How to Scale Your Business Fast

Want to SCALE your business? Go here: acquisition.com
Want to START a business? Go here: skool.com/games
If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.

[@aharmon]

This is the kind of content I've been endlessly searching for, but that nobody actually ends up providing. You, Alex, have changed my life forever. I can't thank you enough for sharing what you know in such a palatable, clear and concise way.

[@tanuki88]

I feel the same way honestly my favourite KZbinr right now

[@MaruHieta]

The value proposition here is unbeatable. Do this to get rich in a smart way, I'm not asking anything in return!

[@kevingarris198]

In fairness to the others, they are not withholding anything, they simply have nothing to offer.

[@danieljoachimnielsen6379]

You said it.

[@networkerfox]

Same

[@omaressam1081]

The fact that this content is free is mind blowing

[@robertocartagena7776]

Im so glad there’s a community of like minded individuals that appreciate quality content and business development.

[@rod-a-guay]

- [01:25] 🥧 The Pi Equation: A simple division equation, Inflow divided by Outflow, used to project business growth or shrinkage. - [03:45] 🔄 Using the Pi Equation to calculate hypothetical maximum clients based on inflow and churn rates. - [05:36]💰 Determining lifetime value per client by considering average revenue and churn rate. - [07:44] 📊 Combining inflow and outflow rates to estimate overall monthly business revenue. - [10:05] 🔮 Introducing the Golden Ratio: Achieving net negative churn through a balance of referral and churn rates for sustained growth.

[@quentinwiley_]

man tbh you did the math of WHY not how to scale business fast when looking at this from a product perspective. It's way easier to fix a client based business than to scale a product business. Would love to know more about scaling a product and best route for self-manufacturing

[@danieljoachimnielsen6379]

The shear amount of confidence you provide to new players are .. jaw to the floor. I applaud you Alex!

[@LucianoDevoto]

Alex, you are a national treasure mate. The me and the YT community are truly grateful for you wanting to share your knowledge with us all. Thank you 🙏

[@aregaghayants3499]

4 years of bachelor degree and 2-3 years masters in less then 17 minutes Legend!

[@koko.mendez]

This completely blew my mind! I am so grateful to have come across your simplistic and so valuable content. Thank you! Thank you! Thank you!

[@champiat]

This reminds me of the old ancient proverb: If a tree falls in the forest and no one is around to hear it but 2 customers join the gym, 1 customer leaves and one customer is referred, what is the rate of growth for the gym?

[@Toby-rl8sg]

Epic Comment, Epic Profile Pic! 😂🙌

[@Livewithpurpose239]

I don’t have enough words to describe the value you give to me and so many other’s. Thank you!

[@richardkydd5481]

Thank you for the vids! You really have a way of explaining and simplifying in a complex world. I'm forging through the learning curve of businesses and your instruction is extremely valuable.

[@rambobakri]

Hey Alex, joining you from the UK. Really appreciate the content efforts and how pragmatic your approach to business and your videos is. Spot on!

[@ryanthomasonLIFE]

This has literally changed the course of my life and my business.... I no longer feel I don't have a handle on my business and I'm actually controlling so much more. I can't thank you enough, just know you this has impacted my entire current and future life and doings. A simple Thank You isn't enough for this.

[@matthewgarcia920]

hows it going

[@danielmcpherson9062]

@@matthewgarcia920I’m good thanks, how’s you?

[@alejndraalmirowitsch4897]

The value from this video is off the chart mate, i use it immediately and gain clarity on my future

[@josheberth2541]

Awesome podcast! You’re a great teacher Alex! This is so valuable! Thank you for what you teach

[@delsajoseph]

I be liking these videos before I even see them. Grab my pen and paper.

[@bluchill]

The value Alex brings is other worldly!

[@capi4k985]

This guy is changing Everyone life, thank for so rich content that nobody else share.

[@banksfit5302]

Binging content from most to least profitable. Unreal content thanks sir. Taking notes on holiday right now, feel recharged and ready to crush things when home.

