The Game with Alex Hormozi - I Remember | Ep 98

Episode Date: January 19, 2019

"I just worked my ass off to not have it be right."Today, Alex (@AlexHormozi) reflects on the risks he took to pursue his dreams and start his own business, including owning a gym in Huntington Beach. He shares his experiences and emphasizes the importance of taking risks and documenting special moments before they fade.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(2:14) - Career path: management consultant to Harvard MBA(5:32) - Starting gym in Huntington Beach with no experience(12:08) - Entrepreneurial journey: from bankruptcy to success(18:44) - Power of hard work: overcoming adversity, achieving success(20:24) - Journey of becoming a gym owner(23:17) - Salute to gym owners: message of appreciationFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Hey, what's going on, guys? Hope you're having an amazing evening. I am, well, you've caught me in a reflective state. I don't normally make, actually I don't think I've made a piece of content at night. And really, I think, since I've started this thing. It's been, it's an interesting evening for me. And so I want to first off apologize because this may be one of the only pieces of content that I make that is entirely for me. But I wanted to document something.

And I wanted to document it before it faded from my memory. And so I actually just wanted to tell you how this all started from it. And I'm not talking about gym much. I'm just talking about my first gym. And so there's no lesson here at all. And it's just crazy to me. So Layla's actually already asleep. and we have a huge thing that's going out tomorrow that we're releasing and you know we've spent

so long on it and I think there are moments where you just that you know the world kind of stands still for you and you just I'm not sure if it's just like the emptiness of your mind or that you're more acutely aware in the moment but like moments where memories get like etched into your brain like they're singed they become moments that you remember and I feel like tonight is one of them. And I feel like it's always before the thing that happens is really where you think about it the most, where you become the most reflective.

And so earlier today, our team asked for the new hires who tried something new, which was, they just wanted to know more about how it all started. You know, how, who Layla and I really worked? You know, we're approaching 70 employees now, and they're like, who are you? And it was weird because Layla had to keep asking these kind of more pressing clerks.

and say, you know, like, tell them about this and tell them about this. And, like, I think you, you bury these things, you know what I mean? Not purposefully, but, like, because you have to be so focused on the business and doing all those other things that you try not to think about that stuff. But I think talking about that earlier today really brought these memories to light now that she's asleep. And I'm obviously, like, wide awake because we have this big thing going down tomorrow. So I'm just, just pensive.

And it just reminded me, you know, It's crazy. You know, like, it's a crazy story. I was a management consultant. I got out of college. I graduated a year early. And I really hated my job. And I'm really grateful for the fact, grateful for the fact that I hated my job because I don't think I would have ever left that world that academia had gotten me and like the degrees.

And like I went to a really good school that was relatively recognized. Had I not hated it? Like if I just not liked it, I would have suffered through it. but like I hated it. And in the moment, I was so angry about the fact that I picked this job that I just hated. I was like, I feel like I got jipped by life. But now when I look back, like that hatred that I had was the only thing that would have ever gotten me to leave. And so I had this job and I saved up, you know, like 50 grand over the spend of two years.

And I was applying to go to business school because it was the only thing that I knew that I was supposed to do next. And so I applied and the, I didn't apply. I took the GMAT and I was filling out the applications. And the first question for Harvard was, how will Harvard MBA help your long short-term goals? And I stuck, it sat with me for like two days, I couldn't answer it because I realized it wasn't gonna help me with my long-intort-term goals at all

because I wanted to start a business. And so I knew that going $200,000 in debt and then not making money during the two years, so I had to stop making money. and then pay $200,000 and then be able to start making money that was only like 30 grand more than what I was making. It just didn't, the math didn't make sense. And I hated what I was doing so much that I saw with the path of what that was going to be, either going investment banking or being a management consultant. I was like, I hate both of these things.

And so I decided I was like, I'm just going to do something I like. And so I left. And so I emailed 40 gym owners and two of them got back to me. One of them was Sam Backtiar in Orange County to respond to back. He said, hey, yeah, you can come on out. And so I sold everything I had. I packed my car. My dad was livid that I was throwing away all of the schooling that he had paid for.

You know, I had done really well in school and that was the prodigal son. And I just threw it all away. And I left and I basically didn't tell anyone when I left because I didn't want them to try to talk me out of it. And so I called people when I was like in Ohio. It was like halfway there. But I packed all my food in a container so I wouldn't have to stop. So I had all my meals packed in this cooler that was sitting on my passenger sheet. It was like the faster I took with me.

And anything I couldn't fit in my sedan, I left. And so I showed up. I got there. And I mean, I literally picked a spot off a map. It was inland empire. I had no idea what that was, right? I'm from Baltimore. I didn't know.

