4.9 • 4.4K Ratings
🗓️ 5 February 2024
⏱️ 17 minutes
🧾️ Download transcript
“If you can play the game on an unlimited time horizon, then you absolutely should just play it as many times as seemingly possible. But most of us do not have unlimited spins.” Today, Alex (@AlexHormozi) talks about the top business risks that are made by many new entrepreneurs, show you how each risk works (with different scenarios played out), the best ways to approach these, and how the wealthiest figure out ways to play the game in new ways where they can't lose.
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:
(1:02) - The entrepreneur's dilemma: risk vs reward
(3:13) - Different approaches to risk
(5:29) - The dichotomies in entrepreneurship
(6:19) - The new entrepreneur's guide to risk management
(7:11) - The role of luck in business success
(10:53) - Controlling risk for success
(12:56) - The power of risk management
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(This episode is a re-run. Original airdate was on July 26, 2022)
Click on a timestamp to play from that location
0:00.0 | If you're picking businesses, the difference that he and I had is that his mentors always went super, super big, they wanted to go change the world and whatnot. |
0:06.3 | But what I don't think we see or appropriately risk or value is the graveyard full of people who went big and struck out. |
0:14.0 | Welcome to the game where we talk about how to sell more stuff to more people in |
0:20.0 | more ways and build businesses worth owning. I'm trying to build a billion dollar thing with |
0:23.7 | acquisition.com. I always wish Bessos, Musk and Buffett had documented their journey, so I'm doing it for the |
0:28.4 | rest of us. Please share and enjoy. |
0:32.3 | There are two big risks that exist in business. The first is the execution risk. The second is the idea risk. Now you could maybe make an argument for a third being environmental risk, |
0:43.9 | regulatory risk, things like that. |
0:45.2 | But I would say big picture is, does the idea fundamentally work? |
0:48.9 | You know, is having strangers drive kids around in cars |
0:51.6 | going to be a really good idea, |
0:53.2 | Uber, right? Or creating lockers for cats, is that going to be a good idea? |
0:57.3 | I don't know, right? Or am I going to be able to execute the idea itself? |
1:01.8 | Okay, so I was having a really good conversation with a |
1:04.8 | friend of mine who's a software entrepreneur. He's had three or four software companies |
1:08.6 | none of them have really hit. He's about the same age as me and he and I sit in very different financial positions at this point in our life and we were having a really in-depth conversation around this topic which is appropriately measuring risk and so one of the issues that I see with a lot of newer |
1:24.2 | entrepreneurs is that they overestimate the payoff for a risk and underestimate the |
1:29.5 | cost, number one. And second is they overestimate the likelihood of success they're going to have |
1:35.2 | and they underestimate the risk in terms of the likely that they fail. And I think this is |
1:40.4 | really interesting because he and I were discussing the first quote that I have |
1:43.8 | it's kind of it's in the intro of my book by Jeff Basis. I'll read it to you right now. |
1:48.1 | Outsize returns often come from betting against conventional wisdom and |
... |
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