[@christheideaguy]

This is gold! Really helpful to know what outcome you are headed towards before you even get there!

[@kelvinlewis3947]

Good stuff. That's actually really useful because I have a repeat monthly service business and this can help me with my planning a lot. Also makes me realise my data tracking sucks. So I can immediately work on data tracking and start using the "pie equation" to let me scale safely.

[@scottgibbensgroupllc642]

Great info! Thanks for sharing.

[@andreasdippel2072]

The good old videos. I love the format more than the current😅

[@5675421]

This is amazing stuff. I love geeking out generally, and this tool will be a game changer. Thank you Alex.

[@lukemackey4820]

So good! I’ve watched this many times.

[@RomanKozlov007]

This is worth rewatching!!!

[@mynorportillo5941]

Give me more knowledge!! Great stuff man.

[@ibraheemnadeem5426]

Love this! Thank you for this video!! 🙌🏽

[@JustinLietz]

This guys business chops are genius level, provides limitless value for a win win situation

[@user-xz2wg1si1e]

You are just the best.... so much thanks from south korea. Love your content and the vibe you are sharing

[@radheshyamdevotion7132]

I just watch all of his videos... Great teachings

[@ViaAvione]

Thank you for sharing

[@normg8503]

Alex you are Awesome brother! I am forever grateful for your life changing content. Thank you for sharing these valuable nuggets!

[@angelsalazar1123]

Thank you so much for changing my life! and not only that, but the lives of so many other people that will be helped by me thanks to you providing all this amazing information with each video. I much believe in reciprocity and you sir are giving so much to the world so I pray and wish you the best happy and most fulfilling life. Keep being amazing!!!

[@yasirbugrara]

The golden ratio is a great and simple way to describe and measure the network effect.

[@dan_consulea10]

Best mentor ever !

[@ysapunkov]

So simple, yet so effective! Amazing!

[@PM-st6vu]

Cannot fathom the business lessons explained in Fibonacci terms (Golden ratio). 🙌🙌 Grateful to come across your channel.

[@jackburton709]

Thanks Alex, very helpful!! ❤️

[@grantmoreland914]

Another Gem! Thank you thank you!

[@theodouloskoullapis9923]

alex you are a genius and i love you! much love from Cyprus

[@javierdeblasgo]

This is incredible! Thank you so much Alex! 👏

[@manoharreddyyaram]

Mind blowing stuff Alex, Thanks for the advice

[@stuartdonaldson5919]

This is cool. I had my LTV calculated the long way lol (export customer list, work out how long they stayed and the average monthly value). This makes it super easy!!!!!!

[@tajsalaam8850]

This is great! Thank you! 🙏🏿

[@kimvangvideomarketerbangko3265]

If you plot in your revenue for a few consecutive months in a graphical calculator and you see the growth is decaying over time as in your graph, you could do a logarithmic regression to see what you'll be making every month from now until you reach your hypothetical horizontal asymptote

[@Survivorchap]

Could you explain that a bit more or share a Google Sheet with it in there please?

[@nicsykes8]

On a side note… 😐 who the hell is putting a Thumbs Down on these videos?

[@EddyLeeKhane]

Jealous people Or some folks who found a flaw in his advice, but too lazy to correct him

[@creativitydad5781]

Hormozi University…I will graduate one day by making millions and provide even more value to millions. 😎❤️

[@JacquiMwangi]

Love the golden ratio! Thanks Alex!

[@nicsykes8]

Fantastic Alex. Thank You!

[@MasterBrain182]

Thanks Alex. You rock 💯👍

[@yashb2997]

Amazing video! You are the GOAT. Quick question - how would you go about using the PIE equation for a product-based business?

[@JoeGannon]

Time to action this. Incredible value as always, Alex

[@BackyardWaterGarden]

Thanks. Suoer helpful and explained very well.

