Secret World of SMB Investing

Today in 10 minutes or less, you’ll learn:

✔️ Going big by going small

✔️ 4 biggest problems in doing deals

✔️ Find me a MFing deal

✔️ Find me an operator

On February 15, 2020, we were all about to become survivors. A pandemic and a series of trials over the coming years would forever alter our lives.

If only we knew then what we know now. What different decisions would we have made?

We survived:

• shutdowns
• business closures
• market crashes
• riots
• political upheavals
• massive layoffs

Not to mention advancements in technology and world events at a rate few expected.

February 15 is the day we started Contrarian Thinking. Now, there are more than 252,000 of you reading this email.

We had an inkling that the world would need some common sense, some critical thinking. But we had no idea that now, in the year 2023, our core tenets of freedom and ownership would ring so true.

But that’s the thing about missions—they ripple. They tend to stretch beyond what one could imagine. And that’s exactly what’s happening.

Going big by going small

We saw what was happening in the world and realized we all needed one thing: ownership. We needed to revert to personal sovereignty.

So, we set out to create owners. We aimed to create 1 million financially free humans and 100,000 small business owners so that our neighborhoods wouldn’t be littered with corporate billboards…

...but instead be filled with stores whose owners, I don’t know, actually lived there.

We realized that as the world got more volatile, it would be critical to have more humans with skin in the game—who actually have a stake in building, not tearing down.

We wanted to push back on the reality that:

• Most hardware stores, grocery stores and car washes are owned by conglomerates, not locals. They don't care about your neighborhood.
• The government would prefer to collect taxes from 500 S&P 500 Corporations than from 5,000,000 small business owners.
• 60% of all businesses that closed during Covid never reopened again.
• 16.5% of prime age males are without paid work. During the Great Depression, it was only 14.5%.
• The median SMB holds 27 days of cash on hand—and that is not enough.

Amongst all this tragedy there was, as there always is, opportunity. A lot of it.

The opportunity to buy these small businesses, to continue the ownership legacy of the Baby Boomers. What if the world needs you to go small? And to own…(because I love these things)...

So, we built out an entire series of tools to help people buy, sell, and build small everyday “boring” businesses.

4 biggest problems in doing deals

1. Knowing how to invest, buy and build small businesses
2. Raising the money or finding capital to do the deal
3. Finding businesses willing to sell that are worth buying
4. Having an operator to run the company so you can do the next deal

We set out to solve each of these problems.

Don’t know how to buy, invest or build small businesses?

Created the MBA program we wish we had taken.

• ​Course on how to buy SMBs​
• ​Mastermind on how to buy SMBs​
• Course on marketing your SMBs

Don’t know how to raise money or find capital?

We launched a boring business VC fund to invest in the infrastructure (fewer fax machines, more custom CRMs) for these businesses.

Now, we are taking on what everyone thinks is their biggest issue.

Life insurance that gives you freedom to live

​Ethos offers life insurance without time-consuming medical exams and blood tests - just answer a few health questions in a quick, online application.

They've eliminated the paperwork and put you in control of the process. No hassle — protect your loved ones here.​

Find me a MFing deal

“Codie, where are the f*cking deals???”

This is hands-down the most common question I get. Candidly, it annoys me. Can I say that? Whatever.

Usually, I’d say people think they can’t find deals when what they really don’t have is enough knowledge on dealmaking and business buying in general.

Said less nicely, you can’t find a deal because you don’t deserve one yet.

Deals come when you really know what makes a good deal vs. bad deal, what is a good deal for you, the best way to finance each different type of deal, how to structure it, how to negotiate for it, etc.

It's what we call the 10 steps of the deal journey.

But let’s say you actually know you want to buy a carwash in St. Louis, Missouri, and just need to find one. Well now WE GOT YOU, FAM.

​
​Bizscout.io​

Introducing bizscout.io, a new tool that will help you search the internet for all businesses within your parameters. Using a few keywords, Bizscout will pull for you a customized list you can go call to your heart's desire.

I got annoyed trolling the internet for businesses and wanted to find more off-market deals. I found a tool that helps me do this exact thing. So I bought it!

We’re beta testing it with a few users, so give it a go below for the next week and then we’ll be iterating on it again.

Find me an operator

Our next problem to tackle goes something like this. You work a 9 to 5 but you want out, or you want more income.

Yet, ain’t nobody got time to run a landscaping company and write code for Twitter. Especially these days.

Thus you rub your magic little lamp and ask the genie, “If I had someone who could operate a $2 million landscaping company for me, we could both cashflow and get equity. Please, Genie, find me an operator.”

Alright, homie. We’re working on that.

Boring business operator form

This is our Boring Business Operator form, where anyone who wants to run a business for us inserts 2 minutes’ worth of information and goes into a database (not showing any personal information).

Our group can use that database to find potential operators to run one of my boring businesses. In the future, they’ll also be in a pool of candidates for anyone with capital.

As I travel around the country, I am always blown away by humans who manage boring businesses without any equity.

Your (or their) chance to get skin in the game.

Interested? Fill it out here: https://forms.gle/17t4sHJeyRrdSE7w5​

Our mission by the end of 2023: make it easier, faster and less risky for more humans to own small businesses.

You tell us what else you’re missing now. Let’s see if we can fix it.

🤖 Goldman Sachs & AI: 300Million jobs will go away, but GDP will raise by 7%

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🍜 Top Ramen sales up 41%, due to "new flavors." We all know the real reason.

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📈 Rate of inflation down to 0.1% in March, lowest levels since May 2021

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📱 TikTok ad spend up 11% last month despite possible ban. (Twitter wishes.)

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🤠 US migration patterns: No love for the Midwest. See you in Austin.

Be one of the few who do not the many who talk.

- Codie

Ready to become part of the Contrarian Crew?

There are 2 ways to join:

✔️ Small Business Acquisitions Course: A step-by-step framework on how to build freedom and passive income through SMB acquisitions.

It's like a mini-MBA, but one you'll actually use (and at 1/100th of the cost!)

✔️ Work closely with us in the Unconventional Acquisitions Mastermind to buy your first, or next, business if you have a minimum of $50k to invest!

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Disclaimer – This is the “Be an adult” section. This article is presented for informational purposes only. The opinions stated here are not intended to recommend any investment or provide tax advice. Neither are they an offer to sell or the solicitation of an offer to purchase an interest in any current or future investment vehicle by Contrarian Thinking, LLC or its affiliates. All material presented in this newsletter is not to be regarded as investment advice, but for general informational purposes only. Investing does involve risk. We cannot guarantee profits or freedom from loss. You assume the entire cost and risk. You are solely responsible for making your own investment decisions. We recommend consulting with an advisor. By reading/sharing this newsletter or consuming our content on our other channels, you are indicating your consent and agreement to our disclaimer.

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