A BILLIONAIRE told me how to make BILLION DOLLARS…here’s my plan…

Summary

• I had the privilege of speaking with a man whose companies generate over a billion dollars in revenue per year, and he owns 50 privately held companies.
• Gaining access to high-level entrepreneurs requires increasing personal value and achievements to provide something of worth to them.
• Key roles in a sustainable business include having superstars in acquisition, delivery, and operations. Shared services keep the first two functioning properly.
• Incentive packages should be aligned with the company's growth goals. Profit shares for CEOs and opportunities for them to buy into the company can drive growth.
• It is necessary to identify superstars right from the start and give them the power and autonomy to drive the business forward.
• A business's growth is often in a stepwise fashion: experiencing growth, hitting a plateau, then growing again after de-bottlenecking, usually solved by hiring talented individuals.
• Investment should prioritize the return of capital over return on capital, focusing on lower-risk and stable returns rather than chasing high-risk, high-reward opportunities.
• Multi-family real estate has been a successful investment, and decisions should be made based on sound fundamentals, with a preference for buildings that present less risk but still offer good yields.
• To grow a company significantly, incentivize key employees, create profit centers, and recognize there's a limit to personal influence as an entrepreneur.
• The transition from $100 million to a billion may involve decentralizing control, dividing the company into segments and incentivizing managers with profit sharing.
• Growth is aided by allowing others to create wealth, which aligns with helping others grow and sharing the benefits rather than focusing purely on personal financial gains.

Video

How To Take Action

I would suggest to start by identifying and investing in key superstar roles within your business. These are the people who will handle acquisition, delivery, and operations. Make sure that these superstars have the skills needed to help the business grow without your constant input. This frees you up to focus on other areas of growth.

Next, align incentives with company growth goals. Look into profit share for high-performing individuals, especially those in CEO or managerial positions. Consider giving them a chance to buy into the company. This gives them a personal stake in the company and motivates them to drive growth.

Focus on growing your personal value and achievements so you can network with higher-level entrepreneurs. This will open doors to new opportunities and insights that can scale your business.

For investments, prioritize safe and stable returns. If you're interested in real estate, consider multi-family properties that offer good yields without taking on excessive risk. The goal should be the return of capital over the return on capital.

Lastly, allow others to create wealth within the company. This not only fosters growth but aligns with the notion of sharing success. If your business hits a plateau, look for bottlenecks and hire talented individuals to solve those specific problems.

Remember, growth often occurs in a stepwise fashion with periods of rapid growth followed by plateaus. It's a natural cycle that can be navigated with patience and the right people on your team.

Quotes

"You only have x amount of value now, your intention should be to increase that value"

– Alex Hormozi

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"Every business that is going to grow and be self-sustaining must have three superstars"

– Alex Hormozi

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"The size of the corporation is directly proportional to the amount of superstars that are present"

– Alex Hormozi

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"Advanced people are advanced because they never don't do the basics"

– Alex Hormozi

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"We're all three hires away from all the growth we've ever wanted and our time back"

– Alex Hormozi