Creating Confidence with Heather Monahan - #343: How To Fail Your Way To Success With Leila Hormozi CEO of Aquisition.com

Episode Date: August 1, 2023

Get your FREE ticket to Tony Robbins Virtual Event HERE - Today is the Day! https://ownyourfuturechallenge.com/freechallenge?source=optin&a=100070 Live Show- https://heathermonahan.com/live-confidence-workshop/  In This Episode You Will Learn About:  What you need to learn in order to earn more money   The upside to failure    Shifting your negative mindset  Building relationships that will change your life Resources: Website: www.acquisition.com  Listen to Build with Leila Hormozi   Read $100 Offers: How To Make Offers So Good People Feel Stupid Saying No LinkedIn: @Leila Hormozi  Youtube & Instagram & Twitter: @leilahormozi   Show Notes:  You may be surprised to hear that failing and succeeding are more related than you may believe. It’s really scary to not know what the future holds, but in order to reach your goals, you have to fail and learn from your mistakes! To help us understand what it takes to turn your life around is Leila Hormozi, the CEO of acquisition.com, a portfolio of companies with over $200 million a year in revenue! Leila will share how she built her business by focusing on people and interpersonal relationships, and the mindset shift that helped her bring more confidence into her life and business. About The Guest: Over the last seven years Leila Hormozi has started and scaled four, eight figure businesses! All across four different industries. Leila serves as the CEO of acquisition.com where she manages a portfolio of companies of over $200 million a year in revenue. By focusing the people and relationships, Leila has been able to find success helping build through praise instead of punishment. I can’t wait for you to discover her leadership tips!   If You Liked This Episode You Might Also Like These Episodes: A Mindset for Success with Sara Blakely & Jesse Itzler Episode 25 STOP Blocking Your Own Success With Heather! Episode 190 The KEY To Building Confidence Through Failure, With Professors & Co-Authors Wendy Smith & Marianne Lewis Episode 241 Learn more about your ad choices. Visit megaphone.fm/adchoices

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then check out, negotiate your best life now. Subscribe to negotiate your best life with Rebecca Zung today on Apple Podcast Spotify or on your favorite podcast platform. We really ended up failing our way into this model. Like it just didn't work, didn't work, didn't work, kept trying, kept changing until we found one that just randomly did work on a whim, basically trying to get out of the business. It was like we struck gold. There was just this hole in the market that nobody was serving. And we went, and I think the first six months, we did $7 million.

And then the second year, we did $27 million in revenue and like $18 million in prop. I mean, it was just insane. It was ridiculous. And it was also horrifying because you don't feel like you know what you're doing. I'm on this journey with me each week when you join me,

we are going to chase down our goals. We've come at diversity and set you up for better tomorrow. That's your note, Steve. I'm ready for my close time. Hi, and welcome back. I'm so glad for you to meet

our guests this week. Over the last seven years, Layla Hermose has started and scaled four eight figure businesses, four across four different industries, unheard of. Leyla is the active CEO of acquisition.com, a portfolio of companies which currently exceeds 200 million a year in revenue. Leyla is known for her expertise in scaling businesses by focusing on the people. She is passionate about mentorship and teaching CEOs how to build a company through praise rather

than punishment. That's a novel idea, building a culture that reinforces employees to work hard and enjoy what they do. Laila, thank you so much for being here today. Thanks for having me on Heather. I'm excited. Okay, let's get into your story because listen, the reality is this and you know what? People look at you and all that you've achieved and you're so young and you've done it so fast. I hate when people see this for the reason that they'll say, oh, she did it because she's pretty. She did it because she's smart. There's something that you have different than, you know, this magic sauce. When you and I both know the struggle was real for you, right? Like you weren't born into some CEO position. I'd love to go back to what that beginning was like for you.

Yeah, I'll kind of give like a really brief of, you know, teenage and then where it kind of more so started started. You know, I think that what had a big influence over me growing up was watching my dad and listening to him and him talking about, you know, he was a professor of mechanical engineering and him talking about choosing that path versus choosing an entrepreneurial path that others and his family took. And I think seeing kind of his always wondering what it would have been like to just do something on his own, that sparked the curiosity for me, especially because I was in a town, I grew up in a small town where pretty much everyone, it was like you waitress in high school, then you got enough money, you went to college, you worked your way through college,

you usually pay for it yourself because it wasn't like a town where a ton of people had a shit ton of money or anything. And then you end up getting a job at either the hospital and insurance company in town or one of the car dealerships because Michigan cars. And so that was kind of the path for a lot of people. And I was like, I just don't feel like I want to do that. It just sounds honestly sounded boring to me. And so at a young age, I started listening to Tony Robbins, Jim Rohn, a bunch of like self-development speakers at the time.

