4 steps to start a business anyone can do
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- čas přidán 23. 02. 2023
- Want to SCALE your business? Go here: acquisition.com
Want to START a business? Go here: skool.com/games
If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
FULL DISCLOSURE
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.
Difference between an entrepreneur and an aspiring entrepreneur is speed. Execution is the game.
The difference between an inspiring entrepreneur and an aspiring one is about the size of the grand canyon. ;)
@Pamela H Was a typo. Did mean to type aspiring. But very well said 🍻
Great one bro!
Top G has a segment on this. 💯
Definitely. Tate talked about this a lot, speed is everything. In the time you spend talking about starting the business, you could actually start it.
You can’t start a business without anything good to sell either! 💯💯💯😆
I GOT RICH DOING THIS
Making money is action, saving money is behavior and growing money is knowledge. The basic step to acquiring wealth is figuring out your goals and plans, with the heIp of financiaI pIanner you will gain rapid financiaI growth and enjoy the benefits of managing your finances...
FinanciaI growth was rapidly gained (gathered over 1M in 2years) through my financiaI pIanner. Got my 2nd house in May, hereby making my goaIs a reaIity...
l acquired massive growth in my finances (gathered over 1M in 2years) through the heIp of my financiaI pIanner. Got my 2nd house in May, hereby making my goals a reality...
Whosoever tries this sureIy acquires wealth. Get to her..
Did you really actually get rich
My friend became a business bro like this type of guy and he ended up quitting post secondary a few weeks before we were gonna graduate the program and he wouldve been certified in a high demand job but he "wouldve rather been his own boss than be a sheep" and instead of making 60-120k a year depending on where you worked he started his own business and now he is his own boss making 10-20k from dropshipping or whatever new gig he has cuz the dropshipping company went bust and every few weeks or months if hes lucky he repeats it all 😂😂
You can laugh now until he figures it out. Then you already know who will be the real laughing stock 🫡
That's not your friend bro, you talkin on him 😅
Being an entrepreneur is not easy guys but don't be discouraged. Here's good points.
1. Solve a problem and offer a better solution. So dont think of an idea. Think of a problem to solve. This is very important.
2. When you have a problem offer a solution that is differentiated either lower cost or better quality
3. If you don't have large reserves of money it will be hard to compete in mature markets. So target fast growing markets or find a way to offer a differentiated solution
So live in the future and build something you really want and it solves a problem.
And have mindset and visualization where you want to be do this daily. You have to read: Think and grow rich, and 7 habits of highly effective people.
It really is that simple we as humans just procrastinate terribly
Yeah even me and I’m trying
Man it’s so easy that 20% of new businesses fail during their first year, and approximately 50% fail within five years. So simple right? But I get it most people procrastinate but it’s tough af with all these things distracting releasing dopamine & serotonin putting one in a mental cage. Each new generation gets worse & worse. Can’t escape what they & will grow up with.
Yeeees
That’s so true I have been saying that I will start my own clothing line for the past year and nothing happened. It’s time that I change that and do something about it.
How?
Seems like step 4 is the main one every entrepreneur needs to do.
Should have been#1
@@tanksxiii no… you do the others first …
@@aaronharman5431 got it.
They fantasize about step 4 and ignore 1-3. That's why the don't progress. If you do 1-3 then you can daydream about 4 all you want because when the time does come it's GO GO GO
Like they say, never gotta get ready if you always stay ready
@@andrewferguson6901 you don't need 1-3 to make money. It's just formality. Basically being productive as an excuse to not actually provide value
could you make a full length video on this subject? I think it will help a lot of people
I suggest you Google each step.
@@JDunamis Bro tryna get spoon-fed 😂
Each of those "steps" he listed type into Google.
@@Him_Dante same💀 never gunna happen
Bro what he just told you exactly what to do
That 4th step is the kicker, provide value to a stranger. I think you should start with that one as a sole proprietor
The difference between sole proprietor and a limited liability company, is that the banks will lend money faster to an LLC rather than a sole proprietor. It looks better on paper for the lenders and private lenders
More tax benefits in an S corp
Wow! This guy's advice kicks procrastination to the curb!
