Before You Run Ads, Fix This One Thing First | Ep 964

**Alex Hormozi** (0:00)
I've been in business for 14 years. Last year, our companies in total did over $250 million in aggregate revenue. I co-own the platform School, which is over 22 million users. And School is a platform that allows people to start and scale digital businesses. And so I have access to quite literally millions of data points on what makes digital businesses work and what doesn't. And so in this video, I'm answering your questions about how to scale.

**SPEAKER_2** (0:19)
I sell dreams and I built an ecosystem to make it happen, essentially. What does that mean? Let's get into it. I start off flipping homes. Okay, thank you.
I start off flipping homes and it got to a point where...

**Alex Hormozi** (0:32)
That's a hope and opportunity.

**SPEAKER_2** (0:34)
It works.
I flip houses, it got to a certain point. We got about 30, 40 consecutively every year in the same market. Revenue is about four mil.

**Alex Hormozi** (0:43)
Okay.

**SPEAKER_2** (0:43)
Just not line itself. But it got to a point, there's too much competition. We had a hard time being profitable per flip. So the development model where we convert competition to collaboration, started contracting company instead of buying the product, becoming the product, and then started a coaching channel where I feed this ecosystem. Vertically integrated HVAC company, roofing company, dumpster company, contracting the whole nine yards.
So I'm teaching people how to do it, and I'm giving them the process of how to do it. All that is different revenue drips for me.
What's stopping me? I got too busy, too fast, and owner-operator for a long time, up until about three months ago. Hired at COO, now transitioning a lot of the operation stuff onto her. Really, I don't know what the fuck I'm doing, because I'm trying to transition myself out. I don't know how to run at COO.

**Alex Hormozi** (1:29)
Why are you trying to transition out of the role or out of the company?

**SPEAKER_2** (1:33)
A little bit of both. So out of the role, because to be honest, I don't really care about the revenue growth factor. I care more about the impact. So I promise I've made myself is that I want to impact at least one million lives before I die. So how do I do that? I'm not going to be doing flipping homes at a small scale, but I built a company that's so based in locality that I'm trapped within it. Because it's so local, my team is there, my resources, my companies, the coaching program only makes sense because it's local. But because of my market size, there's only so many people I can get consecutively every time unless I keep dropping prices, the opposite of increasing price.
So what does that mean? I have to go to a national stage. How do I take this coaching at a massive scale? And that's where I'm stuck at because I'm too busy in the operations. And that's where Amy came in as a COO to help me get out of it and focus on the next phase of the origin story.

**Alex Hormozi** (2:24)
So dude, I appreciate the national scale vision.
I think you could probably get to, given the ticket size and how you can monetize the customer in all these hundreds of ways, the reason you would do that setup is so that you could dominate a local market. You're not dominating a local market right now. You're barely getting started. And so you could probably realistically get between Fayetteville and Raleigh, you could probably get to 100 million a year.

**SPEAKER_2** (2:52)
Justin, I'm not going to long.

**Alex Hormozi** (2:54)
Yeah. And I think if you just take your eyes off of like, I want to conquer the entire world, it's like, maybe, but like, in order to conquer the world, you have to conquer a country first, right? And before you conquer a country, you got to conquer a city. And right now you haven't conquered a city. And so what happens is when armies over expand, they collapse. And so you need to fortify your base better. Because 10, dude, 10 a month is nothing.

**SPEAKER_2** (3:15)
So what do you recommend? Do I try to automate what I have?
Or do I just put myself more into it? And dump it out?

**Alex Hormozi** (3:22)
Yeah, I think you should just ignore the national thing.
And let me just ask the simple question. Can you, could you sell 20 people a week right now? Not, like, let me say it differently. Can you handle 20 people a week?

**SPEAKER_2** (3:36)
We will be soon.

**Alex Hormozi** (3:38)
So you could have an 8x increase in sales within your current infrastructure. So that would take you from 4 to 32