Rigs to Riches EP02: Tracy Gunn - From Candy Store to Real Estate Investing and Capital Raising

How to do real estate that actually aligns with your values, not just money, but with your heart. And also, we’re going to be diving deep into actually how to exit from your business, which Tracy is one of the best at thinking forward on this stuff. So, I first connected with Tracy Gun when we crossed paths in the short-term rental space. What struck me was wasn’t just her business savvy, but how deeply she cares about people, legacy, and doing things the right way. Tracy is one of those people who reminds me that you don’t need a crazy background or a trust fund to build wealth. You just need vision, grit, and a willingness to do the work. That’s why I’m so pumped for this episode. Tracy’s going to walk you guys through strategies that she’s been using and pivots she’s made and how she’s built a brand and a business that’s making a real difference and a really unique business that Tracy has. So, let’s go in there. Tracy, share a little bit about your background. So, uh, I was a homeschool mom for 14 years. And I actually started my first business when all my kids went to school. And from there, I was like, well, I figured I made my whole like life around my kids and now they’re going to school. What am I going to do with myself? And I was like, well, what if I create my own little world that I got to control? That I got to say, what happened just like homeschool, but you know, in the business world. And it was a candy store. >> I was like, and it wasn’t what I planned. I had a whole business plan for something else and all of a sudden I went to this store and you know sometimes the space will speak to you >> and I looked at this store and it was like creaky floors. I was like this would be a great candy store and I just ran with it. I was like let’s just do it. So, I started that business and now I have that one still 18 years later and then I had some restaurants in between and um so I’ve done a lot of different things during co my husband and I who is a a builder 40 years we decided all of our income stopped so we started doing some flips we built a treehouse in our home that’s out on our property that we rent on Airbnb so we’ve done a lot of different things but yeah so we’re like business business business but it’s really all about, you know, having an idea, having a dream, and just going for it. >> Wow. Okay, Tracy. So, let’s go back to the story like postco, right? Cuz everybody remembers where they were when everything got shut down. And what’s really cool about your story is how you pivoted and how you guys like and it’s kind of cool how you like right then you transition into real estate into something different. So, tell us a little bit about that story. >> Yeah. So, I mean, so we had so for example, I at the time I had two restaurants. One was a big like we did weddings and catering and live events. So we had bands and dis and DJs and wrestling and all kinds of crazy things. You could have 400 people. Well, that was not really happening during co so that got shut down. I had an airport restaurant that got shut down. My candy store stayed open and we pivoted. Actually, you mentioned pivoting. Our candy store was like, “Okay, it’s Easter. I’ve got all this candy. What do I do? Will people even come in? ” Right? Because that was, think about, I mean, it’s hard to remember now. That was when everyone was like putting their groceries in the garage for a few days. >> Like they were scared to touch their groceries. They were wiping down their mail. So like, would they come to the candy store and get candy, right? Was this a was it worth risking their lives, right? So we pivoted. We went hard online. We started shipping and we actually doubled our business that year by just getting online and doing ecom and doing Facebook ads and all that kind of stuff. We were shipping about 150 candy boxes a week, which is a lot of candy online. So, we kind of shifted that. We shifted the restaurants kind of just hit pause for a few months. >> And then um we’ve started building a treehouse, which was that was part of our like what if we could just make sure our mortgage was paid, right? Just simple little things. But it was like all of a sudden we didn’t have income coming in. So, what’s the fear is like will we have a place to live? Well, we have food, like those kind of things. So, we’re like, well, what if we could utilize our home that we already have and either make like an ADU, we didn’t really know what an ADU was at the time, or he my husband was like, well, what I always wanted to build a treehouse. We were watching Treehouse Masters or whatever. And I was like, well, let’s do it. Why not? We have six acres. Let’s try. And so, that’s kind of what we did. We just jumped in. We were like, well, it’s the summer of 2020. We got our permits and we were like, let’s try it. What’s the What’s the worst thing that’s gonna happen? >> You actually had to get a permit for the treehouse. >> Yeah. And it kind of came back to bite us in the end because they gave us the wrong permit and then they were mad that we were doing it. But um yeah, so we got and it took a while. That’s when also all of the construction materials started to be right $2 for a 2×4 to like $8 for a 2×4 and could you get it? So, but we I put my husband right to work in the yard and we have people come and do the and he again it helps to be married to the guy who knows all the things. >> Yeah. >> And so, yeah, we did that. It took a while to finish. Then we did that. We at the same time we did our basement apartment and then we also bought our first flip. So, like by that November we bought our first look. Like, well, we could do it here. So, then now my husband’s juggling three projects. all the businesses are back open. So, but it catapulted us in a different direction, right? Sometimes like something comes at you and like how am I going to adapt to this? This is sucky. We don’t have money coming in. What are we going to do about that? Not only to fix it now, but for the future so it doesn’t happen again. And that’s kind of what we did. And