Or network and jump on a startup with a strong foundation and negotiate equity. Ensure the company has a strong board of leaders or it won’t get funded. Don’t be scared to talk to someone about their company and you don’t have to attend a top 10 MBA. My MBA is from a private university but I jumped onto a startup with a founder who had an MBA from a top 10 school and that alone proved my value.
there's one thing college and university teach you , it's that time doesn't matter , keep things formal and make them take longer than it needs , I had a friend who went to college who spent 5 hours in the toilet per day thinking and calculating how to get up , good on him he's an EDUCATED guy (fake education though)
4 steps to start a business:
1. Get articles of incorporation online
2. bring articles of incorporation to bank to setup a bank account
3. setup payment processor (Bank) to be paid through the business
4. give value to a stranger in exchange for money.
Thanks sherlock
@@Smeakum LMAO bro he put it in the comments so people that don't want to keep rewatching the video again or want to understand what one of the points was can see it right away. Some of us don't get what some of these things even are
@@Smeakum thanks 🤡
@@flamestar557me!! What is articles of incorporation? Is your biz name? Step 3 and 4 ok... But 1 and 1 leading 2
Easy screenshot thanks man🙏
1. Get an articles of incorporation
2. Take articles to bank & open a bank account
3. Connect payment processor to bank account
4. Provide value to a stranger in exchange for money 💰 🤑
It is a lot to get your head around when you've never done it before, though. In some ways it is this simple; in other ways it's overwhelming and intimidating and full of conflicting information and lots of forms and fees and learning what you don't know.
It can be intimidating at first, yes. But a little research puts those fears at bay. Starting an llc is as easy as filling out an online form, picking a name, and paying a fee. Bingo bongo its done. Then you need to find a way to get paid, personally I use quick books, but there are other services. Then you need to do the hard part which is actually finding customers.
@@jacobhargiss9909 what is quick books?
@@SonofChrist77 its a cool book-keeping software that also offers invoicing and payments. Its around $20 / month.
@@jacobhargiss9909is it this easy? In EU?
like going to school and learning stuff you didnt know and isnt useful. most people are constantly learning in their younger years. so that isnt an excuse.
Thank you bro.. I was like them other people 6 months ago lol
Sometimes ppl like the idea of starting a biz rather than the work it takes to get one going
The providing value part is what people struggle with the most. That's what the business really IS. The articles of incorporation, bank account, payment processor are what the business NEEDS not what the business IS. I would love to see more videos on how to come up with business ideas to provide value.
You won't see videos like that tho cause why would they give other people ideas instead of just using that idea..? That's the main struggle for people. It's rly hard to start.
@@coldhands2802 And it's not just providing value - it's figuring out how to give that value and overcome people's resistnce and scepticism - and then having a system to do that on autopilot. Of course everyone wants the one step process but yeh... it's failing day in and day out, learning, adjusting etc.
Providing value should not be so hard,
Remember the lemonade stand,
Just covering one necessity, thirsth, is enough to keep business running
@@aularjethat’s on point for the dummies. Humans make things so fucking complicated for no fucking reason!!!!
I have too many ideas, that I struggle to just choose and stick with one. It's the paperwork/ initial startup capital that I want advice/help with
Being an entrepreneur is not easy guys but don't be discouraged. Here's good points.
1. Solve a problem and offer a better solution. So dont think of an idea. Think of a problem to solve. This is very important.
2. Go after niche markets that you can dominate and once you enter have majority of market share, you offer a better solution to your specific group of customers.
3. If you don't have large reserves of money it will be hard to compete in mature markets. So target fast growing markets or find a way to offer a differentiated solution
So live in the future and build something you really want and it solves a problem.
And have mindset and visualization where you want to be do this daily. You have to read: Think and grow rich, and 7 habits of highly effective people, and zero to one.
Good steps! Thanks for sharing.
This is why I’ve been a fan for 2 years Alex 🇦🇺
They’re talking about spending money. You’re talking about making money. Business = money coming in
Tate quote lol
We got a Tate follower here. Speed+Money coming in
Money loves SPEED.
Don't get legal before you get rich.
For Wudan.🐍
Ah, I see you're a man of culture aswell!
Getting it done asap gives you the edge over all of the people that at perpetually preparing
Working very hard on stage 4 as we speak
I would argue the only thing that is required is the last step. You yourself can be the bussiness for tax purposes. All that is needed is to file for taxes if you make over $600 the first year.