People might not even have heard of them at this point, but they were kind of who was ringing in my ears. And I want to say I was 17-18. That is when I was probably at the worst point in my life, where I've been listening to all of these people, but at the same time, I still fell prey to some of the things that I think you do when you're young, which is social pressure wanting to fit in, wanting to rebel when you've been in a house where there were strict rules for a decent amount of time. And so when I was between the age of like 17 and close to when I turned 19, I actually got

arrested six times. I gained like 50 pounds. So one, it's like I hadn't always been in shape. I don't even think until that point in my life, I was in shape. I was not really, you know, I was drinking all the time. I was doing drugs. I was hanging out with people who weren't productive. What so ever, you know, they were just going in the opposite direction of, you know, all the, like,

quote, mentors that I had kind of ring in my head, but I was still doing it. And I think I was doing it because I felt like, I got mentors that I had kind of ring in my head, but I was still doing it. And I think I was doing it because I felt like, like, honestly, at the time the voice in my head was just like, none of this really matters. Like you're young. And is any of this going to matter in 10 years? And I think that what ended up snapping me out of that was the sixth time I was arrested. They took me back to my dad's house, which of course I don't remember because I was so

drunk. And I woke up at my dad's house. And I was like, oh my God, like just the worst feeling of anxiety, like just sheer panic sets in. And I was like, oh my God. And then I look and there's like an arrest ticket next to my bed. And I was like, oh my God. So you know, you have to walk downstairs, right? Like I'm like, I need water. I need, I have to go. And then I'm like, oh my God. So, you know, you have to walk down stairs, right? Like,

I'm like, I need water. I need, I have to go. And then I'm going to see my dad. And he's sitting on the couch. And I was like, hello, he was like, why don't you get some water, something for us, right? So I do that. And I come back and I sat down. And I was expecting some like huge speech from him because, you know, I'd been getting arrested. He knew, but I was living on my own. And, you know, he kind of just didn't talk to me as much I think my dad just kind of took the route of like you know how I feel about this this is not acceptable but you're not in my house anymore and so like you want to fuck up your life go fuck up your life and he sat me down I just remember like in that moment he looked at me and he didn't try to punish me he didn't try to

make me feel bad he just said I just genuinely want you to know that like you can keep doing this, but I honestly think you're going to end up killing yourself. And he said it so matter-facally that I just felt so terrible because I was like, you know, I think at that age, you always have the thought of like, it's not going to be me, it's going to be somebody else, right? Like I'm just partying and having fun and being irresponsible. Right. But in that moment, I was like, Oh my gosh, like, it could be me. Like I really could do that to myself. And it was so scary to think that like I was putting him in that position where he felt that way. And I think I felt immense guilt because my dad has always been such a positive supporter in my life. And I felt like I had really let

him down and to put him in a place where he felt like worried that his daughter was going to kill herself just like by being so irresponsible. I was just like, I can't do this. I don't want to be this person anymore, you know. And I think up until that point in my life, like I'd always aspired for a lot of things, like thought like, oh, I want to be an entrepreneur, I want to do this. And that, but like zero action had been taken. Right. Like I was mediocre in school, mediocre in work. Like I just got by I think because I was likable and nice to people. And I think that was probably what got me as far as I did. Like I was always very nice and kind, but I didn't put in the work.

And that point was such a turning point in my life for me because I realized, like I can't just float by anymore. I need to make big change in my life. And so that was what really put me on the path. You know, that literal next day, I was like, I need to become a different person. I can't drink anymore. I need to stop eating like shit. I need to get my ass in the gym.

I need to start studying. I need to, even though I don't believe that like college, which I was in college, is going to like give me the job I want. I need to be disciplined. And I think that it matters just I was in college, is going to give me the job I want, I need to be disciplined. And I think that it matters just being disciplined in general, no matter what, fast of life. And so I completely changed my environment. I moved out. I had like six roommates, you know, so they're smoking, drinking, I was like, I got to live

on my own because at this point, nobody else wants to focus on really being that productive. Like they're all still parting on weekends and so I moved out into my own apartment. I started working two jobs. I committed to studying and you know trying to at least get good grades on my classes even if I thought it was irrelevant. Just like because I wanted to prove point to myself. I got on exercise program and got with a trainer and lost 85 pounds. And that was really when I turned my life around. And I honestly think that turning my life around at that point, I built the character traits then that have led to so much of the success now. And I remember

people saying that they're like, if you can do this, like you can do anything. And I do think it's very transferable. Like the same things that allowed me to lose the weight, allowed me to turn around my grades, allowed me to get better at school, allowed me to just be a better person. They've also led to a lot of success in business. Oh my gosh, I just had chills when you're saying that and I can see that when you see that transformation occur,

how that can be applicable to when you started out as an entrepreneur and really getting to that next level. I mean, it makes it makes so much sense and it's important for everyone listening. We all have those moments in our life. Maybe it's not that profound. I've never lost 85 pounds. We all have our own little moments in time we can look back on and use those as leverage and social proof that now we can do that next thing. So I love that you shared that with us.

So you and Alex start out and I know they were living, you guys were living at your dad's house, where are you? For like a period of time, yeah, we bounced back and forth. We stayed with him a couple times when we were like between things. One of the parts of your story that I just, I love so much. I'm a big believer that you can speak truth into others and saying one thing can change another person's life. And I just love the story of how you believed in your husband

when it seemed like he definitely wasn't believing in himself. If you could share a little bit around how that changed everything. Well, I'll kind of give you a little context, which is, you know, Alex and I met, I had at this point, my life had been cleaned up years before, right? And then I had moved out to California on my own to pursue fitness.

I knew that I didn't want to use my degree to get a job at a traditional setting because I remember hearing how much money I would make in the first five years and I was like, that's not nearly enough. So I was like, let's just take a try at business. And so my idea was like, let me move out to California where it's most competitive.

