Alex Hormozi: I Built a $50 Million Business in 6 Minutes

Last updated: Jun 18, 2023

The video is about how Alex Hormozi would launch a no-strip business and turn it into a 40 to 60 million dollar enterprise, and how the same thought process can be applied to any physical products business or service business.

This video by Alex Hormozi was published on Aug 16, 2022.
Video length: 06:22.

In this video, Alex Hormozi discusses how he would launch a business selling nose strips and turn it into a $40 to $60 million enterprise.

He explains the benefits of the product, such as its low manufacturing cost, recurring revenue potential, and lack of willpower required to use it. He also shares his ideas for branding and marketing the product, including incorporating personalized words on the nose strips and targeting the entrepreneur community.

Hormozi breaks down the potential profits of the business and emphasizes the importance of focusing on the problem the product solves and the promises it fulfills for customers.

  • Alex Hormozi shares how to launch a no-strip business and turn it into a 40 to 60 million dollar enterprise.
  • The same thought process can be applied to any physical products business or service business.
  • No-strip costs pennies to manufacture and can be sold for a hundred times that price, and it has a recurring standpoint.
  • The product would be retailed for $19.99 or $24.99, and the cost of goods would almost be entirely based on the shipping cost that's associated.
  • The brand and the promise is about helping people be better, and the unique competitive moat would be developing a manufacturing capacity that can like on-demand create the word that someone wants.

I Built a $50 Million Business in 6 Minutes - YouTube

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Introduction

  • Alex Hormozi explains how he would launch a no-strip business and turn it into a 40 to 60 million dollar enterprise.
  • He also explains how the same thought process can be applied to any physical products business or service business.
  • No-strip costs pennies to manufacture and can be sold for a hundred times that price.
  • It's sticky and has a recurring standpoint.
  • It's also something that doesn't require willpower to use.
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Product Focus

  • Alex would focus a lot on the product.
  • He would also try and tie in some sort of branding element.
  • He would put like volume or persist or endure across the bridge of the nose.
  • He would like to have one that was clear that had the word so the only thing you see is the word which he thinks would be really cool.
  • The different flavors of the nose strips would be the words that people are working on.
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Price Point and Profit

  • The product would be retailed for $19.99 or $24.99.
  • The cost of goods would almost be entirely based on the shipping cost that's associated.
  • Let's say we make 16% of gross margin on a $20 product which is really good for physical products.
  • Five options on the upsell one three six twelve all the way down to maybe fifteen percent off if they buy twelve months worth and then cascading upwards in terms of smaller percentages off.
  • Let's say ten thousand people a month would go to a page and if we converted five percent of traffic on that page, we would have five hundred buyers.
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I Built a $50 Million Business in 6 Minutes - YouTube

Branding and Promise

  • Alex would focus on the entrepreneur community first because it's obviously a community that he has access to.
  • The brand would actually be more of a personal development brand of like becoming the person you want to be with the daily actions and reminders of who you want to become.
  • The brand and the promise is about we're helping people be better.
  • He would really want to build the capacity to make the words easy to print on there so we could have people put their own custom word in.
  • That would be like a unique competitive moat if you develop a manufacturing capacity that can like on-demand create the word that someone wants.
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Building a $50 Million Business in 6 Minutes

  • Launch a no-strip business with high gross margins.
  • Use influencers to promote the business and offer them a 40% margin.
  • Add a million dollars to the business by adding 100 influencers.
  • Expand into new channels with a unique and competitive moat.
  • Sell the business for a premium price, potentially $40 instead of $20.
  • Achieve a recurring 3-4 million dollar EBITDA business worth 40-60 million dollars.

Watch the video on YouTube:
I Built a $50 Million Business in 6 Minutes - YouTube

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