Why Starting A Software Company is a Terrible Idea | Ep 394

The Game with Alex Hormozi

Alex Hormozi

How To, Entrepreneurship, Business, Education

4.9 • 4.8K Ratings

🗓️ 2 June 2022

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

Just stick to your game, and nothing else. Today, Alex (@AlexHormozi) talks about why it's not always rainbows and sunshine when thinking about starting a software company, how the industry is a highly competitive space, and why many entrepreneurs who try starting end up failing hard.

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:

(2:35) - Skilled or risk-aware to start software company

(4:00) - Future company value based on sales and longevity

(7:41) - Uninformed founders hinder software company acquisitions

(8:46) - Stick to your game, serve customers, run ads

(12:17) - Solving problems with time and effort brings fulfillment

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Transcript

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0:00.0	Mozination real quick, if you are a business owner that has a big old business and wants to get to a much bigger business,
0:06.1	going to $50, $100,000 plus we would love to talk to you.
0:09.5	And if you like that or would like to hear more about it, go to acquisition.com and you can play anywhere on the page
0:14.3	and talk to one of our team and see if we can help you get there.
0:17.6	You can just make the company have more valuable rather than trying to think that you're going to trick some potential acquirer.
0:23.3	Like, they're not dumb. I'm just going to say this again. They're not stupid.
0:28.4	Welcome to the game where we talk about how to get more customers, how to make more
0:31.5	per customer and how to keep them longer and the many failures and lessons we have learned along the way.
0:35.4	I hope you enjoy and subscribe.
0:37.4	I'm going to talk you about why starting a software company as an information and service marketer, e-course, guru, etc.
0:45.4	is a terrible fucking idea.
0:47.4	And if you don't know who I am, my name is Alex Moseon, acquisition.com.
0:50.4	It's a portfolio of companies that now deserve $100 million a year and I have nothing to sell you.
0:54.4	In this video, I'm just here to trigger a handful of you and hopefully give a warning, a strong warning to those of you who want to do it.
1:03.4	Now, the question might ask is why would somebody want to start a software company when they have an e-learning, core service, etc.
1:11.4	Well, I'll tell you why.
1:13.4	It's because they think that one, it's going to make their service company stickier because they're like, oh, software is sticky.
1:21.4	No, no, no, software is not sticky. Really good software is sticky.
1:24.4	Your software will not be sticky and will just cost you a lot of money.
1:27.4	Well, let's just say that's no one reason that they want to do it.
1:30.4	The second reason that they want to do it, and this is the even shittier one, is that they think it's going to give them a really good multiple upon exit.
1:37.4	When they sell their company in the future.
	...

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