so, that kind of got us into this whole real estate world. I never thought about flipping or uh buying and holding or sub two or any of those things because I just had businesses. But really, these are all businesses. They’re just >> a different type of business. >> Yes. I love that because Yeah. similar story. We actually had franchises and businesses. Wow. And they got shut down. They were actually out here in California. One of the craziest experiences ever. >> And California had a lot of restrictions. >> Oh my gosh. It was night and day from it. I always share this that like California that we were locked down for like a year. Our same businesses in Texas, it was a franchise were open within probably six to eight weeks and started to get back to normal. >> Yeah. My first restaurant because it was the airport was open. We opened up back in like the first week of June. So it was like almost two and a half months, 3 months. But the other one, because it was a big one, we reopened in July, but then I wound up shutting it down a month later cuz it was like I knew it was going to be at least a year before we could have events and that’s how we made our money. Like if it, >> you know, people liked going out to eat, right? And everyone was really excited about it when it finally happened. But you couldn’t assemble in the same way, right? They weren’t going to be doing catering. They weren’t going to have weddings in the same way. Like everything was very different. A lot of restrictions. And at that point, you’re like, you never want to give up on what you have. But at the same time, you’re like, this is beyond my control. I can’t control whether they let me operate like I need to to be able to make ends meet. That rent was like about $7,200 a month. So like every month we’re closed, like how do you overcome eventually the hole gets so deep you can’t >> Yes. >> get out of it. And I usually when I start businesses, I start really lean and mean. So, we don’t have any debt. So, we can really be profitable quick. And so, this kind of flipped things for me. As I looked at my business, I was like, I don’t know if I want to invest. You know, if you figure if it took a year to be open, which who knew how long it was going to take? Y >> but at 7,200 a month plus other costs. Let’s just say it was 10,000 a month. >> In a year, that’s 120 grand. How do you come back from that? >> Yeah. >> And can you come back from that? So, that’s exactly I was like, I you know what? I’m letting it go. It was and I just let it go. I actually funny that same business was under contract a month before co we had signed all the papers. I was selling it because that’s I was like trying to exit the business and I got under contract and my landlord kept jerking them around and the week before they shut us down the guy who was buying the business said I tried to apply. I talked to him again. I offered him four months rent up front just to sign the paperwork so we can move on. They had their permits. They had their license. Everything was in place and the landlord just refused to sign and then they shut us down. So that one just went away which worked out for him cuz he would have been in a lot of trouble. >> Yeah. >> Imagine buying your business and signing the week of >> the week before co I can only imagine >> a a 6,500 foot restaurant that was dependent on activity. >> Yeah. Wow. So it worked out for him. But it was like my first sale that kind of fell through and it taught me, oh gosh, landlords can be really a problem. And it was one of those things when we talk about exiting and this is kind of where I started my whole exiting planning part >> was like all the pieces that you don’t think about that will impact your exit that have nothing to do with you. >> Yes. >> Right. Like most people rent their offices, rent their space as a brick and mortar restaurant. You rent that space. You don’t own that. So you don’t have control over your biggest dependency. >> That’s such a good point when you’re looking at business small businesses and these are things that you don’t know until you live >> until you know, right? Ask me how I know. I’m the cautionary tale, right? And the same for even when I hired the broker in 2019. I had the two restaurants and two candy stores and I was up in New Hampshire and I was like my daughter had her our first grandchild and I was all I wanted to do was go hang out with the baby but I was running everything and I mean I had 42 staff. It wasn’t like I was doing it all myself but I was at this place I was like I don’t want to do this anymore. It’s amazing how like something can come out of nowhere and change your trajectory and change what you want, what you thought you wanted, just like that. And so all of a sudden, I was like, I don’t want to do these things anymore. I’ll go do it someplace else, but I’ll just sell. Like most owners, I thought, oh, I’ll just sell my business. No big deal. And so I hired a broker who is a friend, and he sat down with all my businesses, and he’s like, don’t bother. Just liquidate everything. And I was like, what? Because I mean most businesses are started with the intent of someday selling. >> Yeah. >> Right. We know it’s going to take work and effort to get going. We know it’s going to require sacrifice, but eventually we think it’s going to pay us back. And usually the big payback is that exit, right? You sell, somebody takes it over, whatever. And he was just like, “Don’t bother. ” And I was like, >> “Why? ” First of all, I had a little moment. I cried. And then I was like, “Why? ” And he couldn’t tell me. And I realized I built a business that back then that was probably 15 16 years. And I didn’t think about what that looked like long term. I didn’t look at what the exit would look like. I just thought I would. And I realized, oh my gosh, like is he right? But if he is right, what can I do about it? And so that business, I just said, I’m going to take my biggest business. I’m going to try to fix whatever that is. What I didn’t even know what that was, but you know, I instituted systems. I delegated more of my work because I was the engine that made the business go. That’s