How the top 1% make their money
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- Опубликовано: 22 окт 2024
- Want to SCALE your business? Go here: www.acquisitio...
Want to START a business? Go here: skool.com/games
If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.
Want to SCALE your business? Go here: acquisition.com
Want to START a business? Go here: skool.com/games
Hey Alex you should do a video for me on top ten best business ideas to do in time please🙏🙏🙏
Are you Syrian?
@@PRIST.A.Cif he tells to start a drug dealing business or a sex trafficking chain - you’re going to do it ? Just start stop trying to have a perfect path - If you really like this guy just Use his 2 books with any business idea that is legal like stop JUST START
The majority of the top 1% usually work for a living. Sorry but you are wrong!
My bad I had push like, but I meant to push thumbs down. That was me. Why is everybody who’s trying to act normal or dress like a hobo but your your clothes look brand new it contradicts the look 😂😂
The silence around Hidden Lodge Prosperity is crazy. Everyone should be talking about this book-it's next-level wealth wisdom.
Bought it last week, its mind-blowing how simple but powerful it is.
ty for recommendation
What is the correct name of those book I can't find it in online
Hidden Lodge Prosperity (Google chrome)
Hidden Lodge Prosperity
One lesson I've learned from millionaires is to always put your money to work, no matter how small. Even investing $100 per month can compound to tremendous wealth over decades. The key is to keep going!
The last three minutes are pure gold. Incredibly simple yet relentlessly difficult.
Yes! My biggest mistake was not sticking with a business long enough.
Six years is good 😊😊😊
This is good stuff. Thanks for simplifying private equity Alex. Truely appreciate it.
One key point not mentioned is MARKET CAP of a specific business sector. Some of my SAAS clients sold for 150 million dollars. They were getting about a 30 multiple. If a specific business is growing fast and has very little market share yet many times the buyers will pay a ton on the multiple for the potential growth they see in the market. Shark tank investors mention this about the size potential growth for a business relative to the current market cap and future market cap. Some market caps can be declining, stagnate, growing.
This must be the best video I came across YT. Thank you for sharing how to value a business and how PE is killing this money game.
PE? But why?
bringing all this content back to business is awesome, value is crazy. steady building on my end, appreciate all this
Focus and steady building is so underrated! Crush it Sam 😎🙌
Love the content, never gatekeeping.
He's making it simple to make his points. If you want all the specifics, then go watch 10 hours of video somewhere else.
Quality info with nothing fancy👌
Great vid
"billionaire in training" by Brad Sugars
Hi sir your great fan.. csn you upload video about levels of businesses
@@karan9868 Will do;)
Great video. I love the long form content. No quick cut brainrot stuff. You really shine in long form.
Alex! This is brilliant. It feels like I had a breakthrough watching this. As a business owner in year five, this is exactly what I needed. Thank you.
Bringing the heat with this one.
I was just talking about this with my fiancé yesterday explaining my next phase. (Already sold my current business and completing the sale, then into the next)
Do not marry.😅
Vanguard VTI. You can count on a net 9% with a reasonable standard deviation of 15 to 17%. Start early, be consistent and the miracle of compound growth will take over.
Use time as the real basis of growth...it takes about 5 years.
Diversification is the key, Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
with the ever-changing global economy, tax laws and regulations can also vary, impacting how investments are taxed. It's essential to stay informed and plan tax strategies accordingly.
My plan too!
To increase the value of a small business quickly, focus on improving its operations. Start by hiring key people to lead different areas like marketing and sales. Improve the marketing strategy to bring in more customers. Make sure your pricing is right to maximize profits. These changes can make a business more attractive to buyers and increase its value. For example, hiring a new CEO can improve leadership and boost profits.
Listening to Alex talking about a $3mil business with $1mil profit value at ZERO is a god dam reality check for us who think we are “successful” already. Whoa.
I still don’t understand the reasoning behind thid, WHY is that worth zero?
I get you, however it's not whether or not the business is making money, it's the change of ownership of the business that costs $0. Most other things in the world has a price tag when it changes hands. That's not always the case i private acqusition though.
It is worth zero to an outside investor as once they buy it... they do not have a running business due to the fact the owner is doing everything in the business... versus the same company having systems, procedure and people in place to run the business... Take that same first company worst 0 and implement systems, procedures and people... now you have a reliable company that increases the likelihood the revenue will be consistent and grow over time.
@@DemetriPaschalis But he didn't mention that at first, he just said "this 3M business making 1M in profit is worth zero" 😂 the cost of transferring ownership is definitely an important one, it was just confusing at first why that business is not valuable.
So just buy a three million dollar book for nothing and quadruple the size while 5xing the profit and you make profit?
