The Game with Alex Hormozi The Metric Warren Buffet Cares Most About and How To Use it to Take Home More Cash | Ep 292
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Apr 15, 2021 Learn about the crucial metric that can transform your business finances: Net Free Cash Flow. Discover the common pitfalls entrepreneurs face when neglecting this key indicator. Alex shares how to maximize profit while ensuring you get the best return on your reinvestments. He discusses the stark reality that most businesses never get sold and the importance of managing cash flow effectively for long-term success. Dive into actionable insights that can help you take home more cash and achieve financial stability.
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Track Net Free Cash Flow
- Track net free cash flow, the money you can take out after reinvestments.
- This metric, endorsed by Warren Buffett, is crucial for business success.
Asset Rich, Cash Poor
- Alex Hormozi reinvested gym profits into new locations, becoming asset-rich but cash-poor.
- Selling those gyms yielded little, teaching him the importance of cash flow.
The Myth of the Exit
- Most businesses never get sold, contrary to entrepreneurial dreams.
- Focus on generating consistent cash flow instead of hoping for a mythical exit.
