Alex Hormozi

And guess what?

Now we need another account rep, but they're not as good.

So now you have to worry about your reputation because they're not going to be able to deliver the same, uh, same scale.

And so service businesses are very easy to start because they cost nothing at the very beginning.

You literally just sell your time, which is why it's the most common business that people do start.

They learn one thing and then they start doing that work for other people.

Very simple.

But then once you learn that thing, the better you get at that thing, the harder it is to get more people who are as good as you at that thing, which makes it like the more you can charge, the harder it is to get more people that you can charge that money for and still deliver that quality.

This is the inherent difficulty with service-based businesses.

So I'll give you two polar examples here because I come from the fitness industry.

So a fitness coaching business, a gym is a service-based business, right?

The pros of that particular type of business is that it's easy to hire that talent because one, it's low skill and two, many people love it.

It's almost like hiring musicians.

Plenty of people would do it for free.

They coach classes for free.

They're passionate about fitness.

Where it's more difficult in that business is it's very hard to

Number one, sell.

And number two, retain customers because people don't like working out.

Now on the flip side, I would say many or the vast majority of businesses are actually not like the fitness coaching business.