This is literally the E Myth book and building systems that makes the biz work like a machine that can it valuable for ppl on the outside. In terms of real estate tho there are plenty of billionaires who have done it through real estate but the price of entry now is super high and also takes super long. In saying that all your content is incredible with super value thank you 🙏
Never missed an alex hormozi video - hoping I can see him someday 😊
I'd love to see more in the private equity sector!
real estate can make you money in 6 ways! (not just 2)
Money is about different levels of work, the skillsets you have, the life you want to live on a daily basis that makes you happy and content. Millions versus billions gets views because often those watching are not millionaires or above. They haven't went through the journey yet.
Sooooo... next question, where do I get a business doing $1M in profit per year for FREE??
You steal it
The power is in compounding. I know a few independently wealthy people that have stayed independently wealthy. With Franchising and private equity, you aren't going to make a million on your first franchise or house or rental property. More likely, it will take 5-10 houses and more capital versus time with private equity and business as well as being able to franchise out the model.
Great Content Alex, love how you give a clear picture of how you can go all the way in with business and not get stuck in thinking that only real estate will be the way to leverage your money like so many teach as the main way...
This is a fantastic breakdown of how private equity works and why it's so lucrative. It's really insightful to hear about the multiple levers that drive value in a business.
I accumulated a total of 89 thousand today. I am truly grateful for all the knowledge and information you have given me over the past few weeks. I started with 5 thousand 2 months ago .God bless you Deborah
I accumulated a total of 89 thousand today. I am truly grateful for all the knowledge and information you have given me over the past few weeks. I started with 5 thousand 2 months ago .God bless you Deborah
Thanks to my co-worker (Johnson ) who suggested expert Deborah Davis
After I raised up to 525k trading with her I bought a new House and a car here in the
state🇺🇸 also paid for my son's
surgery....Glory to God, shalom.
Can I also do it??? My life is facing lots of challenges lately
l've always wanted to be involved for a long time but the volatility in the price has been very confusing to me. Although I have watched a lot of RUclips videos about it but I still find it hard to understand
I will become a billionaire in real estate! Ill be one of the few!
Love private equity too. Just wont get to billionaire status on that for 20+ years I think.
I'm rooting for you sir! That'd be an incredible feat 🤩
Pace Morby watches Alex Hornozi??? I bet ur ears perked when he mentioned sellers finance lol
@@danielolsen1341 😂👀
Impressive Pace, but you also have a business around mentorships priced at $10k 😉
Pace will do it just to shame others into doing it too 💯
Please make more of this type of content.
Alex I love you, thank you, I'm crushing it because of your inspiration and information.
I'd love to know how many businesses with $1m in profit Alex has "taken off their hands" for no money down....
Crazy Alex.... Talking about business like it a Lego..
He explained it in the middle of the video... that it might me valuable for the owner but it's not valuable for someone else (because the owner needs to be there... so no one with money to buy even that, would be stupid enough to buy it for even 1x... too much risk)... very valuable yes but only for the owner
@@Rafael-Bravo so if it’s valuable to the owner why would the owner let Alex “take it off their hands” for no money??
@@danbradbury4067because he’s taking the risk off the owner’s hands…
@@danbradbury4067 exactly, unless they are desperate to get rid of it and can't find any buyers I just dont see how anyone is giving away a business even if it only has value to the current owner
What mic and camera do you use? I love the quality. Thank you
This is encouraging to my future endeavors. Thank you.
Your business may not be worth much, but making 3 million revenue per year puts you in the 5% survival rate of businesses.
Its crumbs to private equity, but its a gold mine to 95% small business owners and normal people.
Your ability to simplify things is one of your best qualities as a creator. Good stuff man
We have bought several houses for a dollar and we buy houses way below what is owed on them every week. Just funny Alex said that. Love the vid and actually enjoyed being like oh yeah but actually you can sometimes.
Alex has the cadence of casually explained and it's actually great
I worked with a business broker that teaches about acquisitional wealth. My mom and I pooled our retirement funds and invested about $250k to purchase a supposed $1.4M business. We thought we’d grow, sell, buy, grow, sell, buy, etc. We got totally screwed. Haven’t taken a paycheck the entire time and now owe about $60k not including the loan amount. Please help!!
Please make a video on where the 1 % store their money
Shell corps overseas
buying businesses... they only sell the ones on the way down
He literally just explained it in this entire video lol. They buy assets and try to increase the value of those assets. Super rich have many places they store money but ultimately it comes down to owning the assets
The 1% is like 250k+ in the US, they’re not storing there money anywhere 😂
I know what you are thinking (real estate) but the real answer is this video. "Own Nothing, Control Everything."
Great video! Precious content. I am glad I started my business.
I've been actively searching for, and consuming content like this since 2013, so 11 years now.
