Invest and Scale

Welcome to episode 36 of Invest & Scale! In this episode, we dive into mergers and acquisitions, personal growth, and the lessons learned from buying, building, and flipping businesses — all while living with purpose and adventure.Our guest, Zach, shares his journey from growing up on a farm to navigating finance, entrepreneurship, and consulting. From the Chicago Board of Trade to buying his first business at 28, Zach’s story is packed with honest insights and practical frameworks.He explores how real value lies not just in numbers, but in people, vision, and purpose. From consulting distressed companies to global travel and charitable work, Zach highlights the mindsets and emotional intelligence that create freedom in business and life.If you’ve ever wondered what it truly takes to scale, or how to separate self-worth from net worth, this episode is full of inspiration and actionable advice.Grab your headphones and enjoy this powerful conversation — only on Invest & Scale.00:00:11 – 00:02:37: Guest’s Background and Entry into M&A00:02:37 – 00:06:27: Learning by Doing and Early Deals00:06:27 – 00:12:58: Building Community, Criteria, and Philosophy00:12:58 – 00:19:26: Personal Purpose, Giving Back, and Lifestyle Design00:19:26 – 00:23:07: Managing, Scaling, and Investing Focus00:23:07 – 00:29:50: Prioritizing Opportunities and Human Factor00:29:50 – 00:36:32: Frameworks, Scaling, and Emotional Resilience00:36:32 – 00:45:53: Insights on Detachment, Vision, and Scaling00:45:53 – 00:52:10: Money, Value, and Mindset Shifts00:52:10 – 00:55:05: Advice for Aspiring Acquirers & Business Owners00:55:05 – End: Future Vision and Closing Thoughts- Grew up on a farm, started learning about money in high school via Peter Lynch’s book.- Studied finance in college, worked for a real estate investor, then at Chicago Board of Trade as a broker.- Became a valuation consultant after sending out thousands of resumes, eventually worked at Willamette Management.- Gained deep expertise in quantitative and qualitative aspects of valuing businesses and intangible assets.- Bought a pool company in his late 20s with minimal funds—put down payment on a credit card.- Learned hands-on about sales and marketing, applied forensic accounting to organize finances.- Flipped the company in a year, implemented systems and processes for remote management.- Started a real estate investing community in Phoenix with 1,000+ members.- Began offering accounting services to fill a gap for real estate investors and entrepreneurs.- Developed the “Fossum” framework: Finance, Operations, Sales, and Marketing.- Uses this framework to identify and fix problems in distressed businesses, building teams around each area.- Early goals: travel, help people, make money; found fulfillment by giving back, especially to children’s causes.- Founded “Learn and Grow Rich” to marry financial education with meaningful impact.- Embraces location independence: travels while running businesses, currently based in Colombia.- Finds deeper fulfillment and financial success by slowing down and fostering intentionality.- Currently invests in AI and systems that clarify financial reporting and planning for clients and portfolio companies.- Helps CEOs see multiple years ahead instead of focusing only on the next month.- Believes the value lies increasingly in human relationships and emotional intelligence, not just systems or AI.- Highlights importance of emotional intelligence in business success and scaling.- Encourages clients to define their “enough”—using budgeting and envisioning their dream lifestyle to determine true financial freedom.- Money is fundamentally a medium of exchange—value traded, not just currency.- Clients who reinvest in themselves and personal growth tend to be most successful.- Business success stems from understanding and providing real value and solving real problems.- Use budgets and plans to clarify vision and enable delegation.

