Motivation Daily by Motiversity - Alex Hormozi's Business Advice Will Leave You SPEECHLESS | One of The Most Eye Opening Speeches Ever

Episode Date: November 7, 2022

Alex Hormozi, Founder of Acquisition.com, Gym Launch and Author of $100M Offers, delivers one of the best motivational speeches you will ever hear.Watch the full Alex Hormozi interview with Lewis Howes here: https://www.youtube.com/watch?v=_v9tXunUKGo&ab_channel=LewisHowesSpeakerAlex HormoziAlex Hormozi is a first-generation Iranian-American entrepreneur, investor, and philanthropist. In 2013, he started his first brick & mortar business. Within three years, he successfully scaled his business to six locations. He then sold his locations to transition to the turnaround business. From there he spent two years turning 32+ brick & mortar businesses around using the same model that made his privately owned locations successful. After that experience, he packaged his process into a licensing model which scaled to over 4000+ locations in 4 years. Over that same four-year period, he founded and scaled three other companies to $120M+ in cumulative sales across four different industries without taking on outside capital. He has scaled and exited 7 companies. His most notable exit was his majority sale of his licensing company for $46.2M in 2021.Follow Alexhttps://www.instagram.com/hormozi/Music:Epidemic Sound Hosted on Acast. See acast.com/privacy for more information.

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New episodes are being released every week. The link is in the description. People are afraid of not getting validated or they're afraid of judgment that they perceive from other people that exist or don't exist in their lives. A lot of people just underestimate the amount of effort it takes to go from good to great. And so, for whatever reason,

they have this second voice that criticizes everything they do that in reality isn't even there. I would say 99% of the things that I have learned I've learned they're doing. Most people had a graveyard of failures before they had their actual first success. With 20 hours of focused effort, most people can be pretty decent at something. But most people spend years waiting to do the first hour. I think the things that were withheld from us are the things that usually we seek the most. Competitors don't put you out of business, but you obsessing over competitors does.

The idea that my future self would trade all the money he had to be poor in 20 again made me really reanalyze how I saw a living life in the moment. How many successful guys have daddy issues? So many. And so it's like, OK, well, I didn't get his respect. So I'm going to have to compensate with my circumstances, with my environment, so that everyone respects me. And some people do that through fear.

Some people do that for violence. Some people do that through success. It really just depends what vehicle you choose. I feel like the deep need is the same. I think a lot of my definitions have been defined by my actions. I am the person who has done these things, and I will do things that will get me closer to the things. things that I want to achieve. A lot of my definition of self has always been based on evidence.

I think it was harder for me in the beginning because I didn't have evidence to support what I hoped to be true about myself, which at the time wasn't. If I can just decrease the action threshold for people to begin and be okay with the fact that they're going to suck and it is okay to suck, you should expect to suck. And it would be unreasonable for you to be good if you haven't done it before. And so it's like, are you asking the universe to be unreasonable for you by expecting to be good on your first try? And so I think that if we can shift the time rising that we think in, then we gain more leverage over our time, which we then know we will compound into money. Because I think if you can master the time, you master the money.

What did you learn about the habits of the rich? I haven't learned much about the habits of the rich at all, to be very candid with you. I think that maybe there are some beliefs that, because like my dad was a doctor, I wouldn't say he was like, you know, ultra wealthy, but like we lived an upper middle class, you know, lifestyle. But in terms of like wealth, as I think you and I would probably understand it, I didn't know anything about that. And I don't think I've ever really studied it very much. I would say that my heroes now, like I started studying wealth after I became wealthy. So like... What did you learn about it afterwards? And what do wealthy people do that you think poor people don't do? They pick higher leverage

opportunities in a sentence. So like rich dad, poor dad, like poor dad says get a job. Poor dad says get a higher paying job. And the thing is there's so many innate beliefs that seem commonplace. Like well, of course. You know what I mean? Like, well, of course, you know, and you buy some real estate and you know, it'll appreciate over time before you invest in some stocks like yeah of course poor dads just don't say that and so you have to like learn that I think and I didn't so I'm grateful in that I didn't have to learn that because I heard that just was of course yeah once you have some money like of course you don't spend your whole income of course you don't and so there's a lot of of course you don't

that I think I inherited just by being like a saving father but there's also some upper middle class people who don't save anything but I think my dad did a lot of I think he helped a lot with like money hygiene had a lot of really good money hygiene from my dad The big breakthrough that I had for me was when I stopped focusing on, and this is going to sound backwards, but when I started my gyms, I was all about building the business, right? And when I built the biggest companies that I've had and now recently sold, and now we have our portfolio, it was about how do we make the most money? And I know that sounds completely backwards, but the only way that you can make the most money is to provide an exceptional valued service and charge a ton of money for it. And because I optimized around making money, I started going for low capital expense businesses because I had lost everything after that five-year stint. And so I was like, never again am I going to reinvest every dollar from the business back into the business because I've lost it before.

So when I started the next business and every business I've had thereafter, like we take dividends every month. And we do that because you don't wait until there's an exit 10 years later. I mean, put all your money in. I'd love to do both. Yeah, yeah. Why not both? Sure. Right?

