I made $100,000,000 in 3 years…this is how I did it..
Summary
- I spoke with a business owner making $550,000 a month who wanted to start a new venture to help physicians improve their practices, similar to how I helped gym owners.
- I advised against entering a saturated market without a unique value proposition, emphasizing that a lack of uniqueness and personal experience in the field is not appealing to me.
- Instead of starting a new business, I encouraged the owner to focus on scaling the current business that's already successful.
- Businesses usually plateau because the owner doesn't know how to grow them further, not because they've saturated the market.
- An exception to growth plateaus is when the total addressable market is shrinking, like in the case of newspaper advertising.
- I had another conversation with a woman making $4 million a year who was looking to expand into new lines of business, but I suggested she should instead concentrate on growing her existing successful business.
- I'm a firm believer in the theory of constraints: identify the single bottleneck constraining growth and address it to continue scaling.
- Prioritizing which problems to solve is critical, and usually, there's only one true constraint at a time.
- A business owner's incompetence at a certain growth level will cap the growth of any new ventures they start – improvement requires changing skills, beliefs, or traits.
- Being a CEO is challenging enough for one company, let alone multiple; focus and simplicity are key.
- The essential question for growth is identifying what prevents the business from reaching the next revenue milestone and then putting all effort toward removing that constraint.
- By systematically addressing constraints one at a time, growth feels manageable and clear.
- Entrepreneurs often mistakenly believe starting a new line of business or product will solve their plateau, but this is usually not the case.
- Focus on fixing the real issues within your existing business to scale effectively.
Video
How To Take Action
I would suggest focusing on what's already working in your business. If you're making good money, think about how you can make even more instead of starting a new venture. To scale effectively, figure out the one big thing that's stopping your business from growing. This is your constraint.
Here's what to do:
- Imagine your business is making more money than it is now. Ask yourself: "What's keeping me from hitting that next big money goal?"
- Write down the problems in your business. You may have a lot, but look for the BIG one. This is your bottleneck.
- Put all your effort into solving this one problem. Don't get distracted by other things. This one fix could help your business grow a lot.
- Once you've overcome that challenge, look for the next big problem and tackle that.
- Avoid starting a new business just because you're stuck. The same things that are problems now will be problems in the new business too.
- And remember, being a CEO is tough. Don't try to run multiple companies. Keep it simple and focus on making one business super successful.
By doing these steps, you'll see your business grow. Each time you fix a big problem, you're clearing the way for more success. And that's how you'll feel like you're flying high without getting overwhelmed. It's all about finding and fixing one big thing at a time.
Quotes by Alex Hormozi
"We need to be reminded more than we need to be taught"
– Alex Hormozi
"If you've gotten to a point in your business and it has plateaued, the question is: has it plateaued because you've reached the total addressable market?"
– Alex Hormozi
"A system will grow until it is constrained"
– Alex Hormozi
"A business will grow to the level of incompetence of the entrepreneur"
– Alex Hormozi
"Why don’t we just put all of our effort in solving that problem"
– Alex Hormozi
Full Transcript
i had a business owner reach out yesterday who's doing about 550 000 a month and they were requiring for us to become an acquisition.com portfolio company and the conversation was really interesting and so i thought i would share it with you so we hopped on the call you know within the first minute or two you know after saying hey you know how's it going et cetera um he was like yeah uh you know i had a bunch of clinics and then covet hit we took everything to telehealth and then our profit exploded and it's been awesome and i was like well that's great and he's like so what i'm thinking about doing is um helping starting a new business uh to help physicians uh improve their their medical practices and i was just like huh he was like yeah because you know you did this thing with gym owners and you kind of licensed your model out i kind of want to do the same thing with with with physicians and i sat there and i was like this is going to be a really interesting conversation and so after him going you know giving his reasoning behind this i was like well i have no interest in that business at all um and um i was like let me tell you why i was like first off you want to enter established marketplace that is incredibly saturated um the the value proposition that you have is not based on like a ton of personal experience right you have a handful of examples it's also not that unique there's plenty of other people who do this same thing and so you want to enter a space you've never been in before have a new acquisition system a value proposition that's not defined it's incredibly saturated and there's nothing new and i was like i have no interest in this business and he was like huh and i was like but what i am more interested in is why don't you want to take the thing that's making you 550 000 a month that you grew in two years and just take that to five million a month like why aren't you doing that and so he was like