$400*
One of my fellow businessmen partners told me once: You know Jerome I'm not successful because I'm smarter than others, I'm successful because I do whatever I'll say I'll do or that my business wants me to do.
I think this is the definition of being employed rather than starting a busiess.
I did 3 of those things including a logo, website, vista print order for marketing material, embroidery shop order for 25 shirts and hats all before the end of a day one time when I was VP of Sales for a shady company and decided to stage a coup and take 21 sales reps, a manager, a director and my business partner and start our own company. The next day they all arrived at an Airbnb and I had their new shirts and hats, a thank you card and an advance on their first 2 weeks pay in cash on their seats. Off to the races!! With things like square space, legal zoom, vista print shit and now chatgpt, there’s literally no excuse to why launching a business should take more than a week or two to be honest. But when you have other peoples livlihoods who are putting their faith in you to deliver… all this stuff can happen incredibly fast!
Wow man, can you tell us the whole story? Thanks.
Oh wow… lol Sorry but I just said out loud to myself “wait what if he’s being sarcastic and he’s just another younger troll who finds it funny luring Boomers down to Millennials into writing a bunch of stuff no one really asked for “ 😂 So yep I just realized I have comment section trust issues. That’s a thing. Lol so what do I say now, something like I guess If you’re being serious and you’re not just like all the other commenters then okay@@ImmaDotAplayer😂😂
@@Hug_life no seriously tell us everything. How come you make it sound so easy? We would love some advice from someone experienced in the field.
@@Hug_lifeCan you me tell about the role of ChatGPT in the set up of the business you've started?
Thank you.
That’s amazing man!!
Me talking about my business for three years: 😀
Me now: oh 😐
Who else didn’t know those 3 bank steps 🙋♂️
I didn't either
Same here
Please if you could make a full demo it will help more people like me to really understand your point.
very intellingent, smart and productive, take love from Bangladesh
Out of anyone in CZcams he provides the most value
Patrick and David who please?
Sure!
Vanader is a pretty good resource.
This is the main 4 step that boost my business up
How did you do that man
Man, Ashton Kutcher sure looks funny not selling Uggs..
You just do the work. Build a good reputation and keep working.
Need to get a business license as well
The value in this little short is insane! Another W from the lumberjack🙌
Is this Wendy's brother from Ozark?
Step four is a lot more time consuming than that. First, you have to make the good, and then you have to find someone willing to pay you for it. Not just buy it, but buy it from you specifically. People in my hometown will drive an hour in any direction to pay more for an inferior product before they will buy local.
I was amazed at how easy it was to do steps 1-4 and how difficult everything afterward was! Haha still going though!
Hope everything works out brother 💪🏽
Someone who sets up a business doing step 1-3 will add Hormozi's value levers (increase speed, reduce effort, reduce sacrifice)
Finally smth about starting a business
I'm more terrified about starting the business cuz I'm afraid of fear but I can't keep hearing it I have to go out and try
Yeah right. Ask your accountant about that one. That’s who you should listen to.
Maybe for american... I was indeed getting an LLC for a few months. And you cannot connect payment processor (Stripe) until you have a website.
Start with step 4 y’all, make sure you can make money. No matter how you start, just start!
I was thinking the same thing I don’t wanna spend that money and my business fail
!!!!!!
ty.
2 hours on the computer and drive to the bank it's done.
Actually doing it is definitely important but I would argue how you make the money is more so, weather it's an ethical way to make the money and what you're going to spend the money on to scale or evolve the business too, these big picture ideas are called big picture for a reason and if you start walking without a destination or a map you're probably not going to get where you need to go
True, but there's usually still needed a healthy amount of the "ready, fire, aim" to avoid paralysis
Literally takes 10 minutes, getting the employer number from the irs probably takes 5 minutes
The first 3 steps take about 1 maybe 3 days if youre slow
Nah, step 4 is first. Then worry about the logistics.
That's what I did. Then I had the other three done within three weeks of really needing them.
@@nlemonj Eh, That’s how it goes sometimes ;)
Honestly step 4 is all you even need. I started my business with just step 4 and then used services like stripe, PayPal, and zelle to send invoices or for people to send money. Haven't even got my articles of incorporation yet. Just sole proprietorship right now. I'm structuring my business as I go.
