Alex Hormozi: I Solved Three $100,000,000 Business Problems

Last updated: Jun 18, 2023

In this video, Alex Hormozi discusses three business problems that can take a company from 10 to 100 million dollars and provides a framework for applying these solutions to any business or personal brand.

This video by Alex Hormozi was published on May 24, 2023.
Video length: 09:50.

In this video, Alex Hormozi discusses three business problems that can take a company from 10 to 100 million dollars.

He uses examples of different businesses, including an employment setting business, a marketing agency for HVAC business owners, and a big influencer, to explain how identifying the correct constraint is crucial for growth. Hormozi emphasizes the importance of owning the economics of the business and partnering with or learning from those who already know the industry. He also stresses the need to focus on the size of the slice of the pie rather than the shape of the slice to build a valuable business.

Hormozi provides a framework for applying these concepts to any business or personal brand.

  • Alex Hormozi discusses three business problems that can take a company from 10 to 100 million dollars.
  • Identifying the correct constraint is crucial for business growth.
  • Entrepreneurs need to focus on owning the economics of the business.
  • The fastest way to build a 10 million dollar business is often not the fastest way to build a hundred million dollar business.
  • The size of the slice of the pie matters, not the shape of the slice of the pie.

I Solved Three $100,000,000 Business Problems - YouTube

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Introduction

  • Alex Hormozi discusses three business problems that can take a company from 10 to 100 million dollars.
  • He provides a framework for applying these solutions to any business or personal brand.
  • He recently spoke at an event where three different business owners presented with different problems.
  • Each of them had very differently phrased questions but they were all suffering from the same constraint.
  • Most entrepreneurs continue to work on the things that they enjoy rather than the things that the business needs.
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Problem 1: Employment Setting Business

  • The business owner thought his problem was that he needed to get more customers, but the real problem was that the customers he had kept leaving.
  • Acquisition.com operates off of a singular concept which is the theory of constraints.
  • A business will grow up to its constraint and then it will grow no longer.
  • Most entrepreneurs continue to work on the wrong things because they haven't identified the correct constraint.
  • The business owner had a very low quality of customers, and the vast majority of customers didn't make enough money, they didn't stay long enough, and they didn't have enough skills.
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Problem 2: HVAC Agency

  • The business owner was running campaigns across 50 different local markets for HVAC companies.
  • He probably has the marketing skill of a 50 to 100 million dollar HVAC business.
  • The more steps you take towards owning the result, the more you're basically just doing the business for them but at a certain point, you are the business.
  • The fastest way to build a 10 million dollar business is often not the fastest way to build a hundred million dollar business.
  • Entrepreneurs often build their business wrong to begin with because they were in the wrong opportunity vehicle.
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I Solved Three $100,000,000 Business Problems - YouTube

Problem 3: Big Influencer

  • The influencer had 30 to 40 million subscribers across all platforms with the objective of making more money.
  • He needed to own the economics of the business.
  • He could either learn the business or partner with someone who already knows it or buy one and with his marketing prowess, juice the hell out of it.
  • The size of the slice of the pie matters, not the shape of the slice of the pie.
  • The average IPO founder when accompanying IPOs owns 12 and a half percent of the company they founded.
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Conclusion

  • Identifying the correct constraint is crucial for business growth.
  • Entrepreneurs need to focus on owning the economics of the business.
  • The fastest way to build a 10 million dollar business is often not the fastest way to build a hundred million dollar business.
  • The size of the slice of the pie matters, not the shape of the slice of the pie.
  • Entrepreneurs need to focus on building a valuable business that they can own a slice of.
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Three Business Problems to Solve for $100,000,000

  • A media company with 30-40 million subscribers was trying to make more money.
  • Their monetization relied on sponsorships and AD revenue, which is typically the least efficient way to monetize.
  • Their constraint wasn't going from 97 to 99, but from zero to twenty on sales, product, and customer success departments.
  • The three paths for this type of business are to negotiate equity, clone and make a product your own, or transform into a Madison Avenue agency that makes ads.
  • The framework to approach the problem is to identify the problem, determine the time horizon, and choose the problem to solve based on your skill set, resources, and experience.
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Framework for Solving Business Problems

  • Identify the problem you're trying to solve.
  • Determine the time horizon for solving the problem.
  • Choose the problem to solve based on your skill set, resources, and experience.
  • Frame the problem in terms of what you need to do to be successful.
  • Control the problem by choosing the one you feel most equipped to solve.
  • Answer the problem based on your unique situation.

Watch the video on YouTube:
I Solved Three $100,000,000 Business Problems - YouTube

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