Just Avoid Dumb Deals
Summary
- I'm frustrated with inexperienced business folks teaching others to make risky purchases.
- Buying a business with little understanding is a recipe for a bad investment.
- Assuming a business is 'free' just because it doesn't cost money upfront is a mistake.
- People often enter industries they're unfamiliar with, thinking they're smart enough to manage.
- Learning deal-making from a book doesn't equate to real-world success.
- These mistakes can lead to loss of life savings and wasted time on unprofitable ventures.
Video
How To Take Action
I would suggest starting small and smart. Learn the ropes of business before you jump into a big purchase. Don't rush into buying a business, especially if you're not familiar with the industry. Focus first on understanding the market, the competitors, and the customers. Take your time. It's better to grow your knowledge than to risk losing everything on a bad investment.
A good way of doing this is by gaining experience in the field you're interested in. Work for someone else's business. See how they operate. Figure out what works and what doesn't. This hands-on learning is much more valuable than just reading a book. It's about understanding the day-to-day challenges of running a business and seeing how to overcome them.
When looking at potential businesses to buy, really analyze the deal. Ask yourself, is this business stable? Does it have good cash flow? Am I getting into this just because it seems cheap, or does it truly have potential? Remember, a low price doesn't always mean high value.
Focus on your strengths. If you're good with people, maybe a service business where customer relationships are key is the right fit. Use what you're already good at to steer your business decisions. Bringing your skills to the table will increase your chances of success.
Finally, never bet more than you can afford to lose. Keep your overhead low. Avoid taking on too much debt. Make smart financial choices that secure your future, rather than putting it at risk. Keeping costs low and value high should be your mantra as you step into the world of business ownership.
Quotes by Alex Hormozi
"I get really annoyed because a lot of people who know a little bit about business are teaching people who know nothing about business"
– Alex Hormozi
"to try and buy businesses that they have no business buying"
– Alex Hormozi
"they end up doing dumb deals with dumb people but end up being the Dumber person in the deal"
– Alex Hormozi
"the only person who loses in the dumb deal is somebody who thinks that getting a business for no money means it's free"
– Alex Hormozi
"they lose their life savings and uh spend a lot of time trying to turn you know polish a turd"
– Alex Hormozi
Full Transcript
I get really annoyed because a lot of people who know a little bit about business are teaching people who know nothing about business to try and buy businesses that they have no business buying and so they end up doing dumb deals with dumb people but end up being the Dumber person in the deal because the only person who loses in the dumb deal is somebody who thinks that getting a business for no money means it's free have you seen this happen yes all the time they get into a business they have no business being in don't know anything about it and then assume because they're so smart that they learn how to do deals from a book that they're going to be better off and so what ends up happening is that they lose their life savings and uh spend a lot of time trying to turn you know polish a turd