Let me apply at every gym within walking distance. Let me get a job at the gym, work my way up, learn the fitness business, and then take that and decide, do I want to open up a gym, do I want to try something else? Like, at least get the experience. And so, I was more focused on learning rather than earning, and I knew that I was going to sacrifice money in the short term, but I felt like it was worth it. And so, moved out there, got a job at a big box gym, took those skills, and then took my clients, went to a smaller gym, started learning really the business as a whole marketing sales back end,

even like technology, making content. All the things I didn't really get to learn at a big box gym. And then I started taking online clients. So at that point, I had half my clients online and half my money was being made there, and then half my money was from still training clients in person. And I was trying to figure out what I wanted to do because I actually had somebody who wanted

to partner with me to do the online thing who was already a successful online business owner like very successful in my mind, right? Making six figures plus a year online, which I was like, that's all I wanted to do right now. Like, that's the next goal. And I, at the same time was dating. And it was very hard for me because I was like after I did that turning point in my life, I was so career focused. I was like, I'd had plenty of boyfriends and I always just felt like it was a

distraction a little bit for me. So I was like, I just want to focus on career. I don't even want to think about dating. Then I kind of realized I was like, okay, I don't even have any friends. Like I don't know how to do his work. Yeah, all I do is work of realized I was like, okay, I don't even have any friends. Like, I don't have any friends. All I do is work. Yeah, all I do is work. So I was like, okay, every lunch for 30 minutes, I'm gonna swipe on Bumble, you know, Tinder's gross and I just get fixed. So I was like, I'll just go on Bumble

and that's how I'm gonna look. And I liked it because the guys couldn't message you first. You had to message them. So no creepers could like get through. And I remember seeing Alex's profile and I was like amazing. Like he literally likes all the same stuff with me like fitness business. And then like you know it had him like doing something at the beach and pretty sure he was just shirtless in the water and I was like oh I like all these things right. And so I messaged him and what I loved was that he so quickly reached out and basically said, hey, like, let's talk on the phone.

And I was like, oh, I love it. I love that he's so straightforward and to the point. And so we ended up actually going on our first date. It was fro you. And I just remember thinking like I was just so interested in talking to him, but he had other intentions. He realized my skill set and was very quickly like, listen, even if this doesn't work between us like dating,

I would love for you to just work for me. And I was like, what? Like also, I just told you how I'm thinking about to do my own business. You want me to work for you? He's like, well, you would learn way more. And I was like, because he'd had six gyms at the time. I was like, well, you're not wrong,

but I don't know how I feel about that. And so I was like, just that. I don't want you to keep asking was like, because he'd had six gyms at the time. I was like, well, you're not wrong, but I don't know how I feel about that. And so I was like, just that. I don't want you to keep asking me like, let's just keep dating and see how it goes, right? Which lasted for about like a week. And then he just kept saying it. It was like, he wouldn't stop. He was like, it would be, it would make so much sense. Like, if you can do what I can do, then that means that this business concept I have or idea would be proven,

which was basically, he would go, he was able to build his own six gyms by, you know, doing marketing and doing sales and then filling it up. And he was like, you know how to market and sell. Like, if you can do it too, then it proves up this model. So I was like, okay. And then I think it was probably three weeks into dating that I've been talking about it with like one of my mentors and one of my I would say friends who is also like semi-amentor they were really ahead of me in their career and they were both like I mean what do you have to lose? It's like I really you know I talk much to lose like worst case scenario I could just build my client roster backup most of them would come back to me anyways and I could just go back and continue and be at the fork on the road again.

And so I think it was about three and a half weeks into dating, I said, you know what? Fuck it, like I'll do it with you. And he was like, are you serious? And I was like, yeah. And when I said that, what it meant was like, I'm not just going to like do this business with you, but this business is like an on the road business.

We would physically go into a gym and sit there and fill it up. And so, and a week later, after making that decision, I flew out to Virginia and that was the first time that I launched a gym and it actually went really well. And that was like the start of us working together, which in the beginning for the first, I want to say like a few months, it was me really learning what Alex had been doing for his gyms and then continue to kind of like help innovate from there. And I would say that then when we ended up basically what ended up happening is that we would

fly out to these gyms and do these launches. Then we built a team which was like all my friends from college that I hired, that we would fly out to do all these launches. And then eventually it turned into what is now gym launch, which is we don't fly out anywhere, we teach people how to do this themselves. And that's when we really became partners in the business when we made it that model. But along the way, there were so many ups and downs and there was, you know, a lot of points where I think it was more of an emotional burden on Alex than me because though I had quit everything and I felt like I was in this situation where one, honestly, he was not in a good mood ever. He was very stressed.

And so I felt like I was living in this hotel room with this guy who like, I was at this point, I'm like, I don't know, are we, like, do you feel good about this? Do you not? Like are you happy? Like I'm just a closing 80%. You're closing a page. Things are going well. But at the same time, he has all these gems back home

that he's dealing with. He's got his mom who's sick. He's dealing with, he gets a DUI. He's dealing with, then his partner takes all the money that we just made out of his account. I mean, there were so many things that I was one degree removed from. I was incredibly stressed at the time as well.

And I think that that's probably something that gets lost, but I didn't show him my stress. I think that I am aware enough to know that when somebody else is very stressed, it's not going to be helpful if the person next to them is also that way. Like it just compounds and you just kind of make each other worse and it's like this escalation of each other's stress. So I was like, okay, the best thing I can do is just try and be like, just hunker down and just like, do the best I can to like go to crush this launch, make us some money, whatever. And so that's what I did. But unfortunately, there were more times where, you know, I went and crushed this launch

after he had gotten money stolen. And then the next thing that happens is the processor shuts us down because the business model that we had was not what he had signed up with. And so they shut us down. They said, we can't give you any of the money that she just made. And that was when he hit probably the lowest point.