I literally, I met this guy on the internet from an email. I mean, it was kind of crazy. But I just in some ways it probably shows you how to satisfy it's sad on this in my life. And so I, anyways, I left. So I got there and he was like, yeah, you know, I have a mastermind. I was like, I don't have a channel. But he was like, you can join anyways. I was like, okay.

And so I joined. And then during that time period, I, you know, I sat there. I just was there 14 hours a day just because I wanted to learn. And then in three months, I opened a gym in Huntington Beach. And I knew no one there either. So what I wanted to kind of remember or remind myself of, so hopefully it may be a later time when I read this. When you tell the story, you're like,

oh, I was super freaked out when I signed the lease. I wasn't freaked out because I didn't know any better. I didn't know. I should have been freaked out because now I know, going into it the skill set that I had, I should have been totally freaked out. but I didn't know any better, which is, I think, one of the gifts of being naive. But I signed it, and I was really excited.

And what's interesting is, like, when I signed it, and it was $5,000 a month, and I didn't even make $5,000 a month. Like, I had no idea how to even make $5,000. I'd never even made anything to fitness. And it was just crazy. And, you know, people were like, what are you going to do? And I was like, well, I'm not going to, you know, lease my apartment anymore. I wasn't leasing an apartment.

I was running a room for $300 a month. And one of the gym members from the gyms, you know, that I met, whatever. And but anyways, so I told everyone, I said, yeah, I'm going to sleep in the gym. And they're like, oh, that's so cool. You're like dedicated to your goals. And I, you know, I felt like a badass. But, you know, the first night when I actually, like, had to actually sleep in the gym, and there was no one there, I didn't feel like as much of a badass.

I was just really lonely, you know. and so, you know, I was just looking around and I just remember that first night, I was like, where am I going to sleep? I even, like, have a pillow or sleep or anything. I was just like, I told everyone I was like, I'm going to sleep on the floor because I'd heard that, you know what I mean, but like, I didn't know, like, what that even meant. And, like, there was just a mat that I'd put there, like, the squishy mat that everyone works out on. And so I was like, I guess I'll sleep on that.

And I was actually under a parking garage. And so you know there's just metal strips in those park garages, and you hear like, do, josh, to-d-d-d-d-ch. And so I heard it would go off, like, every 30 minutes there'd be a car that would go over it. And that was, like, all night long. It was just like a gunshot. And I was like, man, it's living on the floor in the gym. It's just like, not cool.

And it really didn't get better. It just, like, I just kind of got used to it, I guess. But I get so hot because it was the summer when I started. I would try and sleep shirtless, but I was on the turf or I was on the mat. And then I got like rashes all over me because like it was nasty. But and I there was no shower there. So I like had to go to only fitness and shower. But like my clothes are still dirty because there was no cleaning machine.

And so like my clothes always smelled like crap even though if so like I just constantly was in this like once a week shower thing. And I'm sure it was really horrible for everyone. And I guess there are just like some things like those little details of like the cars that would bang over the top. and like the turf that I had was like six years old. So it wasn't like a new turf. It was like sweaty old turf. And I would have it like peeled to my face in the morning. I didn't actually get a sleeping bag until someone recommended I get a sleeping bag

because I hadn't even thought about it. I like almost was like, yeah, this is what sleeping on the floor is like they're like, you know, you can actually like have a like get a sleeping bag in a pillow. But I was just like embracing the concept of suffering. And I remember calling my dad and just being like, this is really hard. I was like, this is like, I really, this is like not fun. And he was like, you know, look back on these moments. You're, you know, you're going to appreciate them.

All the while, I know he really didn't believe in it whatsoever. It really wasn't proud of me for the choice that I had made, which I could hear. You know what I mean? But he tried to cover that, but I'm fairly perceptive. And which was hard to hear. But maybe some of you guys had that. But anyways, I tried to, I tried to embrace that. I tried to think to myself like, I'm going to really enjoy this.

I'm going to embrace the suck. But I think there were some moments where I was like, this is the hardest thing I've ever done. And it was. I think it is, it was definitely the hardest thing I've ever done. I didn't understand that you should have employees. Like so sometimes when I share the things that like we have now, like Alex always had it put together.

Like I had no fucking clue what I was doing, like at all, like none, like nothing. I didn't understand that you should have employees. employees. And so like the, like I didn't clean my gym because I didn't know you were supposed to. And so what happened is like I started having members saying like, Alex, like, this place is filthy. You know what I mean? And I was like, oh, shoot. Uh, sorry. I like, I was so tired. And you know what I mean? Like, because I was doing, I had no employees and I was doing everything. I was living there. Like, I didn't know what to do. And they were like, it's fine. Like, we'll clean it.

