Podcast Summary: The Game with Alex Hormozi
Episode: 5 Businesses. 5 Fixes. One Playbook | Ep 937
Release Date: August 15, 2025

Introduction

In Episode 937 of The Game with Alex Hormozi, host Alex Hormozi delves deep into the common obstacles that businesses face when scaling and offers actionable strategies to overcome them. The episode, titled "5 Businesses. 5 Fixes. One Playbook," features a series of live interactions with various business owners seeking guidance on their unique challenges. Throughout the episode, Alex emphasizes the importance of strategic resource allocation, decision-making, and addressing foundational business constraints to achieve sustainable growth.

Understanding Business Constraints

Resource Allocation and Strategic Focus

Alex begins by highlighting the critical difference between entrepreneurs who scale swiftly versus those who stagnate. He asserts that the key lies not in how fast one moves physically but in making the right strategic decisions about where to allocate limited resources.

"The difference between entrepreneurs who move faster versus the ones who move slower isn't that they actually physically move faster or slower so that they choose the right things to do and more importantly, the things not to do." ([00:33])

Decision-Making as a Bottleneck

Alex underscores that many business owners get stuck not because of tactical issues but due to strategic indecision. He illustrates this with scenarios where entrepreneurs face "rock and hard place" situations, forcing them to choose between two unfavorable options.

"A lot of times it's like you grow. Of course there's a constraint, but usually there's a decision behind that constraint that's actually the thing that's blocking you." ([02:37])

Seven Growth Sins

Alex identifies seven common "growth sins" that impede business expansion. These are strategic pitfalls that entrepreneurs must recognize and address to scale effectively.

1. Avatar Selection

   • Issue: Struggling to choose the right target market, leading to potential business failure if they abandon profitable segments.
   • Insight: "If you stop selling to profitable avatars, you risk going out of business." ([04:02])

2. Data Deficiency

   • Issue: Lack of crucial business metrics like Lifetime Value (LTV) and churn rates, hindering informed decision-making.
   • Advice: Prioritize acquiring essential data to unlock long-term growth potential. ([04:02])

3. Lack of Focus

   • Issue: Managing multiple businesses simultaneously, leading to divided attention and reduced profitability.
   • Solution: Focus on scaling one business effectively before diversifying. ([05:20])

4. Overexpansion

   • Issue: Opening new locations without ensuring existing ones are stable, resulting in increased liabilities without proportional profit.
   • Strategy: Strengthen existing operations before expanding further. ([05:20])

5. Compensation Challenges

   • Issue: Balancing fair compensation to attract talent while maintaining profitability.
   • Example: A physical therapist struggling with compensation agreements affecting business sustainability. ([06:13])

6. Underpricing

   • Issue: Setting prices too low due to psychological barriers, limiting profit margins.
   • Recommendation: Adjust pricing to reflect value, potentially increasing profits significantly. ([06:56])

7. Single Product Dependence

   • Issue: Relying solely on one product or service, which can be risky if market preferences shift.
   • Case Study: A language teacher resistant to upselling higher-priced products despite clear demand. ([08:26])

Live Q&A Sessions with Business Owners

Throughout the episode, Alex engages with several business owners, diagnosing their challenges and providing tailored advice.

Dylan – Supreme Power Wash

• Problem: Difficulty in attracting Business-to-Business (B2B) recurring clients despite stable residential revenue.
• Alex’s Fix:
  • Enhance Attribution Tracking: Implement systems to measure ad effectiveness.
  • Increase Ad Spend Gradually: Scale advertising budget based on performance data.
  • Optimize Existing Channels: Improve door-to-door strategies and referral systems.

"Step one is get the attribution in place. Step two then increase it." ([12:03])

Jessica – Subscription-Based Boat Rental

• Problem: Balancing growth with existing debt and deciding between acquiring new clubs or expanding organically.
• Alex’s Fix:
  • Debt Management: Consider scaling past debt constraints or selling the business if scaling isn't feasible.
  • Focus on High-Margin Memberships: Capitalize on profitable membership models to drive revenue.
  • Strategic Expansion: Opt for acquiring existing studios with lower operational complexity over organic growth.