If there's anybody who does this better, please let me know.
There definitely is other mind blowing content out there to be sure. But I've never found a source with the volume, quality and consistency that this dude brings.
Thanks Alex. My family and I really appreciate your generosity.
We're not trying to win any school games, but your knowledge and willingness to share has literally put more food on our table. I'll probably never get to thank you in person, but I am super grateful.
Considering your experience I think it’s time you did some videos of your own.
Instead of giving you some economics classes I would rather suggest you watch time management (Rian Doris) and health channels, like Doctor Mike, Dr Mike Israetel, The Kneesovertoesguy and Bryan Johnson (about sleeping mostly).
Dave Ramsey is better but you gotta take some acid and eat some canned beans while watching it
From $10K to $25k that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family
I'm celebrating a $30k stock portfolio today. started this journey with 6k,I have invested on time and also with the right terms now.
I'm celebrating a $30k stock portfolio today. started this journey with 6k,I have invested on time and also with the right terms now.
Oh, yeah. That was possible with the help of my Guru expert, Jenifer Spencer
Really nice video. I haven’t been a fan really but this video earns a sub. Great content! Thanks.
Thank you Alex for another banger of a video - golden nuggets! I literally just mentioned to my wife how historically the wealthy have a background in real estate but I think the online world is going to be the next "real estate". Thank you for the time, energy and resources you put into these videos. I require all of my coaches to watch every video you put out!
Thank you for reminding us that as business owners we need to stick to one thing to succeed really appreciate the effort and value you just shared Hormozi ❤
Such clarity about pe you don’t even get in a business school
Top notch work my friend!
No way you can carry a mortgage, pay property tax, home insurance, pay for maintenance and repairs and make any profit charging $1k per month. That worked when you could buy a 3 bed 2 bath house for $100k to $$150k. Not anymore!
it was just an example lmao
I think it was just arbitrary number. You can think about it at $1000 profit if you like after all that’s paid and it’s the same concept
The key is equity and appreciation
How the top 1% dislike the video to reduce competition and binge watch
Lol
Lol
😂😂
Lmao the grind never stops
😂
Love this. No doubt every business owner needs to be thinking about building a business with the end in mind. And manufacturing the equity along the way.
Man a 1M net profit business with 33% margins will not be worth zero lol probably like 5M.
Businesses that you can get with zero capital mean they have big things wrong with them.
I own a construction company with 3 million top line and 1.2m paid to partners and employees. It’s all yours for 5 million!
This point about Focus really hit home something I really need to build
Basically to value the business they are discounting the reliability of the FUTURE cash flows to today.
At my current situation, I would LOVE TO HAVE A $1mill profit a year business.
If PE funds can turn a loss making company around in a few years, they have the midas’ touch that would make them rich whether they are in PE or run their own business.
OMG, Codie Sanchez finally makes sense to me now! lol. Thank you for explaining this so well, Alex!
Very insightful Alex thank you. But how does one come to buy these or acquire them for “$0”? Or even find opportunities to leverage myself into one of these ventures. Because I very much understand the business model but am not seeing how to slip my foot in the door. Would love to hear you feedback, thanks Alex.
The type of high level business content I’m looking for
3:07 In 2011 I was hired on to a SAS company who was converting their sourcing from inbound outbound at the time they only had one outbound salesperson I was known for cold calling in the area and a friend referred me to this position I was brought on to that company in 2011 and converted it from 90% inbound marketing to 90% outbound Marketing in 18 months creating a full processing system that today 12 years later is still being used in that sales floor
I parted ways in 2015 and started my own ventures
I was that pivotal asset for that organization.
Is there a Craigslist of businesses? Like a hub where people who want to sell their business advertise their business for sale?
Empire Flippers
It always gets me when a wealthy person teaches... $0 money... uh, You may have to put a little money down, like $500,000. OR If you can save $75,000 a year... etc. Most teachers are not teaching for the little guys but are talking to people who already make a large amount of money.
Always amazing to see how to get to the top! But don't be embarrassed to have a money goal and focus on other areas of your life 😎 Focus on improving your situation one step at a time and don't feel discouraged by the talk of millions & billions 🙂
Hey, could you create a video on when to do an S or a C Corp and the benefits for different outcomes?
You better have $20 MM in your pocket on the way in to absorb the 80% of bets that don't work out.
Absolutely. Loans for businesses are also a lot harder to obtain compared to real estate. The average joe can own and rent a property but running a business is way more difficult
Alright, at 19:04 my mind was blown. This entire time when I used to watch "Shark Tank" I never realized how genius that move actually was as a TV show. The more I thought about it, the more I just couldn't help but sit here in awe. It never really clicked until now.
