Alex Hormozi Explains the Harsh Truth Of Being A Business Owner

I haven’t heard anybody articulate this any better. This is literally what I try to explain to friends and family!

Did you switch to hostage tape?

Thank you for this. It’s something I have grappled with in all my ventures and didn't think anyone else understood.

As a business owner, this really resonated, thank you for the truth bombs Alex

This is assuming that all costs are fixed, but a lot if not most are actually variable and move in line with revenue, depending on the model.

I feel like this was the most connected talk I've had with a brother after years of (happily) missing out on all the parties and drinking and all the pointless hanging out.
I bet if I were around someone like this in real life there's no denying our successes!

In the game? lol. Way to be professional man.

This is why I'm terrified to hire coaches. I've been running a 1 man show for 11+ years(there were a few years where I had "a" coach. But it's time now to grow up and face my fears. I appreciate you Alex. Great job on your book launch. You gave me the game plan, and I'm ready for war.

Yeah exactly, my wife doesn’t understand why I get insecure about money when on paper I make a lot with my business. Gotta build up those savings.

Depends on your margins. Software doesn’t have that many expenses. You make $100,000 you keep 80%. You can also have AI to do most labor these days.

Way too much truth here lol

This is exactly how I feel the past 5 years. Entrepreneurship is a hard game to play, but I feel that I don't want to choose boring life. Thank you, Alex. Your content gives me confidence that I’m on my way.

🔥🔥🔥

We deal with the same challenge when managing condominium reserve funds. Over all you have enough money that will come in but in a given month you might need a big purchase and could go in the negative

Anyone ask me about " How's Business" I'm playing Alex video. This One!!! 🎉

I'm glad you cared enough to cut out the feet. I hate videos where the important person talking has his fkn feet out.

This chill style is the best! More morning mozi

Exactly where I am right now. A lot of volatility, my mental stamina is wavering and staff is frustrated.

It's tough, but that's why we do it.

Great entrepreneurs, treat every day like it's their last day. Great employees, treat every day like it's their first day.

This is extremely brutal. Everyone understands profit, yet very few survive after taxes and total expenses. Your personal bank account as a business owner is like trying to live with no money coming in, while you work 7 days a week to make sure your business runs. Keep your expenses low, or you will see yourself homeless and sad. It's all a ratio of how much anxiety you can handle, after money is deducted from your business.

This is the realist business owner talk ever. Period.

This is why the first think I am looking for in a business is an high margin and preferably low costs. Otherwise it feels like you u r working but ain't achieving anything. It's crazy shit.

I wish more employees understood this. I had this very conversation with a couple of family members and they feel like companies like Amazon have enough money to give everyone raises. They don't understand that the owner is taking ALL THE RISK and needs to have a surplus in order to cover future expenses in the event there's a low month. Even when I say, where do you think the money is going to come from if these folks get raises? Prices of everything now goes up for the consumer to cover that cost. Its a balance.

Thanks for making this one. Hits very close

Employees still may not understand this.

I predict that your next book will be on this topic.

A lot of people don't understand the difference between revenue and profit.

You and Lelia are my spirit business animal ❤🎉

I love this real content

Would love captions on those videos!

I like allex but the nose brace is incredibly pretentious. Fucking drop it Alex. Get over yourself.

The dark corridor I'm walking down keeps getting brighter with all the little bits of knowledge like this. I think I can make out some picture frames on the wall😅 I'm getting there, really appreciate the content and honesty that saves me hundreds, if not thousands, of little stumbles on my path

As much as Alex says TLDR I still don’t know what that stands for lol!

Now we know why he runs ads on these videos

EASY fix. Day of rest weekly, pontificate on other things. Whether religious or not, your biz and skills never gonna come close to that analogy. Self-employed, full-time, 20 years in labor biz, and family counts on me for fundamentals. Our author here still exercised it appears…. Harvey M of Sharks book already wrote biz never stops so personal life you cannot do only when biz down.

I have an IT service business with just myself, basically a job. He's super right, everything is stressful.

Amazing explanation. So many people think they know what running a biz is like.

I’ve never heard this more clearly explained

The early days of building a business...

1.Being an employee is the riskiest resource gathering model.
2. Being an employer is a 7 years fat, 7 years lean mindset.
3. The imbalance in reward between the two minddsets is mainly due to the prussian education models main goal to make better workers and soldiers.

Its a skills gap not a risk acceptance versus reward difference.

The higher up the investment skill ladder one goes, the less outside risk there is and more control one has over the outcome.

As a business owner, I just want to send this to my friends and family who insist that I’m “not that busy” “it can’t be that hard” or “you always working, you haven’t come to see me in a while”. Like I’m treading water, trying not to drown. Because I believe that I’ll be able to cruise on a yacht some day. But now I’m just trying to survive.

The constant fluctuation and the emotional rollercoaster can only be endured if one truly loves what they do. If one doesn't love what they do they will, at some point, back out of the game because the distress will overcome any interest in the thing. The word passion means "to suffer". If you're not willing to suffer for it, you aren't passionate about it, and most likely won't succeed in it.

They literally don’t understand this, and then complain when the very few business owners who actually make it…. Make a lot of money. Entitled employees crack me up.

What i've learned here is that you just have to work with at least 40% of margin :D . Who is even working with less than 30%?

Some real talk. I’m appreciative of you Alex for this trend to brutal honesty. Keep doing what you do Hormozi team.

Interesting how Alex is speaking of profit and revenue here interchangeably. Normally are two separate values, but when a business is struggling to pay costs, profit and revenue can be defined Interchangeably I think.

I began my investment journey at the age of 33, primarily through hard work and dedication. I am to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity

The "busy" part of business is why I will stick to investing to build wealth. I've spoken to MANY old people who wrecked their health because of work. I refuse to do that.

Building any kind of business it's necessary to take into consideration worst type of scenario: low income, high expenses and first profits in best cases come not earlier than 3 years of running a business. Market Analysis and Business Plan is the hardcore of any business let to anticipate any obstacles and pass smoothly hard times. Be realistic with low expectations.

😮‍💨Felt this one

Yes!!! But so few people understand you..