Without proving the concept the first the steps could be a waste of time and money. Definitely depends on what you are getting into though.
THANK YOU THANK YOU THANK YOU THANK YOU I LOVE THIS MAN!
I've been listening to a lot of podcasts talking about business and how this one has no time but money or no money but time or this one has time and money and this one has no time and no money, and all the while im thinking
WHERE EXACTLY IS THE MONEY COMING FROM AGAIN?
the problem with business meetups and groups is that most of the people going are either not really working on their business or are there to sell a course to the people who aren't really working on their business
We all know who was on those meetings to get Dolla 😂😂😂
That's the problem with the internet/youtube. SO many people either haven't really done what they say selling or they're so far ahead of the average Joe, they can't remember what it's like to be him, so all their info isn't practical.
You don't have to incorporate. You can open a sole proprietor bank acct and operate like that indefinitely.
I’d recommend doing step four for six months to see if there is any chance of success before wasting time and money with 1-3.
Its so hard to find THIS information on CZcams
I’m still writing some stuff down on a napkin, you know, just been busy with stuff bro.
Actually the registration of your business name as an LLC is the easiest part the difficult part is how am I going to sell? Even the website is very easy too!
naw, they could skip straight to 4 and collect cash only if they really wanted to be in business
This sounds so simple but was one of my biggest lessons. Father of my friend and his partner make 700k a year and he cant even properly use a computer or make an invoice
How?
@@cpatra2696 They rent short them to workers of building companies. Their rooms are way cheaper than hotels, but the rent is still way higher than long term housing. So it's a niche inbetween. Think of it as a specialized air bnb.
Thanks for the video
Sometimes i wonder how people get
rich at these days.
if you want to be successful have the
mindset of the rich,spend less.
i advice everyone to start investing and
never rely on just salary. No billionaire
made it through salary.
Yes that's true
But people don't ask before investing on
Bitcoin, Expert Mrs Alisa Herbert fx her success story
is everywhere on CZcams you can trade
with her.
It's still not a business until you cash flowing in.
So helpful
You need a business plan to keep yourself straight.
Yeah, but don’t forget about working Capital, not everyone could afford that and has good credit to get started or family to back them up
I start 2023 with instagram talking about marketing and today I'm making $35,000 to $40,000 a month just selling marketing steps in videos and taking online appoitments to talk 1-1 with clients and i start been homeless in new Jersey ✌🏻
For some, that dopamine release from talking about something is enough
Dude it really is that easy😂. I spent 5 years planning on how I was going to launch my business and it took me less than a week to get the Articles, EIN and master business license.
They should start as an intrapreneur!
They listen to gurus who say you have to love the "journey" more than the results 😂😂
It’s so funny reading the comments. As if this same fuckin formula, didn’t fool them with the last “guru.” It’s incredible man lol… it’s the same thing! This guy is full of shit! Omg 🤦♂️
You most certainly have to or you will never be consistent. Journey is the reward.
@@tajbirsingh5205 I don't think Michael Jordan would have done what he did if they didn't keep score or stats.
@@ChanceTalksBusiness scoring is a part of the game. He would never have become great if he cared about trophies more than the game.
@@tajbirsingh5205 Not really. That's nice, but not realistic. With as many businesses that exist, you think every owner has a passion for their business? Nope. Hopefully, they're effective or at least have effective people. I've been self-employed for 35 yrs. and had many businesses. If your business makes money, you'll love what the money and freedom with do for you and your family, but telling people they should have a passion I think is BS and misleading. I never had a lot of money to "start up" anything, but what I lacked in capital I made up for in effort. All I wanted was to find something or do something that would pay the bills and let my income grow as I got more effective or smarter. And loving the journey is BS too, because sometimes the journey is a long agonizing, walking with barefeet through the desert on broken glass while being stung by African Killer hornets journey. So I'd say aim for something you know makes money and is sustainable.
Provide value to a stranger in exchange for money is the only thing. Everything else falls into place after
Money isnt the answer. . or all other life on earth would be dead. . but nevermind most people are too fuckin stupid to realize that truth.