And so like my first clients would like come early and stay late and like clean for me. And then they were like, what are you eating? And I was like, there's a in and out. I get a burger that I get two double levels. And I was like, I'd have that and like some protein shakes. And I was like what I would eat every day. And so they would like start bringing me food. And it's interesting because like there's this moment where it feels nice to be pitied.

But I knew that wasn't like who I was. Because like I was like, this isn't me. Like I'm not the I'm I am the one who knocks I was like this isn't feel right and it's interesting just as like a looking back note that like there's a moment where everyone always wants to root for the American dream right everyone wants to root for the underdog But there's a moment where the underdog becomes the man Screw the man, right? And I'm not sure where that transition happens it might be when you the people who are perceiving you's level of success in their own mind.

So like everyone wants you to be successful, just not more successful than them. And so everyone roots for you when you're down because everyone is better than you at that point. But one by one is you pass them in their perception of what passing is, right? All of a sudden you go from, I like things as they were before. Like you were here more. I was like, yeah, because I slept here. Like I shot at here. Like, of course I was here more like.

You could drop by in the middle of the day and I was here, right? But, you know, there were, like, I didn't know anyone. And so, like, when Friday night would happen, like, I would be there. And then, like, when Saturday would happen, I would still also be there because, like, I had nowhere else to go. And, like, my phone wouldn't ring because, like, no one knew me, you know? And so... Hey, Mosin, Nation, quick break just to let you know that we've been starting to post on LinkedIn

and want to connect with you. All right, so send me a connection. request and note letting me know that you listen to the show and I will accept it. There's anyone you think that we should be connected with, tag them in one of my or layless posts and I will give you all the love in the world. All right. So let's get back to the show. I just that was it. You know, and so that's in some ways it was a blessing because I was like, well, this is all I've got. And I think that, you know, maybe if I had had friends or like the potential distraction of this like a social life or whatever, um, maybe I,

maybe I wouldn't have like just started reading about this stuff because I had nothing else to do. but just like want to end like this level of misery that I was it. And so I just, I guess I just wanted to make this to remember because, you know, as we sit, you know, tonight, we have this big release that's happening tomorrow and I'm just like,

it's just crazy. There's no way I can say it. Otherwise, it's just crazy what's happened in such a short period of time. And I think the grateful posts are always like a little bit trite. They're a little overused. But there's just like an overwhelming feeling of like it's not even real and I don't know how to convey that in words because like I feel like they they they don't

have the meaning that I wish I could make them have but it's just I'm just so grateful for what's happened and there's so many things that have been so bad and I'm sure like that's me but I'm saying everyone has gone through those things but like in the moment they were just so terrible for me or like my perception of them was so bad and like those things really became the cornerstones of the things that that we teach now, you know? Like I, I sucked at sales. Like, I literally was offered a sales job at a finance, like at an investment, like an investment bank, like a good job by my dad's friend because he was trying to convince me to not do this

gym thing. And I got on the phone with them and I was like, I'm not a sales guy. I'm not a salesman. That's not me. I was like, I'm an academic. That's what I told him. I'm not a sales guy. And lo and behold, that's the thing that we're known for, which is just, it's crazy to me. And so I don't know where you're out right now. I just, I wanted to just remember this moment for honestly for me, and I'm not trying to be selfish.

It's just I think that I'll maybe look back on this video and try and savor this moment because there aren't that many of them, I feel like, in our lives that we get to really save her. And tomorrow is going to be really big for me. I mean, for everyone else, it's just going to be another thing, right? You know, for you because your lives are not mine. But I just know how much has gone into it.

And the things that had to, like, the lessons that had to be learned the hard way in order to give the lessons that are now going to be the easy way, I think it just kind of like all hit me at once. Just like just the overwhelming, like just the amount of conversations, the amount of failures, of times people said no and the amount of times they left and the time of times you know people insulted me and and you know um just how my parents were disappointed in me and like you know the friends that i went you know went to college with i was i was the guy who you know i was president of all the things i

left a year early i got a harvard g-mat score like i was i was that guy and to go from that to having all those people kind of be like i don't know what he did you know what i mean he's doing he's doing some fitness thing you know like and to like hear those you know those conversations are going on and not have the like emotional you know security whatever you want to call it you know just age that I think that protects you as you get older maybe you just care less I don't know but like you know it's just like it it I wish I could say that I was so motivated because I loved my clients at the beginning but I did it I just I really just didn't want to fail I just didn't want to be seen as a failure and I didn't want my parents you know I know my dad I didn't want my dad to be right honestly I just

