Alex Hormozi’s Guide to Creating Great Products & Building Generational Wealth
What is the most critical part of growing a brand? Is it creating a product or service that solves problems? Or, perhaps it’s learning how to sell effectively and lead others.
The answer is all of the above! In order to grow a successful business, you need to create a product or service that solves a real problem for your customer base, and you must know how to convey the value of the product or service. Finally, in order to expand, you need to know how to lead and delegate.
Alex Hormozi is an expert in creating and selling great products and leading others. Even though he’s only in his 30s, he’s achieved tremendous success as an entrepreneur and is worth millions.
Alex Hormozi’s Journey to Build Generational Wealth
Alex Hormozi has excelled in a number of areas of his life on the journey to greatness, including business, leadership, and personal life.
His journey to entrepreneurial success started at Vanderbilt University, where he graduated Magna Cum Laude with a BS in Human & Organizational Development with a focus on Corporate Strategy.
After graduating, Alex entered the professional world and worked as a management consultant for a successful strategy firm called Harmonic International. After two years of building professional experience, Alex moved on to his first personal business venture: United Fitness. He quickly scaled the business and had six different locations within three years.
In 2016, Alex sold his gyms and started Gym Launch, a company that assists gym owners with increasing profitability through a proven business model. He authored an excellent book based on his methods titled Gym Launch Secrets: The Step-By-Step Guide to Building a Massively Profitable Gym. Alex then licensed his core model as a purchasable learning guide — over 4,500 facilities have used his model.
From there, Alex and his wife, Leila Hormozi, started Acquisition.com, a holding company that invests in numerous kinds of businesses including software, education, business services, consumer services, and more, and they help these businesses scale and increase profitability. Their portfolio of companies is now worth over $150 million annually.
In addition to his tremendous entrepreneurial success, Alex Hormozi also hosts a successful podcast called The Game, where he discusses proven tools for growing your business and customer base, and he’s even a guest contributor for Forbes and Entrepreneur.
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Alex Hormozi’s Secrets to Expanding Your Brand and Finding the Purpose of Your Business
Alex’s entrepreneurial mind and business acumen are impressive to say the least, and we can all learn from his insights into optimizing a brand and growing a customer base. Follow these valuable tips for growing your business:
Focus on Delivering Value for Your Target Customer
When starting a business and growing a brand, you need to know your target customer and how your company delivers value to that customer. Once you identify the value you’re bringing to your customer, you need to package your products or services in a way that makes them more appealing and conveys that value.
Fortunately, you don’t need to think of highly innovative ways to package your products and services. You can learn from what other companies are doing in your field and how they connect with their target customers.
For example, if you’re launching a sportswear company, you can learn from the greats like Nike and Adidas to improve your ability to communicate value to your customers.
After learning how to market your products or services, you can optimize your company’s workflow. Never stop asking, “How can I make my business processes more efficient?” Taking a little extra time, money, and effort to uncover inefficiencies will significantly improve your processes moving forward, eventually saving your company time and money.
Getting the Right Price
When setting the right price, you need to be on the same page as your customer or client base. A customer’s perception of value is critical for making a sale, and they need to feel like they’re getting their money’s worth when they purchase goods or services. If they perceive your product to be worth less than its price, you’ll struggle to close sales.
Finding the right price is about discovering the spot where customers feel like they’re getting their money’s worth while your business still makes a substantial enough profit.
Part of finding this price is uncovering the degree to which the customer or client experiences pain points. If you’re solving a substantial enough problem that saves the customer time or money, you’ll be able to charge more for your goods or services.
For example, if you sell top-notch cleaning products that save individuals a great deal of time and hassle, the product may only cost cents to produce, but you can still offer a price that reflects the product’s overall value.
Optimizing Your Offer to Get Ideal Clients
When delivering value with your products or services, you must consider certain enhancers that may affect your prices. According to Hormozi, these enhancers are bonuses, scarcity, and urgency.
A bonus refers to something that puts the customer’s mind at ease that they’re making the right decision when purchasing your goods or services. Potential customers who have more confidence in your goods or services will be far more inclined to buy from you.
For example, if you guarantee that customers will be happy with their purchases, they’ll be more inclined to invest in your offerings.
Scarcity refers to the overall availability of the product or service. If you provide a product that isn’t scarce, customers will be aware of the fact that they can take time to think about their purchase and shop around elsewhere. When you market your product as being more scarce, customers will believe that they only have a limited time to make the purchase.
Let’s say you sell sportswear, including valuable shirts that offer great sweat absorption. If the customer thinks that there’s a very limited supply of these high-quality shirts, they’ll be more inclined to buy because they know they only have a small window of time to make the purchase.