I think he felt very defeated, which I understood. But in that moment, I think he said to me something to the degree of like, I'm a sinking ship. I don't feel like you're going to be any better off being with me. And I feel like you should just go be with somebody who's winning. And I just remember thinking to myself, like, what the fuck man? Like that was actually what I was thinking. I was like, no, like you are a winner.

This is just the short term, like shit, we have to go through to get there. And I remember I told him I was like I would sleep you up with you under a bridge if it came to it. And then I painted the picture of what I believed it could be. I said I know that right now I feel like we're not the best versions of ourselves because we're under so much stress. I'm like but I just so I so believe that if we get through this we can be one of the best couples that's ever existed together. And I don't know why I was able to see that honestly.

I just felt like we always saw reality the same way. And though we were so stressed and there was so much going on, I just always, we always were able to borrow each other's belief. It's like he really encouraged me in the beginning and really believed in me. And I was able to do the same for him. And I think I just knew I was like, if we were in a better situation, imagine how powerful we could be together. And I always tried to hold that vision when he was feeling frustrated or feeling down.

And I think that we've always done that really well for each other even since day one. It's just when the other person's down, you kind of pull them up. I think a lot of times it's the opposite where it's like one person's down, they pull that person down, but we've never really allowed that.

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and they make it so simple. Sign up for a $1 per month trial period at Shopify.com, slash monahan, all lowercase. Go to Shopify.com slash monahan to take your business to the next level today shopify.com slash monahan and you'll be hearing this before you know it. How in the world you guys go from that moment to correct me if I'm wrong. It was a year later you're making a million dollars. Yeah, I mean, it was pretty crazy.

And it was a lot of luck. You know, we were essentially flying people out for this model, right? Like saying, like, we'll launch your gym for you. And it didn't work fundamentally because essentially what would happen is they'd see, you know, 23 year old Leila come into their gym, generate $100,000.

Leila takes 70,000, gives them 30. Even though they still got 30 and,000 to none of the work, they're like, screw this bitch. I'm like, I can do this better on my own. And so what happened with a few of the locations is they would call the customers and say, tell Laila you want to refund, and then I will give you the same thing for half the price.

And we had no contracts, we had no nothing, we had no legal anything, and so they were able to do that. And so that model didn't work and it was quickly going to make us bankrupt. I mean, I remember we were researching bankruptcy lawyers and we learned everything about bankruptcy because we thought if one more gym does this, then we go under. And it was in that moment that we thought we were going to transition into doing something different. Alex had an idea. He said, you're still training clients online. I was like, yeah, he was like, what if we just, I just build a marketing funnel and you

actually make that into a business. I was like, I'll do whatever I need to do if we don't go bankrupt, right? So, we actually quickly pivoted to that. It started working and it started generating like a thousand dollars a day. And so our hypothesis was if we take them the sales team we had, that was at these gyms and put them on this product, we could sell eight thousand dollars a day. And so we said, okay, we have to call up all the gyms that we're about to go launch and tell them like, we're ending that business.

We're doing something else and we just can't come launch a gym. Which there was no harm in doing that because they hadn't paid us anything. We would go launch it for free and split the revenue. And so that day Alex falls the first gym owner and the guy is like, dude, you have to launch my gym. Alex is like, no, I don't. You didn't pay us anything. So like, we're not coming out there.

And the guy is like, I literally am going gonna go out of business if you don't help me And he's looking at me and we're looking at each other like and you know, we have so much empathy because You know, he was a gym owner. I worked in gyms for you know last whatever four years So we're both like gosh like that. It just sounds awful, right? Like these are our people and so He's like, I don't know man like I'll teach you how to to do what we were doing, but like, you have to pay me, and I'm not coming out there like flying to your gym. The guy was like, I don't care, that's fine.

That works for me, like how much does it cost? And Alex looks at me and I'm like, I don't know, it was $6,000, $8,000? So he's like, $6,000, $6,000. The guy was like, done. Like, here's my credit card. And I was like, oh, and so that was how every single conversation went to call the gym owners to tell them that we were working to be able to come the next month.

And so by the end of the day, I think we had made $48,000. And we were like, holy crap, like, we were just doing this wrong. Like, I think that we still are in this business. It's just not the business that we were doing. You know, we were just doing it in a way that was somewhat harder. And that first week had there, it was insane. The gym owners went in, I remember we took all our internal training for our teams and ourselves that we used to teach like our sale and marketing team for what we were doing. And we just flipped them into external.

And then that first week, in the first, I think it was like 10 days on average, those gym owners that went through the program made $28,000 extra. And we were like, holy crap. And so then, my calendar was linked to basically our opt-in page. I looked at my calendar filled up like every single day of the week from morning till night. I was like, fully crap what's going on. Because I was still taking on like most of sales calls.

And I was just like, oh my gosh, I don't know. And we started talking. They're like, oh, I've been telling all my friends that are gym owners. They have to do this. And we were like, holy what? And so then that was what really created the company. You know, it's really funny because I think now

how I look at creating companies so different and so much more methodical, but we really ended up failing our way into this model. Like it just didn't work, didn't work, didn't work, kept trying, kept changing until we found one that just randomly did work on a whim, basically trying to get out of the business. And then it was like, it was like we struck gold.

