The Game w/ Alex Hormozi

The worst thing you can do is deceive yourself. Today, Alex (@AlexHormozi) talks about the 7 most common ways people measure value when looking at a business, which ones are his favorites, and which ones are completely ridiculous!

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:

(1:01) - The 1st & 2nd common ways are Contract Value (what you’re offering) and Revenue Over Lifetime (total sales collected)

(3:26) - The 3rd & 4th common ways are Business Valuation (how much is your business worth in the marketplace) and Actual Yearly Revenue (how much cash is being collected yearly)

(5:17) - The 5th & 6th common ways are Yearly Profit (how much excess or profit even by end of the year) and Owner Earning (net free cash flow)

(7:23) - The 7th common way is Net Worth (how much is your value as an owner). There are also some pros and cons to each of the ways value is exaggerated

(17:56) - The way that Alex looks at the most is net worth. Why? It’s what’s left after everything is done

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