The Game w/ Alex Hormozi

Keep the cash flowing! Today, Alex (@AlexHormozi) talks about the number one mistake he says a lot of entrepreneurs make in terms of making more money. He also talks about the number one metric that he uses to track his businesses, and why you should follow this concept. if you're thinking about reinvesting in the business, make sure that the dollars that you're choosing to reinvest, you're getting the best return on capital you possibly can.

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:

(0:53) - the number one metric Alex uses to track his businesses is called Net Free Cash Flow

(3:48) - The reality is the chips are stacked against you. 99% of businesses don't get sold ever

(4:52) - The mistake a lot of entrepreneurs make is that they don’t focus on Net Free Cash Flow: “How can this business pump out profit? While I still continue to grow it?”

(6:17) - Net Free Cash Flow focuses the entire company on not just making a profit, but making a profit in access of what is required to continue to run and grow the business. Alex also shares two more important metrics: PE ratio & return on capital

(10:40) - We are all exposed to a factor we discount on a regular basis. It’s called “Operational Risk”

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