Alex Hormozi: The first 5 hires EVERY entrepreneur should make...or go broke...

Last updated: Jun 16, 2023

The video discusses the first five hires that entrepreneurs should make in order to grow their business and buy back their time for high leverage activities.

This video by Alex Hormozi was published on Feb 23, 2022.
Video length: 08:45.

The video discusses the first five hires that entrepreneurs should make in their company as they grow, with a focus on hiring individuals who can help with repeated tasks that are time-consuming but do not necessarily add as much value as some of the more strategic pieces of each role.

The order of hiring should be in reverse order of the value being delivered and what can be obtained in the marketplace in terms of dollars per hour. The first two hires should be administrative help and customer success or customer support, followed by a salesperson, someone to assist with promotion or marketing, and a fractional bookkeeper.

As the company grows, each of these roles can become more solidified, and the individuals can ascend up and have teams underneath them.

  • Entrepreneurs should make the first five hires to grow their business and buy back their time for high leverage activities.
  • The order of hiring should be in reverse order of the value being delivered and what can be obtained in the marketplace in terms of dollars per hour.
  • The first two hires are typically administrative help and someone in customer success or support, followed by a salesperson, a marketer, and a fractional bookkeeper.
  • Entrepreneurs should not replace all of their time and should think about the value they are making per dollar.
  • As each role becomes more solidified, these people can ascend up and have teams underneath them.

The first 5 hires EVERY entrepreneur should make...or go broke... - YouTube

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Introduction

  • The video discusses the first five hires that entrepreneurs should make in order to grow their business and buy back their time for high leverage activities.
  • The first five hires are extensions of the entrepreneur and help with repeated tasks that are time-consuming but do not necessarily add as much value as some of the more strategic pieces of each of the roles.
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Order of Hiring

  • The order and sequence of hiring should be in reverse order of the value that's being delivered and or what you can get in the marketplace in terms of dollars per hour.
  • The first two hires are typically an administrative help and somebody in the customer success or customer support role.
  • The third hire is likely to be the first salesperson.
  • The fourth hire is somebody who starts assisting with the promotion or marketing of the business.
  • The fifth hire is a fractional bookkeeper who is really filling the gap for the finance hole.
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Buying Back Time

  • The process of entrepreneurship is always just buying back your time so that you can level up the amount of time you're spending on high leverage activities.
  • Entrepreneurs should not replace all of their time and then not do anything with that added time to add more value.
  • As each of these roles become more solidified, these people can ascend up and then have teams underneath of them.
  • The administrative person might have to send them into a director of operations who's really pushing each of the tasks and projects forward.
  • The sales person might become a sales director or sales manager who's actually leading and training a series of salespeople.
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The first 5 hires EVERY entrepreneur should make...or go broke... - YouTube

Conclusion

  • Entrepreneurs should think about the value they are making per dollar and how much it would cost to replace that dollar per hour.
  • The first five hires should be extensions of the entrepreneur and help with repeated tasks that are time-consuming but do not necessarily add as much value as some of the more strategic pieces of each of the roles.
  • Entrepreneurs should buy back their time to level up the amount of time they're spending on high leverage activities.
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Recognizing and Managing Debt in Entrepreneurship

  • Entrepreneurs incur different types of debt when starting a business, including life debt, management debt, financial debt, and technological debt.
  • It is important to recognize which debt to incur in what order to move quickly in the game of entrepreneurship.
  • Investors and venture capital can be advantageous in choosing financial debt to incur fewer other debts, such as operational debt, talent debt, management debt, and CRM debt.
  • Skipping through earlier stages of growth by incurring financial debt can help companies grow bigger, faster, and stronger.
  • Two major frameworks to consider when hiring a team are hiring in reverse order of value provided and cost to the marketplace and being mindful of the type of debt incurred.
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The First Five Hires for Entrepreneurs

  • The first five hires for entrepreneurs should be customer support, some sort of administrative role, sales or setter role, marketing assist, and fractional bookkeeper or IT person.
  • These roles are the beginning of the core team, and other departments such as finance and HR are built over time.
  • The marketing, sales, and delivery teams tend to grow as the company grows.
  • There is a higher ratio of IT and finance departments per amount of customers or employees in the company.
  • Entrepreneurs should hire people who have the talent to do the required tasks and recognize the people who have the talent to do the thing that is required later.

Watch the video on YouTube:
The first 5 hires EVERY entrepreneur should make...or go broke... - YouTube

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