The Game with Alex Hormozi - Who To Hire First | Ep 369

Episode Date: February 15, 2022

Gain more money by spending less time. Today, Alex (@AlexHormozi) talks about the kinds of people should hire first when you are scaling your business, what to look for, and how to make the most of your time.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:(1:10) - Start of business: hire based on low cost, high time.(4:15) - Hire for admin or customer fulfillment, time-consuming areas.(7:07) - Early hires bring maximum profit in minimal time, decision-makers.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Who do I hire? At what point do I know it's right? And the first secret to this is that you're never going to know. Welcome to the game where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe. In this video, I'm going to tell you who to hire first when you are scaling your business. All right. So number one question I get all the time is when should I hire? Who do I hire? At what point do I know it's right? And the first secret to this is that you're never going to know. By the way, my name is Alex Ramoseo in Acquisition.com. We're in a portfolio of companies is about $85 million a year. So one of the biggest issues is when you're starting as a business owner is that you don't know what the hell you're doing. Right. And that's okay.

But what I want to introduce to you is a simple concept that I use when thinking through this as a simple tool that you can use when you think about your stack of time. All right. So let's say that this is all of the time that you have in your day, right? And let's say you spend a certain amount of time doing, you know, admin work, and then you do some sales, and you do some marketing, and you do some, you know, let's say billing, and then you do some, you know, customer facing stuff, right? The way that you determine which of these things you hire next is you look at two factors. number one is what is the greatest percentage of your time like where's the greatest percentage of your time that you are spending number two is what is the cost that's the lowest cost activity that is the highest percentage of time all right and so what you want to look at here is ascribe a value

to each of these types of things now you can look at market value or what i prefer to do is which of these things is making me the most money all right so right now there will probably be in your business that make you money, right? But they don't make you as much money as, let's say, sales does, right? And so we're not going to outsource something that's crucial to the business at this early stage when we have something, let's say, admin and billing that we can outsource earlier on that have a lower likelihood of impacting your business in a negative way. All right?

So we're really trying to play defense here when we're looking at how we're going to hire. And the objective, and this is the main thing here, because understanding what problem we are solving is one of the most important aspects of entrepreneurship is, picking the problem that we're truly solving. Most people start solving problems that don't even exist. We're solving problems that aren't even problems in their business. They're not even constraints that exist, right? And so the objective of the hire should be to give you time, right?

It should be to give you time back. And so the idea is, how can it get the most time back for the least amount of money? And that's consistently the process that you'll continue to do in your entrepreneurial journey is how do I get more time back over and over and over again. And independent what everyone says, the process of entrepreneurship is just buying back time and increasing your level of skill so that you can do higher and higher revenue activities, right? To the point where the only thing, and I'll tell you where the final place that you'll have is that you'll just be making decisions, right? This is the highest level, right? And then beyond that, it's having a vision that everyone is aligned with that they're making.

their decisions through. You provide the lens through which people underneath of you make decisions in alignment so that they can move the entire organization forward on your behalf. All right. Now when you're starting out most times most times what you will need to end up doing your first one of your first two hires will be one of these two things. A it will be some sort of administrative help or some sort of first follower who will help you who believes in you, believes in your vision. And like, this is why spouses a lot of times end up being that first hire, right? That girlfriend or whatever who ends up believing in you and, you know, quitting their job so that they can, you know, support you and you guys go

do this thing together, right? And that's because they're going to be, they're going to be more invested. You get way more work out of that person than you would out of a normal employee. But you can also find those types of people. And that is very common as the first type of hire is kind of a, a jack of all trades admin help person all right the other type of hire that I see so there's usually one of these two is the first hire is somebody who can assist with the fulfillment all right so if you have productized your service which is going to be one of the first things you need to do is figure out how you can reliably replicate the same outcome among customers which is why it's important to narrow down the type of customer you're servicing and the type of outcome you're delivering so that you can make it

easier for someone else to accomplish the same thing as you so that you can focus on running the business and not actually doing the thing you are selling, right? So it is productizing the service. And so that means that in the beginning, you'll need to always work overtime because you're basically working one and a half or double. So you're working on doing the business things while also building the infrastructure or foundation so that other people can work within this model. Right? And so most people who are starting out, I'll write this down for you so that you can have a visual for it. Number one is usually either an admin slash helper for you or somebody to help with customer fulfillment. Hey guys, real quick for those of you guys who are $100 million offers fans, I love you.

I added in a lost chapter that has never been released. I'm releasing it now. Transparently, I'm doing that to build hype for $100 million leads. but you will have the unreleased chapter. It talks about your first avatar and how to segment customers to make more money. You can get it by going to acquisition.com forward slash leads.

It's both free in exchange for your email so that I can email you when we launch $100 million leads and so that you cannot miss out on it because last time I sold out for like eight straight weeks really fast. So that is my way of making sure that y'all get first dips. Those are typically one of the first two hires you will have. And this is obviously with a broad generalization based on a founder-owned bootstrap business that doesn't have funding,

which 99% of businesses fall in that category. Now, if you're a three-founder, you know, VC-backed startup, then obviously you might have different hiring schema right off the bat. But if you're starting this from ground zero, and this is you, and you are hustling, these are usually going to be the first two hires you have because these are usually the things that take you the most amount of time that provide the least amount of value, all right, so that you continue to work your way up this, this, this, this, this, this, this, this,

this value ladder, which I can probably do at another time. But as you go up this ladder, they should be the things that take you, that bring the most amount of money and the least amount of time. So this is a little time hourglass, which I failed miserably at. But the most amount of money, least amount of time, that is what you're spending your time doing, and you outsource these things in this order. And that is the thought process that I use when I'm trying to figure out what things and what people I need to hire next, which is what's taking me the most amount of time

that I can buy from the marketplace at the least amount of money. Amosian, make these videos because a lot of people are broken. I want you to be one of them. I want you to scale the crap out of business, and I'd love to know that this video helped you. So anyways, lots of love, keep being awesome, nothing to sell you, and I'll see you guys to the next video. Bye!