most people. >> I would say 90% of business owners are that they are the engine that makes everything go. You’re the one checking everything to make sure everybody’s doing their thing. You’re just kind of the lynch pin. So, I really just worked for a few months trying to make myself not the lynch pin. Putting in customer loyalty programs so I knew who my customers were. I had data. I put in like an inventory program for the liquor. So, all of a sudden, I was more profitable. And then I had a system in place that told me that I had theft. So now all of a sudden I became more profitable because I didn’t have as much theft. So I got rid of a problem I didn’t know I had. So by instituting all these system to try to make the business sellable, more attractive. All of a sudden it became more profitable. It was less work for me which was like this isn’t so bad. I could maybe do this long distance. >> But then in the interim somebody came to me was like can I buy your business? And I was like yes yes you can. And so that’s kind of how I found my first buyer. But it was only because I had shifted from growth scale more to this idea of like how do I make this stand alone and get myself out of this? >> And so that kind of like started this whole transition. So when COVID happened, I was already in that mindset like I had the person earning in at my candy store by then. I had um the buyer for the one restaurant and the other one I was kind of figuring out. And then COVID hit and everything kind of changed everything. But that’s still my passion project today. Like even now with the candy store, which is the only business I still have, I’m on this new trajectory of we raised funds. We’re doing this big investment starting over from scratch in a brand new city be able to be able to exit quickly and efficiently and proving you can even if you start from scratch in two years you could exit really really well. But knowing and starting with that intent. >> Yes. Let’s live in there. That’s what I was really excited to talk about today. >> At the end of the day, money isn’t the destination. It’s the fuel. But what is the real goal of freedom? Freedom is to be present with your family. Freedom is to choose how to spend your time. Freedom is to create legacy that outlives you. That’s why we created Revive Summit. At our past summits, we’ve had incredible success. Attendees have walked away with new partnerships, lender connections, and their next 90 days mapped out. And this time, we’re going even deeper. Join our next summit centered around unlocking capital. Day one is all about uncovering the capital you didn’t even know that you had access to. Credit, brokerage accounts, retirement funds, even insurance policies. We’ll show you how to turn these into fuel for impact investments. That’s right, impact investments. Day two is all about strategy and implementation, hot seats, workshops, and coaching to map out your next 90 days so you leave with clarity, confidence, and a plan to actually execute. But here’s the difference. You won’t just learn how to grow your finances. You’ll see how those finances can create freedom for your family and real impact in your community. That’s why my kids are here with me, because everything we’re building is for them and for families just like yours. So, if you’re ready to stop letting lack of liquid cash or whatever else is holding you back and start building wealth with impact, then join us at Revive Summit. 2 days, the right room, the right tools, the start of your next chapter of freedom. Talk through like the beginning if somebody’s starting the business from scratch, like what should they be thinking about with the end in mind? >> Absolutely. So, if you think about it, most people who start a business or even get a franchise or whatever, they’re they have a plan. And what happens is over time the plan changes which is normal right cuz you it’s all theory until it’s like your hypothesis this is going to work and then only when you do it do you realize it does work but it doesn’t quite work we have to fix this right so you’re tweaking but usually for most business owners that’s the only time they ever make a plan. That’s the only time they ever like think about it. Mo if you if you asked a 100 business owners do you have a budget? Most of them would say well I made one are you following it? No. Like you fall off the wagon. And so this is what’s happens. But when you start you start and you think about what you’re going to build, who your people are going to be, who your customer avatar is, how you’re going to deliver you, who who’s going to help you, what are the resources you need. But very rarely do you think like I want this to be 20 stores or I want this to be I want to be able to sell this in 10 years for 5x. I want to be making a million a year. Like very rarely do you set those targets. So you have your initial target of I want to start but you don’t know where you’re going. And so it’s a lot of willy-nilly. And this is almost all business owners because you’re figuring it out. But there comes a place in that figuring out point where you really should make some type of strategic plan about where you’re going and what you’re building and what because it keep it’s like setting your guard rails about where you’re going, right? I don’t know if you’ve heard the story about pilots and about this as they’re flying. They can be off just like a half a percent, but it can make them if they started from New York and they let’s just say they’re going west. If they don’t constantly keep getting themsel back on track and getting them back in line with what their destination is, they could wind up in Seattle instead of San Diego. It’s just that easy to be so little off track. But if you never set the intention, I’m just going more. That’s not very clear. you’ll just wander around in the desert for a while. You’ll go north, south, east, west. So setting that end goal, which is what I learned. So that’s kind of what happened when I was like, “All right, I can fix this. I’m going to give myself six months to do it. ” So I set a date of like I set a deadline. So for some people that’s