Finally, urgency refers to customers needing to buy something quickly in order to maximize its worth. For example, have you noticed that winter wear is more expensive during colder months than warmer months? That’s because there’s more of an immediate need in the winter, and to experience the benefits of the purchase — staying warm — you need to buy the product within a limited window of time.
Picking a Name
Choosing the right name for your company, products, and promotions goes a long way. When you pick a memorable name, customers are far more inclined to purchase from your business because they’ll remember it.
When names are more catchy and memorable, you’ll exist in people’s minds rent-free. You can do this by incorporating rhymes, play-on-words, and alliteration when naming your products, services, or promotions.
Who can forget Subway’s iconic five-dollar footlong promotion?
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The Three Skills You Need to Become a Millionaire
When growing your brand and expanding your business, you need three essential skills for tremendous results: building, selling, and leading. If you can master all three skills, you’ll become unstoppable on your journey to achieve entrepreneurial greatness.
The trick to building a great product is understanding people’s pain points. The product or service you build doesn’t need to be completely original, but it does need to provide an effective solution.
Perhaps the most common problem for people is not having enough time, so creating a product or service that saves people time is highly valuable.
Another critical part of being an effective builder is delivering the product or service consistently. You need more than something valuable — you also need a solution for producing the product or providing the service consistently to meet your customers’ needs.
Next comes selling the product or service. You need to be an effective salesperson to show people the value of your product or service. When you can convey how a product or service will solve people’s pain points, you’ll begin to grow your client or customer base.
Finally, you need to be an effective leader. This is the most important part of growing a business because when you become a great leader, you can delegate and have others handle the building and selling skills. Leadership is absolutely critical as you grow your brand because you’ll reach the point where you don’t have time to build and sell your products or services yourself.
Fortunately, you can become a more confident leader as you develop your building and selling skills. Alex teaches that as you grow in your craft and accomplish more in your business, you gain the knowledge and confidence necessary for leading others. Your experience and accomplishments also convey to others that you’re worth following — you show that you have the expertise in your field to lead others to success.
Quieting Your Ego to Become Happier and a Better Leader
Throughout his time growing his businesses and sharpening his entrepreneurial skills, Alex Hormozi has learned a great deal about himself and about what’s holding him back in his personal life.
One of the primary motivations for his early success was what he refers to as “vanquishing his father.”
From a young age, Alex’s father pushed him to excel in everything he did to the point that it became unhealthy. Although Alex did incredibly well in school and shined in other areas of his life, his father made it clear that he wasn’t proud. Alex became a perfectionist and developed the mentality that he was never good enough because no matter what he did, his dad would criticize him.
Alex followed his father’s guidance strictly and always tried to make him proud, but eventually, he had enough. Against his dad’s wishes, he left his management consultant job to open and operate his gym.
He strived to obtain more success and money than his father did as a doctor, and he became highly competitive and angry.
Although Alex experienced tremendous success early on, it never felt like enough because he wanted to trounce his father’s accomplishments. At first, he wanted to make more money annually than his dad ever did, but after achieving this goal, Alex decided he wanted to make more money in a single year than his father did in his lifetime.
Alex kept accomplishing his career and financial goals, but he eventually reached the point where he realized that his ego and external accomplishments didn’t satisfy him. Instead, they only made him feel more isolated and miserable.
He realized his accomplishments didn’t make him happy because his father was still in control. He played into his father’s toxic game of impossible expectations and tried to gain something unattainable: an immortal legacy. His desire to build something everlasting and prove his father wrong spoiled his accomplishments and separated him from others.
Over time, he discovered that he needed to let go of his ego and desire for legacy in order to be happy. He realized that nothing he could do would truly last forever, and the most important thing was enjoying life and his relationships.
With this epiphany, Alex became far happier with his accomplishments and became a better leader and husband.
Learn More About Growing Your Brand and Wealth
Alex Hormozi has accomplished tremendous things in his life, but he’s also realized that money and success are not the keys to happiness. You can have all the money in the world but still be miserable. It takes deep introspection and letting go of your ego to enjoy your achievements and grow in your relationships.
If you’re ready to learn more about Alex’s journey to entrepreneurial greatness, we recommend checking out his most recent book $100M Offers: How To Make Offers So Good People Feel Stupid Saying No and his podcast, The Game.
Greatness.com is also full of helpful resources for growing your wealth, creating new revenue streams, and enhancing your money mindset in order to obtain long-lasting success.
Getting started with growing your brand and business can seem challenging at first, but when you focus on solving customers’ pain points and grow in your ability to build, sell, and lead, you’ll be well on your way to achieving entrepreneurial greatness!