The Game with Alex Hormozi
Throwback: How To Get Ahead of 99% of Entrepreneurs | Ep 841
Mon, 24 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
Chapter 1: How can entrepreneurs get ahead of 99% of their peers?
Hey guys, welcome back to the game. Today's episode is a throwback city of one of our top episodes of all time. And so if you are new to the channel, then you will probably like it. It's titled how to get ahead of 99% of entrepreneurs.
But it's really a podcast about leverage, which is about the skills, beliefs and traits required to get more for what you put in so that you can move faster towards your goals. And I think it's one of the better things I put out. So enjoy. One in every 250 businesses does over $10 million a year in sales. And that means that 99% of entrepreneurs never hit it.
Every business that I've started since I was 25 has crossed 10 million. B2B services with Gym Launch, B2C consumer products with Prestige Labs, our supplement company, Allen, our B2B software, and Acquisition.com, which is an investment firm for all of the money that we made during those businesses to invest in other ones.
90%.
It doesn't look that way on Instagram, but this is the vast majority of businesses, right? Now, 9% of businesses cross this million dollar threshold, right? And then only 0.4%, which is one in 250, right? do 10 million plus. It's so rare. And so the nice thing is that success does leave clues. I want to kind of separate this into two major categories.
One is the entrepreneur and the other is the opportunity vehicle they're pursuing. You'll notice I said leverage rather than opportunity vehicle, but fundamentally leverage is the difference between what you put in and what you get out. And so you want to have the best entrepreneur getting the most out of what they put in.
And so if you have those two things together, then you create a $10 million plus business. And If you've consumed any of my other content, I used to talk about how entrepreneurs have three main things. You've got skills, you've got character traits, you've got beliefs. I've thought about this more and I've actually simplified it to one degree, which is I think you just have skills and beliefs.
Character traits... If you think about this, you're like, I want to become patient. Patient is just a general term for lots of little skills. And so if you want to become more patient, you want to do things that patient people do. And that means that if I can train someone to become more patient, then patience is a skill.
And so as a total side quest on this, what's interesting about this is that you've probably heard people say soft skills and like hard skills. In my opinion, hard skills are just skills that are easy to measure. Soft skills are just hard to measure, but they're both 100% skills that you can train and improve.
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Chapter 2: What separates successful entrepreneurs from the rest?
And then even from doing the gym turnaround business for two years, I accidentally fell into the licensing model because I didn't want to fly out. Somebody asked me if I could just show them all the stuff that I did so they could do it for themselves. And then at that point, he bought it. And it was all margin. And I was like, holy cow, this is insane.
That's when everything took off like a rocket. And so I had my brick and mortar gyms. And then I scaled to a done for you turnaround business. And then I scaled to licensing. And each of those were higher leverage opportunities. And it was because I didn't know it was possible. And so once I learned that it was possible, that unlocked all of the potential value that my skills could have.
Because fundamentally, in every one of those examples, I knew how to do the same stuff. I knew how to market and sell for a local gym. I knew how to build them more profitably, create the workouts, the meal plans, all that kind of stuff that got people results. That's what I knew how to do. But at each level, when I went from gyms to turnarounds, the leverage increased from each of these things.
And so the same skillset put into a new bucket or a new vehicle unlocked huge value. And that's why a lot of entrepreneurs don't get past a million or even get to 10 million is that they're in the wrong vehicle. So I talk about leverage a lot, and it's actually one of the core concepts in our logo.
So we have a supply-demand curve, and then we have a fulcrum, which is the acquisition.com logo, and it's because it's core to everything we do. If you think about leverage, you've ever heard Archimedes, he said, give me a long enough lever and I can move the world. This is our lever, and we'll put our little hand here. That's my arm.
If we grab the lever here, we have the most leverage on something that is here. If we grab the lever here, we still have the most leverage on something here, but we have less leverage overall compared to how much we have on this side. And the main difference here is how much force goes up the other side. And so leverage is the difference between what you put in and what you get out. That's it.
So let me give you an example in the real world. If you are really skilled at cold calling, skill itself is leverage. Because if somebody who doesn't have the skill makes 100 phone calls, that's their input. And somebody who does have the skill puts 100 calls down. And the guy who doesn't have the skill gets zero appointments set. And the guy who's amazing at it gets 10 appointments set.
He has, well, let's just say the first guy had one for sake of math. He has 10 times the leverage on that skill compared to the newbie. Getting and acquiring skills gives you more leverage because it gets you more for what you put in. And so if you're more skilled entrepreneur, being a skilled entrepreneur is a big bucket for hundreds of smaller skills underneath of it.
Because it means that you know how to prioritize what to do next. And so one of my favorite quotes about leverage comes from Warren Buffett, Uncle Warren. He and one of his closest friends graduated Columbia Business School at the same time, same year. And he said that guy was smarter and harder working than him. Now, they then went their separate ways.
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