How To Make Extraordinary Wealth Buying a Surprising Business, According To Codie Sanchez
Written by
Jennifer Taylor
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
You don’t have to reinvent the wheel to get rich. Instead, you can glide into a fortune by launching a business that serves a common need.
Financial influencer Codie Sanchez, founder of Contrarian Thinking, recently posted an interview with husband and wife Korey and Caroline McDavid, co-founders of Juiced Fuel, on her YouTube channel.
Essentially a mobile gas station, Juiced Fuel customers submit a fuel request and a team member comes and refuels their tank. The service comes as a practical solution of an age-old problem — not having the time or desire to go to the gas station.
The idea came to Korey when his wife was pregnant with their second child. She hated going to the gas station, which inspired him to start the mobile refueling service.
“Korey and Caroline didn’t wait for some sexy perfect business model,” Sanchez said. “They picked something simple, profitable, easy to scale, that didn’t take much cash upfront.”
Launching a New Business
All businesses have to start somewhere. Juiced Fuel initially had one truck with two tanks — one for premium fuel and another for regular fuel.
Korey delivered the fuel himself before heading to his full-time job. In the company’s second year, he hired drivers, but still helped with deliveries during busy times.
Now in its third year, the company has four employees that deliver fuel. This allows Korey to spend most of his time working to grow the business.
Profiting From a Good Idea
Getting Juiced Fuel up and running required an initial investment of $80,000. The company managed to nearly get out of the red after the first year as earnings reached $77,000.
Sanchez called this quick return incredible, as entrepreneurs often slowly bleed a small amount of cash without realizing it. In its second year, the company earned $385,000, rising substantially to more than $1 million in its third year of operation.
Building Wealth the Codie Sanchez Way
When it comes to buying and investing in businesses, Sanchez doesn’t think big. Instead, her holding company consists of small and medium businesses below $10 million EBITDA — that’s earnings before interest, taxes, depreciation and amortization, according to her Contrarian Thinking site.
She’s also not investing in flashy companies. Instead, Sanchez focuses on “boring businesses” that are often service-related — i.e., laundromats and lawn care.
In a LinkedIn post, she emphasized that there’s no such thing as buying the right or wrong business — just the right or wrong business for you. To determine if a business is right for you, she said you need answers for the following five topics.
- Your ideal owner experience — consider your personal, income and business goals.
- Your zone of genius — focus on a business that’s a mix of what you’re passionate about, what you’re good at and where your network lies.
- Business size — seek out a smaller business with minimal competition.
- Profit — make sure it will earn enough to cover expenses and your earnings.
- Industry — first-time entrepreneurs should focus on digital businesses, home services, professional services and real estate-enhanced businesses, not restaurants or hotels.
It might not sound glamorous to buy a “boring business.” However, choosing a profitable company that fills a defined need — e.g., an on-demand fuel delivery company — while offering your ideal lifestyle and playing to your strengths could be your path to extraordinary wealth.
More From GOBankingRates