There was just this hole in the market that nobody was serving. And we went, and I think the first six months, we did $7 million. And then the second year, we did 27 million in revenue and like 18 million in prop, I mean, it was just insane. It was ridiculous. And it was also horrifying

because you don't feel like you know what you're doing. So it was still scary even though you were succeeding financially. Oh my gosh, I tell people all the time. I'm like, listen, succeeding and failing both feel scary because it's this unknown. And that's really what we're scared of is the unknown. And I think that even when you're experiencing success, when you don't know what comes next because you've never had success, you're nervous. You're worried that you're going to make the wrong move

and you're gonna lose everything that you've just created. And so I think that is, it's equally as nerve-wracking as failing can feel. It just, you know, you're technically going in the right direction, but it's very overwhelming, you know, and to go from Never having managed people before to having a team of 100 plus people and I'm 24 years old I mean that was also very nerve-wracking and I I didn't know how to handle. I didn't know how to act

I didn't know I was just voraciously reading books, you know trying to get my hands on anything I could like constantly consuming but oh my gosh I was so stressed the entire time because I didn't want to mess something up. I didn't want to build a place where people didn't want to work. I didn't want to manage people poorly. I didn't want to ever under-deliver to customers. I mean, there were so many things that like, I think I fundamentally just because of who I am and how I see the world was afraid of doing wrong. And that led me to the right direction, but it was hard to get there. And it was a lot at once because, you know, I say this, is that when you're a bit

new business owner, the reason it feels so hard is because there's a few things. One, you typically make a huge life change that allows you to go into business. So not just are you learning business, but you're dealing with the ramifications of this life change you just made, which is typically emotional, and it pays to toll on some people. The second reason is because there's not just one skill that's required to start a successful business. There's often multiple that you are starting at level zero on. You don't need to just understand sales. You also need to understand and offer, and you also need to understand marketing in the very beginning. And you're at level zero and you need to be at level five

in all three of those. And so there's just so many skill gaps that you're trying to fill, whilst also dealing with the emotions of just quitting a job and starting a business. The way that you just described it sounds so challenging. I've gone through it myself and I concur. It is incredibly challenging, right?

So how do you advise people when they're in that suck moment where it is so hard and you aren't qualified for most of it? I think it's all about support. You know, I think that there's a lot to in the beginning. So I'll give you this. Why Comm commentator, for example, which is a, you know, they are essentially an accelerator for SaaS startups, they don't even take solo SaaS founders because the rate of failure is so high, not because they fail, but because they opt out. They choose to fail, because it's very hard to do on your own.

And so I'm not saying that everyone needs a co-founder, but I am saying I do think that the reason that Alex and I have been able to sustain success is because we have each other. We say it to each other literally all the time. I couldn't do this without you, or at least I wouldn't want to. We have each other to lean on for so many things, and I just have to do my job. I don't have to think about what Alex is doing, and same for him. He can think about what he's doing.'t have to think about what Alex is doing. And same for him, he can think about what he's doing.

He doesn't think about what I'm doing. So I recommend for all founders, like when we take a company in at acquisition, it's like, okay, if somebody's on their own, we immediately need to get you a very strong supporter. You know, whether that's a number two, or it's like an extension of yourself or an E.A. Like somebody needs to be your supporter. And I think that's very important in the beginning

of a business and it's underestimated. Obviously, in the very, very beginning when you're taking the leap, it's, do you have friends for you? Do you have a network that supports you? Do you have, you don't need that many, but you need like at least one. Otherwise, I do think it is much more challenging.

And the rate of failure is much higher when you don't have at least one person rooting for you in your corner. That's so important in life. Forget about even business. I'm totally, totally with you on that. Yeah, exactly. So how do you go from, you've blown up the gym launch business, you got it right finally. You know, you made so many changes in adjustments to it. How do you go from that to having this vision of acquisitions? You know, we built gym launch and we built prestige labs within gym launch.

And I think that it was probably a few reasons why we wanted to do acquisition on common stead. You know, I was proud of what we built and I'm still proud of what we built. You know, the company continues to grow, which I think it being able to grow without us is what ID mess is successful for it. They have a very, very good team. It's a very durable business. Along the way, I think we had a few moments and I think it's different for Alex and myself. So I'll just speak to my experience.

But the business in the very beginning, if you remember, it was really Alex's idea to start to watch. He was the one who came to me with the idea. And though I am definitely the executor between the two of us, our lines are not that hard. In the sense of, I still very much come up with ideas and like to have a say in the direction and the strategy. And very much more now, I'm quite strategic. So, you know, I think there came a point where I realized if I were to start over today, is this the business that I

would build and say I can commit the next 10 years to? And I thought to myself, probably not. And not because I didn't love the business and the people in it, but because I felt the opportunity was too small for my skillset. You know, I looked at my skillset and how much harder it would be to grow, gym launch versus if I were to start something from scratch. And then I thought to myself, well, do I want to continue to be in this industry for the next 10 years? And the answer was no. I felt like I would rather be in an industry that has a larger tam and where I felt like my skill set was better utilized. And I felt like I wasn't able to fully utilize my skill set with engine launch. And I really wanted that for myself. And building acquisition.com was built with that in

mind, which is where do we have the intersection of it fits Alex's strengths, Layla's strengths, what Alex likes to do every day, what Layla likes to do every day, what are our natural gifts or talents you might say, and what does the market want? And that's really what led to coming up with acquisition.com. And so I think it really just is, I think a lot of people's first business isn't like their legacy business or isn't the business that they build with the intention of having this big impact on the world. For us, Jim Launch did so much for us,

we've learned so many lessons. But at the same time, you acquire a lot of information that tells you, well, is this the best opportunity for me? And I think a lot of people that tells you, like, well, is this the best opportunity for me? And I think a lot of people have sunk cost fallacy, so they'll never change their minds on those things. But, you know, because it is a great business, you know, I think a lot of people think it's silly that we sold it, given how much money it does.

