Supply vs. Demand: Stop Focusing On The Wrong Problems | Ep 899

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K Ratings

🗓️ 3 June 2025

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this episode, Alex (@AlexHormozi) reveals why most business owners stay stuck. Not because they aren't working hard, but because they're solving the wrong problem. He explains how to diagnose whether you're supply- or demand-constrained and lays out proven strategies to fix each.

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 and will learn on his path from $100M to $1B in net worth.

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Transcript

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0:00.0	there is an element where at some point especially the more niche you are especially the more
0:06.3	higher end you are the more you are going to be able to keep customers because your product's really
0:10.1	good but it's not going to necessarily grow the business so if looking at the business from the
0:14.5	constraints perspective we'd be like okay let's pool some resources from continuing to invest in
0:19.4	the product where we currently have no one churning.
0:22.0	But the thing is, is that we want more people in. And so let's go get more customers. Let that
0:26.8	dog lie, reallocate some resources so you can let more people know about the stuff.
0:33.6	I'm going to show you how to grow your business so fast this year that it makes your accountant nervous.
0:38.9	And maybe you're not growing as fast as you want right now. And it's probably because you're
0:41.5	trying to fix a problem that might not actually exist. And so most businesses have one of two
0:46.3	core problems and they don't know which one they have. And so I'm going to show you how to
0:49.4	identify which one of the two you have and how to fix it. I'm Alex Ramosey, I own acquisition.com,
0:54.4	a portfolio of companies that generate north of 200 plus million a year as of 2024.
0:58.2	To be clear, my results aren't typical. I'm not promising that you're going to have that
1:01.1	experience, but I can probably help you see your business a little differently.
1:04.5	So whenever I look at a business, I always want to understand this one triage question up front, which is, is this a business that is supply constrained,
1:11.7	or is this a business that's demand constrained? So here's the big idea. You can either have
1:15.7	too few customers or too little capacity, but never both at the same time. And so how do you
1:20.4	know which problem you have? So demand problem means that you have space, but not enough customers.
1:25.1	So like a restaurant without empty tables or a calendar with
1:27.6	open slots or, you know, products sitting on shelves, you build it, but people aren't coming, right?
1:34.0	So supply problem would be different. It means that you have customers, but not enough capacity.
	...

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