Alex Hormozi

It's always hard because even at the lowest skill, if we use maids as the lowest skill labor for a service business as an example, well, then just finding people who speak English, show up on time, are competent, and actually do a good job cleaning and want to work for the amount of pay that the pricing package that you have allows for some margin is difficult.

That's the hard part.

If you go up a level in terms of like, I would say, you know, trades, then finding the tradesmen who are good and experienced and can do more complex work becomes difficult.

So it's a more compliant supply-constrained business.

If you go white collar, then you've got accountants, lawyers, management consultants, investment bankers, right?

All of these people require a ton of education, a ton of learning.

And so most of those, like the ones I just mentioned, management consulting, investment banking, legal, like they all have multi-year experience.

learning paths before they're really even allowed to do work on their own.

And so when you have multi-year kind of gestation periods for the talent, that becomes one of the big things that sucks about the business.

And I'll tell you how to fix that in a second, but that's one of the big things that sucks.

And oftentimes when you have one of these businesses, the founder tends to be, not always, but tends to be one of the best technicians.

And so this is a double-edged sword because you know how to do it better than everyone.

And as a result, people tend to always come to you in order to solve the big complex problems, which makes your life big and complex all the time, which kind of sucks.

And the last piece is that it's just slower to scale than the other three models.

So what is the big problem that you have to solve with this business?

If we believe that hiring, onboarding, and training talent is the... So if we take the position, which I do, that supply or the supply of good talent is the hardest part about this business, then one of the core components of your business must become your attraction, as in your recruiting process,

how you onboard those people and how you train them.

Because if we think about a business as the difference between the value of the inputs and the value of the outputs, that delta is where profit is created.

You are creating value in the economy.

And so you take raw materials, people who are underskilled, you have a way of bringing them in, adding value, giving them skills, teaching them, and then you can sell that skill set at a higher premium later.