Welcome back to another episode of I&S! Today, host Gabriel Murillo sits down with Danny Sanchez, a serial entrepreneur whose journey took him from bussing tables and managing GameStop to building one of the largest floral retail operations in South Florida—and the nation.Danny shares how he stumbled into his first business acquisition, demystifies SBA loans, and reveals what it takes to scale through buying, selling, and integrating businesses.He and Gabriel dive into creative deal structures, lessons from acquiring everything from doctor’s offices to flower shops, and the mindset shifts needed to grow from small business owner to major player.Whether you're an experienced entrepreneur or just curious, you’ll leave this episode with real insights on acquisitions, resilience, and planning your next big move. Let’s dive in!00:00 Self-Education and Preparing for Success05:51 Leveraging SBA for Challenging Acquisitions07:45 SBA Process: Challenges & Changes13:09 Business Expansion through Acquisitions15:47 Entrepreneur's Business Acquisition Journey18:13 Doctors: Business Challenges and New Ventures20:10 Creative Deal Structures and Financing25:56 Scaling Business for Investor Trust27:43 "Pitfalls of High-Interest Asset Loans"32:05 "Bet on Yourself: Embrace Setbacks"34:24 Turning Challenges into Opportunities38:25 Grateful Success in Medellin41:11 "Navigating Business Growth Challenges"44:50 Demystifying Venture Capital Deals47:52 Strategic Growth and Financial Management49:23 Preparing Business for Sale1. Introduction and Background- Danny Sanchez’s early life: Born in New York, moved to Miami at age five- Initial career path: Attempt at computer animation, realizing limitations2. Early Entrepreneurial Journey- Exploration of franchise opportunities: The story of 1-800-Flowers.com franchise- Challenges of buying the first business without capital3. Entering the Acquisition World- Introduction to SBA loans and small business acquisitions- Navigating the SBA 7(a) loan process4. Risk, Mindset, and Personal Guarantees- Balancing personal risk in acquisitions over multiple deals- The importance of discipline, vision, and ongoing evolution in business5. Criteria and Process for Acquisitions- Danny’s acquisition criteria: Flexible on deal size, focuses on opportunity- Examples of recent deals (e.g., buying for $80k then merging/closing stores)6. Lessons Learned & Shifts in Acquisition Strategy- Challenges of buying businesses tied too closely to a single owner/doctor- Importance of building sellable businesses (brand structure, not personal names)- Acquisition growth: From first retail shop to over 20+ shops7. Creative Deal Structuring- SBA loan structure: Down payments, amounts seller can finance- Evaluating creative models like stock deals, roll-ups, and seller financing8. Exploring Alternative Financing & Roll-Up Models- Sale/leaseback and asset-based loans: High-interest pitfalls, relevance to business type- Experiences from business brokering: Insights from broad industry exposure9. Mindset, Scaling, and Leadership- Mindset shifts needed for scaling to $100M+- Systems building: Importance of procedures, departments, and organizational structure10. Attachment, Identity, and Business Purpose- Personal reflections on ego, accomplishment, and gratitude- Building a company with measurable accomplishments and lasting impact11. Looking Forward: Expansion and Growth Strategy-Private equity, venture capital, and family office involvement- Learning from venture-backed deals, confidence in pitching investors12. Embracing Technology and SaaS Initiatives- Development of SaaS tools for the floral industry (Shopify app)- Integration of tech and AI for operational efficiency13. Advice for First-Time Buyers and Acquirers- Trusting instincts: Walking away from deals with red flags- The value of consulting experts for financial strategy and preparing for potential exits

Welcome to Episode 34 of the "Invest & Scale" podcast, where we dive into the dynamic world of growing businesses with our insightful guest, Brendan Hsu. Brendan, an entrepreneur with a portfolio of seven companies, joins our host, Gabriel, to unravel the strategies behind scaling successful businesses. Throughout this episode, Brendan shares his journey of building Aerial Canvas, a real estate media company, from the ground up to a $7 million powerhouse. He discusses the pivotal roles of sales, team building, systems, and process optimization in driving growth. Brendan further delves into how he has ventured into mentorship, helping over 70 agency owners double their businesses by offering them a blueprint for success.Listen in as Brendan reveals the art of leveraging multiple businesses, fostering