01:08:20 · John Coogan, Jordi Hays, Alex Hormozi
[01:08:20] S0: Yeah. Yeah. [01:08:20] S1: And like that that's being the worst thing that they can do. Yeah. [01:08:24] S3: Well, I think so what you accomplish is a direct output of the volume of activity that you do multiplied by the leverage of the activity itself. And so you have to pick the right boat. You have to pick the right opportunity based on your goals. Some people only wanna make a million dollars. Some people wanna make tens. Some people wanna make hundreds. Some people make a trillion. Like, everyone has different so it's like the the leverage that what's interesting about that is that you just get to pick, and it's gonna be hard no matter what. I think Naval said this thing where it's like, it's really hard to build a restaurant that's really successful. It's also really hard to build a, you know, billion dollar unicorn. They're both can be eighty hour weeks. And so, you know and Stuart Schwarzman from black Blackstone said, like, you might as well play big because level 10 talent is only attracted to level 10 opportunities. It's harder to attract good people for bad opportunity because then you gotta do it all yourself Mhmm. Which is why I have so much respect for some of the guys like Piggy and Andrew Churn who are mister and missus Panda, Panda Express. [01:09:16] S1: Yeah. [01:09:16] S3: Dude, deck of billionaires [01:09:18] S0: Yeah. [01:09:18] S3: Selling selling chicken. [01:09:20] S0: Passage you royalty. [01:09:21] S3: Dude, like Not kidding. But, like like, so much respect for that level of grit. Forty five years selling Orange Chicken.
01:09:21 · Alex Hormozi, John Coogan, John McElhone
[01:09:21] S3: Dude, like Not kidding. But, like like, so much respect for that level of grit. Forty five years selling Orange Chicken. [01:09:27] S0: Yep. [01:09:27] S3: Right? All that to say, you will pick based on the level of awareness that you have at that time. Where it gets more difficult is that you learn more shit as you go, and you realize that there are higher leverage opportunities. Mhmm. The difficulty is that if you're four years into one thing, year five of an existing thing that you have four years of reps on versus year one of even a slightly better opportunity, you have to compare year one versus year five of the other one, not year one versus year one because time you can't get back. Yeah. And so that's where the compounding of getting better at something at some point does have outsized returns even if an inferior vehicle. [01:10:01] S0: Yeah. Talk about that idea of you're an a plus operator, but you're going after a c plus opportunity. How do you assess your opportunity? Because I feel like I run into people who are working on a plus opportunities, and everyone will say that's the dumbest idea ever. You're gonna put couches. It's gonna be called Airbnb. That makes no sense. Right? And then it's a boom, and it's huge. And then simultaneously, you can be working on a terrible idea. But if you went and got, you know, a puff piece in Business Insider and Forbes, it's like your parents are like, oh, it's amazing. Good job. [01:10:33] S5: The way I the way [01:10:34] S0: Even if you're grinding and it's not going anywhere.
01:10:34 · John Coogan, Jordi Hays
[01:10:34] S0: Even if you're grinding and it's not going anywhere. [01:10:36] S1: Yeah. The way the way I look at it is like in every single category, there's an amazing business. Yeah. And the funny thing the the funny thing that everyone thinks about, like, Airbnb is like the dumb idea. When it's like it wasn't a dumb idea. It just seemed ridiculous. Yeah. That's very different than, like, somebody that, like, chooses apparel as a category, which everyone knows is, like, structurally really, really, really challenging, really, really competitive. Yes. There's, like, a 100 companies in the world that absolutely print. And if you're one of those companies, then you're then you're great. But some people, like, choose apparel and then three years in, then they understand the competitive dynamics and they're like, I'm in a shitty business. Mhmm. I think that's very different than, like, choosing the thing that seems silly even though Airbnb at this point is now, like, the best business. Right? [01:11:21] S0: Sure. Sure. [01:11:22] S1: Sure. Yeah. Massive scale, network effects Yeah. Yeah. A great product, all these things. Yeah. [01:11:27] S0: I
01:11:27 · John Coogan, Alex Hormozi, Jordi Hays
[01:11:27] S0: I [01:11:28] S3: think if you look at the marketplace that you're trying to get into, there's usually gonna be a bolus of businesses at some part, And that gives you some idea of where the difficulty in that business is. And so, like, for example, if you're gonna get into I wanna start a social media marketing agency. It's like, well, there's a bolus at the bottom. And then very few who ascend to the top, and it's because it's really, really difficult operationally because if you're really good at marketing, then you can usually make enough money to not work at one of those types of businesses. And so you're constantly you have to be so good at ops and so good at marketing and branding and sales Mhmm. In order to just slowly get these bigger and bigger accounts and you kinda level up the types of customers that you can go after. Because all those businesses go after SMBs, and SMBs are inherently volatile. And so even if you do a great job, they'll still cancel. And so it's just a churn number of business. [01:12:10] S1: Not not to mention Yeah. Your flagship client will eventually say, like, hey. We're spending a $100,000 on this service. We could hire five people Mhmm. That are the best in the world at what they do, and they'll just focus on us. Let's do that instead.
01:12:10 · Jordi Hays, Alex Hormozi, John Coogan
[01:12:10] S1: Not not to mention Yeah. Your flagship client will eventually say, like, hey. We're spending a $100,000 on this service. We could hire five people Mhmm. That are the best in the world at what they do, and they'll just focus on us. Let's do that instead. [01:12:22] S3: Yeah. Like, there are there are there are impediments to that business scaling. Can you do it? Absolutely. But I'm just a huge advocate of just, like, just look at what the biggest version of that business looks like. Because this is obviously a more tech forward show, but, like, the vast majority businesses are not tech businesses. Yeah. Right? There's, like, HVAC businesses all over the place. There's pool cleaners. There like, there's a lot of shit you can do for money. Yeah. And so I like, unless you want to be a trillionaire like, you can be a billionaire in just about any boring business. You look at you'll get what's his name? Is it Brad Jacobs? Yeah. Yeah. Actually, six times Yeah. Yeah. Make a few billion dollars. Yeah. Few then he has a sequel, a few more billion. [01:12:58] S1: Few more billion. You guys are kind of you guys are very yeah. I never I never thought of you as [01:13:03] S0: Homebuilding materials.
01:13:03 · John Coogan, Alex Hormozi
[01:13:03] S0: Homebuilding materials. [01:13:04] S3: Yeah. There's just a lot of businesses out there, and so it just depends on, like, what the goal is. But any business done for like, zooming all the way out, if you do one thing for forty years and you get better every year, you're gonna fucking dominate. Mhmm. And so on some level, going after the tech opportunity, though they're they're for sure are the big the big mega winners, It's easier to compete against the people who are going after the pool cleaners. There's just there's, like, there's less sophisticated players. There's less capital. And so having a little bit of street smarts and a lot of work ethic can get you pretty far there. And you look at that compared to, you know, you look at the guy who's doing 7,000,000 a year top line, 2 and a half million dollars in bottom line, doesn't really work that much, has a crew of guys. Is that the life you want? Yeah. Because there's nothing, like, there's nothing wrong with that. Yeah. And so I think it's deciding first to the younger guy, like, what do I want Mhmm. Or what is an acceptable outcome? And then what of the many, many paths that are ahead of me have the highest likelihood of me getting there? And then once you pick that path, know that if you stick with that path for twenty years, the likely that you fail is basically zero as long as you have some feedback loop for improvement. [01:14:10] S0: Yeah.