Buy a Business for $0: The Bathwater Method

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All content on the Codie Sanchez YouTube channel reflects my own opinions and should NOT be taken as legal advice, financial advice, or investment advice. Please seek out the guidance of professionally trained and licensed individuals before making any decisions. Some links in the description may be affiliate links.

[bennywillard]

I thought she was gonna teach us how to sell used bathwater like those e-girls hahaha

[theoc]

I knew someone like this, went from being a normal manager in the company to owning it. Basically the owner wanted to get out, but instead of selling it. They used the company's cadh to pay him out and he retained a % of profits. The then manager took control and grew the company like 5/6x - he was the right person, in the right place at the right time

[brad]

I had two buddies that closed their solid businesses down because their kids didn't want to take it over. This really does happen in real life.

[gabrieljosue]

I love how everyone in here is a brillian business man who know exactly how to turn around a failing business and make it into a ravishing success. That’s like saying “Im going to buy, fix and sell cars with blown engines and transmission without even knowing how to do an oil change. For some crazy reason people think buying and turning around a failing business requires no knowledge, just the money to purchase it.

[mackisbrocklesnar]

this will work only if you have experience/talent to turn around a failed business and deep pockets to survive till it happens.

[playerzero]

"It's better to pay a fair price for a great business than a great price for a fair business." - Warren Buffett

[daganglero]

One key key missing point… you need working cash flow to continue operating it… no money you can’t continue funding it

[russdixon]

😊 Found one 👍 in business for 29 years, getting ready to retire. He told me he's just going to close the doors. I'm going to make a proposal

[yupp]

I don’t trust financial advice from anyone that writes a fraction as a subtraction.

[christopherbradley]

She's obviously a better saleswoman than a businesswoman.

[abykuruvilla]

OP : The bathwater method.
OF Model : Say no more.

[Martins-bn]

Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!

[AustinMatthew]

Not to mention you have to run it more successfully than the prior dude…. This video should be called “I ignore the elephant in the room to make it sound like free easy money” lol

[geoffzietsman]

As a small business owner I can tell you that 5% is gonna cost you way more than it would to just buy out the business as is.

[charliehorse]

I bought my business 16 years ago and I think I speak from experience when I tell you most businesses for sale are either propping up their profits to encourage the sale, or they will consume your entire life just to barely scrape by.

I bought the latter, and it has taken me over a decade to build it to where I can retire. If I didn't have the skill to grow it on my own I would have been screwed screwed.

[scarred_angel]

To all the people saying "failing biz" she never said failing. She actually ONLY talks about boring "successful" biz (Laundromat, plumbing etc). You also get to see the tax records for the last 3 years before buying a biz, you can even ask for this before buying it (I did) So you can evidentlually see its "successful/gross profit". Many people want to retire and have a successful biz that they don't know what to do with if their families don't want to take it on. This is possible for us, yes will you still have to work. But it's like the game plan has already been started for you👌 possibly even already have employees and customer base that's already generating positive profit margins🥳🥳🥳🥳🥳🥳 2024, lets go babys! We can all become successful, its just takes some extra education and research🗝👁🌌✨️

[mstefa]

My wife closed successful gardening business with 3 employees because she wanted to retire. Couldn't convince her that business, long list of loyal customers, efficient web page to generate more customers and actual cash flow are worth trying to sell. Closed at 0$. done. So, yes, it's true.

[OldManBadly]

What she is saying is true in as far as it goes, but she fails massively when she doesn't explain a simple thing: Most businesses are closing because they don't make money, and certainly don't make enough money to pay someone else to run it for you.

Example, you have a small store, as the owner you are the only full time staff member, you have someone who works part time a couple of days a week to replace you. Otherwise, you are it. It makes enough profit to pay you 60k a year net. You want to retire. As an investor, it would be stupid to buy the business because I can't get anyone with the level of experience and skill to run it for less than 60k a year. So there would be no return on investment. The owner would have long since hired someone else to do the work if they could, but they cannot.

So you are investing in failure, assuming a lot of liability (the same shut down costs she is talking about if it fails) and in your best case you are paying someone near 10% forever for the rights?

Seriously, open a subway. It's cheaper.

[_sonicfive]

She is missing an IMPORTANT point:
If they are closing the business is likely because the business owner is PART of the operation.
When buying that business be prepared to be a slave to the business UNTIL you can delegate responsibilities correctly. (Unlike the previous owner)
Part of your buyout strategy will require you to extract the business process from the business owner.

[ladytenorio]

The points I got from this are,

you can buy a business with very little to no money upfront and run it yourself aka sweat equity.

Things not mentioned: you gotta do the research, examine the accounting books for profit, hire the right talent to run it(which you do before you buy the business)

Essentially, once you have it updated with technology (for efficiency) with the right talent in place, it runs itself.

The up sides are, the customer base and reputation have already been established (which takes years to develop if new). And you will be working for yourself and not someone else. And have all the tax advantages, protection and profits a business can offer.