# How I find MILLION DOLLAR opportunities... ## Метаданные - **Канал:** Alex Hormozi - **YouTube:** https://www.youtube.com/watch?v=GDqmlwY_uj4 - **Дата:** 29.11.2021 - **Длительность:** 11:49 - **Просмотры:** 46,938 - **Источник:** https://ekstraktznaniy.ru/video/16593 ## Описание Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yta160 The easiest business I can help you start (free trial): https://www.skool.com/hormozi Business owners: Want to scale faster? We provide in-person advisory for companies doing at least $1M per year: https://www.acquisition.com/workshop-yta160 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 $250,000,000+ 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: Clo ## Транскрипт ### [] In this video, I want to talk to you about strategy. And strategy is one of the most amorphous terms that kind of exists in the business world. People throw it around all the time. It's kind of like the word value, right? People use it a lot. But I think a deeper understanding of strategy will yield outsized returns. You know, it's that one or two big decisions that direct the entire course of your life or your business career over the next handful of years is a result of strategy. The thing that got me thinking about this is that throughout my life, changing or improving the opportunity vehicle that I was pursuing significantly impacted how much money I made. And uh I had this really cool chart uh which I can't show you right now, but basically with each increase in leverage um that I had, I was able to add about a zero per month to my income. So I went from four figures a month to 5 six figures a month to seven figures a month. And now how we're going to get to eight figures a month is going in accordance with this. from a discussion that I was having with a good friend of mine. I was like, how do I quantify this? Right? And the original thought was simply the leverage of the market times deliverable, right? So the correct market times the leverage of deliverable. I thought more about this and I want to simplify it into three factors. Hopefully this should show just like clarity of thought over time. And just before I get into this, the reason that I think this is so important is, you know, if I if you if you listen to billionaires autobiographies, which I think is one of the most valuable things, like I don't really want to hear someone's biographical take on a billionaire because I don't really care about that author's belief set, right? They're writing books as their way to primarily make money, which is probably not the one of the best opportunity, you know, vehicles out there. So that's what they're working with. That's the lens and the frame through which they see the world. And so I don't really want their analysis. I want to hear from the billionaire's perspective how they see the world and as a result how they make decisions about what they deem worthy uh of their time to pursue. One of the ones and the thing that kind of inspired me to go down this path was uh from Richard Schwarzman. And so he's the founder of Blackstone. He's worth about 30 billion. U Blackstone manages I think right now about $700 billion they have under management. They might be at a trillion. Who knows with all the inflation and whatnot. But that's that being said, he said that for him there are three factors that go into pursuing an opportunity. And the ones that I'm going to share with you are slightly different. He's probably smarter than I am. But this is what he said. And I think this is I'll show you how I unpack that. So number one, Isa said it has to have the potential to be really big. ### IT HAS TO HAVE THE POTENTIAL TO BE REALLY BIG [2:25] Number two, he said it has to be able to be run by 10 out of 10 uh talent, which ### IT HAS TO BE ABLE TO RUN BY 10/10 TALENT [2:31] means other people can run it and and grow it for him on his behalf and probably do it better than him. And the third is that it has to make economic sense. And so for him, it's like if the opportunity is big enough ### IT HAS TO MAKE ECONOMIC SENSE [2:42] he's got people who can run it who are level 10 talent and the economics makes sense, they do the deal, they pursue the opportunity. Right. On the flip side of that, for me as a you know smaller entrepreneur than Steven Torsman, the thought process that I use is three variables and it's really unpacking uh really big opportunity like that idea is I just want to unpack that piece. And so there are three things um that I believe go into that. Number one is the potential number of units able to be sold at scale. So if we were to take this thing all the way into the future and max out every possible potential, how many number of units can we sell? Which is in other words what people say as TAM. So total addressable market. How many potential units could we sell? Number one. Number two is the potential ### THE POTENTIAL PROFIT PER UNIT SOLD [3:31] profit per unit sold. And so this is um this is a function of how much value we believe can be provided, how much pricing sensitivity is there, and then what our cost of goods could be at scale. And so in the beginning a lot of times you're not necessarily to have that level of profitability etc right per unit like if you're you know if you're building out a massive factory then that would cost a lot of stuff upfront but the additional unit the contribution margin per additional unit sold might be very high right and if you see a huge market where you can sell lots of products which is variable one and you have the potential for tremendous profit margins because there's a lot of value between what they're willing to pay and what it costs us to fulfill. then those are the first two factors and for a while that I kind of talked about public publicly and I was like cuz you know as I developed frameworks I'm like is that it is there something else that kind of factors into this and so after beating up the idea for a little bit I came to a third one that I believe is the kind of the third piece of this and it feels relatively complete to me at this point and so I'll share it with you so the third is understanding exact actly what the supply demand curve ### UNDERSTANDING EXACTLY WHAT THE SUPPLY-DEMAND CURVE LOOKS LIKE WITHIN THAT MARKETPLACE [4:39] looks like within that marketplace. So I'll give you kind of two contrasting examples. So if we were to enter into let's say the mobile you know mobile device space from a telecommunication standpoint. So let's say I want to go compete against Verizon right well the total just market is huge. Okay the potential profit per unit sold is huge right? I can sell phone services to everyone. Okay, cool. Do I want to necessarily pursue that opportunity? Well, what are the supply demand economics within that marketplace? If I see something that has tons and tons of supply that is existing and entrenched, then the supply demand economics are not going to be in my favor. Whereas if we are going after something that is maybe newer or growing and has the same huge potential scale, lots of potential uh profit to be made, but the number of people who want something versus are supplying it are in my favor as a potential new entrance in the marketplace, then