Alex Hormozi

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,

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.