well honestly i kind of got stuck and i didn't know how to how to grow it from from here and so it was it was such a nice point because there was a pause and i could you could almost like hear him saying it to himself and hearing him say it out loud i was like so let me ask you this if we could go from 550 000 a month to you know to tripling your your amount of customers you have and going one and a half million a month i was like would you still be interested in doing this whole medical thing you know this other thing that you were talking about earlier with trying to teach medic physicians and he was like oh no of course not i would just want to do this thing and i was like okay so to be clear let me restate this because you got stuck in this existing business you thought the solution would be i will start another business huh not a good deductive reasoning pattern right and this is and this is obviously a very smart individual right and i say this because all of us right i do this i do this all the time right and this is going to be repeated theme because it needs to be repeated right we need to be reminded more than we need to be taught that is a saying that we have in my world and i will i will pass it on to you guys mosey nation we need to be reminded more than we need to be taught do the boring work repeat successful actions and so if he's gotten to this point or if you've gotten to a point in your business and it has plateaued the question is has it plateaued because this is true like i have the only reason a business should plateau that is reasonable that is not your fault is that you have reached the total addressable market as in you have saturated the total the total market of that thing so for example if you were selling dog food and every dog within this you know maybe you saw a specific type of niche of poodle food right you've gotten you know 70 of poodle owners to buy your food and you can't grow any more beyond that right well that would be reasonable but then you'd obviously just do a different type of dog right you you'd hop verticals right so there's not even a reason but it would be the only potentially rational reason would be that your market has changed so a different example is a friend of mine owned a company that does uh newspaper advertising right so they actually help newspapers translate their advertisements into uh digital products which is pretty cool so they are able to sell like basically a whole new ad product to small businesses um who want to buy ads right which is by the way how newspapers make money he could not grow his business because newspapers have shrunk by 25 year-over-year which is 25 compounding the wrong direction and he's been in that business for like 10 years so now the market size is like literally like five percent of what he used to be 10 years ago and so as a result of that he was growing at an inverse rate to the shrinkage of the industry right and so he got to a point where he couldn't grow any more than just basically servicing the ones that are still alive and then as they fell so did his business right and so that is the only logical reason that a business can't plateau that is not in your control and unless you're selling your newspapers which you're probably not the reason is much simpler which is you just don't know how and i'll tell you a different story that i had and then i'll i'll i'll wrap this up at the end so i was having a different conversation with a woman who was doing i think four million dollars a year and she was selling uh info products that were weight loss like weight loss info products so like programs and ebooks and things like that which is cool right she's a big following all that kind of stuff and we got i went i did a podcast with her and uh after we got off the podcast she was like yeah so these are my plans i'm gonna be doing like an apparel line and a supplement line and uh cream line and or whatever right and i just kind of sat there and i was like well i think that's a terrible idea she was like she just looked at me crosstalk she's like what i was like yeah i think it's a terrible idea and she was like oh and i was like why don't you just take the thing that's making you 4 million and make it make you 10 million dollars when you do that and the and the answer is the same as the first answer i just don't know how and i was like right well why don't we solve that problem and then not create a new business why don't we just put all of our effort in solving that problem and so i'm a big believer and this is the the piece that i want to share with you mostly nation is that i'm a big believer in the theory of constraints which means that a system will grow until it is constrained right it has a constraint and then once you remove the constraint it'll continue to grow right until it reaches another constraint and so most people are always curious or many people ask me hey alex how did you achieve quote so much in quote such little time or at such a young age and i say all that in quotes because so much could be and young age whatever but i'm saying i'm just i'm paraphrasing all right and i think that um one of the things that we have done well is prioritizing what problems to solve and that is understanding the prioritization of problems and realizing that there is really only typically one or two things that are constraining our growth and by definition there'd really only be one thing that's the constraint until we reach another thing that might be beginning to constrain us but isn't the true constraint yet i'll tell you a third story so i had a conversation with a young business owner who was doing about 150 000 a month within you know a little bit of time i was able to see that the issue that he had was that he hadn't scaled a sales team right that