I'm sure people must have been telling you you were crazy. Yeah, but money isn't make you happy. And I think both of us know that about ourselves of like what we do on a daily basis is what fulfills us. And I think both of us wanted to have a larger impact than we were having at the time. Maybe if I had known what I know now

and I had the skills that I have now and I've acquired, you know, running acquisition.com, I would have been able to, you know, build it in a way that I would just have it as part of the portfolio. I mean, I would be lying if I hadn't thought about that or hadn't told somebody about that. But I didn't, and I don't know if I would have acquired those skills. Had we not sold it? And so, I think that's really what led to acquisition.com. And within like why acquisition.com, why take stake in these businesses and help these people grow?

Because in a way that is a lot harder than having your own business. I know I can grow and run a business. Do I know that Sally, who just applied to be a portfolio company, can? No, I have to bet on her. But what I really, really enjoy and love is learning and development. I love. I saw how much it changed me as a person, how much confidence I gained, how much I learned, how many skills I acquired during the time of growing the business, and I'm like, I really want that for other people.

And I would love to be the person that can help guide them through that. And so acquisition on account allows me to do that. And that's what I really enjoy about it is, there's probably ways that could be more efficient that we could have built the business, but it also would take out some of the pieces that we really just enjoy in life. Depend on yourself if the power grid ever quits for a day or longer. January marked the third time a power station in North Carolina was damaged by gunfire

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Yeah, and I think I've just found that so often in life, when everyone's telling you not to do something, it's like, I just look at where they're at, and I'm like, well, are you where I would like to be? And if they're not, then I'm like, okay, well, I should just do the opposite of what you're saying. Exactly. Yeah.

And it makes this hard though. Right. And it gets hard because like some people are very successful, but I don't want it to be very successful. I want to be extraordinarily successful. So you have to go try and find people or even just say like, how would this person who I can't even gain access to think through this decision? And you have to really sit down and ask yourself like, do you think that they would encourage

you to make this decision? You know what I mean? And that was probably the hardest part about making it. It's just like the people who whose frames I would like to think through, I don't have access to talking to. But I think taking on that frame of like, what would this person decide in this moment, you know, based on the stories I've read, the books that they've published, and all those things, that's kind of what I put that decision through. And so there weren't that many people like in the intermediate that were supportive of it. I think everyone just kind of is like, ah, whatever you guys want to do, you know, it seems like it's making a lot of money though, so I don't know if I would sell that. Because I think it's very hard to quantify what you have to gain,

only what you have to lose. That, that's very, very well said. All right, so now that you are working with all of these salaries and different people that you don't know if they're gonna have the potential, what are some of the common themes that you see people struggling with that you can advise for listeners right now on some better decisions

or think changes that they can make to help them accelerate revenue and accelerate their business. The first one is being open-minded. I know it sounds like trivial, but we have found that oftentimes people start a business and what gets you from a zero to a million dollars. Sometimes who's you from getting to a million to 10 million? But if you believe that you have just like figured

everything out, you know, because you were able to get to where you are and you reject help and you don't remain open-minded, I cannot think of a scenario where I have not seen it bite some on the ass. There were times in my journey in the beginning, not in the very beginning, but as I continue to have success more and more, you know, early on with Jim launch, there were probably moments where I was like, who can help me at this point, you know, but you have to be able to still take, I think that being able to take others' perspectives, you know, I think that that's a skill. And I think that a lot of early entrepreneurs lack that. They're not able to take perspectives of outside mentors.

They're not able to take perspectives of their employees. They're not able to take perspectives of their customers. They take their perspective and they're like, this is work for me and I will continue to do it. And we just have found that people that are able to take all those perspectives. And those are the people that succeed. I think always remaining open-minded, always trying to see through the different lenses of everyone that touches the business.

Those people succeed very much, though. The second is that I would say in the beginning, when people are first starting out, especially before the business gets to 10 million in revenue, having a very strong operator, typically the founder being that operator. I think that I would say that probably software is an exception to this because typically they raise money and hire an experienced operator, but bootstrapped businesses.

The ones that end up having the longest runway, we have identified that the founders themselves are really talented operators, not due to experience, but just due to they have a high threshold for execution. They're not like idea idea people, in fact. They can take strategy and put it into execution, but they're high executors. And that takes you a lot further than like this. I know it sounds ridiculous, but it's like, there's a lot of it sounds ridiculous, but there's a lot of ideas out there.

There's a lot of great ideas. Being able to actually execute on those ideas, I think is a much more rare skill set. And so I think that being able to hone in on that in the beginning, a lot of people probably think, oh, I should hire people that can do those things. But I, you know, when I look at our portfolio and the companies that have done the best, the founders are the executors. And what happens is that then at a point, they pass that

on to somebody else and they don't have to be anymore. And then they learn how to be more strategic. And we teach them that. But in the beginning, it's just really tough if you're not, you know, and I would say that the skill that I see, like the crux that I've seen work really well, is founders who are highly skilled in marketing, data or technology, and operations. It's like they have this like trifecta skill set, which is like they can lead and manage people, they can market in a really persuasive way, and they can understand systems enough to get proper data to guide their decisions. Those three things together I think make like I always say I'm like it's just like you see that guy and you're like he's a killer he's got

like the trifecta and I think all of our founders who have the most success all have that skill set that skill stack I would say. That's an impressive skill stack for sure to have. And definitely, to your point, you know, with a lot of founders, they are so idea driven creative and not the people that can execute. I feel like there are so many people like that out there

that it is, I think it's more rare to find ones that can be a visionary and also execute, because that's not easy. It's not, but you know, I think it's a really common theme. I've also seen amongst my friends that are billionaires, they're still have an insanely high level of execution, higher than many people I know.

