Alex Hormozi: How He Built A $150 Million Empire And His Best Business Advice
Oct 13, 2022
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Alex Hormozi is a successful entrepreneur and author, known for his impressive $150 million portfolio. In this engaging conversation, he shares his philosophy that success comes from improving existing ideas rather than needing something novel. Hormozi emphasizes the journey from employee to business owner and the critical importance of learning through real-world experience. He dives into effective sales strategies, the relationship between wealth and happiness, and the significance of investing in personal knowledge to scale businesses and achieve financial freedom.
Investing in education and skill development is crucial when starting a business.
Starting with a service-based business can help you earn income quickly and develop important business skills.
Focus on identifying your strengths and offering solutions to existing problems rather than coming up with a novel idea.
Apprenticing or working for free with experienced entrepreneurs can provide valuable insights and skills.
Deep dives
The Importance of Learning and Paying Down Ignorance Debt
When starting a business, it is crucial to focus on learning rather than earning. Paying down ignorance debt, or acquiring the necessary knowledge and skills, should be the main priority. This means investing in education, mentorship, and skill development to improve your ability to make money. While traditional investments like index funds may offer long-term returns, they are unlikely to provide the same level of income growth and financial freedom as investing in yourself and your entrepreneurial skills.
Starting with a Service-Based Business
When starting a business, one effective approach is to begin with a service-based business. This reduces the need for significant capital and allows you to leverage your existing knowledge and expertise. By providing a service, you can start earning income quickly and learn important business skills along the way. Building a service-based business also offers opportunities for specialization and scaling by delegating tasks and expanding your customer base.
Choosing What to Sell
When deciding what to sell in your business, focus on identifying your strengths and the problems you can solve for your customers. Look for areas where you have past experience, knowledge, or interests and determine how you can offer a solution that improves upon existing products or services. It is not necessary to come up with a novel idea; often, the best approach is to analyze what others are doing and find ways to do it better. By understanding the value you can provide and strategically selecting your niche, you can start a successful business.
The Importance of Apprenticing and Learning from Small Businesses
Apprenticing or working for free with an experienced entrepreneur or small business owner can be a valuable learning opportunity. By observing how a business operates and learning from someone with experience, you can gain insights into sales, marketing, operations, and other essential aspects of running a business. Small businesses offer a holistic view of the entire business process, providing valuable knowledge and skills that can be applied in your own entrepreneurial endeavors.
Starting a Gym and Learning to Sell
The podcast episode covers the speaker's experience of starting a gym and the challenges they faced. They started with a $50,000 investment and spent most of it outfitting the facility. They took a risk by signing a $5,000 per month lease without much experience. They learned how to sell through a sales job and then applied those skills to their gym. They ran Facebook ads and offered a six-week challenge to attract customers. The speaker emphasizes the importance of learning to sell and finding an effective marketing strategy.
Expanding the Gym Business
The gym business grew rapidly, adding more locations and achieving high revenue. The speaker transitioned to a turnkey system where they would fly out to gyms and handle marketing and sales. They later switched to a licensing model and experienced significant growth. They discuss the importance of having scalable business models and constantly adapting to market needs.
Reflections on Money and Wealth
The speaker shares their perspective on wealth and money. They prioritize having options and being able to make choices without financial constraints. While they maintain a high level of liquidity, they also invest in knowledge, education, and strategic business ventures. The speaker believes in sharing their business knowledge with others to make business education accessible for everyone.
Motivation and Accountability in Weight Loss
The speaker discusses weight loss and achieving fitness goals. They emphasize that knowledge is not the main issue, but rather accountability and the ability to maintain a calorie deficit over time. The speaker suggests finding the right motivation and understanding the price and commitment required for specific fitness goals.
‘A lot of people think you need to have some novel idea, but the best way to start a business is to look at what other people are doing, and do it better’. Alex Hormozi is an entrepreneur, investor, and philanthropist who has nothing to sell you. By the age of 33, Alex’s portfolio of companies crossed $150M per year in revenue spanning a range of areas including; brick & mortar service, licensing, education, SAAS, and e-commerce. One of the most inspiring people in the world of entrepreneurship today with a mission to help other people start and scale their businesses, Alex has taken the internet by storm in the last year earning a cult following. In the conversation we trace Alex’s story to building a $150M empire, the fundamental lessons he learned and the advice he’d give to people looking to start a business from the ground up, to scale it into a million dollar company.
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(00:00) Intro (02:12) $100M Offers (04:17) The philosophy behind ‘I have nothing to sell you’ (06:42) The biggest issue between 1 and 3 Million (09:08) How to make a living from something you love (14:03) How do you find what you can sell to the world? (18:45) Learning vs Earning (25:10) Your business ideas (28:10) Starting your first business (31:12) Paying ignorance debt and side hustles (40:41) Learning how to sell (46:20) Growing your first gym (57:44) Scaling your business empire and wealth (01:07:39) Whats your goal and mission? (01:12:05) Your content creation process (01:20:31) Fitness & the accountability gap
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