Alex Hormozi

The difficulty is like, how do you triple a service business year over year over year?

Incredibly hard to do, especially as you get bigger and bigger.

Now, some of the other benefits of service businesses is they do have the potential for high margins.

It's rarer, but the way that you... I'll tell you in a second how you can create high margins in a service business.

But they do have the potential for high margins, but almost always they have high cash flow.

Because there's not a tremendous amount of capital intensive reinvestment that must occur in a service business.

We don't have to buy inventory.

We don't have developers we have to buy.

I'm getting a little ahead, right?

But basically...

You sold work for $100,000, your cost on that work was $50,000, and then there's $50,000 left over.

And next month, you're going to sell the same work for $100,000, and the cost is $50,000, and there's going to be another $50,000 left over.

And you can pocket that.

And so they tend to be very stable, very high cash flow businesses.

And I would say the majority of them, if you do a decent job, have pretty good retention because people don't want to learn it and they don't want to do it.

So what sucks about this business?

Talent is the bottleneck, right?

You finding good people is going to be the difficult part of this business.

Whether you're trying to find HVAC technicians, plumbers, electricians on the home services side, if you're trying to find maids on the low skill side, very difficult.

So all the way up,