What I Learned After Countless Failed Business Partnerships

Want to SCALE your business? Go here: www.acquisitio...
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.

[@mikebarbu231]

dropping gems left and right. Thanks brotha 👍

[@RyanHelms]

Thanks for sharing this behind these scenes stuff. Super insightful.

[@AlexHormozi]

100% man

[@jonathan_mcguinness]

So clear, and easy to see you have been through it. It has been hypothecial for me until now. Thank you

[@armanngu]

What an amazing piece of advice, if you're not gonna sell just set up an agreement!

[@kiddytube3915]

I don’t wanna own a company. I’m happy to profit share with someone who’s willing to fork out the cash to fund the operations and business. I just want to drive the technology, the customers, and the business model.

[@businesscoachacademy4594]

Hi Alex, love your content! These seem to be from mentor calls outside of the gym industry. If you are doing something like that I would be eager to see the investment and get started as we are right before building out sales team.

[@itsjessedrifts3740]

You should do more Q&A!! Love this

[@bobevans5777]

Please do more of these !!! Please Alex !!

[@ChrisOzar]

What if the company doesn't sell?

[@PM-st6vu]

Can you please elaborate on 'equity as a liability' for the first business case? How does one factor in that? Is that a function of time or based on the value proposition other partner provides.

[@martinmenesestv]

If you don't need a partner just don't have one

[@dunoclenor]

Hey Alex, do you think a done-for-you service-based SMMA can be scaled to 8 or even 9 figures a year?

[@joannyeh7228]

This is GOLD! Thanks :)

[@raxn2673]

"It depends on whether the kid is good looking or not and if he's rich or not. So if it isn't making much money, just say to your business partner 'hey why don't we just both fuck off?'" In the context of parenting, that sounds so wild 😂😂

[@tomas_marques]

Hi, what mentorship program is this? Is it still open?

[@armanngu]

I wanted to ask the same thing!

[@KlaasVictor]

Very interesting, thank you!

[@josephbrolly7232]

Solid advice as usual Alex. These strategy sessions are awesome.

[@WebsParaEmprender]

This is some smart stuff 💯

[@AlexHormozi]

Appreciated. Ty.

[@rickesselment1540]

Sweet. Thanks

[@radonsmith4386]

Business partner need to complement each other. Never do business if you just have the same interests or skills. Does it really need to be an equity partnership. People only want equity for controll or for cashing out. Easiest way to have hard conversation is just tell them the "shit" right to their face. LOVE IT!

[@readdescriptionbox6542]

Nose so pointy needs a "nose-chair"