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The Game with Alex Hormozi

Why Most Businesses Stall After $3M | Ep 890

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.94.4K Ratings

🗓️ 21 May 2025

⏱️ 33 minutes

🧾️ Download transcript

Summary

In this episode, Alex (@AlexHormozi) shares the 5 biggest lessons he learned after passing $250M in revenue, covering everything from why constant changes hurt performance, to how virality is overrated, and why “rush” might be your biggest threat.

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

Click on a timestamp to play from that location

0:00.0

Let's do more work, but you have to in order to grow.

0:04.0

So either you work overtime or you bring someone else into work overtime or you do both,

0:08.5

which is what I recommend. And that means it's going to be hard, which is why most people stay stuck.

0:16.3

I wanted to make a video about five business lessons that I just learned crossing 250 million in 2024. And I wanted to make a video about five business lessons that I just learned crossing 250 million in

0:22.2

2024. And I wanted to make this because like I think at all levels you're always growing.

0:27.5

Like when I was at $1 million a year, you know, I, I had a certain amount of lessons that I had to

0:32.0

learn. And it gets a 10 million, there are certain lessons I had to learn. 100 million,

0:34.5

there's certain lessons I'd learned. This last year, there's five lessons that are, I would say, new, but would have applied kind of retroactively to all

0:40.4

stages of business growth for me. So the first one was the cost of change. And so it's like,

0:45.6

what does that, what does that really mean? So it was the first time that I've actually quantified

0:49.7

how much is changing something in the business actually cost? So if you would imagine a straight line,

0:55.8

right, it's saying, okay, this is normal business activity, right? Straight line is going across.

1:00.9

Now, let's imagine we want to change something, right? So that's like our normal revenue,

1:04.9

but then we decide, you know what, I'm going to change something in the business. So what ends up

1:08.6

happening is this little line kind of dips down.

1:15.1

And I've estimated just for my kind of like, this again, there's no science behind this,

1:21.4

just my estimate, that I get about a 20% decrease in effectiveness across any function that I'm going to change, especially if it's manual. Now, if you split us a headline that's different,

1:25.0

but if you're like, hey, we're changing our onboarding process, or we're changing our sales process, we're changing our outbound

1:29.3

process, we're changing our something that people are involved with, we tend to get a decrease

1:33.8

immediately of 20% in a performance, right, which is pretty significant. As soon as I realized that we

1:39.6

had almost this guaranteed cost of change, which is about 20%, I was able to quantify what things were worth

1:46.3

doing. Because if you're anything like me, I have like this big list of stuff where I'm like,

...

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