#91 Seven Finance Terms You Need To Know To Get Rich

Cody Sanchez opens the episode by emphasizing the need for financial risk-taking to achieve wealth and highlights small business acquisition as a promising yet frequently neglected route to success in America. She encourages listeners to envision themselves as successful business owners and shares several key financial terms essential for understanding acquisitions. These terms include free cash flow (FCF), net profit, and the differentiation between cash suck and cash flow businesses, with a preference for the latter due to its predictable income.

She further explains terms associated with business valuation, working capital, earnings before interest, taxes, depreciation, and amortization (EBITDA), as well as leveraged buyouts (LBOs) and seller financing. Additionally, Cody mentions her upcoming virtual workshop, 'Main Street Millionaire Live,' aimed at guiding attendees through the process of finding, buying, and scaling small businesses.

Cody shares an inspiring story about another Cody, a military veteran who, despite financial restraints, managed to acquire a cash-flowing business in a short period. The story illustrates essential strategies, such as using seller financing and leveraging personal savings. Through diligence, the new owner grew his business, increased monthly revenue, and expanded his plans for future growth. The episode concludes with a strong reminder about the need for calculated risks in achieving financial goals, urging listeners to subscribe to the podcast for more insights.