And so that was- Take a dividend and get a bigger thing. Yeah. But not just put money in and wait and get no money back. 100%. And the thing is, and this was a fallacy I had because people always talk about like reinvesting in their business. But I realized that that just meant that they weren't making profit. And so the vast majority of business is even the software world is somewhat shifting in this. But they want to see profit. And then even better is if you have net free cash flow, which is just a fancy word for the amount of money that you can take out every month after making necessary investments in the business. And so I wanted to have businesses that pumped cash flow because I'd lost it all before. If people were able to not ask for 12 months and just serve, and don't be wrong, I'm all about making money. Like, by all means, go get your back.

But I think that what it does is it ends up freeing you to then make your real impact because then you can start the whatever the next thing. And hopefully your first thing is that thing. But realistically, it probably isn't. And all I have to do is look at every entrepreneur that's really wealthy, the amount of graveyard businesses they have in their back. Right. Right. And so like right now if you're listening and you're like, I'm not sure if this is the perfect business idea. Let me just save you the time. It's not because look at every other person who has been ultra successful. They have 10 failed business ideas. So just like just start so you can just start notching off the bad businesses. But extending the time horizon, I think only happens if you do shift the intention through which you're building it. Or you're just unbelievably self-disciplined. But I think it's easier to just like start at it with the right heart. Because small tangent, but I think it'll be worth. it is that the reason that most people aren't successful, in my opinion, is that they sacrifice global benefit for local benefit. And that happens in all areas of life. You eat the

piece of cake because you have an acute local benefit versus the global benefit of a six pack that lasts for a very long time or better health, et cetera. The three things that I think were in common of the ultra successful were inflated sense of self, as in they thought that they like, they deserve big things, they wanted to go after big things, inferiority, never being good enough, and impulse control. Those are the three factors of the most successful. They're like when they did a common factor analysis, they're like, these people think they believe that they can achieve all this amazing stuff. And then it's just, it's an amazing paradox. Because at the same time, they think they're not good enough and they are insecure about whether they can achieve it. And they have impulse control. And they just they and they stay focused on the thing. And I'd say the biggest breakthroughs that I've had, I think that will create a lot of the wealth that we will have in the future is, is really a deep understanding of how long, long is. And, and, I'd say, the biggest breakthroughs that I've had, I think that will create a lot of the wealth that we will have in the future is. And, and I think that we'll create a lot of the wealth that. And And shooting with the intention of like, I'm only bringing this up because my YouTube guy said it. He's like, I've never had somebody who actually started that.

I was like, we'll see what we do in five years. I was like, we'll measure that. And he was like, no one has literally ever said that to me. I was like, as long as I see progress, I'm good. Because they're, what's results in like two months? Yeah, yeah. Like if we're going this way, I'm cool. I don't need to say, like, that's good enough for most people.

If they could extend the time rise, because like, I'll give you another hack. You can know how wealthy someone is based on the time. time horizons they speak in. So if someone's talking about how they're trying to make, you know, make money this today, hey, let me hold 20 for today. You know how, you know how poor they are. I have to say poor they are. Like, you know how poor they are. Right. If someone's talking about what they're going to make this week or this month or this quarter or this year, this decade, we're how different the people are who are talking in those time horizons. And so I think that if we can shift the time horizon that we think in, then we gain more leverage over our time, which we then know, we will compound into money. Because I think if you can master the time, you master the money. If somebody is starting from scratch, what are the traits, skill sets that they should be cultivating in order to up the odds of their success? They should focus on one thing in general, rather than lots of different things that you're not sure about. Because if you're starting out, everything looks like an opportunity. So the correct answer is all of them are opportunities,

but all of them won't work unless you pick one, right? So you have to see no to all the other mistresses. So boom, you pick one. And then from there, I always say six figures, is sell something to someone that's it and if you want more detail sell something to someone so it's one avatar one product one channel so you don't have to figure out how do I create 20 pieces of content across it's like just pick one channel one media source whether it's Facebook Instagram YouTube you know whatever Twitter consistently start going on that whether that's cold outbound whether that's content with it's running paid ads whether it's

affiliates word of mouth whatever it is and start reaching out to people there to start selling your stuff and so I use something that I call the rule one 100, which is 100 primary actions, whether that's 100 minutes of constant creation per day, 100, reachouts per day, $100 of ad spend per day. You have to pick one of them, but 100 per day, and you do that for 100 days, and I promise you'll have, you'll be making six figures if you do that. People are afraid of not getting validated or they're afraid of judgment that they perceive from other people that exist or don't exist in their lives. And so for whatever reason, they have this second voice that criticizes everything they do that in reality isn't even there,

but it's constantly present. It's like the antithesis of whatever the God figure is, but just the negative voice. And so I think that's the thing that stops most people from doing the stuff they know they need to do. Because if you think about like whether it's want to get in shape or I want to have a better marriage or I want to make more money, most people on some level, at a basic level, they know what to do. And my proof point of like even making money, right, most of us have had a bill that came up that was unexpected, a tax bill, a car break. down a health thing, whatever it is, and we find a way. And so when it's for someone else, people are will use the actual resourcefulness that they have to make the money. But for whatever

reason, they won't use that same resourcefulness to make it for themselves. And so I think that most people know if they want to work out, to get in shape or to lose weight, whatever, they know they need to eat fewer donuts and move more in general. But they don't, right? Because they're afraid of getting started or they don't have the discipline to keep going, which is they can't make the short-term sacrifice for the long-term achievement. So big picture, it's like there's usually some fear that's preventing from doing it. And then how it looks from a behavioral standpoint is they do not make the short-term sacrifice of discomfort for the long-term achievement.