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The Game with Alex Hormozi

How to Build a Valuable Business You Can Sell Someday | Ep 726

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.94.4K Ratings

🗓️ 19 June 2024

⏱️ 19 minutes

🧾️ Download transcript

Summary

"Keep the Goose, Sell the Eggs." Today, Alex (@AlexHormozi) shares a valuable framework for understanding if your business is sellable, and if it has multiple components of it, which could be the most valuable aspects of it to sell.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps

(00:24) - Story of someone trying to sell his business

(01:16) - The Golden Goose

(03:24) - The Big Picture You Have to Understand

(06:21) - How to Verify What Your "Goose" Is

(9:56) - Mrbeast Holdco Example

(14:38) - How Rollups Work

(18:42) - Closing Remarks

Follow Alex Hormozi’s Socials:

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Transcript

Click on a timestamp to play from that location

0:00.0

A lot of times the thing that I thought when I started building the business that I was going to sell wasn't actually the thing that the ultimate investor ended up valuing.

0:06.5

I've built and sold nine companies, the last one I sold was 46.2 million, and so I'm just drawing on my experience from selling those to

0:13.2

different partners competitors private equity strategic buyers so that can

0:16.8

tell you the things that I've learned so that you can get there much faster than

0:19.9

it took me. There was a guy who had rental events. So basically he started an event

0:25.0

business where he would he basically have a venue that he would rent and you know

0:30.0

he'd have two three events a week there and he would charge whatever the day rate is for the event,

0:35.8

and that would be more than what his rent was. And that was the entire business. And so he had three locations,

0:41.9

he sold those, and then he started a coaching business or an education

0:45.9

business around helping other people find events bases, rent them out, and do the same thing

0:50.1

that he did.

0:51.5

And so he was like, hey, I want to sell this business the way that you

0:55.3

sold Jim Much. And after talking to him, I was like, dude, I think you're going about this all

1:00.6

wrong. You're trying to sell the goose when you should be trying to sell the eggs.

1:04.8

And this will be the common theme throughout this is that most people are trying to sell the goose rather

1:08.1

than sell the eggs and you never want to sell the goose. You want to keep the goose and let it keep laying

1:11.4

golden eggs, right, so that you can keep selling them.

1:13.7

And for those you don't know the story of the goose and the golden egg, I'll read it to you.

1:17.8

It's two seconds.

1:18.8

There was once a countryman who possessed the most wonderful goose you can imagine.

1:21.2

For every day when he visited the nest the goose

1:22.8

had laid a beautiful glittering golden egg. The country man took the eggs to the market

...

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