Alex Hormozi: I stepped down as CEO...and created a PASSIVE INCOME machine..

The video is about how to turn an active business into passive income and the process of transitioning from being an active CEO to a passive owner.

This video by Alex Hormozi was published on Aug 6, 2021.
Video length: 09:30.

The video is about how to turn an active business into passive income, with the goal of achieving freedom as an entrepreneur.

The speaker, Alex Hormozi, shares his experience of stepping down as CEO of his business and creating a passive income machine. He explains the mental framework of going from active to passive income and how to delegate low-value tasks to free up time for higher-value skills.

He also emphasizes the importance of filling up the extra time with more valuable tasks and shares his personal example of how his business generates half the profit but involves him for only 90 minutes a week.

• Entrepreneurs aim for freedom and passive income.
• Transitioning from CEO to owner involves going from active to passive.
• Entrepreneurship involves arbitraging time and leveling up skills.
• Jumping two steps forward allows for growth and more freedom.
• Having other metrics for success besides money is important.

I stepped down as CEO...and created a PASSIVE INCOME machine.. - YouTube

Introduction

• The video is about turning an active business into passive income.
• The goal of most entrepreneurs is to have freedom and money coming towards them.
• Anything can be made passive or active.
• Entrepreneurs tend to make passive things more active to increase returns.
• Chasing time is not sustainable.

Transitioning from CEO to Passive Owner

• Example of Gym Launch making 17 million in profit in 2018 and 8 million in 2020.
• When the business made 17 million, Alex was the business and involved in everything.
• Now the business generates half the profit but involves Alex for only 90 minutes a week.
• Transitioning from CEO to owner involves going from active to passive.
• People tend to jump out of the CEO seat too soon.

Arbitraging Time and Leveling Up Skills

• Entrepreneurship is about arbitraging time and leveling up skills.
• Delegating out low-value tasks frees up time for higher-value tasks.
• People tend to outsource their time but not fill it back up with higher-value skills.
• Re-filling time with higher-value skills is necessary for growth.
• Going from active to passive involves replacing roles and getting time back.

I stepped down as CEO...and created a PASSIVE INCOME machine.. - YouTube

Jumping Two Steps Forward

• Looking back at what you were doing a year ago should look different than what you're doing today.
• If you can jump two steps forward, your business can continue to grow at the same pace with someone else doing what you were doing.
• Transitioning from CEO to owner involves owning the business while someone else does the work.
• Jumping two steps forward allows for more time and freedom.
• Having other metrics for success besides money is important.

Turning Active Business into Passive Income

• Active income businesses can be turned into passive income assets.
• Businesses that rely on the owner's personality or involvement are not sellable.
• Separate what you do from what you own within your net worth.
• Delegate what you're doing now and then get someone else to do the next thing.
• Take two steps forward from where you're at right now.
• See the weaknesses of your own business better when you're outside of it looking in.

Transitioning from Active CEO to Passive Owner

• Don't transition too soon.
• Put someone in place to do the things that you're getting paid for.
• Continue to keep the things that you're getting returns on.
• Your net worth increases even though the profit of the business decreases.
• Focus on increasing revenue without being involved.
• Ask better questions to get better answers and grow the wealth of the business.

Watch the video on YouTube:
I stepped down as CEO...and created a PASSIVE INCOME machine.. - YouTube