oh, in 20 years I want to be done, right? I want to have 20 stores by then. I want to be at I don’t know, you know, 5 million in revenue. whatever it is, you set the you set a date and you set a goal. And then by setting that the timer started. So like you feel a little pressure, but you also are just on track. You maybe not perfectly on track, right? Cuz it’s a little far out. Then that helps you set the next goal, which is like what happens this year. I kind of liken it to this idea of like, you know, you get engaged and you’re so excited. You know, you’ve been dating, you get the ring and you look at the ring, whatever, but you’re engaged and you say, “We’re getting married. ” But are you getting married? We usually are not considered ourselves getting married until we’ve set the date. >> We set the date and that timer starts and now we start to make all the plans about that date. The the timer has started. >> Y >> and that’s the same as true in your business. So what happens and what most of the people that I deal with on my consulting is that they have set up a business for 40 years and thought someday I’ll sell. They haven’t planned for retirement. They haven’t built their other income. They’ve just made the business mold around themselves, right, to what they like to do, what they don’t like to do. They kind of get comfortable and they’re like, “Oh, I’d like to retire. ” And they’re 70. And they’ve made no plans and they have and they come to me and they’re like, “Well, I just want to sell. ” I’m like, “Well, okay. How much do you need to sell for? ” And they’re like, “I didn’t think about it. ” Okay. How involved are you in the business? All. Okay. How much of the business if you went on a vacation for a month? What would happen? Well, it would fall apart. Okay. Well, how that’s going to be hard to sell, right? And so, but most people haven’t thought through that process because they’re not there. When you think about, oh, I’m going to sell someday, they’re like, yeah, yeah, that’s later. They don’t think about it at all. So, for me, I feel like this is my little cautionary tale is if I thought about it from the beginning, it can change, right? I want to be at 5 million valuation in five years and I want to sell and I’ll probably sell to equity or I’ll probably sell to a first-time home buyer or whatever. Right? If I set those things, I can always adjust them. >> But by setting them, it eliminates all the nonsense. It eliminates all the distractions or whatever because I know this is my goal. So every once in a while now I’ll look at a restaurant just because I’m like even though I’m out of it and I think I never want to do that again. I’ll look at it and I’ll be like oh I could do this and I’ll dream right that’s typical entrepreneur but then I realize wait a minute my goal is in five years I want freedom to be able to do whatever I want and go wherever I want. Will that help me get there? No. And it’s a filter for me that knowing what that big goal not just what do I want for my business but what do I want for me? Yes. Right. because my kids are grown. I’m 53. What I want now is very different than what I wanted 15 years ago. >> Right? So exit plan is also about like what do you want, right? Not to not only what do you want for your business which benefits you, but what do you want for yourself? And so sometimes people we work with, they start to like get themselves out of the business, the whole idea of being an owner instead of operator. And when they do that, they think, “Well, maybe I don’t want to sell because now all of a sudden they don’t have a job anymore. ” >> Yeah. >> Right. That’s most people they their businesses are their jobs even though they’re self-employed, right? They are the business. So, it’s transitioning that piece and helping them. So, like if they go from being the operator to being the owner and now you’re the owner and you’re getting all the profit and there’s more profit usually when you do that because it’s more consistent. And then all of a sudden they’re like, “Well, maybe I don’t want to sell. ” Like, “Maybe I’ll just keep owning it. ” Because now all of a sudden they went from working in it all the time to not really. And now it’s this idea of business ownership. This is what we envision it would be. Very rarely do we get there. But then all of a sudden they’re like, “Well, maybe I don’t want to sell. ” Right? But now they have options. They could sell now because it’s not dependent on them. But now they have the choice. Well, maybe I’ll keep it. Maybe I’ll stay along a little longer. Maybe I’ll grow it more. Right? But it all starts with like setting yourself free from the job that we’ve created for ourselves in our business. And that’s kind of what I’ve been doing when I talk to people about exiting because it’s just it’s not something you’re paying attention. It’s like how many people plan for their funeral? Very rarely, >> right? Unless something bad happens in their lives, they don’t usually buy their funeral plot or have a plan for it because it’s like someday, but it’s not always someday. >> Sometimes it’s sooner. And sometimes the things we are planning for, if we make the plan, pull us forward easier because we know where we’re going. >> Yes. >> I don’t know if that makes sense. >> I love it. This isn’t just another real estate event. At Revive Summit, family is at the center of everything we do. That’s why you’ll see my kids on stage with me because this isn’t just about deals. It’s about legacy. It’s about teaching the next generation that money is a tool to create freedom. During these two days in Houston, we’ll show you how to unlock the capital already in your hands. Build strategies for your next 90 days and connect with investors who care about more than just profit. This is about family, freedom, and finances and creating a story your kids will thank you for. I really resonated with like the timing thinking forward like what you the the analogy you gave with like being engaged I think was perfect like knowing when is the end like what is the end point and planning for that and continuing to update. But what I was going to go a after actually next is with your perspective knowing like you’re planning to exit your business. What businesses have you seen because you’ve gone from restaurants to stores to real estate? Yep. >> And seen a lot of businesses, but what Yeah. What businesses have you seen that are actually easier maybe to build and plan an exit?

