Alex Hormozi
๐ค SpeakerAppearances Over Time
Podcast Appearances
What about manufacturing?
What about logistics in terms of pick, pack, ship?
And then on the capital side, it's like, do we have lending partners?
Because we might run out of capital if we're scaling really quickly, because there can literally be nothing wrong with your business.
But think about this.
If you have 10 units of something and you make $10 of profit on each unit and you sell all of them in a day and the next day 10 more people want to buy, there's nothing you can do.
And so that might mean that you might have 300 units worth of demand and you only have 10 units worth of profit.
What do you have to do next month?
You can only buy 10 more.
right?
And so your growth rate will be dictated by the amount of free cash flow that the business kicks off.
And then that will be the growth rate that you'll be able to sustain or only growth rate that you'll be able to have in the business.
And you'll be constrained by that capital.
There are lending partners because this is clearly a capital constrained business if you're growing quickly.
But those are some of the negatives or some of the downsides.
Now, if you own one of these businesses, what's the big hairy problem?
What's the big problem that you have to solve?
Number one is managing cash flow.
So you have to be able to forecast cash flow.
You have to look at inventory cycles.