was the issues that he couldn't scale sales and we had there was a zillion things that he could do to improve his business he couldn't increase his lifetime gross profit he could change his price his pricing model i think there were some things on his messaging that were off at the end of the day the thing that he hadn't done was that he hadn't scaled a sales team and so we ended up circling back two weeks later and he was like hey you know um i want to know how i can like get the most out of this this phone call with you i was like well have you have you scaled the sales team yet he was like no i was like well then we don't really have anything to talk about because there's nothing else that matters right now besides this and it took like two or three reinforcements of that message until he was like you're really not going to tell anything else i was like no because it doesn't matter it doesn't matter that's not the constraint right now sure you could improve your pricing sure you could do these other things but the thing that is stopping this business from growing is that you do not have a skilled sales team and you don't have that skill so let's phrase the deficiency as a question which is how do i learn how to recruit manage and and and train a sales team and to the first business owner the question that i said who was doing the 550 a month was during the clinics it's like the question is how do i scale acquisition and he had uh he had a product that was um it's not allowed to be marketed on um on on facebook and things like that so he had to do alternative methods and i was like so the question is how do i acquire more customers than i already am from a different channel that i'm allowed to when we phrase the questions like that then they become problems that we can solve right rather than i don't know what to do therefore i will just start another business which so many times is the is the entrepreneurial solution and it's because it feels good and we think that somehow when we start another business it's going to somehow grow but the reality is and this is what i have found over and over again is that the businesses will grow to the level of incompetence of the entrepreneur so if you're a 4 million entrepreneur the next business will be a 4 million business doesn't matter what it is because that is your level that is your skill set right that is those that is that is dictated or predicated by your beliefs your traits and your skills and unless you change one of those things when you start the next business you will be capped at that and the other reality is that how many ceos of publicly traded companies do you know that rc's are two companies ceos not founders elon musk is the only is the only exception but he's the founder he's not the one who's running he's not the operator of those companies all right there's literally only one right and he's also a genius and literally like the smartest human being alive but most of us are not elon musk we're if we're on youtube right now we're probably both not elon musk all right maybe we can agree on that all right and so the point of this is that you can't be ceo of two things it's hard enough to be in one business business alone is hard enough right why make it more difficult and three times as complex by by adding more variables in and so i think what most business owners most entrepreneurs can do right now is simply ask the question and this is usually what i'll start any conversation that i have with an entrepreneur who's reaching out for something right or one of the portfolio company ceos is i'll just ask the question which is whatever the run rate is at the moment let's say it's a million dollars a month i'm like what's stopping us from being at 5 million a month what's stopping us and until we can clearly answer that question there's nothing else we need to do and when we ask better questions we get better answers why am i not growing is different than why am i not doing an extra million dollars a month what is stopping us from doing that and if we can get crystal clear on that then we can find the constraint and then we can remove the constraint because we can put all of our effort towards that singular problem and that in my opinion is how you scale companies quickly is it appears fast from the outside but from the inside it feels manageable and clear because we're all focused on the one problem that we're solving at this moment which might be in the beginning we need to increase our sales team and then once we've increased our sales team we might say hey you know we've increased the sales team but they're not all performing the same level so it's like okay we need to have better onboarding and training for the sales team okay we need to do that okay that's the next problem that we solve we have consistency in this process okay now we're doing that but now we're not getting enough leads okay now we'll put all of our focus here right and so each time there's going to be a constraint and we just have to focus our attention towards the constraint and then in so doing we will de-bottleneck and we will naturally grow to the next level and so that has been one of the more valuable lessons that i've had and i i will tell you that there are a lot of entrepreneurs who are listening to this you right now it might be you so i might be talking to you right now is that you think that you need to start another business or another product line because you're stuck at a current level and somehow think that this new product line or new business is going to solve the problem and it is not so if you like this mother nation my name is alex from rosie i own acquisition.com you can go there for free trainings all free no opt-in required etc hit subscribe if you liked it and i'll see you guys next video bye
