How to get unlimited funding to build your business in 30 days…

Summary

• I grew my businesses to millions in sales by leveraging a concept called client financed acquisition, which means getting customers to pay for all your marketing and acquisition costs.
• Without using outside capital, I expanded my first brick and mortar chain from zero to six locations in three years at 26 years old; each new location opened at full capacity from day one after the first.
• The same model helped me scale other businesses rapidly, including a licensing business that went from zero to $2.5 million per month in about a year and a software business that reached $1.7 million per month in six months.
• The fundamental equation for growth is that your 30-day cash must be more than twice the combined cost of acquiring and fulfilling a customer (30-day cash > 2 x (CAC + COGS)).
• To explain the equation with numbers: If it costs $100 to acquire a customer and another $100 to fulfill their needs, you must earn $400 within the first 30 days from that customer to cover costs and reinvest in acquiring more customers.
• This equation allows for a negative acquisition cost, where every new customer adds not only to your growth but also to your profit.
• By ensuring your business can collect more money in 30 days than it costs to acquire and fulfill a customer, you have the power to grow without the constraint of capital.
• If your initial cash flow is tight, use credit cards to pay off expenses in 30 days, allowing the cash collected from customers to finance further growth without paying interest.
• Playing the business game this way means sales and acquiring customers will never be your limit; operational and hiring constraints may arise, but not financial ones.
• Having started with just $1,036 in my bank account five years ago, I now oversee a portfolio generating $85 million annually, all achieved with no outside funding.
• Mastery of this growth process shows that the belief "it takes money to make money" is a misleading notion; with the right strategies, you can grow a business significantly using your customers' money, not your own.

Video

How To Take Action

A good way of doing business is to make customers pay for marketing and getting them in the door. Here's how to put this idea to work:

• First, figure out how much it costs to get a new customer and to give them what they need. Let's say that's $200 total ($100 for marketing and sales, and $100 for the product or service).

• Next, make sure you make at least $400 from that customer in 30 days. This way, after you pay the $200 costs, you still have $200. This is what you'll use to get the next customer.

• Use credit cards smartly to handle expenses for 30 days. If you make enough from customers in those 30 days, you can pay off the cards and not owe any interest. That means you grow without spending your own money.

• Keep in mind, the sales numbers need to be more than double your costs. If you do this, you won't be stopped by not having enough money. You might have other challenges, but not with cash.

Remember, it doesn't need to take lots of money to make money. This plan worked for growing businesses big and fast without needing cash from someone else. So, try this out:

1. Write down how much customer getting and giving costs.
2. Make a goal to double that in 30 days from each customer.
3. Use credit to cover costs if needed, but make sure you can pay it back fast.

This way, you'll keep growing as long as you can handle more work and more people. And you won't be slowed down because you're out of money.

Quotes

"If you don't have a lot of money, you have to think different and play the game differently"

– Alex Hormozi

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"Profit matters if you want to be in a capitalist society because it's the only way that you're gonna be able to weather the storms"

– Alex Hormozi

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"Client financed acquisition… means that you make money getting customers"

– Alex Hormozi

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"This is the minimum requirement for CFA or what we call Client Financed Acquisition"

– Alex Hormozi

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"If you think it takes money to make money, you just keep believing that beautiful lie and let everyone else go win while you keep complaining"

– Alex Hormozi