Use the Shape of Your Business to Scale | Ep 947
The Game with Alex Hormozi
Alex Hormozi
4.9 • 4.8K Ratings
🗓️ 17 February 2026
⏱️ 76 minutes
🧾️ Download transcript
Summary
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 are only four main types of businesses. So your business is one of these four. And understanding |
| 0:07.5 | what shape my business was has allowed me to develop a portfolio of companies that generate over |
| 0:11.8 | $250 million a year at acquisition.com. And so if you have a business, you need to know what shape your |
| 0:17.2 | business really is to maximize the opportunity you're in. And if you don't have a business, you should know what you're getting into so you can pick |
| 0:24.4 | the right one for you. So let's get started with the first shape. |
| 0:30.6 | What type of business is this business? I love it if you actually think about it right now. |
| 0:35.1 | Like if there's different types of businesses, what do you think this one really is? This is the shape of an e-commerce business. So in the very beginning, you'll typically have to get some inventory, especially if you want to have a bigger business. No gigantic businesses are drop shipping. So if you want to have a bigger business like a brand, you're going to have to do some sort of inventory. You'll have to front a little bit of cash, right? But as soon as you start selling, because it doesn't require a lot of operational |
| 0:57.8 | infrastructure, you can grow really quickly. But then you'll hit these breaking points that stop your |
| 1:03.5 | growth flat. And so either of these will be cash constraints in the business, as in like you don't |
| 1:08.5 | have money to buy more inventory. It could be traffic constraints. Like all of a sudden, your ads just stop. And then the, ads don't perform past a certain point. It could be that you've maxed out your distribution. Let's say if you're a retail distribution, it's like, okay, we got 7,000 more 711s. It's like, okay. And then we continue to stay at that level until we get CVS's, and then we stay at that |
| 1:28.3 | next level. And so each of these kind of unlocks typically occur when you have a supply chain |
| 1:33.7 | unlock, or you have distribution that unlock. So distribution can be literally physical, |
| 1:39.0 | retail distribution, or can be ad-based and or affiliate-based distribution. All of these |
| 1:43.9 | different ways are promoting it, |
| 1:45.0 | so it gets it in more hands. So this is why the shape of this business looks this way. And you also can |
| 1:51.1 | get stopped by all of a sudden you run out of stuff, right? Your supply chain dries up because |
| 1:55.7 | your manufacturer can only do 1,000 units a day and you need 10,000 units a day. And so while you find the |
| 2:01.6 | next manufacturer, you're flat again, right? And this is the nature of the business that you're really in. And if you're curious, what, you know, experience do I have with e-commerce? Well, I'll give you two. So first off, Prestige Labs was a physical products business. We sold through a brick and mortar distribution base. We also sold through an only store. So we had both those angles. |
| 2:20.3 | I had distributors, |
| 2:21.3 | obviously, our gyms. And then also any consumers could buy it directly from the store. So we had |
| 2:26.6 | ads that were running as well. And so both those elements were e-commerce. In addition to that, |
| 2:30.7 | the launches that we had for my last book, the World Record Breaking, Guinness World |
... |
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