietly prints cash while everybody else is out chasing some cash burning shiny object. And so I think about it like it's the roofing company that you pay for, but you don't really think of as a business that you would want to run. It's the landscaping company. It's the laundromats. It's the car washes. They're not so boring, but they are very overlooked and often profitable. Yeah, things that have everyday use by people, things that have consistent business. coming in. We'll get more to that. I want to know first. I know you've purchased many businesses, but is there a particular one that you could tell us about that you've acquired that turned out to be surprisingly profitable? And did you not think it would be at this beginning, too? You know, the one that I like to highlight is my first, like, real deal, which was a laundromat.

And the reason why is because I think it's accessible to everybody. We all understand what a laundromat does. I think most people, if you are business-minded, can run a laundromat. And they're not that expensive to buy. So I don't think they're the best business long term, but the first one I bought, I bought it for about $100,000. And it made about $67,000 in profit, which people are either on two sides about. They're like, one, why would anybody sell anything for $100K that's making $67K? That's crazy. That's such a great deal. And then other people go, that's an awful deal. You're only buying something that makes $67,000. That must mean you have a really low paying job. And both those things can kind of be true. If I had stopped at that one laundromat, it would have been a nice side hustle.

But the key is once you find something that works, you know, like Bezo says, exploit it mercilessly. And so I realized, wow, this works. Well, what happens if we buy two, three, four, five, six? And scale up to a bunch of laundromats. And then eventually we sold some to strategics and, you know, cash flow on others. And so that was one of the first deals that I did. But don't get me wrong. You know, one of the other deals that I did, we bought like outsourced VAs basically, essentially.

And that business, you know, they cooked the books. There was total fraud. We lost a couple hundred K on that deal. And so there's two sides of the coin to everything. But I like boring businesses because they're a lot easier to analyze, in my opinion, to see if the numbers are real. And so that's why I keep buying them. Yeah, that's great. I want to dig into a bit more about the laundromat example. You said you acquire it, paid $100,000 for it, which could be a good deal, could be a bad deal depending on who you talk to. Now, for current laundromat owners, what are they not doing to scale their business at the level that you did? And what can they do? Well, a couple things. One, I think every business you should start with the end in mind. So we have something we call the cash out cake. Sounds delicious. Exactly.

For what you want to do to sell your business for more. And we keep it really simple. I like things that are so simple. You can explain it to Grandma because I think if you can do that, then you can have your team repeat it without you constantly repeating. So I literally do it in the style of a cake. Oh, my God, amazing. And there's seven steps, which is basically we want to have a clean P&L.

We want to have systems and problems. We want to have consistent cash flow and repeating cash flow in the business. We want to have a team with management in place so that you are not the only one running the business. You want to have a business that has some sort of loyalty from your employees, which really just means incentive plans. You want to have a sales team, not a sales individual. And then you want diversification of cash flow, which we call eggs in one basket. And so I think of each of these things like an ingredient where if you put them inside of your business, you come out. with this sort of cash cake. And so most laundromat owners run it like a job, not a business. They do not have an operating system that's first and foremost. The most successful businesses in the world run on operating systems. Most entrepreneurs cannot tell you how they operate their business in one sentence. And then their team can certainly not repeat it. And so we put all of our businesses on something we called the COS, the contrarian operating system. And I learned that from Vista, one of the best private equity funds in the world who buy businesses, because I want to repeat the

success in a very repeatable business. You know, we're not trying to be Amazon where one laundromats go on to the moon and the next laundromats doing something totally different. These things are repeated. Right. So why don't we have a scaling system that's just a scaffolding that we build every time so we don't have to think about it. So that operating system, I think, is your very first order of business. Imagine, you know, if you got on a plane and even the best airline pilot in the world didn't go through a checklist. You'd be like, I don't love that for me. Can you go ahead and check all of this off. And yet we run businesses sometimes with multi-millions without an operating system. And so one of the things we've realized after teaching thousands of people how to buy businesses

is we have to start teaching them how to integrate operating systems because then you can have a business on a job. And you can steal other people's homework on that. And so that would be the very first thing I do. And your operating system teaches you everything. It teaches you how to hire people. It teaches you how to onboard them. It teaches you how to do your pricing. And if you do it right, you only have to do it once. You're talking about operating systems, very valuable. I wanted to get into other things that you would do in maybe your first 90 days. What's the playbook look like?

