Alex Hormozi

How long is it, you know, if it's a 12 week lead time for you to buy stuff, you have to predict how much you're gonna be selling in 12 weeks.

That can be difficult, especially if it's your first time.

Number one.

Number two, your distribution.

You're gonna live and die by your distribution.

So ad accounts, brick and mortar distribution partners that you can have, affiliates or influencers who have kind of, I would call it synthetic distribution through their audiences.

All three of those are partners of yours, right?

product like great product will always find a great distribution great distribution will always find great product right but the problem the big problem that you'll have to manage is going to be supply chain how can you have enough stuff to sell right logistics isn't that hard because there's a lot of there's some decent um you know pick pack ship that are out there everybody always has complaints because it's not their business they would do differently blah blah blah blah you wish they they can charge you as much etc etc but like by and large that i would say that problem has been has been solved relatively well um

The next issue is going to be making sure that the product you have has a brand behind it.

And this is the real nasty one.

Because if you just have a pure, I call them smash and grab businesses, which is just, you're a media arbitrage business.

You know you can buy eyeballs at $10 and you can sell them something where you make $11 in gross profit.

That's just a smash and grab business.

And if somebody else sees you smashing and grabbing, guess what they do?

The downside of physical products is that because anybody can own it, anybody can also sell it.

And so if you've got a widget, somebody else can go to China and make the same widget as you.

And that's where patents come important.

That's where if you actually do own your manufacturing, have some special sauce in terms of how you make your stuff, these become the competitive moats for the business.

But the largest of all of them by far is brand.

Nike shirts are inherently the same shirts that other shirt companies make.