Episode Overview

In Episode 274 of "Build with Leila Hormozi," titled "If You Want More, You Have to Think Differently," host Leila Hormozi delves into the complexities of scaling businesses by engaging with entrepreneurs facing unique growth challenges. The episode offers a wealth of insights on hiring strategies, team management, delegation, maintaining company culture, and strategic focus, providing actionable advice for business owners aiming to build unshakeable enterprises.

Guest Profiles

Peter Livingston

Peter Livingston represents a faith-based nonprofit generating $6 million in revenue and aiming to scale up to $15 million. His primary challenge revolves around managing rapid growth that outpaces his team's capacity, prompting questions about when to hire new talent versus investing in coaching existing team members.

Michelle Haynes

Michelle Haynes is a mortgage broker from Sydney, Australia, who grew her business from sole operations generating $300,000 annually to hiring her first employee. With aspirations to reach $2 million, Michelle seeks strategies to expand her referral-based business without prior experience in paid advertising.

Leyla

Leyla leads a software services company focused on long-term technical partnerships. With revenues of $35 million and a target of $50 million by the end of 2026, she navigates the challenges of maintaining growth, fostering long-term client relationships, and balancing business operations with technical implementation.

Samuel

Samuel manages a thriving tennis academy, having scaled from solo operations to a team that supports substantial revenue growth. His focus is on developing strategic steps to further expand his academy while maintaining high-quality coaching and operational efficiency.

Key Challenges Discussed

Scaling Faster Than the Team Can Handle

Peter Livingston addresses the dilemma of scaling a nonprofit faster than the current team can manage, questioning the balance between hiring new talent and coaching existing employees to meet growth demands.

Hiring and Onboarding Strategies

The conversation emphasizes the importance of hiring individuals with the necessary skills rather than relying solely on degrees as proxies. Alex Hormozi advises focusing on specific skills required for each position to minimize training time and ensure team members can contribute effectively from the outset.

Delegation and Maintaining Focus

Leyla discusses the critical need for delegation to prevent the CEO from becoming a bottleneck. She highlights the challenges of maintaining strategic focus amid growing operational responsibilities and the importance of empowering capable team members to take on leadership roles.

Leveraging Referrals and Expanding Lead Generation

Michelle Haynes seeks guidance on enhancing her referral-based business model. She explores methods to increase leads from existing referral partners and considers incorporating additional channels like paid advertising to sustain and accelerate growth.

Strategic Decision-Making and Business Goals

A recurring theme is the necessity of establishing clear business goals to guide progress. Leila and her guests discuss aligning team efforts with overarching objectives to ensure sustainable and coherent growth.

Insights & Advice Offered

Emphasizing Skills Over Degrees in Hiring [00:02:46]

Alex Hormozi advises business leaders to prioritize specific skills when hiring, stating, “When you're hiring somebody, I'm thinking, what skills do I want them to already come into the job with? Because I think that they'll take too long to train.”

Building a Robust Onboarding Process [04:37]

Alex underscores the importance of a structured onboarding system, emphasizing that "structuring that out as ruthlessly as you would" for high-value clients is essential for team members' retention and performance.

Hiring for High-Growth Experience [06:07]

For businesses in high-growth phases, Alex recommends hiring individuals with experience in similar environments. He asserts, “I look for people who have a sense of urgency and work with a bit of intensity.”

Communication and Cultural Alignment [08:16]

The discussion highlights the importance of setting clear expectations and maintaining cultural alignment to reinforce high-growth standards. Alex notes, “Here’s the thing. For example, I just made a podcast on this because I think it's really important subject...”

Delegation and Prioritizing CEO's Time [17:55]

Alex advises CEOs to treat their time as a scarce resource, suggesting the cancellation of non-essential meetings and prioritizing strategic activities. He states, “You have to treat your time differently than what you did a year ago... if my calendar looks the same, quarter over quarter, I'm doing my company a disservice.”

Focus on Scaling Proven Models [33:22]

For Samuel's tennis academy, Alex advises duplicating successful models, raising prices, and gradually scaling by adding new locations only after refining existing operations. He mentions, “I prefer that you guys duplicated with the other courts first.”

Strategic Pricing Adjustments [37:15]

Alex recommends testing price sensitivity to manage supply constraints and increase revenue, especially when demand is already being met by current offerings.

Notable Quotes

• Alex Hormozi [00:02:46]:
  “When you're hiring somebody, I'm thinking, what skills do I want them to already come into the job with? Because I think that they'll take too long to train.”

