Alex Hormozi Answers Your Questions
In a Nutshell
Alex Hormozi's core message: burn the boats and go all-in on one business rather than splitting focus, because maintaining the old business while starting the new one guarantees mediocrity and extends timelines dramatically. The key decision framework is to choose easier-to-serve avatars with shorter sales cycles and clearer targeting (like private practice physicians) versus enterprise deals with long cycles and subcontractor constraints. Most importantly, when motivation drops, raise the stakes through bigger goals and shorter timelines rather than delegating away the rewarding work.
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Michael runs a consulting firm in Vegas implementing project management software for enterprise ops and PMO teams with Fortune 500 clients. The business is at 1.4 million tracking toward 2 million and is demand constrained because almost all pipeline comes through software vendor referrals in a subcontractor relationship. Michael has built significant AI enablement over the last 12-18 months and considers himself ahead of most consultants in the space. He is considering starting a new business with his wife targeting a clear avatar in healthcare, specifically private practice physicians.
Alex advises against serving two masters or riding two horses with one ass. If confident about the new venture, go all in rather than trying to maintain both businesses. The recommended approach is to get the first customer from the new stream through a reliable channel - either outbound method, ad space motion, or affiliate motion with influencers or coaches in healthcare.
Alex identifies the difficulty of the enterprise play as the long sales cycle. With only 12 current clients, Alex suggests Michael is wildly underpriced on the enterprise side. The current margins are 83% on direct deals but capped at hourly rates through the referral subcontractor relationship, resulting in 17% margins.
Alex believes private practice physicians are an easy market to sell to because they are business owners who prefer done-for-you solutions, are hours constrained since they make money by trading their time, and almost every motion works for them.
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