Have you seen anything? >> Well, I mean, I think they all have the potential, >> right? And it’s even a soloreneur. So, we’ve had some businesses that we’ve worked with that were solopreneurs and they slimmed down during COVID. So, one of this guy uh Wolf Gang, he had a um concrete business in Florida and during prior to CO and then during CO, he kind of slimmed everything down. So, it’s only him and his wife. So, he had staff, he had all the things that would make it a sellable business and then he got rid of all those things slimming down to make it more profitable, but he gave himself more of a job. So he took his he kind of deconstructed his business to make it more profitable to make it easier to manage because it was just him and his wife but he removed the sellability from it. >> Yes. >> Right. Cuz he wasn’t going with the business. So then he had to think about gosh do I want to rebuild it up. Right. Which is a decision you I mean if you want to exit do you want to just let it go and liquidate which is an option. It’s not a bad option. It just depends. Can you afford to do that? Most people can’t. And so he had to take that and then think about, okay, how do I go back to doing and how can I do it smarter? So that’s kind of what I’m doing with my candy store. So I had this idea. I had a partner who was earning in. I had all these systems in place because I was running restaurants which required me more. So mostly the candy was just doing itself and I had set it up that way. And so I had somebody earning in to kind of just keep it on the rails so I would could go. And after a few years she had deconstructed a lot of those systems because she didn’t understand those systems were the freedom and she was there every day so it was easier for her to do the things instead of relying on the systems or the other people that were supposed to be doing it. Long story short, she decided to go. She got tired like most business owners, right? You give yourself all the jobs and then you get tired and you’re like, “This is not fun. I’ll just go work for somebody and go home at night and not have to think about anything. Right? Typical American business owner. So anyway, long story short, she left the business. I had to go back and fix all the things and I’m in a town that’s kind of dying. It’s not really where I want to be, >> but it’s there. And I was like, what if I could do this all over again, knowing everything that I know, start over from scratch in a brand new city that’s growing like crazy, that has good median income, that is a city that doesn’t have a ton of competition, I have all this opportunity, but take my model that I’ve had for 18 years, but simplify it. all the pain points that I don’t like, all the things that I think don’t work but are expected because it’s been around like we sell ice cream in New Hampshire, but I don’t want to do ice cream. It’s a pain. So, like remove the things, make it really this lean machine. So, we’re doing that in Charlotte where my grandkids are. So, I get to go see my grandkids and but I’m doing it all over again starting from scratch. But because I know what works, what doesn’t work, right? I have all that knowledge and experience. I could create something really lean and mean and profitable and do it really quickly and be able to exit in two years as opposed to the other one I could fight with for the next 30 years and not get it to where I needed to be. So, I took this idea of like what if I could do that very intentionally and it’s kind of like my little case study of proving like you could if I could do that from scratch in two years and be able to exit for 5x couldn’t somebody fix a few things in their business and make it sellable whether that’s doing hiring somebody fractional to come on and just be their seuite and help guide them whether it’s hiring a manager whether it’s hiring somebody to come in and systematize everything and automate all their processes and get themselves out of the business. Like, wouldn’t that be worth it? Right? If you had the options of liquidate, which is what I faced when I had my restaurant, it was like just liquidate everything. So, that was a choice. Or I could try to fix it and make it that something something that somebody wanted to buy. So, I chose to try that and I gave myself six months and I gave myself an out. If it didn’t work, I could just sell so or I could just close. So, what? So, I gave myself that. But it wasn’t that hard to do to make it something somebody wanted to buy. Cuz within 3 months, somebody came to me and said, “Can I buy? ” Because they saw that I had systems. They saw that I had built some things that all of a sudden I wasn’t there all the time. I wasn’t stressed out all the time because I had fixed the problems. And by fixing the problems, I made it something that was transferable, a little more valuable, and sellable, but only because I realized I didn’t have that in the first place. Does that make sense? Like >> I didn’t know that was a problem. Like how do you know you have a problem if you don’t know you have a problem? >> Oh yeah. >> Right. So yeah. So like that’s kind of what I did. And so that’s this whole idea is that most people don’t know that they have a problem. Most people think they’re going to sell their business. They’re going to sell it for millions and it’s going to make them rich. >> And the reality is is it’s only 85 I’m sorry. 85% of small businesses never sell. 85 >> 85% >> don’t sell. Wow. And it’s for a few reasons, but mostly it’s because they’re jobs and they’re not very profitable. >> So, if you fix those two things, who wouldn’t want a business that that’s profitable? >> Yes. So, good. >> I love it. Well, like yes. So much detail and so much a lot in there. Sorry. That’s okay. It’s I love I mean the audience can hear like how much you’ve seen of it and how you’ve implemented it. So, so cool. So, let’s let’s transition into like what you’re up to now. I know you’re raising capital and doing bigger projects. >> Yep. So that I had this idea of what if, right? What if I went to a brand new city? What if I just started over? What if I made it really? Again, sometimes you don’t know what you don’t know, right? When you’re starting from scratch, you just have this hypothesis that you think will work and you adapt on the fly and you figure out how’s this going to be profitable or how am I going to make this work? And usually there’s a lot of pain involved, right? You’ve put all this money in, you’re not making enough money, and you’re like scrappy and you’re figuring out what to do. That’s usually like the startup phase, right? But once you’re in that, now you realize, oh my gosh, okay, this works, this doesn’t. Let’s eliminate this, you know, product line. Let’s I’m not charging enough here. I’m going to get rid of this. I’m going to make sure I do this one more time because I never want to have to train my staff again. So, I’m going to create a training guide. I’m going to Right. We do these things to make our lives easier. Not really even thinking, oh, this is makes it val the business more valuable, but we’re doing these things naturally because we want our life back, right? Yeah. And so that’s the normal progression, right? We get to that next stage where like we’re making a little money, we have consistent customers, we want to get our life back, right? There’s so much knowledge because you’ve learned the things that work. You learn what doesn’t work. You learn what you like to do. You learn what you hate to do. You learn where the inconsistencies are. So what if you took all of that? So this is what I did. I took all of that and I created a model that I hypothesized would work because of all my experience. I went to a city that’s growing like crazy. 125 people move to Charlotte every day. >> Wow. >> They have the median income’s like close to 100,000. The median income in the town I’m coming from is 50,000. >> Okay. >> So there’s a lot more discretionary income, >> right? There’s also no competition. No candy stores, which is weird that there’s no candy stores, was like meant for me. And so I had this whole belief like what if I went there, opened a bunch of them, had like one warehouse that kind of oversaw them all, built a little system because I know how to do that only because I’ve done it. Go there, do it, do it really quickly, and then have a little model that I either can franchise off or expand to another city or sell. >> Yep. >> Right. What if I it’s what if like I could finally win the business game >> and it was leaving everything I know but bringing my knowledge with me and doing in a place that’s more set up to perform. And so I did that. I got there. I did it. But then I was like, how could I go faster? And then this idea of raising capital, which I’ve never had a partner before. >> Wow. Really? Even at that point, just you and your husband, huh? >> Yeah. I mean, he’s my partner, but he comes and helps fix things, but he’s not running things. Like I have always just in me. >> Wow. >> And so I mean I’ve always had staff and stuff. I mean at one my highest I had 42 staff but I never had a partners. I never thought oh let me go borrow money. It just never occurred to me. So I had the opportunity to do um deal maker where I had to like put my ideas together all these things that I had planning for myself to do and bootstrap and figure out over time. I was like what if I could go really fast and do this? Maybe people would be interested. So, I had this opportunity and I kind of talked about the candy store and about how it’s kind of a recession proof business. It’s very emotionally driven. It’s nostalgia. >> It’s happy retail is what I call it, right? Retail is often miserable. Like, think Walmart. Who wants to go there? Yeah. Right. But the candy store, almost nobody goes to the candy store to not buy. Yeah. >> Right. So they’re there, they’re happy, they’re having all this flood of endorphins and memories of their childhood and they’re seeing, you know, candy buttons and candy cigarettes and wax lips and all these things that are making them remember all these good things. So it’s kind of recession proof and it’s a treat and it’s the way I had built my business. I was part of the community. So like we give free candy for reading. So all those things I’m bringing with me. >> Yes. >> To be part of like a stakeholder in a community even in Charlotte as big as it is. And so I was like, maybe I could just tell people about it and see if they’re interested. Really, I was aiming for like a couple whales to be my partners and they were excited about it. And so it didn’t work out with the whales, but I went on this other platform that was allowed me to raise funds. And so I have equity partners. I have 19 of them. We just closed. We raised $316,000. And because I know what I’m doing and I’m pretty efficient, I could open 10 stores easily for that >> with that. >> Oh, yeah. For sure. And so, and so my projections, same projections, but now I have got 19 people coming along for the ride who are going to make it easier and faster. >> Wow. >> Which again, who knew? Who knew I would even do that this year? >> Yes. Yeah. Oh, yeah. But so cool. So you I mean not only the idea to scale it and then I knew from everything you’ve been sharing with us I knew you had the end you had multiple ends in mind had a plan raise capital for it and >> and convince and be able to convey like that I know what I’m talking about right some of that is just >> so I’m not really a public speaker you know I’ve not been on stages but you know going up and pitching per se and presenting it’s my life it’s what I’ve done it’s what I’ve built right and what I find is business owners take for granted how much they know and they’ve learned it over time. You know, I work with owners who’ve had their businesses 30, 40 years. They’ve forgotten more than anyone will ever know about their business, right? And they know things just intrinsically because they’ve learned and adapted. They don’t even know that they know, right? And so that’s hard to transfer to a seller. Like if you’re selling, it’s hard to transfer them. So, you have to try to get all of that out and put it into a system or a process to be able to make that transferable. And that’s I think the hardest people thing for people because they’re like so used to like, well, everybody knows that. No, not everybody knows that. You know it because you’ve been doing it for 30 years. >> Y the expert, >> right? And some things become obsolete like how many people are going out and buying newspapers now. >> But a newspaper with a twist maybe, right? So, some things go become obsolete. Some things are continuing on and then there’s always this throwback piece of like what is old is new again, right? People go to things because of nostalgia or because they just like the cobbler, right? They kind of have gone away, but the few that are left do a good business because the people who have shoes they want repaired, there’s very few people who know that skill now, right? So, it’s the same kind of thing. There’s value in what you’ve learned. So anyway, long story short, but I took this idea and I pitched it and I have investors now. So like I learned a new skill. I learned a skill about something I already knew. That’s just talking about what I know how to do. >> Yep. You’re just yourself and your experience. And I’m sure it just shows through and >> well, right? Because people could because there was not really much I had to Oh, that was my point. It’s like it was easy for me to pit. Yeah. >> Because it’s just my life, right? I just had to stay on track of what my story was and what I wanted to tell them. >> Yes. But it was I didn’t have to memorize anything. This is just what I already have been doing. >> Natural yourself. >> Correct. And so that’s the advantage I think business owners have is that they have their own story. >> Yes. >> So even if they were raising capital for it or selling it, they have the story. They already have the details. If they just solidify them, package them up so they could hand it to somebody and they could reliably trust that the profit will continue, they could easily sell. And it’s not as hard as we think, right? We think it’s this big thing, but it’s really just tweaking a few things and all of a sudden now it’s this thing that you can wrap up and hand to somebody. >> Wow. Well, before we go to our final four questions, I want to ask, so a lot of our listeners are high W2 earners or still working their W2, >> but what would you recommend for some of them who uh maybe are just invested in the stock market, haven’t got into real estate or small businesses? What would you kind of recommend for those people to get push them over the edge? >> I mean, I love this idea. So, okay, the other reason this is a passion project of mine is that with this thing called the silver tsunami that’s coming. And for those of you that don’t know what that is, it just means that we have 38 million small business owners in this country. We are the main provider of jobs and the main driver of the economy, right? We think about these big corporations, but really think about your hometown. All of those businesses are all pretty much probably locally owned >> and locally employed, right? And so you have all of that. And so then you have the boomers which are all in their 70s or higher. 13 to 15 million of them of those small businesses are those people. >> Wow. >> They’ve been in their businesses 30, 40 years, 50 years. My husband’s been a carpenter for 45. Like so they have these businesses. Now here’s the thing. We talked about the statistic of 85% never sell. So we’ve got 15 million which is a third or you know I would say a third of the small businesses in this country are either they’re going to be for sale. Those people are going to retire. >> Yeah. >> They are of an age they’re just tired. >> Yeah. >> But they’re also their health, right? They’re going to retire one way or the other. And it’s going to be liquidation if they can’t sell. And if they can’t sell, that means 15 million businesses are just going to disappear from our country. Which means everything that they had built, all their reputation, all their value could disappear like that overnight. And so for high earners, it’s their opportunity because you could own something that’s been around for 40 years versus starting. >> Yes. Because >> why learn all the hard way? take something and improve or whatever. So, my encouragement would be like you could get a lot of these businesses because they don’t have a ton of people. That’s the other part. There’s not enough buyers. >> Yep. >> In the country. So, you could get a business for not a lot of money, even zero out of pocket. >> Yes. >> And have the business by itself. >> Oh, yeah. Have it fund itself. I love that. That’s such a good opportunity. >> It’s such an opportunity. I mean, it’s like a business could pay you way more than real estate now that real estate’s it its own thing, right? >> And I still think there’s value in investing in real estate, but a business that’s been performing for 40 years, >> I love that >> will highly continue. >> Yeah. Because my big thing is you got to have active income to be able to invest in real estate. So, you can keep your W2 if you’re really good at that. But maybe if you’re the type that doesn’t love your W2, wants to be an entrepreneur, that is the that’s the ticket, right? >> Well, what if they kept that and then put some money into that and that was their fund project. >> Yes. >> Point all three. >> And then you take the income from both of those things and put into real estate and now you’ve got this flywheel. >> Yes. Love that. That is that is gold. That is exact. That’s the ticket. >> All right. There’s lots of options there. And how fun. Tracy, let’s move into our freedom four, call it. All right, so first one, these are some of these are pretty deep, so get ready. Okay, I’m ready. All right, so first one is if you lost it all today, what is the first thing you would do to rebuild it? >> Okay, so the first thing I would do kind we touched on it