You acquire a business. How do you get started? You implement some awesome operating systems. What else do you do? Yeah, so we have three phases for the first 90 days. So the first phase is called transfer and transition. So what you really want to do is you want to set up immediate wins, like making sure all your employees are on board, doing a 30-minute financial health audit.

adding some common SOPs and processes across the business by just transitioning everything that they were doing previously. That's really day one, day two, day three. Week one is you're really learning the business. So how do you have an observation log with everything that you've learned inside of the business overall? What do your customers look like? Weeks two through six are deep dive. So that's like financials, team, operations. We want to make sure that the business continues to thrive. Phase two is stabilize and systematize, which means we want to strengthen the core of the business. So we want to do like a profit margin analysis. We want to see if we can turn a business from a cash suck business, meaning you provide the

service or product first and then get paid to a cash flow business, aka you take in the money and then provide the service or the product. And then the last one is phase three, which is power up. And this is where we make material changes to the business. I usually don't like to do this in the first 60 days, more like 90 days, unless there's something really, really obvious. And in this next power-up phase, we're thinking about, can we increase our prices? Can we add three tiers of prices? Do we have recurring models on top of them? Do we have a process for hiring A-player and making sure we understand all what the definition of an A-player

is. And so those three phases, each broken down in 30 days, is how you make sure that your baby doesn't die if you acquire a business, because the first year, just like with us humans, is the most dangerous. Diving more into part three of that, the price increases, right? So a lot of these, quote-unquote, boring businesses, laundromats, et cetera, are local, heavily localized, have a local clientele. And when you talk about increasing prices or scaling the business, how do you do that without losing customers, the local people in town that have been coming to this business for how many years? Is there a way that you can balance those two? Yes, the three Cs. Compare, contrast, compete. So first, you may not realize that.

that you are underpriced already. You have a fear inside of yourself as an entrepreneur that if you raise your prices, clients are gonna leave you, you might not even realize that the business hasn't raised its prices in a year, two, three years, five years, and you're behind the market. And so one, let's just see where you're at.

What are all your competitors doing in the region? Let's do a little competitive analysis. Then we wanna contrast. So I don't wanna be the low cost provider unless I'm gonna do massive scale and be Walmart, right? It's actually very hard to provide service for the bottom. You have to be an incredibly good operator over time. And so I want to contrast our services. We're cleaner. We're safer. We follow up. We have better customer service, whatever the case

may be. So I want to think about what are my differentiators. And then I want to highlight those. And then the last one is I really want to think about where can I compete. So with somebody else who is the premium product, what are they doing that I'm like, oof, that's dumb. We're going to do this a lot better. What can I do to add additional revenue lines that they're not even thinking about? And so with those three Cs, you can raise your prices and have your customers, thank you. You know, think about this. When was the last time you went to Instagram, let's say? I don't know if this is a thing dudes do, but chicks do. I go to Instagram and sometimes they get me with an ad, you know, and I'm like, ooh, I want to buy that clothing. But then I click on the ad and I go to the website and it's like

$3.97 for its shirt. And so I'm like, oh, this is some made in China, you know, not going to be good stuff, so I leave. That is the cheapest shirt available, but I don't want it. And so we have to remember that some people want to pay more and that paying more is actually a signifier of value. People aren't taught that. In most of my businesses, I try to be the best, but not always the cheapest. That makes a lot of sense, because when you do see something like that, that's low price, you think low quality, which may not be true. 100%. And that's very standard. I mean, think about it also. It depends what market segment you're going after, but you know, you go to the car wash, let's say.

And I go to the car wash and there's like the lowest tier and then there's the mid tier and then the high tier. Well, I'm actually the type of person I'm like, I probably don't go to the car wash as much as I should. So like, just do it all. The works. Like whatever you do with the stuff, put it on the car, right? But the average person is going to buy that middle tier because they're like, well, you know, I don't know if I need all the extras, but I don't want the lowest. And so there's this pricing psychology that really does play into businesses.

And the pros realize it, but a lot of smaller businesses do not price optimize. Oh, yeah. And when you do scale your business, how do you personally manage having so many businesses at the same time? Do you have a person in charge of everyone? How often would you say that you personally check in on your businesses? Yeah. Well, one, I would say people don't realize that owning multiple businesses is totally normalized in an industry called private equity in an industry that has made more billionaires than just about anything else. So it's us, entrepreneurs that don't think that it's normal. We just don't have the systems to own a lot of businesses, whereas private equity is all about systems. They don't have the magic juice that entrepreneurs

have. They don't have the creative itch to go from zero to one and truly innovate. So what do they do? They buy our businesses at the point where they're the most profitable and maybe we're in the most pain and then they just optimize the shit out of it. And so one, I would just try to break your frame as an entrepreneur if you're thinking I can't own multiple businesses or there's no way anybody does. That is a normalization that keeps you poorer than people who realize that it's actually quite normal for the best. Second, I love Charlie Munger's quote from one of his partners who I'm blanking on his name. He says, when you get a dog, you don't do the barking for it. And the same is true for hiring employees. So when I hire CEOs, I don't do the barking for them.

