Alex Hormozi

And so I'm bringing this up because it kind of hits to kind of what I was talking about earlier. Like you have to confront the problem, but like the other side of that problem. So the way that I, the way that I talk about this to our founders within the portfolio is like, let's say that I'll just give a simple example. Let's say that we have to, I'll, I'll look back to a question.

And so I'm bringing this up because it kind of hits to kind of what I was talking about earlier. Like you have to confront the problem, but like the other side of that problem. So the way that I, the way that I talk about this to our founders within the portfolio is like, let's say that I'll just give a simple example. Let's say that we have to, I'll, I'll look back to a question.

Let's say that we have, you know, a key hire that when this key hire comes in, we could add, you know, 5 million. Ooh, nice green. There we go. $5 million in profit to the business. All right. So it'd be a really, I said five, five million titles, top line, $2 million in profit to the business. But this is somebody we're gonna have to pay, you know, 500K a year to unlock this. Okay.

Let's say that we have, you know, a key hire that when this key hire comes in, we could add, you know, 5 million. Ooh, nice green. There we go. $5 million in profit to the business. All right. So it'd be a really, I said five, five million titles, top line, $2 million in profit to the business. But this is somebody we're gonna have to pay, you know, 500K a year to unlock this. Okay.

Let's say that we have, you know, a key hire that when this key hire comes in, we could add, you know, 5 million. Ooh, nice green. There we go. $5 million in profit to the business. All right. So it'd be a really, I said five, five million titles, top line, $2 million in profit to the business. But this is somebody we're gonna have to pay, you know, 500K a year to unlock this. Okay.

So this is gonna be a pretty specialized role that we're looking for. Now, a founder might say, hey, can we just like figure out a way to not have this role? No, I think it's a worthwhile question to pursue, but sometimes you just need the role, right?

So this is gonna be a pretty specialized role that we're looking for. Now, a founder might say, hey, can we just like figure out a way to not have this role? No, I think it's a worthwhile question to pursue, but sometimes you just need the role, right?

So this is gonna be a pretty specialized role that we're looking for. Now, a founder might say, hey, can we just like figure out a way to not have this role? No, I think it's a worthwhile question to pursue, but sometimes you just need the role, right?

And so this $2 million, let's say at a 7X enterprise valuation is gonna be an increase in $14 million in enterprise value, which if you own the business goes straight to your net worth tax-free. And so if I say back to the founder, hey, do you think you could find this one person for $14 million? All of a sudden it feels better. You're like, you know, 14 million, I could find it. Right.

And so this $2 million, let's say at a 7X enterprise valuation is gonna be an increase in $14 million in enterprise value, which if you own the business goes straight to your net worth tax-free. And so if I say back to the founder, hey, do you think you could find this one person for $14 million? All of a sudden it feels better. You're like, you know, 14 million, I could find it. Right.

And so this $2 million, let's say at a 7X enterprise valuation is gonna be an increase in $14 million in enterprise value, which if you own the business goes straight to your net worth tax-free. And so if I say back to the founder, hey, do you think you could find this one person for $14 million? All of a sudden it feels better. You're like, you know, 14 million, I could find it. Right.

And so I tried to think about like, what is this going to unlock in the business? What does it create to enterprise value? And then I try and put a ticket to kind of the hard that I'm trying to go through. Like we had a different portfolio company where we had to put in this, I talked about them yesterday. We had to put in this tech tech component to it.

And so I tried to think about like, what is this going to unlock in the business? What does it create to enterprise value? And then I try and put a ticket to kind of the hard that I'm trying to go through. Like we had a different portfolio company where we had to put in this, I talked about them yesterday. We had to put in this tech tech component to it.

And so I tried to think about like, what is this going to unlock in the business? What does it create to enterprise value? And then I try and put a ticket to kind of the hard that I'm trying to go through. Like we had a different portfolio company where we had to put in this, I talked about them yesterday. We had to put in this tech tech component to it.

And I was like, well, currently the company's probably valued at like 80. If we can get this fully integrated, we can be valued in the two hundreds. It's like, man, but building a whole developer team, we'd have to recruit a head engineer. We'd have to bring all these other people in. I was like, Yeah, I mean, we'll also get paid $150 million to do it. So, you know, worth it.

And I was like, well, currently the company's probably valued at like 80. If we can get this fully integrated, we can be valued in the two hundreds. It's like, man, but building a whole developer team, we'd have to recruit a head engineer. We'd have to bring all these other people in. I was like, Yeah, I mean, we'll also get paid $150 million to do it. So, you know, worth it.

And I was like, well, currently the company's probably valued at like 80. If we can get this fully integrated, we can be valued in the two hundreds. It's like, man, but building a whole developer team, we'd have to recruit a head engineer. We'd have to bring all these other people in. I was like, Yeah, I mean, we'll also get paid $150 million to do it. So, you know, worth it.

So it's like, it's hard and worth it. So anyways, please continue. So it's not scalable. Okay. I appreciate that.

So it's like, it's hard and worth it. So anyways, please continue. So it's not scalable. Okay. I appreciate that.

So it's like, it's hard and worth it. So anyways, please continue. So it's not scalable. Okay. I appreciate that.