I'd love to do this. I can't think of anything of value to provide a stranger.
Can you clean the house? Can you mow the lawn? Can you cook?
Can you take out the trash?
True, it takes less than a day to build what you need. In other countries it takes months. This is why US is ahead of everyone else, and the people in it of course
Gotta put in the work to be an entrepreneur. Great advice!
Everybody wants to be an entrepreneur but nobody wants to do entrepreneur work.
Exactly, nobody wants to show up to meetings, write off stuff, hire employees, manage, run a Crm, market, get home at 9pm at night I could go on 😂
@@AidanBattenGenuinely don’t mind, but what I’ve been struggling to understand is fundings to afford everything without failing. What I’ve gathered from all these videos is the same shit. Just do.. Go for it, never going to see it if you don’t do it, etc. which I understand, but someone who’s starting with no investors and solely coming from the bottom, shits stressful.
@@Rehstoget a loan from the bank
@@AidanBatten thats what everyone wants to do, if they knew how to make that work they would but they don't. i think a lot of people arent afraid to fail themselves more than they are afraid to fail others too.
I would suggest getting an EIN as well..... Well unless sole proprietorship.
What you described is setting up a simple bussniess with a low limit if you want to ever make it big (like really big) you need a really damn good product. So Microsoft with windows, Apple with consumer electronics, and google with the software you use in your day to day like, that’s why they are worth trillions because they have a product with a lot of work behind it
“You have to be burning with an idea, or a problem, or a wrong that you want to right. If you’re not passionate enough from the start, you’ll never stick it out.” -
Steve Jobs
Please make more videos about this nobody explains it properly and it’s the most confusing part
Can you do a full length video because I’m weighing out SBA loan / start up loan or crowdfunding, I don’t know where to start and I don’t know what exactly to classify my business as if I want to do a little bit of everything. Real estate, stocks, small businesses like stores etc… should I go all out and do one big branded corporation? Or should I create different corps for each one?
What is your product or service?
Exactly what we need to hear indeed
Great video!
step 4 is the hardest
Do a full video on this
I bought a tent and started selling bbq lol
The health department didn't shut you down?
@@machinemaker2248 naw man now I got all my permits
@@tanksxiii Sweet! Dude, my wife has wanted to open a bakery, and I have considered adult novelty candy, but we stepped back because of red tape crap. We should just jump, and use profit to get a lawyer to do the paperwork.
@@machinemaker2248 hahaha do it man they have penis pancakes for the 304 out here lol
Congrats!
i've got step 4 down. need to figure out the rest.
Time to do this thang
Question: would you please open a brick & mortar business, something not in your usual realm, like a nightclub or .. something. Just to show the biz principals. I’d love your take on something you have no interest in but could still make more successful than someone who puts their entire being into it. ✌🏼
Articles of incorporation are for corporations. If you’re starting a business you very rarely want a corporation because the entity itself is taxed and any distributions to you as an owner are also taxed. For LLC’s it’s called a Certificate of Formation. LLC’s are an extension of the person for tax purposes. Only taxed once. You technically don’t need to to file anything, in which case your business is a sole proprietorship, but you don’t have limited liability. Never do an SP.
Articles of Organization based on what your state calls it, this is for IL… also if you plan on being profitable apply for S corp election to save on self-employment taxes, additional filing requirements of course come tax time
Set up your shop and sell. Then handle the rest
First 4 steps done. Now time to work to get leads!
step 5: get ultra expensive liability insurance.
Basically just Chuck your self in the deep end and then learn to swim. Im learning thisnis the best way to fo things. I never knew what i wanted to focus on. Now got extra calcifications in hospitality and construction industry. I blindly agreed to different opportunities. Even mucked out donkeys 😂. Currently a cleaner then going back yo bsr tending or line cook. While i safe up for my CSCS card to go back into construction. Im at gather intelligence and notches stage.
Very useful, we’re always told that LLC is the first step
It’s ALL about knowledge. If they didn’t know that, how are they gonna do it?
Who knew the Geico caveman was so articulate??
Financially in the long run, it's good be be proactive about planning your taxes and finding the correct write offs.
This guy is getting a sub. Seems like a 💯 genuine guy
Step 4 is like everything though really
Ya a lot easier said than done lol