Why daily routines make you poor & fragile [trigger warning]
ErWpi_91b70 — Published on YouTube channel Alex Hormozi on November 8, 2021, 4:00 PM
Watch VideoSummary
This summary is generated by AI and may contain inaccuracies.
- Alex Ramosi tells the audience that there are three different components to growing a business, but most people are not focused on the thing that is the constraint and never make more money. - A couple of entrepreneurs, young, doing a couple million bucks a year, made some statements at a dinner about their character traits. The limiter was two things: they are high anxiety people and they are an all or nothing type person. - As entrepreneurs, be incredibly cognizant of the things that you speak of yourself when making I am statements. Be weary of the superstitions and routines and religion that do not serve them.
Video Description
Want to SCALE your business? Go here: https://www.acquisition.com/yta
Want to START a business? Go here: https://skool.com/games
If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $200,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below.
How I got here…
21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit.
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.
34 yrs old: I became co-owner of https://Skool.com to help the many people who want to start a business online do so.
Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).
To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.
You either get an epic outcome or an epic story. Both mean you win.
Keep crushing. May your desires be greater than your obstacles.
Never quit,
Alex
*FULL DISCLOSURE*
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.
Transcription
This video transcription is generated by AI and may contain inaccuracies.
I'm probably going to piss a lot of people off in this video, and that's not my intention. But you come here for the unaltered, you know, raw truth. And so that is what I'm going to try and provide you. Just FYI. My name is Alex Ramosi. I own acquisition.com, we do about $85 million a year in revenue. One of the biggest things that I talk about all the time on this channel in terms of how to grow, is that there are three different components to growing a business, right? You have your skills as the entrepreneur, you have your character traits as the entrepreneur, and you have your beliefs. And what happens is most people continue to add potential to their business, but do not grow their business because they're not focused on the thing that is the constraint. And that's kind of the fundamentals of the theory. Constraint is that a system will grow to its constraint and no further. Basically, you grow until you are bottlenecked, and then that bottleneck becomes the weak link in the chain, so to speak, and then you cannot grow past it. And so people do all these other things which add potential, they add strength to the other aspects of the chain. They add, they refortify other aspects of the bridge, but not the weakest point. And so they actually never make more money, and they stay because they have not attacked the constraint. And so last night, I was at a dinner with a couple of entrepreneurs, young, doing a couple million bucks a year. And their constraint was so evident to me that I figured I would make a video about it because I think it will be helpful for you as well. And so there's two things that I want to bring up. And what's interesting is that as I, you know, when I talk to younger entrepreneurs, I would say younger being with quotes, less experienced, whatever entrepreneurs, their out points are clearer. And what I mean by that is the red flags, the things that are limiting them are clearer to me than, say, people who are further along, right? And so with this particular couple of entrepreneurs, the limiter was two things. They were both based on character traits. And so I thought that, you know, a lot of times I talk about skills, I talk about beliefs, but I don't talk about character traits as much. And I thought this would be a useful example for this. A couple of the statements they said throughout the dinner really rubbed me the wrong way. Not personally, but just in terms of me looking out for another entrepreneur. They made I am statements which are, in my opinion, some of the most powerful statements that you speak over yourself. About what you believe to be true, right? And so they said, we are high anxiety people. We have lots of anxiety. And I don't even like saying it like myself to make this video for you because of how much I hate that type of statement. The second thing I heard later on in the conversation, they said something to the degree of I'm an all or nothing type person. Like I either have to, you know, go full send mode when I go out or I can't drink. Or a different example of that same concept would be like, I either have to, you know, train really hard and you know, take. Take all the supplements, right. In the. In the meantime, or I. Or I just sit on the couch and eat Oreos, right? And when I heard both of these things and there were other traits that they brought up, but these are the ones that I'm just remembering off the top of my mind. I paused and I was like, do you believe that, that. Do you think that belief serves you? They're like, what do you mean? And I was like, do you think that that belief serves you? That you are all or nothing? That you will have to go full send mode or you have to stay in. They're like, well, and really thought about it like that. The thing is, is that when we make these statements, and the thing is, maybe the further on in the game you go, and this is why I think mentors and having people outside of you to speak into your life that you trust is very useful because they can hear you speak these limiting statements over yourself, right? And I've told this story before in the past, but I'll say it again. I used to tell people that I was bad at math. Most people now would never can say that I was bad at math. People would say I'm pretty good at math, right? And I thought I was bad at math until I was 26. Think about that for a second. Like 12, 26, I thought I was bad at math. Like, isn't that crazy, right? And I say this because there are so many beliefs that we speak over ourselves. These traits that we claim to have, we claim them right as though they are ours, but they are not. In order to grow, your identity must be whatever is required to grow. Period. That's it. So if this season of your life requires you to be more assertive, then you would say, I have a tendency based on external circumstances to be more assertive in these types of