partnerships, and investing mindfully to create a lucrative and sustainable entrepreneurial ecosystem. Together, Gabriel and Brendan explore the nuances of business operations, the importance of equity agreements, and the decision-making process behind investing capital wisely. Don't miss this captivating conversation that promises to equip you with actionable insights for scaling your business to new heights.00:00 Scaling Aerial Canvas to Success06:31 Premium Real Estate Media Solutions13:32 "Maximizing Impact Through Mentorship"19:00 Leveraging for Outsized Portfolio Growth25:48 "Negotiate Your Worth: Self-Advocacy"28:02 Equity Misunderstandings in Business Negotiations32:45 Streamlining Workflows with Virtual Staffing38:24 Real Estate Market Crash Survivor47:58 Understanding Equity and Perspective51:36 Equity Vesting and Deal Structuring58:48 Modernizing Small Service Businesses01:01:56 Investing with Personal Due Diligence- Discussion on the three pillars of growth: sales, team, systems, and processes.- Overview of consulting services and other business topics covered.- Description of Aerial Canvas, a real estate media company, and its growth from $15k a month to scaling it to $7 million a year.- Discussion on mentorship and consulting company for agency owners.- Investment in various tangential businesses including virtual staffing, video editing, and software development.- Explanation of real estate media production as a tech-enabled service rather than a marketplace.- Insight into employment structures and company benefits.- Comparison of the company’s high-quality service approach versus other local, less specialized solutions.- Discussion on scaling, hiring practices, and market adaptation.- Exploration of personal and business partner dynamics.- Brendan's passion for startups and business innovation.- Challenges of working with employees versus entrepreneurs.- Investment in business partners and the importance of mutual value sharing in partnerships.- Examples of creative deals and failures.- Selling and buying businesses as part of Brendan's ventures.- Overview of equity dynamics, rev share, and phantom stock.- Discussion on the challenges and best practices in partner negotiations.- Importance of clear deliverables, vesting, and exit clauses in equity deals.- Decision-making process regarding deploying capital into various ventures.- Insights on structuring deals, leveraging experience, and learning from mentorship.- Advice for newcomers to buying, scaling, or selling businesses.- Importance of learning from experienced professionals.- Reflection on personal experiences and future investment considerations.Resources:https://www.linkedin.com/in/brendanhsu/https://www.aerialcanvas.com/

Welcome to a new episode of Invest & Scale! Today, Gabriel and Jacobo delve into an exciting journey of entrepreneurship, investment, and real estate. They discuss Jacobo's transition from starting an E-commerce business in college to acquiring and scaling Airbnbs, and now venturing into the boutique hotel space. This episode highlights the progression from running product-based businesses to focusing on real estate with underlying assets, providing insights into acquiring cash-flowing properties and leveraging funds for expansion. Tune in as they explore the intricacies of real estate investment, the challenge of navigating through different business models, and the significant role of mindset in achieving business success. Whether you're an aspiring entrepreneur or an experienced investor, this episode is packed with valuable lessons and inspiration for your next big move.00:00 "Leveraging Real Estate for Business Acquisitions"03:11 Digital Marketing Skills Applied to Airbnb07:25 The Lasting Value of Real Estate Investments12:34 Hotel Valuation Through Cap Rate and Appreciation14:58 Shifting Focus: From Airbnb to Business Acquisitions17:50 Ideal Range for Hotel Acquisitions20:31 "Role of Real Estate in Business Acquisition"23:36 Challenges in Analyzing Unsold Properties28:15 Real Estate Investment Financing Strategy30:00 Prolonged Business Execution and Exit Strategy33:16 Strategic Investment and Risk Management36:40 Strategies for Financing Unreported Sales42:24 Real Estate Investment Strategy Overview45:08 Investing in Passion-Driven Business Ventures47:52 Cultivating Mindset for Business Success- Journey from starting an E-commerce brand from scratch.- Risk involved in starting a new business.- Progressing to acquiring businesses with underlying real estate assets.- Leveraging funds and raising capital.- Challenges faced and scale achieved.- Exit strategy from the E-commerce business.- Leveraging skills from E-commerce in the Airbnb marketplace.