Starting a business is challenging. Scaling one is even harder. But for Alex Hormozi, scaling businesses is “business as usual.” The American entrepreneur and business expert who founded Acquisition.com has rapidly grown enterprises in the past, and he shares his two cents on how others can too.
Alex started his career sleeping on the floor of his first gym because he didn’t have enough money to pay two rents. Over time, he was able to learn from courses and mentors how to turn his gym into a profitable business. Using his learnings, he was able to turn his gym around and continue to open up 5 more gyms over the next 3 years off cash flow. Seeing his success, other gym owners began reaching out asking for help. To keep up with this demand, in 2016, Alex founded Gym Launch.
Alex’s systems were so effective at creating profits for gym owners, Gym Launch exploded. 4 short years later, he has licensed his materials to over 4000+ facilities across 13 countries. The success from Gym Launch created tremendous wealth for him and his wife Leila. They began starting and scaling other businesses. In the next few years they started a supplement brand, Prestige Labs and a software company ALAN. From the profits of these other companies they began investing in other high growth companies in niche markets (especially e-learning).
In 2020 he formally founded Acquisition.com, a portfolio of companies. Today in 2021, Acquisition.com portfolio companies generate revenues in excess of $85M per year. The businesses span software, education, service, brick & mortar, e-commerce. Hormozi offers his insights into how he went from a struggling gym owner to a business industry icon in less than a decade.
Hormozi simplifies business growth into two main components: 1) get more customers 2) make them worth more. Simple to say, harder to do.
Getting more customers – according to Hormozi – comes down to making them an offer “so good they would feel stupid saying no.” By doing this, a business pushes itself to provide more value than anyone else in their competitive space. By doing so, they eliminate the bottleneck so many businesses suffer from: demand generation.
Once the bottleneck is removed, Hormozi then focuses on the back side of the business: increasing the lifetime gross profit per customer. “The only way to make more money is to provide more value. We prefer to create flow first. Then monetize flow. Then add friction. What that means is, we don’t try and fix our product until we make sure people want it and will pay for it. Once we have that, we spend all of our time transforming our service delivery into an exceptional experience that gets people to come back again and again and refer friends.”
Lastly, Hormozi believes that business was, is, and will always be a team sport. He credits much of his success today to his team. “In the beginning you must learn how to promote in order to get initial traction. Then you must focus on the product to make the business economics work. Everything after that, is all people. ‘One fellow can be smarter than another fellow, but no one fellow is smarter than everyone else put together.’” Hormozi poses that finding and incentivizing people smarter than you is the key to rapid scale and continued profits.
Alex Hormozi continues to help thousands of businesses crack the growth code and increase their sales and profits. He also gives back to the community aggressively. Acquisition.com gives away resources for entrepreneurs to make money for free through his channels, free courses, and books. Additionally, he donates his time and money to causes that further education, which he believes is the only way to improve the world. He and his wife have donated $2,000,000 to date (in cash and supplies) to After School All-Stars, a non-profit organization that focuses on supporting today’s youth through education.
Learn more about Alex Hormozi and Acquisition.com by visiting their website and Facebook page.