Alex Hormozi: 7 figure CONFIDENTIAL meeting LEAKED - business growth STRATEGY exposed...

The video is about Alex Hormozi discussing a confidential meeting with seven-figure entrepreneurs and giving advice on how to get unstuck in business growth, specifically in the gym industry, and why focusing on profitability and unit economics is crucial before considering licensing or franchising.

This video by Alex Hormozi was published on Dec 22, 2021.
Video length: 10:44.

In this video, Alex Hormozi discusses a confidential meeting he had with a group of seven-figure entrepreneurs who were struggling to scale and license or franchise their businesses.

He advises against rushing to expand and instead suggests focusing on making each location as profitable as possible before considering further growth.

He also emphasizes the importance of having strong unit economics and warns against becoming a mom and pop franchise with poor profit metrics.

• Alex Hormozi spoke to seven-figure entrepreneurs about business growth.
• He emphasized the importance of profitability and unit economics before franchising.
• Exit strategies include looking at customers or employees and using seller financing.
• Profitability and unit economics are crucial for franchising and licensing.
• Consolidating locations can make a gym more profitable.
• The intention should be to build the best gym, not just make money.
• Fix the gym model before considering franchising or licensing.

7 figure CONFIDENTIAL meeting LEAKED - business growth STRATEGY exposed... - YouTube

Introduction

• Alex Hormozi was asked to speak to a group of seven-figure entrepreneurs who were stuck in their business growth.
• One of the questions he was asked was how to get unstuck in the gym industry.
• The answer he gave was probably not what they expected.
• Focusing on profitability and unit economics is crucial before considering licensing or franchising.
• He owns Acquisition.com, a portfolio of companies that is about 85 million a year.

Exit Strategies

• If you were trying to exit the gym, look at customer or employee.
• SBA loans are just a joke to get in like zero interest.
• Put a percentage of seller financing in there to get a number that you feel comfortable with.
• It also doesn't put too much cash drag on the business.
• That could be pretty attractive from both sides.

How to Exit the Company

• They thought they wanted to do the franchise route until they realized it was going to be a huge headache.
• What are the different avenues you can take to exit the company and either keep it or sell it?
• They have three locations working on a fourth.
• They are all different markets concentrating on the market in central California.
• If you want to stay in the fitness industry, how do you best package the skills that you have right now for making money?

7 figure CONFIDENTIAL meeting LEAKED - business growth STRATEGY exposed... - YouTube

Profitability and Unit Economics

• Most important piece is they're just not profitable enough.
• The unit economics suck.
• Proven out the multiple locations and they're as profitable as they can be before you scale further.
• Why on god's green earth are you thinking about a fourth location when you're profiting 30,000 per year per location?
• If you got rid of two of them and then focus your attention on one, you would make more money than you have from the three just straight up.

Focus on Profitability and Unit Economics

• Locations must be corporate and the best in the gym industry for licensing or franchising to be considered.
• Running on 30+ margins is crucial.
• Small markets mean higher margins, but leads may not be consistent.
• Word of mouth and retention are crucial in small markets.
• Asset on the balance sheet can be leveraged for selling, licensing, or franchising.

Make it Super Profitable

• Make it profitable for the pride of doing a good job, not just for the sake of doing x, y, and z.
• Intention should be to build the best gym out there.
• Shift in perspective is necessary.

Consolidate Locations

• Consider consolidating one location to make it more profitable.
• Look at when other leases are up.
• Slowly work towards making $40,000 a month without being there at all.

Final Thoughts

• Fix the gym model before considering licensing or franchising.
• Take a hard look at the other two locations.
• Slowly work towards making the gym profitable without being there.

Watch the video on YouTube:
7 figure CONFIDENTIAL meeting LEAKED - business growth STRATEGY exposed... - YouTube