$1M Mistake #2 - Firing 20 People Because of A Bad Call | Ep 279

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 18 February 2021

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

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Summary

Always keep the quality in check. Today, Alex (@AlexHormozi) shares his experience during the time they had to fire many of their employees, what he and Leila were feeling during that time, the reason why they had to proceed with this move, and the lessons he learned from this.

Welcome to The Game Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll-up-your-sleeves kind of hustle with a little bit of cleverness and a lot of heart.

Timestamps:

(0:55) - Alex realized that during the growth of the supplements company, the same amount of work currently done by 4 people is being done by 25

(3:13) - Lesson #1: the individual was not growing because they were actually not working to their potential. They were lacking experience. Lesson #2: The experience that these employees had in our service business was not relevant to the physical products

(5:52) - After the mass firing, they got a new director to help them fix their system and make sure they were utilizing all their employees to their potential

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Transcript

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0:00.0	Real quick guys, if you can think about how you found this podcast, somebody probably
0:03.8	tweeted it, told you about it, shared it on Instagram, or something like that.
0:07.5	The only way this grows is through word of mouth. And so I don't run ads, I don't do sponsorships,
0:12.2	I don't sell anything. My only ask is that you continue to pay it forward, do whoever showed you,
0:16.4	or however you found out about this podcast that you do the exact same thing. So if it was a review,
0:21.0	if it was a post, if you do that, it would mean the world to me and you'll throw some good comment
0:24.3	out there for another entrepreneur. We realized that obviously it was over and then we ended up having
0:28.8	to cut 20 people, which was horrible. Welcome to the game where we talk about how to get more
0:33.3	customers, how to make more per customer, and how to keep them longer, and the many failures and
0:36.8	lessons we have learned alone the way. Hope you enjoy and subscribe. The next video in my
0:43.0	million dollar mistake series, because I've made so many mistakes in my life, comes from a different
0:49.2	period in our business career when we were launching our supplement company. And so this is
0:57.6	two years or two and a half years in. And so at this point, we had just in 20 million there before,
1:02.8	so we were launching our supplement company. And we expected to do a decent amount of money.
1:06.6	In the first month, we did 1.7 million. Next month, we did 1.5. The next one we did 1.6, I think,
1:13.0	next month. And so it was just to give you perspective in terms of the business size.
1:18.4	And so we took one of our heads who had worked up from the bottom. She was a front line
1:26.8	customer service rep who had been a front line customer service rep at a different big company.
1:31.6	We hired four experience at that point. They had experienced many customer service.
1:35.0	So customer service, and she became a customer service manager, and she became director of customer
1:38.0	service. She was great cultural fit, great vibe, really good, nice person. And so we were starting
1:45.0	this physical product line, which is Prestige Labs. And so we obviously had the high value service,
	...

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