Alex Hormozi: Top Signs You Have The Wrong Business Partner

The video is about the top signs that indicate you have the wrong business partner, including the importance of having clear contracts and understanding the three main roles in a business.

This video by Alex Hormozi was published on Mar 18, 2021.
Video length: 12:11.

In this video, Alex Hormozi discusses the top signs that indicate you have the wrong business partner.

He shares his personal experience of having nine failed partnerships and emphasizes the importance of having clear roles and agreements in place. Hormozi also explains the three main roles in a business: acquisition, product, and operations, and how they are not necessarily equally weighted.

He advises against jumping into partnerships without considering whether the partner brings money or skills that you do not have.

• Alex Hormozi has had nine failed partnerships due to poor structure and unclear expectations.
• Partnerships should only exist if one partner has money or skills the other partner lacks.
• Partnerships should be based on clear business needs, not personal relationships.
• Partnerships should have clear contracts and agreements in place to establish clear expectations and communication.
• Every business has three main roles: acquisition, product, and operations, and partnerships should have clear roles and responsibilities for each partner.
• Having partners who overlap on everything is not a good partnership, and having all three legs of the stool (acquisition, product, and operations) is necessary for a business to succeed.
• Actions must be taken before results can be achieved, and specialization of skills is what moves humanity forward.

Top Signs You Have The Wrong Business Partner - YouTube

Introduction

• Alex Hormozi is known as the partnership killer.
• Entrepreneurs often ask about partnership roles and the value of partnerships.
• Alex has had nine failed partnerships.
• Partnerships often fail due to poor structure and unclear expectations.

Why You Shouldn't Have a Partner

• Partnerships should only exist if one partner has money or skills the other partner lacks.
• Partnerships often fail when both partners have the same skills and interests.
• Starting a partnership for emotional reasons is not a good business decision.
• Partnerships should be based on clear business needs, not personal relationships.
• Partnerships often fail due to unmet and unspoken expectations.

The Importance of Contracts

• Partnerships should have clear contracts and agreements in place.
• Contracts help establish clear expectations and communication.
• Partnerships often fail due to poor communication and unclear expectations.
• Partnerships should have clear terms for disagreements and conflict resolution.
• Partnerships should involve lawyers to ensure clear and fair contracts.

Top Signs You Have The Wrong Business Partner - YouTube

The Three Main Roles in a Business

• Every business has three main roles: acquisition, product, and operations.
• Acquisition involves marketing and sales to bring in business.
• Product involves delivering the service or product being sold.
• Operations involves managing the day-to-day tasks of the business.
• Partnerships should have clear roles and responsibilities for each partner.

The Three Main Roles in a Business

• Having the skill to bring in business is highly valued in the marketplace.
• Having the product that you're going to sell is also very valuable.
• Skill stacking is important, as having multiple skills means having two or all three of the main roles in a business.
• The three main roles in a business are acquisition, product, and operations.
• All three roles have to exist for a business to stand up.
• If you're missing one of the legs, it's not going to work.

Clear Contracts and Defined Roles

• When bringing in partners, it's important to be clear about what they're bringing to the table.
• If they're one of the three main roles, that's a clearly defined role that can be laid out in the agreement.
• If you've already started, you can look at the three legs of the stool and see where you're lacking.
• Put all the activities that happen in the business on a board and divide them out based on skills.
• Creating roles and responsibilities is the beginning of an organization.
• Specialization of skills is what moves humanity forward.

The Danger of Overlapping Roles

• Having partners who overlap on everything is not a good partnership.
• Figure out what each person is good at and draw a line on the board to divide responsibilities.
• If everyone's responsible for everything, no one's responsible for anything.
• Recognize errors early and split if necessary.
• Think big to become big.
• Start thinking about the first hire, which should be a strong operational second.

The Importance of Having All Three Legs of the Stool

• Marketing people who are good at promotion but have no fulfillment or organization are dangerous.
• Having all three legs of the stool is necessary for a business to succeed.
• Most businesses stay small because they think and act small.
• Actions must be taken before results can be achieved.
• Acquire skills yourself and then hire a strong operational second.
• Divide responsibilities based on skills and specialization.

Top Signs You Have The Wrong Business Partner

• Having unclear contracts and not understanding the three main roles in a business can lead to trouble later on.
• One of the biggest mistakes is giving away half of everything right off the bat.
• Other factors to consider include working schedules, vacation time, and responsiveness expectations.
• It's important to have these conversations now because it will be much harder later when expectations are not being met and money is involved.
• Married couples starting a business together can be successful because they often have different skills and dynamics, with one person being the go-getter and the other being more organized.
• Married couples also have the benefit of having an emotional sounding board and can relieve some of the stress that comes with running a business.

Watch the video on YouTube:
Top Signs You Have The Wrong Business Partner - YouTube