conditions, right? And so the language has to change towards I have a tendency towards, right? Or I have a proclivity for rather than I am, which is definitive, certain, and end of case, meaning nothing can be done about it. And so if we can change the way we speak, we will change the way we live because we change the way we think, number one. Number two thing that came up so one was obviously all the I am statements, what I would say, you know, limiting character traits as they talk about their own traits, but the traits are not things that serve them. And so if you have traits that you speak of yourself, you have to ask yourself, does this serve me? Does this serve me? Is this going to help me accomplish the goals that I have? And if it doesn't, then stop saying it. So here's the second thing they did that was kind of the red flag for me. I'm partially making this because I'm sure they're going to watch it. Crutches are dangerous. Superstition is dangerous. What I mean by that is that we have these things that we do on these routines that we set. And the thing is, is if we become dependent on the routine, we actually become weaker as a result of it. And so that is why I am always so sensitive to religious. And I'm using quotes here. I'm using it in the literal word of religious. Religious adherence to routines, religious adherence to, you know, how I have to wait. Like, whenever you use terms like I have to, I must, we should, I need to. These are all things that you're making statements about how the world must be when you have no control over it. And so if I wanted to conquer somebody who is a competitor of mine, I would hope, I would pray that they have crutches and superstitions that I can exploit. For example, if you have to drink a bottle of alcohol every night to go to bed, that is a crutch. If you have to smoke a blunt every night to fall asleep, that is a crutch. If you have to take edibles every night to fall asleep, that is a crutch. If you have to take pills every night to go to sleep, that is a crutch. And I told you at the very beginning of this video, I know this is gonna piss a lot of people off, but believe it or not, there were humans hundreds of years ago that had none of these things and they slept just fine. Hundreds of years ago, there were humans who did not have coffee in the morning. There were humans who did not have pharmaceutical drugs. There are humans who did not have orange glasses. There are humans who did not have these weird rituals that we try and convince ourselves we must do. We have to do, we need to do, we cannot live without. And all they end up doing is weakening us. Because the thing is, you have a level of maintenance, right, of how you look and feel, whatever. And so what happens is, it's like when you start drinking coffee in the beginning, you feel better, and then over time you need to drink coffee just to feel normal. And so then the benefit that coffee confers is gone. And so if you really want to get benefits from things, then you need to cycle the things that you do, which means inherently you're not going to have a routine because the things that you're doing are constantly changing, which give you the temporary flux or benefit that it will confer to you as a result of it being novel if you're going to do it. But most people don't do it that way. Instead, they become dependent on these superstitions about how they must go to bed every night, how they must fall asleep and what they must take and what they. How they have to have their mornings or what? Or they create a punishment for themselves, or I can't be productive, or I can't think of straight, or I'm really, really agitated all day, right? That's so weak. It's so weak. It makes you so non resilient that I would hope to compete against you. You know what I mean? I would hope that. Because I would just hope that something interrupts your magical routine and then fucks you for the day, right? I've always had the belief that I'd like to be able to sleep on a cot somewhere and be just as effective in a cot with, you know, in a corner, in a closet, as somebody who has to have every single aspect of their life completely dialed in. I see it as the difference between the Rocky cutscene of him versus Drago and Rocky 4. Drago's got all these fancy science things that he has to do and all these supplements he's taking all this stuff. And Rocky's just doing his thing outdoors, getting it done. And so, as entrepreneurs, the two takeaways for this video for you. Number one, be incredibly cognizant of the things that you speak of yourself when you make I am statements. They are the strongest statements that you can make because they are deeply embedded beliefs about what you believe about yourself. And so if you say I am this way, when you describe yourself, when you meet someone new, you meet a girl on a date and you're like, I am. I have a short fuse, right? I have a temper, I am disorganized. I am not good with time, I am not good with money. I hate even saying this shit, right? But just to give you the types of things that people say all the time that do not serve them. Does this belief serve me? If it does not, stop fucking saying it, period, and say something else, right? Or at the very least, if you feel compelled to have to describe this thing, then say I have a tendency or I struggle with behaviors that are this way rather than I am number one. Number two, be incredibly weary of the superstitions and routines and religion that you adhere to that you claim is the source of your productivity, creativity, alertness, mental wellbeing, subject, you know, happiness, whatever it is, or the converse of that. If you lack it, the threats or the punishments that you speak over yourself. If I am not, I am agitated, I have a short fuse, I can't focus, I'm not productive, I don't have energy. All of these things are just weaknesses that you literally build into yourself. So stop. That's all I got for today, guys. So mosey nation. I make this channel because a lot of people are broken. I don't want you to be one of them. And a lot of people speak limiting beliefs over themselves. They claim traits that do not serve them and they make superstitions and crutch that make them weaker rather than stronger. And if you want to survive in the world of business, you want to build a huge enterprise, you want to make the impact that you have, you have to be able to know exactly who you are, you have to speak beliefs that serve you, and you have to be able to succeed independent of circumstance that you create. You are source, not reaction. Lots of love keeping awesome. Catch you guys soon. Bye.