Alex Hormozi

So let's get started with the first shape.

So what type of business is this business?

I love it if you actually think about it right now, like if there's different types of businesses, what do you think this one really is?

All right, now that you've thought about it, this is the shape of an e-commerce business.

So in the very beginning, you'll typically have to get some inventory, especially if you wanna have a bigger business, no gigantic businesses or drop shipping.

So if you want a bigger business like a brand, you're going to have to do some sort of inventory.

You'll have to front a little bit of cash, right?

But as soon as you start selling, because it doesn't require a lot of operational infrastructure, you can grow really quickly.

But then you'll hit these breaking points that stop your growth flat.

And so either of these will be cash constraints in the business, as in like you don't have enough money to buy more inventory.

It could be...

It could be traffic constraints, like all of a sudden your ads just stop, and then the ads don't perform past a certain point.

It could be that you've maxed out your distribution.

Let's say if your retail distribution is like, okay, we got 7,000 more 7-Elevens.

It's like, okay, and then we continue to stay at that level until we get CVSs, and then we stay at that next level.

And so each of these kind of unlocks typically occur when you have a supply chain unlock,

or you have distribution that unlocks.

So distribution can be literally physical retail distribution or it can be ad-based and or affiliate-based distribution.

All of these different ways are promoting it so it gets it in more hands.

So this is why the shape of this business looks this way.