Finding Your Perfect Business Match (on BiggerPockets) Pt. 2 July ‘23 Ep 631

In a candid discussion on entrepreneurship and relationships, Alex and Leila Hormozi share insights on the intersection of business acumen and personal partnerships. The Hormozis, both passionate about their careers and the real estate industry, emphasize the importance of aligning with a spouse who shares similar professional interests and values. They discuss the challenges and rewards of working with a partner, highlighting the necessity of mutual respect and continuous learning to navigate the complexities of business collaboration. Additionally, Alex delves into the entrepreneurial journey, cautioning against the allure of seemingly better opportunities and underscoring the significant gains achieved through persistence and mastery over time. He also previews his new book, which focuses on lead generation and building a robust customer acquisition strategy. Finally, the conversation touches on personal branding, with the Hormozis providing perspective on the relevance of social media handles in establishing an individual's brand identity.

• Entrepreneurs often mistake chasing new business ventures for better opportunities due to "uninformed optimism."
• After gaining experience, they develop "informed pessimism" and realize the difficulties involved.
• The podcast aims to discuss customer acquisition, increasing customer value, and retention, while sharing failures and lessons.

"The biggest mistake that entrepreneurs will make at that point is that they then look at the greener grass on the other side of the fence and say, man, wholesaling is actually the thing I shouldn't be doing flipping. I should be doing wholesaling." "And then right after that, they get six months in and they're like, I now have informed pessimism about this opportunity."

These quotes highlight the common entrepreneurial pitfall of quickly shifting focus to new ventures, thinking they will be more successful, only to realize the challenges later on.

• Speaker B inquires about the dynamics of involving one's spouse in business, given his wife's interest in joining his work.
• Speaker C shares their experience of having a shared industry and similar career focus, which naturally aligned their work.
• It is important for the spouse to have a genuine interest in the business to successfully integrate.
• Working with a spouse involves a learning curve and continuous improvement in collaboration skills.

"I think it was different for us because when we met, we both were incredibly, voraciously focused on our careers, businesses, and it just so happened that they were in the same industry and we had similar views on what that looked like and what we want our futures to look like." "But there was still friction, I think, in the beginning of working together, even though we had similar mission values, complementary skill sets, still, learning to work together was a skill of its own."

Speaker C's quotes emphasize the unique situation where both partners were already career-driven in the same field, which made working together more seamless, yet they acknowledge the initial friction and the ongoing need to improve their collaborative working relationship.

• Speaker A and Speaker C discuss how their business compatibility preceded and enhanced their romantic relationship.
• They fell in "business love" before romantic love, with their first date revolving around a business discussion.
• Their complementary skills and aligned missions in business contributed to a strong partnership.
• Speaker D comments on the seemingly perfect match between Speaker A and Speaker C, suggesting it appears "divinely inspired."

"I was just going to say that I think we actually fell in business love before we fell into romantic love." "And I've said this publicly before, but I think Leila and I both loved each other the day we got married. But I feel like, like, felt more in love with her the more we did business together."

Speaker A's quotes reflect on how their strong business relationship and shared interests in business topics laid the foundation for a deeper romantic connection, indicating that their partnership in business significantly contributed to their love and marriage.

• Speaker A and Speaker C's love language revolves around business, success, and making money.
• Their relationship started with a focus on practical, business-related compatibility rather than traditional romantic chemistry.
• This approach, while unconventional, has proven to be successful for them.
• Speaker D questions whether prioritizing business compatibility could be a viable strategy for others seeking a life partner.

"Do you feel like you fell for her as a business partner before a romantic partner? Because your love language is business, making money, success." "You took the opposite approach, and from what we see now, it looks like the romantic stuff happened still."

Speaker D's quotes inquire about the unique approach Speaker A and Speaker C took in forming their relationship, starting with business compatibility, which may challenge conventional wisdom on romantic relationships but has worked well for them.

• The speakers discuss the importance of genuine interaction and connection in relationships.
• There's an emphasis on not having to pretend or wait for the other person to stop talking to find something more interesting to discuss.
• The natural desire to spend time together without the need for formal dates is highlighted.

"I don't feel like I have to pretend to wait for you to stop talking so that I can try and talk about something that I find more interesting."

This quote illustrates the speaker's appreciation for a conversation where both parties are genuinely interested in what the other has to say, without pretense or impatience.

• The speakers touch on the theme of support and partnership in tough times.
• They discuss the moment one partner earned the other's eternal respect by succeeding in a challenging business venture.
• The importance of having someone who stands tall during difficult times is emphasized.

"And it was like she stood tall. Yes. When shit was tough. And I think that's where I was like, well, wherever I want to go, I'm going to need someone like that."