that would be something that would be a an additional point towards that opportunity compared to another. Right? And so, um, right now that is the three kind of frameworks that I'm looking at when we're looking at investment opportunities in terms of what companies we're buying into is I look at those three things now, which is how big do I think this market ### THE POTENTIAL NUMBER OF UNITS ABLE TO BE SOLD AT SCALE [6:01] could potentially be at scale. How much profit can we potentially make per unit sold at scale? And then what are the supply demand uh economics within that marketplace? And are they favorable? and a lot of the pieces that are going to make it more favorable maybe short-term niching down because within a sliver of that market there's better you know supply demand economics in terms of competition there right um or the marketplace is growing at a very rapid rate which even with the increasing number of entrance is significantly smaller than the increase in demand right and so let's say we've got you know demand is growing at 20% a year and new competitors are growing are entering the space at 10% per year. So I still have uh increasing uh supply demand economics in my favor to enter that marketplace. Right? And so those are kind of the three big things that I'm looking at and the reason this is important for you. All right? So this is the this is the takeaway for everyone who's listening to this. I was talking to an entrepreneur the other day, very skilled entrepreneur and they had been stuck at, you know, not a ton of money and they're very skilled and they kept trying to reinvent the wheel within their current business. But the issue was not the model that they were pursuing. It was the opportunity itself. And so I think that a lot of entrepreneurs, especially smaller business owners who are newer or starting out, do not think with this frame and believe that they need to be stubbornly persistent to try and quote figure it out. And I think that there is value in that. And the single hardest decision as an entrepreneur and this is one that I have given a lot of thought to is understanding when to quit. All right? And you can use it as the term quit cuz I'm purposely making that a little bit more trigger heavy uh in terms of people's emotional response to it. But it's really when do you choose to change your mind with increasing amounts of data. And I think one of the telltale signs of intelligent people is that they are able to change their minds. If you are unable to change your mind then it means that you will know you will not be better than you currently are ever. So think about that. So like it's this weird thing where we have this desire to be you know consistent with our commitments in the past but as data increases so should too the quality of your decisions and if enough data is presented to you that there is a superior opportunity and so this may seem like this is in contrary to niche slapping uh a video that I made in the past that has gotten a lot of uh attention which is you need to focus on one thing and keep doing it that is true but there do come times and this is why I say it's the it's one of the hardest issues as an entrepreneur partnership which is when do I decide that enough is enough with this current course and so I think that the way to focus on this or at least the takeaway that I would say with this is number one is that whatever you are doing you need to focus exclusively on that thing if you're trying to pursue multiple paths then the likely that you succeed at any of them is very low right and so you want to stack the percentages likelihood that you're going to achieve something in your favor and so the first way to do that is focus which is a character trait that most people lack which is why most people aren't successful but if you have that character trait and you pursue the thing with focus and diligence and persistence, then you have a high likelihood of achieving the desired outcome. Now, if you continue to walk down that path and it's been 1 year, 2 years, 5 years, right, and you still haven't really seen significant progress, right? You take one step forward and two steps back. You keep doing this over and over again. I'm not saying that you leave entrepreneurship. I am saying that you have to use some level of discernment to say is this the best opportunity vehicle for the skills, traits and beliefs that I currently have right now as an entrepreneur or is there a different wrapping paper that that serves a bigger market that I can sell higher value units to, right, that has higher profit margin between what they're willing to pay and what it costs me to fulfill. And are there supply demand economics that are in my favor in that marketplace that are superior to the vehicle that I'm in right now? And again, that being said, there's always compounding returns with staying with something for a long period of time. You know, the first 5 years compared to the next 5 years, you probably have significantly outsized returns on the second set of 5 years than the first set. I'm not saying that uh you should not be persistent. That is definitely not the takeaway here. But in talking with a lot of small business owners, many times they need to be pursuing a better or bigger opportunity vehicle. And I think the difference between the rich and the poor is simply how they value their time and how they choose to allocate the resources and what things they choose to say no to because simply they are not worth it which is why Elon Musk is probably not pursuing dry cleaning right there's nothing wrong with dry cleaning and maybe for you in your opportunity vehicle that might be good right that might be a good opportunity vehicle for you right but for him with his skills traits and beliefs and access he believes that he wants to go after bigger opportunities than that and So, I wanted to leave you this for for food for thought in terms of some questions to ask yourself about your current opportunity vehicle, which is, is this the best use of my time, my skills, my resources, and my beliefs, and my experiences, and everything that I have access to, or is there something that is potentially better? And if so, should I pursue that instead in time? Not jumping to it now and then trying to start a building a bridge and doing two things at the same time because then neither of them will work. But is there a time to cut bait? And so I think these are the frameworks that I think through in terms of investment opportunities for us in terms of where we put our money and our time uh and what kinds of companies that we like to invest in um given our traits, skills, and beliefs. And so uh anyways, I wanted to share this thought process with you. I hope you found value in it. By the way, if you're new to the channel, my name is Alexi. I own acquisition. com. Uh it's a portfolio of companies. We do about $85 million a year. Hopefully you enjoyed this. I make these these videos because a lot of people are broke and I don't want you to be one of them. And one of the most important decisions is what opportunities do we choose to pursue? So with that, lots of love. Keep being awesome, Mozy Nation. I'll catch you guys next vid.