They run the business. They hire the individuals. And I do something called scorecard based management, which means at any given time, I can see in every single one of my businesses, because of our operating systems, how much money they're making, if they're going to hit projections, what is behind from a project perspective? And when you set up your business that way, it also allows you to just stress a little bit less. You know, I'm sure you feel like this with your podcast or anybody listening. You're like, where is that? What happened? Are we doing that thing? Do you owe me that? Follow up, wait, what time date? Right? No, I don't want any of that. Oh, yeah. I want to have a system where I can go and check a third party resource to say, yeah, we're on time. Yeah, we're on project goal. And so that is the goal.

One, hire great people, don't bark for them. Two, have a scorecard based management system where you don't have to have three hour long one-on-ones. You don't even have to have one-on-ones with most of your employees. You can look at the scorecard. If anything's wrong, you call them about it. And it has taken me a long time to get there. I still want to perfect many of our systems. I don't think they're perfect. But man, my life has changed from realizing that there are incredible people who just don't want to take the pure risk of entrepreneurship that you can give a portion of your business to or give incredible salary to and they'll run it for you. Totally. And you've invested in so many kinds of companies from across the board, laundromats, cannabis, kind of you name

it. What industries are you personally most excited about going forward? Well, there's two types of businesses we buy right now or invest in. So there's one that I think is, super underserved, and now people are catching up to it. And that's what I'll call SMB tech, what I'll call small business infrastructure tech. And so we have a venture capital fund contrarian thinking capital. And basically our entire thesis was, wait a second, we own all these laundromats, we own car washes. The software that runs them is bad because it's pen and paper. Yeah, right. Manual. So what would happen if we increased the margin with niche tech tools? So we went out and we invested in, I don't know, 22, 25 companies in that.

vein. And by doing that, we have one of the top 10% performing VC funds in all the 2022 Vintage on Angel List, and it's by investing in the tech that powers small business. Now, why is it interesting now? Because before, it was my dad running these businesses, right? 66 plus. If I go, dad, the thing is, I got a great CRM, I got a payments purchaser that's going to lock right in. It's going to go all to your iPhone. He's like, no, but now we're transitioning to the next generation, and they are starting to use the tools. And so I think this will accelerate. It's our thesis for fun, too. So that's one of my favorite. And then on the other side, we invested in companies like Rezi Brands, which like Pinks Window Cleaning, that one painter painting company,

Monty's Handyman Company. And these companies are service-based businesses, home services, mostly, although we do some commercial. But here's the kicker. We believe that trade jobs and service-based jobs have massive dignity in them. And just because vibe marketing and SaaS is really sexy on Twitter, I can pretty much guarantee you one thing. There will be more millionaires made with boring everyday businesses over the next 10 years than there will with AI tools and vibe marketing. Why? I mean, Bezos talked about this too. He felt the same way with e-commerce. He was like there is massive advantage to first movers and to the big guys. You either have to be really small if you're to be an e-commerce or you've got to be huge because the middle is a death zone. And that is true

with internet businesses because scale is democratized. Anybody can eat a portion of your pie. It's really hard to eat a portion of my pie in Lubbock, Texas when I have a window cleaning company. And so I believe that these businesses will continue to make more millionaires as the data seems to have proven that they did the last 20 years. Yeah, the things that work every day, people need everywhere all over the country and all over the world. So it seems pretty tried in true to me. But Cody, thank you so much for taking the time to chat with me today. It's been a real pleasure. Pleasure of mine. Yeah. Thanks. Hopefully it was useful. Oh, 100%. All right, and that'll do for us for us today. Thanks for tuning into The Hustle Daily show. We're a proud part of HubSpot Media.

Our editor today is Robert Hartwig and our executive producer is Darren Clark. We've got a lot more tech and business coverage in our newsletter. If you're not subscribed, go sign up at thehustle.com email and follow us on Instagram at The Hustle Daily. We'll see you tomorrow.