• Peter Livingston [04:07]:
  “I've worked for large brands before, so I haven't been from the ground floor at this level... we've gone from one to six is where we've gone from the past two years.”

• Alex Hormozi [06:07]:
  “I do think that you need to look for people who like have a sense of urgency and work with a bit of intensity.”

• Alex Hormozi [17:55]:
  “You have to treat your time differently than what you did a year ago... if my calendar looks the same, quarter over quarter, I'm doing my company a disservice.”

• Samuel [13:17]:
  “I do some research on them before I call them and, you know, build some rapport over the phone.”

• Alex Hormozi [23:40]:
  “You can place somebody above somebody who can mentor them and get the company to a hundred million.”

Detailed Summary

Introduction and Setting the Stage [00:02]

Alex Hormozi opens the episode by emphasizing the importance of having clear business goals to measure progress effectively. Without defined objectives, businesses risk relying on arbitrary metrics like money or views, which may not align with long-term aspirations.

Peter Livingston's Scaling Dilemma [00:41 - 08:50]

Peter Livingston shares his experience with a faith-based nonprofit that has achieved $6 million in revenue and aims to reach $15 million. The main challenge he faces is scaling operations faster than his team can manage, leading to the question of whether to hire new employees or invest in coaching existing ones.

Alex Hormozi responds by discussing the critical balance between hiring individuals who already possess the necessary skills versus training team members. He advises that for rapid growth phases, it's often more effective to bring in skilled professionals to keep up with the pace rather than spending excessive time training generalists. Peter acknowledges that his team is transitioning from generalists to specialists and is working on enhancing management capabilities within the leadership team.

Enhancing Onboarding and Training [04:37 - 10:20]

Alex delves into the importance of a robust onboarding process, highlighting how critical it is for retaining talent and ensuring that new hires align with the company's culture and objectives. He suggests a structured approach, likening it to onboarding a high-value client, to ensure that new team members are effectively integrated and productive from the start.

Michelle Haynes' Journey in Mortgage Broking [10:20 - 37:16]

Michelle Haynes discusses her experience growing a mortgage broking business from $300,000 to over $500,000 in revenue, with plans to double it. Her business relies entirely on referrals from accountants and existing clients, without any paid advertising. She seeks advice on generating more leads and expanding her referral network.

Alex suggests that Michelle should focus on delegating administrative tasks to free up her time for lead generation. He emphasizes the importance of training someone to handle the initial outreach, allowing Michelle to concentrate on building deeper relationships and closing deals. Additionally, he recommends testing price sensitivity and possibly increasing service fees to manage demand and optimize revenue.

Leyla's Software Services Scaling [37:16 - 28:50]

Leyla shares her challenges in scaling a software services business from $35 million to $50 million. She highlights issues related to maintaining focus, delegating responsibilities, and ensuring that team members are not overly dependent on leadership for direction.

Alex advises Leyla to prioritize her time by eliminating non-essential meetings and focusing on strategic initiatives that drive growth. He underscores the importance of hiring experienced leaders who can operate independently and align with the company's vision. Additionally, he suggests building a board of mentors to provide guidance and support as the company scales.

Samuel's Tennis Academy Expansion [28:50 - 38:52]

Samuel discusses his tennis academy, which has grown to generate $515,000 with the support of two part-time coaches. With aspirations to expand, he seeks strategies to scale effectively without compromising the quality of coaching.

Alex recommends duplicating the current successful model by adding more courts and possibly opening new locations. He advises raising prices to manage demand and ensures that scaling efforts do not detract from the core coaching activities. Samuel acknowledges the need to balance business growth with maintaining high-quality coaching and considers long-term plans for establishing flagship locations.

Conclusion and Final Advice [38:52 - End]

Throughout the episode, Alex Hormozi provides tailored advice to each guest, emphasizing the significance of strategic hiring, effective delegation, maintaining clear business goals, and fostering a strong company culture. He reinforces the idea that successful scaling requires a combination of skilled professionals, robust processes, and unwavering focus on long-term objectives.

Conclusion

Episode 274 of "Build with Leila Hormozi" offers a deep dive into the multifaceted challenges of scaling businesses. Through engaging conversations with entrepreneurs like Peter Livingston, Michelle Haynes, Leyla, and Samuel, the episode highlights practical strategies for managing rapid growth, enhancing hiring and onboarding processes, delegating effectively, and maintaining strategic focus. Leila and Alex Hormozi's expert insights provide valuable guidance for business owners striving to build resilient and thriving enterprises.