- Importance of having real estate as an underlying asset.- Challenges of product-based businesses vs. real - estate.- Building a portfolio and scaling the business.- Differences in strategy: starting from scratch vs. leveraging funds.- Selling the Airbnb portfolio to a private equity fund.- Regulations affecting Airbnb and advantages of boutique hotels.- Boutique hotels as commercial Airbnbs with different valuation methods.- Strategy to force appreciation through operations.- Perceptions about real estate being slow and for older people.- Differences between investing in real estate and classic business acquisitions.- Market and off-market strategies.- Dealing with brokers and establishing relationships for deal flows.- Challenges and competition in finding suitable properties.- Analyzing and structuring deals for boutique hotels.- Financing strategies: loans, equity, and bridge loans.- Overcoming risks and ensuring assets cover debts.- Focus on experiential stays and amenities.- Creating unique and attractive projects.- Collaborating with entrepreneurs and using real estate for tax benefits.- Offering diversification and passive income for investors.- Importance of mindset in business.- Visualization and belief in long-term goals.- Podcasts, books, and continual learning.- Importance of networking and personal growth.Resources:https://www.linkedin.com/in/jacobo-hernandez-747299128/https://freedomvestcapital.com/

In today's episode, Gabriel sits down with entrepreneur and consultant Jason to delve into the rapidly evolving business landscape. They'll explore the pivotal roles of documenters, automators, advisors, and migrators in modernizing companies, while emphasizing the importance of leaning on service providers during high-leverage activities like acquisitions. Jason shares his journey from software entrepreneur to fractional integration consultant, discussing the formation of his company "Build Your Org" and its mission to augment the Entrepreneur's Operating System (EOS) with automation and AI. Together, they will unpack creative deal structuring, the shifting entrepreneurial mindset towards autonomy, and how to balance vision and integration within businesses. Tune in for an insightful conversation packed with actionable strategies and inspiring stories for every modern business owner and acquisition entrepreneur out there. Let's dive in!00:00 Serial entrepreneur starts successful enterprise, sells big.12:41 Learn from mistakes, focus on small acquisitions.20:18 Started consulting business, gained confidence in acquisitions.22:30 "Rocket Fuel" by Winters and Wickman describes visionary-integrator relationships.31:41 Partnering to build software for business automations.35:53 Best buyers are those already in business.38:43 Business relationship in Palm Springs leads to success.43:23 Comparing $3 million business to $500K.50:05 Shift from growth to services-led profitability in markets.57:28 Entrepreneurs seeking roles beyond textbook options.01:05:02 Camera aids pattern matching for business success.01:06:41 Adapting tech, improving processes, and facilitating deals.01:12:13 Business owners should rely on experienced practitioners.- Importance of modernization in business- Key roles: documenter, automator, advisor, migrator- Abstracting core processes in 90 days- Collaboration with automation team- Lead generation and deal facilitation- Partnerships with diligence firms and banks- Post-acquisition integration- Adapting systems for smooth transitions- Importance of executing acquisitions- High-leverage activity requiring support from service providers- Strategy of overpaying for aligned long-term vision- Value of mentors and service providers- Founding "Build Your Works" for post-close migration- Jason’s emphasis on vision and support- Jason’s struggles and open invitation for connections- Discovery of "Build the Process" website- Collaboration with Adam Schweickart - Creation of Build Your through a paper swap- Acquisition for EOS integration and coaching- Applying principles to various industries- Business growth experience- First consulting inspired by "Rocket Fuel"- Consulting focus on equity and profit shares- Alternative acquisition models without cash- Hypothetical business acquisition scenarios- Importance of deal structuring- Need for adaptation in EOS- Introduction of facilitator role- Supported by books like "Rocket Fuel"- Move towards non-W2 and K1 income - Preference for services-led growth- Different structures for income and autonomy- Personal transition experiences- Learning from business acquisition mistakes- Technical aspects and format discussion- Jason’s software and entrepreneurship background