7 figure CONFIDENTIAL meeting LEAKED – business growth STRATEGY exposed…

Summary

• If you're stuck in your business, especially when trying to scale or franchise, the solution may not be what you expect.
• To get unstuck, focus on proving your business model's profitability before scaling further.
• For those in the gym industry, possible exit strategies include selling to customers or employees, especially while SBA loans are favorable.
• Licensing or franchising should only be considered if your business is highly profitable, with unit economics strong enough to attract interest.
• If your locations are not generating significant profit, consider consolidating rather than expanding. Focus on making your existing locations more profitable.
• Before you consider franchising or licensing, ensure your business runs efficiently and profitably without your direct involvement.
• In smaller markets, aim for higher margins due to lower costs and less competition, but be aware that lead generation can be more challenging over time.
• Aim to excel within your established market model before moving into new markets with stronger competition.
• Reflect on whether you're more driven by status or by the goal of making money; choose strategies that align with your true objectives.
• Take pride in building the best business you can, rather than expanding quickly for the sake of growth.
• A successful business model will take time to develop, so be patient and resist the urge to rush the process.

Video

How To Take Action

• I would suggest proving your business model's profitability before anything else. This means making sure your current locations are making good money.
• Focus on what's working. If one location is doing better than the others, think about putting all your efforts into that one and maybe closing the others.
• To get unstuck, look at your actions. Are you trying to open more places because it feels good to say you have lots of locations, or because it makes more money?
• Think about why you're in your business. Is it for fame or to earn money? Pick strategies that fit with your real goals.
• Work on making your business run well even when you're not there. This means training your team and setting up systems.
• If you're in a small market, aim for higher profit margins. Your costs are lower and there's less competition, but lead generation can get harder.
• If you're doing well in a small market, maybe stick with that and not rush into bigger markets with tougher competition.
• Take pride in building the best business possible. Focus on quality over quick growth.
• Remember, making a strong business takes time. Don't rush it. It's better to be patient and get it right.

Quotes by Alex Hormozi

"The most important piece and this is where everyone fails is they're just not profitable enough"

– Alex Hormozi

"If you really want to do this, you got to fix the model"

– Alex Hormozi

"Make it super profitable because of pride you have in doing a good job, not so that you can do x, y, and z"

– Alex Hormozi

"If you make your intention to build the best [__] gym out there, not so that you can but just because it is what you take pride in, you'll have what you want"

– Alex Hormozi

"Do the same thing for 45 years, you get really [__] good at making orange chicken"

