The Game w/ Alex Hormozi

They made a list, and they’re checking it THRICE! Today, Alex (@AlexHormozi) shares the 3 criteria he and his wife Leila use when they are looking into investing in companies, how these indicators greatly help their screening processes, and "what is the value of the company based on the potential opportunities?"

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:

(2:29) - The 1st criteria is “the number of potential units sold”, the 2nd is “what is the potential profit I can make from this service?”

(4:56) - the 3rd criterion is “the supply-demand or competitive dynamics of the landscape” & Alex gives a scenario where all 3 criteria are being used

(7:20) - Alex’s rule of thumb: when doing any kind of service-based business, it’s good to have an 80% or higher gross margin

(9:59) - this is why using TAM is not a good indicator of the potential size of a company

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Here's Our Criteria for Investing in Companies | Ep 406