And if you talk to them about what it looked like in the beginning, high levels of execution. Maybe it was because they came from a job where they had to have super high levels of activity and execution, or maybe it was just because that was the work ethic that was instilled in them, but they are machines, and those people will find a way no matter what. They're always exceptions to rules. But as a general statement, I have seen those people tend to be more successful than the opposite. One thing I've heard you talk a lot about on your podcast specifically is about

the importance of not getting caught up with shiny objects syndrome. Can you talk us a little bit about what some of the downfalls are there? Yeah, I think we tend to in the beginning, like overestimate our abilities and underestimate circumstances and how they affect our ability to execute. And so, in the beginning, simply usually do this due to ignorance of knowing what does good really look like. A lot of people think that they have maxed out their current opportunity, only because they have lack experience, not because of any ill will or like being lazy or nothing like that They simply don't know what good looks like and they don't know the potential something has and so because of that

They say oh gosh, you know I've been trying so hard for the last six months and I still can't get this past two million revenue Therefore I need to start a different business because a different business can for sure get past 2 million revenue much more easily than this one. And we always tell ourselves, I say it's like a special snowflake symptom. We're like, here is why Laila, my situation is different than this podcast that you made about this 90 objects. It's like, here's why I'm the exception. But the reality is we all feel that way.

We all feel like we're the exception to the rule because that's our brains work. And so I think it's being able to, I would say, give ourselves other options, right? I think that the best entrepreneurs, like a lot of people would say, like, I'm patient. I don't think I'm patient. I think that I find other things to do in the meantime. You know, I, I too have ideas. I too have other things I would like to do for acquisition.com. I do have ideas for businesses that we could start, and I could just find a founder, and go crank this out. And it would be amazing.

We could start a nose-trip company. We could start a crack. And there's so many things that we could do, right? And I think that they would make a lot of money. But I'm like, that would deter me from my long-term goals and probably create a lot of friction in the short term. In the super short term, it would feel good and probably make a lot of money.

But in the medium term, probably negative, and the longer term, probably negative. So I think that what I've acquired the skill set of doing is finding something to do in the meantime, which is a lot of entrepreneurs, I think, they have this big external goal of how much money they want to make and what they want their product to look like or how they want to market, right? But those things take time and they take, at some point, other people are iterating on them and it might take a quarter, two quarters, three quarters, a year to get something to progress where you need it to. So the question is, what are you doing in the meantime to prevent yourself from starting

a completely different business? And so, I focus on the team and developing them, investing in them. How can I make my team more valuable today than they were yesterday? That's how I think when I wake up every day. I think a lot of people don't see that. I really think that I distract myself

with focusing on the team so that it allows me to be patient or to be perceived as patient in the long term, right? Because I have this other thing I'm working on. And I think that to be like, oh, don't work on anything, that's not a great option. Like, what are we going to do? Metadata all day. You know, I think that most people want something to do. So I think my friend Trevor just calls it the skill of doing something else. The thing about running your own business is every single higher counts and no hiring partner understands that like indeed. Indeed is a hiring platform where you can attract, interview, and hire all in one place. Don't spend hours on multiple jobsites looking for candidates with the right skills when

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OK, so you brought up team. One of the things that you've talked about in regards to team is the importance of holding people accountable and how to do that. How are you able to hold your team accountable? I think there's three things that go into accountability. There's setting expectations, measuring the expectations you set, and then reinforcing the measurements. And so the way that I see it is set expectations. How might that look? Well, a way of

expectations could be a job description. I would say that's a form of an expectation. An expectation could be a core value. That's a company expectation. How might I measure a job description? Well, I might have KPIs that they report to on a weekly basis. So they fill out an end-to-week report, report on their KPIs that are tied in with their job description. And then how do I reinforce that to them? Well, on our one-on-ones that we have next week, I talk about their KPIs. I ask them about their KPIs.

I ask, how do you think you're doing with these KPIs? And so when I break down accountability, I just think it's expectations plus measurement times reinforcement. Reinforcement, which is essentially like providing or strengthening the bond between two things, is the only thing that can make accountability stronger or weaker is how many times it is communicated, whether verbally or otherwise, to a person of their results. And I think that's where a lot of people

miss on accountability is, you know, they might have a leaderboard for sales, but they don't show it. It's not sitting anywhere. It's not within eye distance, right? That happened so often in so many companies that's shocking to me. Right, so it's like that board should be everywhere.

And every time you make a sale, you should get a raw raw ding-ding. You should hit a bell. You should get a congratulations from the team. It should be on your end of week report. You should have to report on it every day. You should have to say what are in the chat. You should have to say every rep drop your numbers

every morning, right? You're not condemning them or even congratulating them. They have to self-report, therefore they see it themselves, they're reinforcing it for themselves. And so I think that the the reason that accountability so we can somebody companies is simply because there's not enough reinforcement mechanisms to keep it top of mind for people, you know, their their measurements are just not kept top of mind because there's not systems put in place to do so, because managers just don't know how.