"Most people make this work in a franchise model." ([34:56])

Angela – Cybersecurity Consulting

• Problem: Shrinking profit margins and decreased sales due to shifting focus from sales to operational leadership.
• Alex’s Fix:
  • Recruitment and Talent Management: Address under-talent issues by hiring key roles like recruiters and practice leaders.
  • Leverage LinkedIn for Lead Generation: Utilize thought leadership and targeted content to attract enterprise clients.
  • Optimize Sales Processes: Implement structured outbound strategies and enhance referral systems.

"Standards has to start thinking as a capital allocator rather than just a dark response performance marketer." ([47:05])

Lucas – DTC Skincare Brand

• Problem: Low profit margins due to over-reliance on performance marketing and lack of brand development.
• Alex’s Fix:
  • Brand Building: Shift focus from direct response to building a strong brand that commands premium pricing.
  • Diversify Acquisition Channels: Balance paid advertising with organic brand-driven strategies.
  • Long-Term Value Creation: Invest in brand narratives to foster customer loyalty and reduce dependency on fluctuating ad spends.

"Branding is higher return on spend than direct response does over a longer time horizon." ([50:00])

Alistair – Solutions for Dentists

• Problem: Limited visibility and a desire to scale beyond word-of-mouth referrals with a high-profit margin.
• Alex’s Fix:
  • Audience Building: Develop a structured marketing strategy to increase brand awareness.
  • Leverage Content Marketing: Create targeted content that resonates with dental professionals to generate leads.
  • Implement Referral Systems: Establish systematic referral mechanisms to amplify client acquisition without excessive time investment.

"Shift to being a capital allocator with your marketing efforts." ([56:18])

Key Insights and Conclusions

1. Prioritize Strategic Decision-Making:
Successful scaling hinges on making informed, strategic choices about where to invest resources and what to prioritize. Avoid spreading yourself too thin across multiple ventures without a clear focus.

2. Address Core Constraints:
Identify and tackle the primary constraints holding your business back, whether they are related to market selection, data utilization, talent acquisition, or pricing strategies.

3. Importance of Branding:
Building a strong brand is essential for commanding premium prices and fostering customer loyalty. Shift focus from purely performance-driven marketing to creating meaningful brand narratives.

4. Optimize and Scale Proven Channels:
Instead of constantly chasing new acquisition channels, optimize and scale the channels that have already proven effective for your business.

5. Structured Growth Over Organic Expansion:
Adopt structured growth strategies such as franchising or licensing models to manage complexity and ensure sustainable expansion.

6. Delegate and Automate:
To scale efficiently, delegate operational tasks and invest in systems that allow you to focus on strategic growth rather than being bogged down by daily operations.

7. Long-Term Vision and Adaptability:
Maintain a long-term perspective, continually adapting your strategies based on performance data and evolving market conditions.

Notable Quotes

• "The difference between entrepreneurs who move faster versus the ones who move slower isn't that they actually physically move faster or slower so that they choose the right things to do and more importantly, the things not to do." – Alex Hormozi ([00:33])

• "If you have two out of three people who are saying yes, you probably have a two and a half X in price sitting there to get to where you should be." – Alex Hormozi ([06:56])

• "You're falling into the trap that I did and I was stuck there for three and a half years." – Alex Hormozi ([46:30])

• "Branding is higher return on spend than direct response does over a longer time horizon." – Alex Hormozi ([50:00])

• "The only way to decommoditize this is that you have to build the associations that allow you to command a premium price." – Alex Hormozi ([49:45])

Conclusion

Episode 937 of The Game with Alex Hormozi offers a comprehensive exploration of the strategic challenges businesses encounter when scaling. Through insightful discussions and personalized advice, Alex equips entrepreneurs with the tools and mindsets necessary to overcome growth impediments. By emphasizing strategic focus, effective resource allocation, and the power of branding, Alex provides a robust playbook for businesses aiming to transition from $100M to $1B in net worth.

For entrepreneurs seeking actionable strategies and deep insights into scaling their businesses, this episode proves to be an invaluable resource.