So good, I had to "SMASH the LIKE BUTTON" 3 Times!!
They generally started with money or took some massive risks to get a big payout which gave them the capital base to make real money.
As always, a great analysis. Newcomers often wonder if it's too late to navigate the financial market, but the market is always unpredictable. Trading has more advantages than simply holding, so it's important to learn before diving in. Active trades are necessary to ride the market's waves. Thanks to Zachery M Demers’s insights, daily trade signals, and my dedication to learning, I've been increasing my daily earnings. Kudos to the journey ahead!
HE'S MOSTLY ON TELEGRAMS, USING THE USERNAME...
@Zachfinance
Most people are retiring this year and has nothing to show for. But I assure you it's never late to get your financial life together again.. All thanks to Zachery M Demers for I and my family
I'm surprised that you just mentioned Zachery M Demers here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with him and it has been super.
Focus and Long-term Habits are so underrated. Improving in this category is my passion 🤩 (Like if watched the whole video)
Alex, I have been job hunting for over a decade but have been struggling to get hired. Are you hiring?
Great video, opened up my eyes to private equity. Cheers
What is your mic? Really good sound quality! Thank you for your content.
If only it was that easy!
More videos on buying business strategies please 🙏🏻
"People stay poor because they can't stick with stuff." Bruh. Alex calling me out right now, man...
The story of my life
I’d like to see those businesses that gross $3m in revenue, turn a real $1m in profit, that the existing owners will just turn over to you for 0$ “just to take it off my hands, pretty please”. Like that exists.
Could some of the things that he’s speaking on be applied to investing in businesses that are traded in the stock market or strictly private?
Solid video 👌
I will strive for both real estate and private equity
No wonder ,most won't get there because its with over priced real-estate. You need 20% down that could easily be 100k who has that just sitting in a bank. Banks are a stable business because they are allowed to make money by legally being allowed to create money out of thin air and lend t it at interest.
Mr Hormozi, what valuation will you put to your name in 10 years time? (what 3 things will get you to it?)
That thumbnail is A1. This video will pop off for sure...
Actually the value of your real estate isn’t going up the fiat currency will have less value due inflation so basically your purchase power is going down that is why the rich people keep gold silver and other valuables that keep their value
knowledgeable ... fully watched
Ok this is what I needed to see. Stay focus. And I love this model better then real estate, however need tax benifits, do business give tax benefits like real estate?
Ok Alex. That's great and all but how does one acquire a business 7-digit business?
You talk about your channel giving value, but sometimes its value only to those who already are in the know.
Great content.
Very helpful & enlighting video !!!. But, since these are tough times for most of the people, a business owner should start from 1 business and as he grows in profit, he should diversify in other areas/fields. He can negotiate with other business owners and buy a percentage of their business or he can exchange a part of his business for a part of their business. There are many ways. Economy in the US & globally isn't going well, WW3 is about to start in the Middle East, so since we don't know who is going to be effected next, we need to prepare in all ways possible.
00:01 Diverse pathways to wealth creation in real estate and private equity
01:39 Private Equity allows for diverse opportunities to make money through strategic investments.
05:10 Private Equity investors see potential in undervalued businesses
07:01 Strategic changes can rapidly increase business value
11:00 Building a business with intrinsic value for the marketplace
12:41 Private Equity can create value from almost nothing
16:05 Banks have fixed down payment requirements for real estate, but businesses vary based on cash flow.
17:40 Strategic investments can significantly increase business value.
20:47 Age of the business impacts its value
22:28 Building generational wealth through long-term strategies
I'm looking for something thats gonna make lots of cash flow that I don't have put much time, money, or effort into. What should I do?
I’m not a very smart guy, so I stick with real estate 😅
The master of this is Jay Abraham.
Phenomenal video, thank you, Alex... You have a knack for simplifying everything down very nicely.
More to private equity pleaseeeee
Alex thank you for your videos. Im still pretty poor but I took your advice to work long hours and grind. Its been a year and im indeed making some progress in ny company. When I have some savings I will start investing too, but its still too early for me.
It's never early or late to save... You have to save a part of each income you get.
I'm a little suspicious of this guy, but his advice seems solid. He only rarely pitches his book.
I wonder if these workshops are Alex's way of showing us his 3rd Book's methods work.
If the book is on sales I was wondering how he'd show us through the marketing of the book. But hey these workshops could be the example
The previous video was 4 hours of sales knowledge. ^^
Please create a video where the top 1% store their money and how they're able to move Billions in caah.
Might sound like a stupid question but what type of business is Alex talking about
When one knows how to buy real estate, it is VERY VERY lucrative.
thought this guy was an asshole judging by the shorts i've been bombarded with lol. But the 20+ min videos are actually very good and he's quite enjoyable also