Codie Sanchez started her finance career at Vanguard, and then climbed the ranks at Goldman Sachs, State Street, and First Trust. She began building and investing in an array of businesses, creating an impressive, lucrative portfolio. During the standstill of the pandemic, Codie decided to launch Contrarian Thinking so that she could educate and empower others to become successful small business owners.
What’s the big idea?
Do you know the real way most rich people get wealthy? It’s not from getting a bigger paycheck, saving more for retirement, or working harder. Rich people build wealth by owning businesses that pay them every single day. Sixty percent of all millionaires own a business. Now may be the best time for us to do this, too.
Below, Codie shares five key insights from her new book, Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses. Listen to the audio version—read by Codie herself—in the Next Big Idea App.
1. Your salary will never set you free.
A salary feels safe. You get paid at regular intervals. It seems like you’re in control, but that’s not always true. 519 tech companies laid off 149,006 employees in 2024.
Most people think they’ll save their way to freedom, but it would take roughly 14 years, at $200,000 a year in gross income, to become a millionaire. Not bad by the age of 45, but you’re living like a 25-year-old in the process. You need income that works for you. That’s why ownership matters. It’s the only way to build real, lasting wealth.
Wealth comes from owning something. It’s from having equity. When you own a business, you don’t have to trade hours for money. Eventually, after years of work, your business is not reliant on you. If done right, you can own a business that earns enough cash flow for you to pay someone else to operate it.
2. The secret to wealth is in boring businesses.
When people think about getting rich, they think about new ideas. They dream about starting the next big thing. They think about startups, crypto, and rental properties. Maybe that’s you. Or maybe you’re like me and have never had an idea for the next Facebook. I found that, for me, the real money is in boring businesses.
“They aren’t flashy, but they’re steady.”
These are laundromats, car washes, plumbing companies, and HVAC services. They aren’t flashy, but they’re steady. People will always need them. These businesses have loyal customers. They’ve been around for years. This theory that the longer an item is in demand, the more likely it will stay in demand in the future is called the Lindy Effect.
Boring businesses are also simpler to run. The business is already working. You don’t have to guess if it can make money. Most of these businesses are owned by older people. They’re ready to retire. They’re looking for someone to buy them out. That’s where the opportunity is.
3. Buying is better than building.
Starting a business is hard. You must come up with an idea, find customers, set up systems, and hope you don’t run out of money. Most new businesses fail: 90 percent within 10 years.
Buying a business may be smarter. It’s already making money. It has customers, employees, and systems in place. You skip the hardest part and start with something that works. Buying a business is not easy—you can still fail—but instead of starting from zero, you start with cash flow. You can focus on growing the business, not building it. I won’t say it’s easier, but 5 to 25 percent of SBA loans for small business purchases fail. That means there’s a 95 to 75 percent success rate. I like those odds.
4. You don’t need a lot of money to buy a business.
Most people think buying a business costs a fortune. It can, but it doesn’t have to. There are ways to buy businesses without spending a lot of your own money. One way is seller financing, meaning the owner lets you pay for the business over time. You use the money the business makes to pay them back.
“There are ways to buy businesses without spending a lot of your own money.”
Another way is using a loan. The Small Business Administration (SBA) offers loans just for buying businesses and you don’t have to use just your own money. The business makes money and is part of the loan process. You just need to know how to structure the deal.
5. Small businesses need new owners.
America is losing its small businesses. Millions of baby boomers are retiring, and they own 60 percent of all small businesses. Those businesses make money but don’t have anyone to take over. Many of these businesses are too small for big private equity to buy—the owner may not even think they are sellable assets. But these businesses are perfect for regular people. They exist in every town, ready to be taken over and grown. Just ask the owner.
The bad news is that if no one buys these businesses, they close. People lose their jobs and the services they rely on. That’s why Japan created a multibillion-dollar effort to help citizens buy small businesses. Main Street businesses are the heart and soul of our communities, and the backbone of our economy. Buying these businesses matters.
It’s not just about making money. It’s about keeping towns and cities strong. It’s about preserving our communities. It’s about helping you and your family become financially free. It’s about saving Main Street.
To listen to the audio version read by author Codie Sanchez, download the Next Big Idea App today:
