Todd Johnson, a former food stamp recipient turned successful serial entrepreneur, is sharing his inspiring journey from humble beginnings to building and selling multiple tech companies, including one that generated $90 million in annual revenue. Now based in Beverly Hills, where his neighbors include Mark Wahlberg and Denzel Washington, Todd owns nearly 10 companies and advocates for his unconventional approach to building lasting wealth.
From Government Assistance to Tech Success
Born to a 14-year-old mother in the South, the entrepreneur grew up receiving government assistance, including food stamps. Despite these challenging circumstances, he maintained an abundance mindset that would later fuel his success.
“I never had a broke mindset even when I was on government cheese, even when we had food stamps. We had no money, but I personally was never broke because I was always thinking way beyond where I was.”
Building Multiple Successful Ventures
His path to success included building and selling multiple businesses, including a tech services company and a construction business. He currently operates a supplement company among his portfolio of nearly 10 businesses. In his most successful year, his companies generated approximately $100 million in revenue, with personal earnings reaching $25 million.
Alternative Path to Business Ownership
Rather than starting businesses from scratch, he advocates for purchasing existing operations. He points to what experts call the “gray tsunami” – a phenomenon where aging business owners, particularly baby boomers, are looking to sell their companies as they approach retirement.
He recommends several types of businesses for potential buyers:
- Laundromats
- Pool companies
- Vending machine operations
Financial Strategy and Business Acquisition
The entrepreneur emphasizes the importance of leveraged buyouts using SBA 7(a) loans. He explains the strategy: “If a business cash flows at $20,000 a month and you can service a loan for $7,000 to $10,000 a month, you’re up $10,000.”
For those interested in acquiring businesses, he suggests several resources:
- Online business marketplaces
- Business brokers
- Direct outreach to business owners
Marketing: The Missing Link in Business Education
Despite having attended college himself, he notes that traditional business education often misses crucial elements of success. The most significant oversight, he argues, is marketing.
“What they don’t teach in school is that everybody needs you. They just don’t know who you are. Your job is to identify who those people are, get to the highest mountain top that you can, and tell them who you are.”
The Role of Faith and Mindset
Faith plays a central role in his approach to business and life. He emphasizes that belief drives actions, thinking patterns, and relationship building. This foundation of faith extends beyond spiritual matters into practical business operations and goal setting.
The entrepreneur maintains that success comes from eliminating self-imposed limitations. “Wealthy people don’t have a limitation, and they know there’s no limit in terms of what they can achieve and how much money they can make. All they have to do is solve problems and create solutions to make more money.”
His story serves as a testament that with the right mindset, strategic approach, and willingness to seize opportunities, significant wealth creation is possible regardless of one’s starting point. As he puts it, “If I lost everything tomorrow, I could make it all back” – a statement that reflects both his confidence and the reproducibility of his success methods.
Frequently Asked Questions
Q: What is the SBA 7(a) loan program?
The SBA 7(a) loan program is a government-backed financing option that helps entrepreneurs acquire existing businesses. It provides favorable terms and conditions for qualified buyers, making business acquisition more accessible for those without substantial capital.
Q: How can someone find businesses for sale?
Business buyers can use online marketplaces, work with business brokers, or directly contact business owners. Many owners are open to selling but haven’t actively listed their businesses, creating opportunities for proactive buyers.
Q: Why focus on recession-proof businesses?
Recession-proof businesses like laundromats and vending machines provide consistent cash flow regardless of economic conditions. These services remain essential even during economic downturns, making them stable investment opportunities.
Q: What makes marketing so crucial for business success?
Marketing is essential because it bridges the gap between your product or service and potential customers. Without effective marketing, even the best business concepts may fail due to lack of visibility and customer awareness.