– Alex Hormozi

Full Transcript

if you are thinking of what to do next in your business and you're stuck and you've been plateauing at the same space i was asked to speak to a group of seven-figure entrepreneurs one of the questions that i was asked was how to get unstuck in this situation this is a multi-location owner who's trying to scale and license or franchise their business and the answer that they gave him is probably not what you would expect and may be the reason that you are stuck or not advancing at the speed with which you would like all right and so if you don't know who i am my name is aux mozy i own acquisition.com it's a portfolio of companies that is about 85 million a year and so if you are new to mozi nation welcome and enjoy the video i'll see you on the other side joy what are the different exit strategies you recommend i think i cover that with anu i think that i think for most people if you were trying to exit the gym i would be looking at customer or employee um and then right now and this is purposely because right now sba loans are just a joke to get in like zero interest so i think that those would be and you can put a percentage of seller financing in there to get a number that you feel comfortable with and it also doesn't put too much cash drag on the business that could be pretty attractive from both sides yeah so kind of to clarify on the question i guess that i was wondering like so we've looked at you know licensing or franchising or we want to just grow as a company and then just you know eventually sell it or what and so we haven't come up with a clear strategy we thought we wanted to do like a franchise route until i started to investigate and realize that it was going to be a huge headache but i guess kind of what are your thoughts on you know in the gym industry if you what are the different avenues you can take to exit the company and i mean either keep it or sell it how many locations do you have right now yeah uh three working on a fourth are they all different markets like different states are they concentrating on market in central california so we're not we haven't even entered into like a metropolitan area yet um i don't know if you guys are familiar with fresno california that's probably going to be our first uh city quote-unquote that we go into uh we're technically considered like towns the facilities do you want to stay in the fitness industry yeah i mean i've been doing it for 14 years now and i can't really real question that was not it's not loaded that's like kind of top level question so if you want to stay in the fitness industry how do i best package the skills that i have right now for making money i have a very important question yeah how much money do the locations make uh this year each location we profited what a little over a hundred thousand per no that was total between the three uh this but this year we spent quite a bit of money we had a bunch of stuff we were going through without getting too into it to uh so we had probably roughly 50 000 of expenses that we had that we won't next year yeah the first thing i'm thinking is if you've proven out the multiple locations and they're like as profitable as they can be before you scale further that's what i would be thinking just from where i set just knowing the amount of people that i know who grow who have multiple locations grow to like you know say double digit multiple and then they go licensing or franchise the most important piece and this is where everyone fails is they're just not profitable enough dude they're not the union economics suck you know what i mean um like i'm gonna i'm gonna do the i'm gonna do the dave dunham throw punch even if you do the add back for the 50k that's the one time expense if you're doing 50 000 net per facility no one's interested in that it might be like the the nasty medicine but it'll actually solve the pain or solve the problem so if you've got three locations the fact that you said we're thinking about a fourth i'm like why on god's green earth are you thinking about a fourth location when we're profiting 30 000 per year per location like that we're like this shouldn't even be discussion and the fact that we went from one to three with what i would consider poor profit metrics i wouldn't have advised that either but we're in that boat and that's fine right here we are i would bet you dollars to doughnuts that if you got rid of two of them and then focus your attention on one you would make more money than you have from the three just straight up and i think you need to fix the model like for the mob because like do you know how many like and i'm gonna be mean with this and it's not directed to you but it's more direct to the industry do you like do you know how many mom and pop [ __ ] licensing and franchises there are of three to five location owners a [ __ ] zillion of them and you know how many franchises never get above 30 locations because once they open they do the unit economics that we're talking about right now most of them and that's why most of them don't grow or go anywhere the guy who started it feels good because he tells his family and friends that he's a franchise and then everyone's like oh wow but they're broke and they don't know anything and so why would you care about impressing them and so if the goal is to make the most money it feels like you're in a rush that's what it feels like to me hearing what you just said and so i would lean towards and like i said this is going to be like the sour medicine if you really want to do this you got to do it right and you got to fix the model and the like the locations that you have have to be corporate they got to be the best [ __ ] gyms out there for someone to even consider buying into this either from a licensing perspective or from a franchising perspective like these guys should be running on 30 plus margins with and if you're if we're doing you know is it a large group small group right now we're just doing larger so we haven't even introduced the small group in yet uh we're working on you know our 90-day and all that stuff on the front end make sure that you're in a smaller market which believe it or not means you should be running on higher margins not lower margins because in the small markets your costs are low and there's also less competition the disadvantage of small markets is that leads are great in the beginning and then they suck that's the that's kind of the trade-off and so um and if anything your word of mouth and your retention has to be more important in a small in a small town than anything if you like for example if you said we've got the small town model down it's like i wouldn't go to fresno i'd be looking at what other small towns are there because we have that model down you go to fresno you're competing against everyone you know i mean and the guys you're competing against they're pulling out 250 400 a year because their locations are rocking so i think that the i think it's a it's it's a big look inwards of like have i wanted to open more locations so that i could save more locations and is my goal status or is my goal money it's important you don't have to answer now but like it's an important question if the goal is money then i would look a hard look at the other two locations and think about is there one of these that i can combine into one i can take the eft throw it into the other one maybe lose half of it but i get all of it on the same fixed overhead make more money at that second location and then look at that you know when my lease ends at the other one so i can focus my attention on making this gym as wildly profitable as humanly possible and then until this gym is growing without me with a team that's incentivized now i have an asset on the balance sheet if you have an asset on your personal net worth balance sheet that can then be leveraged in a number of different ways you could sell the thing you could license the thing you could do the franchise because now you have an actual unit itself that generates profit in a with a high return on capital which is what someone's going to look at from a franchise perspective a licensing perspective or from if you crush it you could own them all the guy who lives above me um in in vegas i think i've told you guys he owns panda express he owns them all he isn't franchise [ __ ] he did he did 3.8 billion last year 26 margins guy 26 he took 935 million home in income that was his income when we asked what was the secret to success he said do the same thing for 45 years you get really [ __ ] good at making orange chicken i'm being real with you if it took you five years but then you had the best damn gym model out there and then five years after that you had 30 locations would that be enough because like life's long man and it feels like rush that's what i feel right now feels like there's a rush in a way i think it's just that we have a lot of people who were members in the past and moved to fresno and like we we think it'd be an easy entry to the market and so we do kind of feel like notice this thing is easy we've got three other gyms only making 30 grand a year you're going to put your attention there and those just go flat and then all of a sudden you're now at four locations you make no profit and then you're like [ __ ] when you were had when you had one facility just one way back how much were you making in profit a month like 40 grand so you make less money now and you got more locations yeah but we had kind of the at the time we were able to there was three owners and all three of us worked there and we had the small group and we had the personal training and in a way we had created the system that you guys have now but unintentionally and we just didn't even really realize it and now that we see it we're like oh [ __ ] that's why we made so much more money so uh we're getting back to you know our roots and trying to figure out how to implement it on a larger scale now and so that way you know once we do make it really profitable again then we have everything ready to roll for the next one so i would say one just final piece on this is just make it super profitable because of pride you have in doing a good job not so that you can do x y and z because then it makes x y and z the goal rather than the work if you make your intention to build the best [ __ ] gym out there not so that you can but just because it is what you take pride in you'll have what you want but it takes a big shift like i could just you know and if you'd asked me the franchise question originally like i could just say like yeah man like it's fine you got three out of fourth location and then you know talk to this guy and he'll set you up with franchising but like you wouldn't be successful not with the perspective that you have right now not with the uni economics if and i know this is probably not you know as fun on a group call but i'm just being real with you like if you really want to do this and you really want to do this fix the gym hardcore my feelings don't get hurt man i appreciate it i said it would love it it's absolutely desired for you to [ __ ] crush it action steps take a hard look at the other two locations i would consider consolidating one if you can look at when the other leases are up and then go back to making forty thousand dollars a month and then slowly slowly it might take a year it might take two years for you to get to that to keep forty thousand dollars a month without you being there at all once you do that then you can have the discussion of whatever else you want to do and if that sounds like man that's going to take time first point i said you're in a rush appreciate it mutual man thanks for thanks for speaking out