This quote conveys the speaker's realization of the importance of having a supportive partner who can handle adversity and contribute significantly during challenging periods.

• The conversation includes a discussion about a significant financial achievement made by one partner during a time of need.
• This financial success is seen as a pivotal moment in their relationship.

"She made 100 grand in 24 days at a time. When you needed it?"

This quote points to a specific instance where one partner's financial success had a profound impact on the couple's life and business, reinforcing the theme of support and partnership.

• The speakers offer insights on relationships, advising against giving generic advice due to the individual variation in relationships.
• They stress the importance of not comparing one's relationship to others and finding what works for the individuals involved.

"I think the first piece of advice that I would give is, like, what I'm so grateful for with our relationship is that we've never compared it to anyone else's."

This quote emphasizes the speaker's belief in the uniqueness of each relationship and the value of not comparing one's relationship to others to avoid unnecessary pressure or disappointment.

• The speakers address the issue of social media perception versus reality in relationships.
• They acknowledge that while they try to be transparent, no one can fully understand another's relationship from the outside.
• The conversation suggests that what works for one couple may not work for another, and vice versa.

"No one relationship looks the same. And so it's just hard to. You just have to stop judging yourself for whatever you do have if it's working for you."

This quote advises individuals to focus on what works in their relationship rather than judging it based on external standards or comparisons.

• The final part of the conversation is a call to action for listeners to help grow the podcast through word of mouth.
• The speaker emphasizes that the podcast's growth relies on community engagement and sharing.

"The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships, don't sell anything."

This quote is a direct appeal to the listeners to actively participate in promoting the podcast, highlighting the speaker's reliance on organic growth through the audience's efforts.

• Wealthy individuals tend to focus on a single area they are knowledgeable and skilled in.
• The distribution of assets should reflect one's knowledge and experience.
• Diversification of investment strategies among successful individuals varies greatly.
• Understanding one's strengths can lead to a more focused and potentially successful investment strategy.

"And so he asked the follow-up question to Graham. He said, okay, if this pie chart, this circle, were your total knowledge and experience and resources and connections, what percentage of it would be, like, stock or market stuff, what percentage of it would be real estate, what percentage of it would be business, et cetera."

This quote explains how Dave Ramsey's approach to analyzing an individual's investment portfolio is based on their knowledge and experience across different asset classes.

"And so our circle of assets, though, high risk from the outside, when you're buying companies that are doing two to 5 million in profit a year, which is usually around the size that we come in, those are from an investor class asset, considered risky, risky investments."

The speaker shares their personal strategy of investing in businesses, which may seem risky to outsiders but aligns with their expertise and knowledge, thereby reducing the perceived risk.

• Successful entrepreneurship often requires a focus on areas of strength rather than constantly seeking new ventures.
• The entrepreneurial journey includes stages of optimism, pessimism, and despair, followed by informed optimism and mastery.
• Long-term gains in entrepreneurship are often greater than the initial rapid learning phase.
• Entrepreneurs should resist the temptation to switch focus when facing challenges, as persistence can lead to greater wealth accumulation.

"And so the thing is that when you're at year three, the gains that you get from year three to year four are greater in terms of absolute return than the gains that you get from year zero to year one."

The speaker emphasizes the importance of persistence in entrepreneurship, noting that the returns on investment of time and effort increase significantly after the initial years.

"But the time that you get the outsized return is year ten to eleven, is year 14 to 15. And that's where, if you're thinking about business value, it's way easier to take a business that's doing 20 million a year and take it to 25 million a year than take a company from zero to 5 million."

This quote highlights the exponential nature of growth and returns in entrepreneurship, where the most significant wealth accumulation often occurs after many years of consistent effort and focus.

• Entrepreneurs often wonder if different opportunities would be more profitable than their current endeavors.
• The 'grass is greener' mentality can lead to a cycle of chasing new ventures without achieving mastery.
• Recognizing the fallacy of constantly seeking new opportunities can help entrepreneurs stay the course and achieve greater success.

"In my opinion. And the biggest mistake that entrepreneurs will make at that point is that they then look at the greener grass on the other side of the fence and say, man, wholesaling is actually the thing. I shouldn't be doing flipping, I should be doing wholesaling."

This quote reflects the common entrepreneurial pitfall of abandoning a current strategy for a seemingly better opportunity, which often leads to a cycle of dissatisfaction and lack of progress.

"It's always shit on the other side."

A blunt assessment by the speaker indicating that changing to a new opportunity may not be as promising as it appears and may come with its own set of challenges and drawbacks.

