Acquiring established, non-sexy, cash-flowing small businesses (like laundromats, car washes, local services, etc.) that can be bought with little money down using SBA loans and seller financing. The strategy leverages market inefficiencies where these businesses are undervalued and can provide significant returns, offering an alternative to traditional investments or venture-backed startups.
Opportunity8.0
Why now
The market for these businesses is not yet 'normalized' (i.e., inefficient), making it possible to get 'crypto level returns.' SBA loans and seller financing are readily available and attractive, making acquisitions accessible with minimal personal capital.
Market gap
Lack of awareness/education among potential buyers, market inefficiencies (businesses hard to sell, not everyone wants to run them), focus on 'sexy' startups leads to neglect of 'boring' but profitable businesses.
Business fit
Type
Investment Strategy / Holding Company / Business Acquisition
Target
Individuals, small private equity firms, or holding companies looking for stable cash-flowing assets and high return on equity.
Revenue
Varies; from $67,000/year for a small laundromat to tens of millions for larger PE-style deals.
Founder
Former finance professionals, individuals seeking control/exit from traditional employment, entrepreneurs willing to 'pound the pavement' and learn, those interested in long-term wealth building outside of volatile markets.
Scores
Problem
9.0
Feasibility
7.0
Why now
9.0
Go-to-market
8.0
Confidence
10.0
Proof signals
Cody's personal success: 'that laundromat that I bought that cash flowed $67,000. We bought it for 100k.'
Video production company example: 'bought into a a video production company with $10,000 that does $300,000 in revenue a year and about $150,000 in profit. And I bought 40% of the business for $10,000.'
General statistics: 'average price when you buy a business is two to three X profits.' and '60% of small businesses are sold with seller financing.'
Alex Hormozi's acquisitions.com venture, buying unsexy community businesses.
Keyword demand
Keyword
Volume
Growth
boring businesses
720/mo
-33% YoY
small business acquisition
260/mo
0% YoY
SBA loans
135,000/mo
-18% YoY
seller financing
18,100/mo
-18% YoY
US English Google Ads volume from DataForSEO; growth uses returned monthly search history.
Source episode
How to Get Rich Building Boring Businesses | Codie Sanchez, Contrarian Thinking31:15
So I started trying to think about my exit strategy... I made whatever I made at the time. Did well, but not tens of millions. And uh I remember thinking, god, this business is so straightforward. And I bet there are other businesses like this for sale. And why am I like making money for all these other guys? Why couldn't I just go do this deal by myself?