And I think that a lot of like the traditional ways of managing and holding people accountable are like, yeah, if they're doing, they're not doing their job, you tell them that they suck. And you better make sure you tell them that they suck before we fire them. It's like, okay, well, are we trying to make people feel bad? Are we trying to make them better?

Because if we're trying to make them better, then let's look at putting systems in place where we make it easy for people to see how they're doing. If we to make them better. Because if we're trying to make them better, then let's look at putting systems in place where we make it easy for people to see how they're doing. If we want to make them feel bad, then let's tell them that they're doing a bad job. I love the analogy when I'm leading sales teams is to say, listen, the police, the government is posting speed limits everywhere.

You can see the speed. No one's keeping it a secret from you. No one's trying to hide it. You can see you're constantly face to face with what speed you're supposed to be going versus what speed you are going. And then there is accountability in regards to if you're going to, you know, be speeding, you're going to get a ticket. It's no different in any organization that why wouldn't you want people face to face with what the goals are, where they are versus their goals, and you know, and ultimately where they stand, it does develop such a different culture

when you have that level of transparency too, where people can celebrate one another or offer help or guidance. And it's such a more positive experience for everyone. So I love that you dive into that. Oh yeah, absolutely. And I think I thought about it a lot and I've observed it in so many.

I think it just comes from ignorance. I think a lot of founders, a lot of them, I know, have never even had a job. And so, you know, I think I got the benefit of working at Big Gims, where like those things were posted everywhere. I reported at them every day, middle of the day, end of the day, beginning of the day when I was doing sales, right? And so, you think of how that applies to other departments, and, but a lot of people just never had that experience. And so what they tell me is they say, well, Layla, they should know that they're not doing a good job. It's so obvious. And I'm like, well, it's obvious to you, but not to them. Well, for everybody that's listening right now, they

need to hear about your podcast. Can you tell us a little bit about your show? Yeah, my podcast is just called Build. I just talk about, I would say like building teams, building people, building a business. I guess that's why it's called Build building teams, building people, building a business. I guess that's why it's called build. I like consider myself to be a builder. And that's where I talk about most of those things. I think I tend to talk more about team than not. I mean, I try to go and talk about other things

like business and strategy and starting. But like I just, I always end up differing to team because I just think that's what's allowed most of the success at Pat in many ways. Well, Laila, you are such an inspiration for not only anyone out there looking to innovate and achieve success at a young age, but for women too. So where can everybody follow you on social media? They can go to Instagram, Laila and Hormosi, YouTube, Laila Hormosi, Twitter, Laila Hormosi.

It's just my name for all the handles. So I'm on all the social platforms. What's coming up next for you? Well, what's next is that we're working on launching Alex's book. So that's what's top of mind for me is making sure it goes off really well. Oh my gosh, the book launch is never easy. And I am on your email list. You guys are all over it offering.

Because of course you have the unbelievable offers to get the secret chapters. And yes, we'll put links to that in the show notes below. Layla, thank you so much for making time for us today. And thanks for all the work you're doing to help others. Thanks Heather. Have a good one. Until next week guys, keep creating your confidence. I'm Kevin Miller, a former pro-athlete author, father of nine, and self-help guide. I broadcast the self-helpful podcast from my sanctuary high up in the Colorado Rockies. I'm a fan and critic of self-help. So I invite today's most important influencers to grapple with their own wisdom and stories in an authentic, relatable conversation about self-help and what drives them. With each guest, I conduct a four-part series that distills the guest's greatest wisdom

and methodologies into practical transformative steps that you and I can use to create our path to a life of growth, freedom and fulfillment. These unique conversations and candid explorations of paradigm shifting perspectives is why the self-help old podcast has been downloaded over 60 million times by people like you and me, who take responsibility for our personal evolution. Change comes through connection and personal experience and this is what I strive to deliver with the Self-Help-Ol Podcast. I invite you to join me as we elevate our personal experience of life and the way we show up for others. This episode is brought to you by the YAP Media Podcast Network.

I'm Holla Taha, CEO of the award-winning digital media empire YAP Media, and host of YAP Young & Profiting Podcast, a number one entrepreneurship and self-improvement podcast where you can listen, learn, and profit. On Young & Profiting Podcast, I interview the brightest minds in the world and I turn their wisdom into actionable advice that you can use in your daily life. Each week we dive into a new topic like the Art of Side Hustles, how to level up your influence and persuasion and goal setting.

I interview A-List guests on Young & Profiting. I've got the best guests. Like the world's number one negotiation expert, Chris Voss, Shark Damon John, serial entrepreneurs, Alex and Leila Hermosi, and even movie stars like Matthew McConaughey. There's absolutely no fluff on my podcast, and that's on purpose. Every episode is jam-packed with advice

that's gonna push your life forward. I do my research, I get straight to the point, and I take things really seriously, which is why I'm known as the podcast princess, and how I became one of the top podcasters in the world in less than five years. Young and profiting podcast is for all ages. Don't let the name fool you, it's an advanced show. As long as you want to learn and level up, you will be forever young.

So join podcast royalty and subscribe to Young and profiting podcast. Or yap, like it's often called by my app fam, on Apple Spotify Cast Box or wherever you listen to your podcast. podcast. Or, yeah, like it's often called by my app fam. On Apple Spotify CastBox or wherever you listen to your podcast.