didn't want him to be right it's I just I just worked my ass off to not have to be right and I wish it was from this like really virtuous place but it wasn't it wasn't I just you know in the beginning it's like you're fighting for survival like you're not like people were like love your customers you're like I'm just trying to fucking pay rent you know um and so and i know that sometimes like i can seem and lily can seem we have this you know these things that have been you know put in our in our laps that just seem unrealistic and like you know maybe they're just like on this hill but like it hasn't been that long it hasn't been that long um like i almost filed bankruptcy in at the end of 2016 like nothing and i had all these

gyms and then they I sold them all and then I it's beyond the scope of this but you know um like I almost lost everything I mean I did lose everything I just didn't go under everything luckily and so like I remember screenshoting all my bank accounts um and the total of everything was $1,300 and I just I just remember being like oh like man like this is this is what this is it like this is like okay here we go like you know and I had six gyms before that we worked in capital and not I'm not saying I was wealthy but like I you know there was enough and so I don't know where you're at I don't know and I wish I had a cooler story for you I don't I just wanted to share this with you because I partially wanted to share it

with me maybe I want to share it with my kids or maybe I want to share it with older me who's like man look I used to be in shape but whatever paint you know one of my favorite sayings is proverbs 1423 1423 is like in all labor there's profit and um it says all labor not some or like when it's supposed to be right it's all labor and um I think that's so profound because it just means that it always counts because your work works on you more than you work on it. And so, like, it's not for, like, it's not for that, like, it's not for what we think it's for, you know?

It's for what we're becoming as we do it. And it just becomes really apparent to you when you hit these moments, you know, that you're like, man, like, this is crazy. This is absolutely nuts. Like, it's just, it's nuts. It's nuts. and I'm just really grateful for you guys and, you know, the community and it's just crazy. And I feel like we've been given this opportunity, you know, where so many people have trusted us with their futures.

And we just want to do right by everyone, you know, and we don't take it lightly, you know, with the position that we're in, because I mean, we feel like we're genuinely trying to take an industry from its knees to its feet. And that's what I tell our team every day because that's how I felt. I felt like I was on my knees like begging. And I wanted to elevate an industry to stand tall on its feet, probably. And not be something where people were like, they take their gym owner boyfriend home. And the parents are like, oh, shit. man like no everyone's like hi he's a doctor you know great um but it's like hey this is my you know he's a gym over and i want that to mean something you know because it's meant something for me and um and we have this position now we have the capital and we have the resources that i don't think any gym ever has had um coupled with the one thing that's always been missing which is the desire to actually do something and so um we do

and we'll do everything that we can with all the resources that I have to fix all the problems that I can, that we can, it's not me. So that hopefully the scars that we've all gone through, it's not just me, obviously, but that hopefully other gym owners won't have to go through them or won't have to go through them as long. because like I think that's what it's about right just making it better and I think we are and I think that we as a community it made this this whole

this whole game that much better so anyways I know I went long on this but I'm really grateful for you guys and like I just wanted to really really taste the moment

no way to say it Just kind of like I'm sure some of you guys have had this where you turn off the lights at the gym or like after everyone's gone and It's weird because it's so empty and it's so quiet and it's like so bustling with energy You're like the music and the people and all that stuff but like when you're always the last one out you're like Huh. Like it's like this small piece like this is mine. You know like I made this you know and Maybe that's an ego thing. I'm not sure but it was definitely something I was proud of and, you know, continue to be. And it formed a lot of who I am, and a lot of that was through failure. A lot of it. A lot of it. And so I hope that the rest of the

things that I put on here, which are usually not going to be in this nature, I think they say they don't, no one cares how much you know until they know how much you care. And I can only, Like I you know how do you say like I care so much? I feel like that doesn't really mean anything But I can just say that I Care because I've been there and I just don't want anyone else to have to be there because it was really hard for me It was really hard So lots of love

Jim Lords and for those of you who are not in our community Love you guys too If you're a Jim Lord sorry a gym owner you have my respect whether you work with this or not just for being who you are and for doing what you do every day so lots of love guys have an amazing night i will try to get to sleep which is unlikely um i'll probably just be reviewing slides for tomorrow uh which is exciting for me i hope you guys like it um we put a lot of time to it um but you guys are just the best community in the world and uh there's no one i'd rather serve ever people always ask they're like oh you know you could do this for

dentists you could do this for chiropractice I'm like yeah but I don't like them but I wasn't a dentist like I'm sure we could but like I don't like them and like the reason I think that we've gotten to where we are is because like I love us you know and it's I love what we're about because it's because you get it because we get it it's like an unspoken thing like we all know what it's like when someone always this wants to change the music when someone shows up three minutes late for the 5 a.m. and everyone's freaking out right um you know when the bathrooms are never clean enough like i i get it you know i totally get it so anyways guys have an amazing night i'll see you guys

tomorrow and um i salute you guys for everything talk soon