We look for cash-low-positive companies, meaning every month they spit off more cash than they take to grow. And that means the founder is still the primary driver of the business. From a size perspective, we have tweaked our requirements from over $3 million in top line to at least a million dollars in profit. We want cash- low-positive and profitable companies that are growing and founder-led. It's becoming more and more difficult to become a public company because of reporter requirements.
"The bigger the investment, the more the leadership team matters.” Today, Alex (@AlexHormozi) talks about the criteria they look for investing in companies, including the importance of cash flow-positive and profitable businesses that are founder-led and have exceptional products or marketing. He also emphasizes the value of finding a niche that's easy to win in and having a compounding vehicle within the business.
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 on his path from $100M to $1B in net worth.
Timestamps:
(3:58) - Founders lead cash-flow growth
(5:02) - The things that make a company attractive to us
(8:25) - Compounding loyalty & finding vehicles
(10:57) - Recurring revenue & founder fit
(13:44) - What is your Buy Box?
(16:01) - Word of mouth boosts profits
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