• The book "100 Million Dollar Offers" sold nearly 500,000 copies purely through word of mouth, without any advertising.
• The book addresses the fundamental entrepreneurial question of what to sell.
• The concept of leads is crucial for determining to whom to sell; leads are defined as people you can contact.
• The importance of engaged leads is highlighted, which are leads that have shown interest in what you're selling.
• Differentiating leads from engaged leads involves creating something that prompts them to show interest.
• Advertising is necessary to engage leads, and there are four methods to advertise personally and four methods to have others advertise for you.
• Mastery of these advertising methods can significantly increase sales and revenue.
• The book outlines a step-by-step process to build a lead machine worth over $100 million, drawing from the author's experience in sales and advertising.

"Yeah, for sure. So the first book, 100 million dollar offers, has sold just under 500,000 copies with no advertising. Thank you. Pretty pumped about that. Just word of mouth, which has been cool."

This quote highlights the success of the book and the power of word-of-mouth marketing.

"And that book answered the question, what do I sell? Right? It's like, what do I sell to anyone?"

This quote identifies the core question the book aims to help entrepreneurs answer about their product offerings.

"A lead is a person you can contact, period. That's what it is."

This quote provides a simple and clear definition of what constitutes a lead in the context of sales and marketing.

"You want engaged leads. You want someone who's shown interest in the stuff you sell, who you can also contact."

This quote emphasizes the value of engaged leads over just any leads, as engaged leads have a higher potential for conversion.

"There's four ways that any one person can advertise, and there's four ways that you can get other people to advertise on your behalf."

This quote introduces the eight total methods of advertising that the author deems effective, based on personal experience.

"I feel really confident that I know how to build referral systems that generate real amounts of traction."

The author expresses confidence in their ability to create successful referral systems, which is one of the advertising methods mentioned.

"And so the book starts chronologically with like, you have nothing. And then the end of the book basically paints the pictures of how do I have 100 million dollar plus lead machine and just step by step how to build it."

This quote outlines the scope of the book, which aims to guide entrepreneurs from the beginning stages to creating a highly valuable lead generation system.

• Discussion revolves around the appropriateness of a social media handle, "David Green, 24," and whether it should be changed.
• Suggestions include adding "24/7" to imply constant availability or using variations like "thy David Green" or "the real David Green."
• The conversation touches on personal branding and the challenges of changing a handle once it's established.
• The speakers offer reassurance that the current handle is acceptable and may even be considered part of the brand identity.
• Anecdotes are shared to illustrate that the name or handle isn't as crucial as the meaning ascribed to it over time.

"My social media handle is David Green, 24. I've been getting roasted by all these marketers that say it's, boom, boring and nobody likes it."

This quote introduces the topic of social media handles and their impact on personal branding.

"We're wondering if he should drop the 24. Someone suggested earlier maybe that he had the seven. So it's David Green, 24/7 thoughts?"

This quote suggests a potential change to the handle to make it more interesting or relevant.

"Oh, no, I think it's just on brand."

This quote reassures that the current handle aligns with the personal brand and may not need changing.

"I don't think it matters one bit."

This quote downplays the significance of a social media handle in the broader context of branding and business success.

• Personal branding is discussed in the context of social media handles and their perceived value.
• The conversation acknowledges the subjective nature of branding and the importance of consistency.
• The speakers share experiences and opinions on whether the name of a business or handle truly impacts its success.
• It is suggested that the meaning and value of a brand are constructed over time through the business's actions and reputation.

"I used to poo poo everything brand related and was like, it's just quant, right? It's just conversion and all that stuff."

This quote expresses a previous skepticism about the value of branding compared to quantitative metrics like conversion rates.

"Xerox is made up. You know what I mean? We ascribe meaning to it after the fact."

This quote illustrates that brand names can be arbitrary and that their significance is often attributed retrospectively based on the success of the company.

"Star restaurant from Michelin tires."

This quote is an example of how a brand name, initially unrelated to the current business, can become significant and well-respected in a different context.

• The interview concludes with gratitude expressed by the speakers for sharing insights into both personal and business aspects.
• The conversation reflects on the human aspects of entrepreneurship and finding balance in personal life, including relationships and lifestyle choices.
• The speakers suggest that there are alternative approaches to the typical entrepreneurial journey and relationship building.

"Awesome interview, and thanks for sharing so much of your personal lives as well."

This quote appreciates the depth of the conversation, which included personal experiences alongside business advice.

"I'm not crazy. I don't have to do what other people are doing. I can look for a partner that fits into my life from a practical element before we run off and try to get into a honeymoon."

This quote suggests that personal choices, including those about relationships, should align with individual needs and lifestyles rather than conforming to societal expectations.

"He's out there, bud chase that beautiful butterfly."

This quote metaphorically encourages pursuing one's unique path and goals, both in business and personal life.