Alex Hormozi: This first hire nearly bankrupt me...but was worth it..

The video is about who to hire first when scaling a business, and the speaker suggests looking at the greatest percentage of time spent on an activity and the lowest cost activity that is the highest percentage of time to determine which activity to outsource first.

This video by Alex Hormozi was published on Nov 1, 2021.
Video length: 06:11.

In this video, Alex Hormozi discusses the process of hiring when scaling a business.

He suggests that the first hire should be based on two factors: the greatest percentage of time spent on an activity and the lowest cost activity that is the highest percentage of time. Hormozi emphasizes the importance of understanding the problem being solved and hiring to give back time. He suggests that the first hire is typically an administrative or customer fulfillment assistant.

Hormozi also discusses the importance of productizing services and building infrastructure to allow for future growth.

• The video discusses who to hire first when scaling a business.
• It suggests looking at the greatest percentage of time spent on an activity and the lowest cost activity that is the highest percentage of time to determine which activity to outsource first.
• The objective of the hire should be to give you time back and get the most time back for the least amount of money.
• The first few hires are usually administrative help or someone who can assist with fulfillment.
• If you have productized your service, figure out how you can reliably replicate the same outcome among customers.

This first hire nearly bankrupt me...but was worth it.. - YouTube

Introduction

• The video is about who to hire first when scaling a business.
• The speaker suggests looking at the greatest percentage of time spent on an activity and the lowest cost activity that is the highest percentage of time to determine which activity to outsource first.
• The objective of the hire should be to give you time back.

Determining Which Activity to Outsource First

• Look at the greatest percentage of your time spent on an activity.
• Look at the lowest cost activity that is the highest percentage of time.
• Determine the scribe of value to each of these types of things.
• Outsource something that has a lower likelihood of impacting your business in a negative way.
• Play defense when looking at how to hire.

The Objective of the Hire

• The objective of the hire should be to give you time back.
• Get the most time back for the least amount of money.
• The process of entrepreneurship is just buying back time and increasing your level of skill.
• The final place that you'll have is that you'll just be making decisions.
• Have a vision that everyone is aligned with that they're making their decisions through you provide the lens through which people underneath of you make decisions in alignment so that they can move the entire organization forward on your behalf.

This first hire nearly bankrupt me...but was worth it.. - YouTube

First Hires

• One of the first few hires will be some sort of administrative help or some sort of first follower who will help you who believes in you and believes in your vision.
• Find those types of people and that is very common as the first type of hire is kind of a jack of all trades admin help person.
• The other type of hire that is usually one of the first hires is somebody who can assist with the fulfillment.
• If you have productized your service, figure out how you can reliably replicate the same outcome among customers.
• Productizing the service means that in the beginning you'll need to always work overtime because you're basically working on doing the business things while also building the infrastructure foundation so that other people can work within this model.

First Hires for Scaling a Business

• The first hires for scaling a business should be for the activities that take the most amount of time and provide the least amount of value.
• As you move up the value ladder, the hires should be for the activities that bring the most amount of money and take the least amount of time.
• Use the time hourglass to determine which activities to outsource first.
• Look for the activities that have the greatest percentage of time spent and the lowest cost activity that is the highest percentage of time.
• For a startup with limited resources, the first two hires should be for sales and marketing.
• Outsourcing these activities in the right order can help scale the business and increase revenue.

Watch the video on YouTube:
This first hire nearly bankrupt me...but was worth it.. - YouTube