is I would create a plan. >> Yes, >> you don’t have a plan, you plan to fail. And this is the reality, but I the plan would be a couple points. I would give myself a deadline about what I was going to do, >> but I would also think about what do I really want? Because in a way, if you lost it all, it’s your opportunity to start over and do it the way you wanted to. All the ways you fantasized about doing it, >> right? So, it’s this opportunity to have like a brand new life. How exciting. >> So, I would think about what do I want and how am I going to get there and who do I maybe need to connect with that could help me get there? And this is where even if you lost it all, you probably haven’t lost all your contacts. >> Exactly. >> All your people, which is where your value is anyway. >> Exactly. That’s a lot of people answer it that way, but I love how you answered it with like, hey, you build a plan, do exactly what you’ve been talking about. >> I think also the reflection of it’s your opportunity after you have a little crying moment, figure out what you want. >> Yes. >> Because now this is your chance to actually make it happen and not just be reactive. >> Yeah. >> You’ve done it now better. I love that. >> Okay. Number two. What is one deal or partnership you’d never do again >> and why? >> Okay. One deal I would say I would not do a restaurant again. >> Really? Although I still get tempted. The a restaurant has this is don’t buy a restaurant. A restaurant has a lot of working parts. Front of house, back of house, and you’re reliant on people. >> People are your wild card. >> Yeah. >> No, no matter what level you pay at, whether they’re highlevel executives or entry level candy store girl, they are always going to be your breaking point. Always. And so the less dependent you are on people, the better for your business. Like what I mean, think about it. Like if you went and the host was a jerk or the bartender was a jerk or the waitress was a jerk or the food came out bad, like you’re never going back. >> Yep. Just on one person. >> So I would never do a restaurant again and I just have to keep reminding myself cuz I always see a shiny object and I know how I can do it and make it work. >> Yes. Oh, such >> though. Don’t do it. >> Okay. All right. What is one thing that you think most investors overlook? And you’ve talked a lot about overlooking having a plan, but um any other ones you want to share? >> I think I’m more of a action person. So I if it works in napkin math, I know I have the skills to figure it out. So usually I do just a very preliminary on a napkin. Okay, if I do this and this and this is reasonable, you know, I just do basic like I don’t have 15 calculators or running things through. And a lot of people do that >> and that’s fine. Everybody’s going to be different, but I’m napkin math and I bet on myself every time. >> And so the reality is is that there’s not much that’s going to come up that I won’t be able to figure out and overcome. And so as long as the initial numbers work, I’ll jump in because speed wins. >> Yes. Love it. Yeah. So, simple plan and then you’re the X factor knowing that you can go do it. >> Well, because here’s the thing. If you’re adaptable and you’re willing to pivot and you’re willing to try new things and think outside the box, you’re going to be fine. >> Love it. Okay. Now, here’s the deep one. So, >> okay. >> What is if you could go back five years >> and tell yourself something, give yourself advice, what would you do? So, that’s part one. It’s a little bit easier to start off and then but part two be thinking about now if you could go five years in the future what do you think you’re going to be telling Tracy >> thinking out five years right because I always like to think about yeah >> I love that >> what are you going to learn >> okay so five years ago was co >> yes >> which was my huge transition right >> it’s funny I’m reading the books 10x is easier than 2x and it’s really about like we’ve already done all these 10x jumps we just don’t recognize them >> right it’s the gap in the game we just keep moving the finish line and we forget how far we’ve come. >> Yep. >> Right. So, I would say, let’s see, five years ago, I would have said, “It’s going to be okay. Keep going. ” >> Right? It’s maybe going to take longer than you think, but you’re going to get there. >> And five years from now, I’m going to be like, “You go, girl. I knew you could do it. That’s it. ” Right? And cuz here’s the thing, like I just know because of what I’ve learned that I’m going to be I’m going to be further than I can even imagine right now. >> Yeah. >> Cuz that’s how far I’m planning ahead. >> Right. I’ve set the the the target, even if I only get 70% there, it’s more than I could have ever dreamed. >> Oh, that’s so cool. It’s like you’re telling yourself again to recap, five years ago, just do it. Trust it. And now still in five years, you’ve got a built-in plan. Just like you said, just go do it. >> It’s going to be funner and um more exciting than you can imagine. >> Oh, I love it. >> Right. >> Okay. Well, thanks again, Tracy, so much today. Like so much gold of like planning ahead. I knew it was going to be good. And I’m hoping our listeners can whenever wherever they’re at, think about if they’re going to make a jump into a small business or real estate or whatever they’re going to do that they think with the end in mind and plan that way. And if you guys plan from day one, you’re going to be very successful, just like Tracy. But guys, today’s episode, I hope you guys are as fired up as I was. But if you guys could share this with someone else chasing freedom for their family, too, that would be huge. Because this isn’t just about getting rich, it’s about building something that lasts. Your kids are watching, so start stacking the wins today. If you’re listening to this because you’re chasing freedom, not just for yourself, but for your family, then don’t let this just be the background noise. Take action. Shoot me a DM, reach out, find a property, make a call. Remember, small moves today create the life your future self and your family will thank you for tomorrow.