The Game with Alex Hormozi
Strategic Business Advice That Applies To Every Business | Ep 840
Fri, 21 Feb 2025
Wanna scale your business? Click here.Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition Mentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap
Chapter 1: What are the key strategies for scaling a business?
Hey guys, welcome back to the game. I have been getting your feedback and y'all have been saying you like the more interactive content, you like the more real business content, which hallelujah, so do I. I prefer actually talking about business rather than not. And so I'm stoked about it and I'm gonna keep doing more of this because I love it.
And so this is full of business owners who ask me questions in person about their particular businesses. What's really nice about this is that there were so many common through lines that applied to every business in the room. Okay, I've got this other opportunity. Should I pursue that or should I keep the one I'm on? I've got multiple customers that I'm serving. Which one should I switch?
One's easy to get, one's harder to get. The other one that's harder to get is more profitable. The market's getting hard right now. How do I continue to scale despite that? And a few more questions that affect just about every business owner. Enjoy. Okay, Q&A stuff. So, typically I have a longer preamble that I'll do going into this. But before I do, did you guys enjoy this morning? Yes?
Okay, awesome. It was cool to meet other people from the portfolio. Okay. Yeah. So those are the people actually do the stuff that we do kind of every day. Um, and hopefully I kind of fulfilled on the promise that I made yesterday that yesterday was all kind of like theoretical. This is kind of the framework that we think about creating value today. It was all about kind of tactics, right.
And actually making sure that you're asking the right questions and move your company forward the fastest. So, um, The big thing, hopefully, that I would like for you to get out of this is making sure that you're prioritizing the right things. And so I have had the fortune or misfortune, depending on how you see it, of sitting on a lot of quarterly meetings and annual planning.
And so I have a very simple framework that I walk through for when we are figuring out what matters most. And if we think about strategy as prioritizing limited resources, time, money, you, to unlimited potential actions, then The better we do that, the higher the return we get on what we have and what we put in. And so fundamentally that is leverage, getting more for what you put in.
So every task that you have, because right now you probably have this big list of to-dos, right? You have this list of a hundred different notes that you're thinking about for the cleaning business. And you're like, okay, which one am I going to start with first? And when you get on the plane tomorrow, you'll have your empty page and you'll have like, okay, what am I actually going to do? Okay.
So this is how I think through it. And I would teach this to your teams because they will come to you with ideas all the time. And being able to say no and here's why, I think helps a lot.
So number one is every single goal that you have in the business or any action that you're going to take has to increase the number of customers that you're going to get, increase the lifetime gross profit per customer, or decrease the risk associated with making action one or action two. And so...
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Chapter 2: How do you prioritize business goals effectively?
That's my two cents.
Thank you. Can I throw in one more? One more? Okay. So in terms of your top five meta skills, what are your top five meta skills you would learn that give the highest projected output in terms of increasing business value? I know leadership is one of them.
Yeah. I mean, I really think prioritization is the most important skill.
Thank you, sir.
Everyone here is limited. So it's what you do with the limit.
Thank you.
You bet. Thank you, man. Kudos to the kids. The next set of kids, not the old ones. So as I was picking through avatars and he was saying he has the kids thing and then he's got the professionals thing. I'm thinking like, how easy is it for him to get customers? What's the gross margin per customer? And are there lots of them, right?
So it's like, if you have a lot of people that you can get really easy, really quickly and make a lot of money, that's a good path, right? And so when he immediately said that he could do, you know, professionals really fast,
um and easily i was like and that's obviously a lot of them i was like okay this sounds like the right path and so then i just asked that one last question was like i'm assuming you make more money on the professional he's like oh no not at all so that's what then basically redirected my attention to like okay well maybe this other path is okay and is the better long-term play but we have to get there and if we don't get to the future then it's never gonna happen and so then it just became a short-term cash flow bridge that he needed to create which you either get you know you get
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Chapter 3: Should you pursue multiple business opportunities simultaneously?
Now it's 416 revenue the last year, and the goal was 2.3 million. Maybe this is the why. I lost this on the way. So I just wanted to know what's your why, why you are doing what you are doing.
I like working. I spent a year thinking about that question when I had enough money to do whatever I wanted and could just live on treasury bills for the rest of my life. When I looked back on the days that I enjoyed most, they had three things in common. I worked out. I ate with people that I liked and I worked hard and had something to show for it and had nothing left in the tank.
And so once I realized that those were the days that I enjoyed the most, then I made it my goal to live as many of those days in a row as I could. And the way that I live my life bothers a lot of people and that's okay. And so I think, I mean, I got that advice when I was 22 years old from, I'll just, whatever, from a person in my past. And I'd had a good weekend and I started work.
And she said, you're in a good mood. And I was like, yeah, I just had a good weekend. She was like, I'm pretty sure the secret to happiness is living as many days in a row like that as you can. And that was like the closest to operationalizing kind of joy that I'd ever heard. And so I have just stuck with that. And I think that the things that bring you joy will change over time.
But I think that structure of just trying to find what that perfect day is and living in as many days in a row as you can is kind of the way to do it. That's how I do it. You can do whatever you want.
Fine. Yeah.
As a side note, for those of you who feel like you have lost your passion for your prospect, And I'll, I'll, I'll give you a simple example. Like I used to sell weight loss to women between the age of 25 and 55. And at a certain point I just really stopped caring. Um, they were like, Oh my God, my life changed forever.
And I was like, I know you had a calorie deficit and you moved like, yes, that's how that works. And I would have to kind of like fake myself into feeling excited about it. And, um, It really bothered me because I was like, I quit my job to do something that I loved and I don't really care about this. I ended up loving business more than I loved weight loss. And then I fell into that.
But I had a friend who was a personal trainer who quit being a personal trainer and started a cookie business. Brick and mortar, big cookie store, like did it right. And I remember being like, are you passionate about cookies? And he was like, not really. And I was like, but he crushed it. He did a really good job. Everything was like really tight.
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