[@mikejeya]

I really hope I get the chance to thank this man one day! Mersi

[@skillofathleticism]

Thank you for this 🙏🏽🙏🏽

[@rickesselment1540]

So glad to have found this content

[@bradbotsch8949]

Game changer. Thank you

[@Worldlywishes]

Amazing content. Thanks Alex.

[@RobertTradesOfficial]

This is amazing, thanks Alex.

[@TaylorThoughts]

Amazing video

[@LaserGuidedLoogie]

Top notch man, seriously.

[@HarishNLogan.]

Damn how can this much valuable information is free

[@anthonyminniti17]

Thank you for sharing!!

[@SuccessIsEngineered]

Dude ... this is the coolest fucc'n video EVER! BAR👏🏽NONE👏🏽... Thx Alex 😎

[@magnusbestest]

Again, pure gold bro

[@theturtlecode4665]

Thank you so much man

[@pkmjr23]

great vid as always

[@brandonemmanuel5032]

This is gold mate 👌🏻

[@seempaq]

I feel like I’m getting a Relevant MBA for free.

[@dalemyers9045]

I have an MBA and Alex's stuff far surpasses most of what I learned. I won't say my MBA was irrelevant but just not as actionable.

[@freedomdagr6830]

Very interesting equation. I will have to watch this a few times to get all the information!!

[@shawnemployee6906]

Does anybody know how the pie equation would work with a business that doesn't have a recurring monthly pricing model? What if there's just a one time cost then there wouldn't be any churn unable to do the pie equation right?

[@MRoesterreicher1]

asking the same here

[@fktcatalyst3571]

churn - 100%, LTV - Price point

[@deanthonycallahan2844]

This is a very good piece of knowledge and presentation !

[@manuelcurtojr]

I learned english hearing you, and to be able to understand you

[@DigitalAscensionGroup]

Using this today! Epic

[@dosswole]

Taking notes to grow our business 🔥🔥

[@OysterPir8]

Dude - I am binge watching your videos like a crack addict that won the lottery

[@Steven_Shelton]

yo not gonna lie, i hit rewind a few times but this shit goes hard. its so easy.

[@NattyKingEthan]

Thanks Alex!

[@Jaysee2164]

I miss content like this, the new content feels like a tik tok video 😅 still tremendous value

[@hadihadi676]

yeah he is much more calm in these videos

[@mrmanq9517]

Beast mode!😎🔥

[@MountainofInspiration]

Beyond informative

[@richardjackson9725]

Oh f@@k needed to know this 5years ago 😂

[@fnteligenciaFinanciera]

oh my God very helpfull!!

[@user-fu4vh9ec6c]

Love this content, thank you. Would love to see some shark tank reactions from you!

[@Chan-rc2hw]

Interested to see how others think this could be applied to a property buying to lease business

[@LinhPodetti]

This is gold

[@Lvnine9]

shout out from Korea

[@classock3264]

Thank you

[@blandon3243]

Can anyone tell me how he arrived at $10,000 per month for the 3rd equation about upfront business? Is that upfront business the LTV? Because relating back to the previous numbers, it's 5 x $1,000 / m which would be $5,000 max minus outflows.

[@TaylorThoughts]

Great video

[@WorldAcclaimed]

Good stuff

[@doggereats]

Can you do It with Profit from each customer divided by churn? To really know how much you can spend yo aquire a customer

[@MelbourneStrengthCulture]

Wouldn’t believe it. ran the numbers, and we are at the peak with our current numbers haha. Time to drop churn

[@Dyejk]

Great video❤. But how do i calculate churn? Maybe i didnt get something

[@titsonafish]

This is f*ckin beautiful.

[@krum81]

Just woke me up that my saas company is at cap. Time to fix something, thank you

[@charlesjohnson7222]

Alex, I’m contemplating opening a toddler play land. What can you tell me about how your recurring revenue and acquisition models would benefit me from pre-launch sales through growth toward maximizing my “pie ratio”?

[@cavemanjoe7972]

It's the Golden Goose Equation.