How Businesses Exaggerate Their Value | Ep 333

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 30 September 2021

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The worst thing you can do is deceive yourself. Today, Alex (@AlexHormozi) talks about the 7 most common ways people measure value when looking at a business, which ones are his favorites, and which ones are completely ridiculous!

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:

(1:01) - The 1st & 2nd common ways are Contract Value (what you’re offering) and Revenue Over Lifetime (total sales collected)

(3:26) - The 3rd & 4th common ways are Business Valuation (how much is your business worth in the marketplace) and Actual Yearly Revenue (how much cash is being collected yearly)

(5:17) - The 5th & 6th common ways are Yearly Profit (how much excess or profit even by end of the year) and Owner Earning (net free cash flow)

(7:23) - The 7th common way is Net Worth (how much is your value as an owner). There are also some pros and cons to each of the ways value is exaggerated

(17:56) - The way that Alex looks at the most is net worth. Why? It’s what’s left after everything is done

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Transcript

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0:00.0	What's going on everybody?
0:01.0	I'm bringing some more books, but I wanted to say that if you haven't checked out $100
0:03.8	million offers, I would definitely suggest that you start there.
0:06.3	I've gotten some solid feedback and it couldn't be happier with this number one ranking
0:09.9	on Amazon for direct marketing and over 5,000 five star reviews.
0:13.8	So thank you guys so much for that.
0:15.1	It's 164 pages.
0:16.1	I really can help you out.
0:17.8	It takes about four hours to get through.
0:19.6	Check it out on Amazon.
0:20.6	The Kindle book is 99 cents.
0:22.5	The audiobook is as low as they'll let me put it on for it.
0:24.7	So I think it's 12 bucks.
0:26.2	So enjoy that and let's start the podcast.
0:29.1	One of the ways that people try to see you into thinking that they have a more valuable
0:33.0	business.
0:34.0	Welcome to the game where we talk about how to get more customers, how to make more
0:36.6	customers, how to keep them longer in the many failures and lessons we have learned
0:39.8	along the way.
0:40.8	I hope you enjoy and subscribe.
0:43.2	In this video, I'm going to talk to you about the seven most common ways that people measure
0:47.1	or measure the value that they are providing in business and to the marketplace.
	...

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