Podcast Summary: "My Business Isn’t Growing. What Do I Fix?" | Ep 931

Released: July 31, 2025 | The Game with Alex Hormozi

Introduction

In Episode 931 of The Game with Alex Hormozi, host Alex Hormozi delves into the pervasive issue of business stagnation. Drawing from his extensive experience scaling businesses from $100M to $1B in net worth, Hormozi identifies common strategic missteps that hinder growth. The episode emphasizes the importance of aligning personal and business goals, making decisive strategic choices, and overcoming internal and external obstacles that prevent businesses from advancing.

The Seven Rock and Hard Place Scenarios

At the outset, Hormozi introduces seven recurring themes he observes among business owners struggling to scale. These scenarios often place founders in untenable positions where choosing one path exacerbates another issue.

1. Focus

   • Issue: Diversification across multiple business lines without sufficient dedication to any single one.
   • Insight: To achieve substantial growth, it's crucial to concentrate efforts on one primary business rather than spreading resources thinly across several.
   • Quote:

     "You need to pick one thing and go all in on it." [00:32]

2. Over Expansion

   • Issue: Rapidly scaling operations (e.g., opening multiple locations) without the necessary talent or infrastructure, leading to diminished margins.
   • Insight: Expansion should be contingent upon having a strong, capable team and robust systems to support growth.
   • Quote:

     "You're making about a little bit less than I was before with two times the liability." [02:15]

3. Compensation Mismanagement

   • Issue: Either overcompensating or undercompensating employees, which can lead to financial strain or talent retention problems.
   • Insight: Properly structuring compensation is essential to maintain profitability while ensuring employee satisfaction.
   • Quote:

     "Nothing left when you're running the entire business on half your margin." [03:05]

4. Underpricing

   • Issue: Setting prices too low, which can undermine profitability and the perceived value of offerings.
   • Insight: Regularly reassessing and adjusting pricing strategies to reflect the true value provided is vital.
   • Quote:

     "I bet over half of you guys are underpriced." [04:10]

5. Single Product Dependence

   • Issue: Relying solely on one product or service, leading to vulnerability if demand shifts.
   • Insight: Diversifying offerings or developing backend products can stabilize and enhance revenue streams.
   • Quote:

     "Maybe you just need to sell those people something else." [05:00]

6. Avatar Misalignment

   • Issue: Serving a broad audience to maintain revenue, which dilutes focus and hampers specialized growth.
   • Insight: Narrowing down target demographics and tailoring services can improve efficiency and profitability.
   • Quote:

     "If you raise your prices, then you're going to lose your customers. But if you don't, you're not going to make money." [04:50]

7. Data Deficiency

   • Issue: Lack of actionable data to inform strategic decisions, creating a cycle where growth is stifled by insufficient information.
   • Insight: Implementing robust data tracking systems is fundamental to making informed, strategic business decisions.
   • Quote:

     "You're going to have to shoot a kid in the head. Yeah, I know. Aggressive, maybe multiple." [09:01]

Listener Q&A Sessions

Throughout the episode, Hormozi engages with several business owners seeking advice on overcoming growth barriers. Below are detailed summaries of these interactions, each highlighting unique challenges and tailored solutions.

1. Tony Cooper – Tattoo Business Scaling

• Business Overview: Sells tattoos and offers continuing education for tattoo artists.
• Revenue Goal: From $4M to $35M.
• Obstacle: Focus – Managing multiple business facets dilutes efforts and inhibits growth.
• Discussion Highlights:
  • Expansion Dilemma: Considering whether to open more studios or shift focus to an educational model akin to Gym Launch for the tattoo industry.
  • Exit Strategy: Balancing between scaling for eventual sale versus building an enduring brand.
  • Alex’s Advice:
    • Quote:

      "If you offer somebody, hey, would you like to make a million? Like when you're 85 years old and you look back..." [08:38]

    • Recommendation: Align business growth strategies with personal goals, emphasizing the long-term benefits of building a substantial brand over short-term aggressive scaling.

2. Ricky – Plumbing and Air Conditioning Services

• Business Overview: Provides plumbing and air conditioning services to residential customers.
• Revenue Goal: From $4M to $15M.
• Obstacle: Over Expansion and Profit Margin Decline – Rapid revenue growth is consuming profits due to operational inefficiencies.
• Discussion Highlights:
  • Growth Concerns: Increased top-line revenue not translating into net profit growth; fears of scaling too aggressively.
  • Alex’s Advice:
    • Quote:

      "You're at 14%, I would for sure like you for sure." [13:44]

    • Solution: Implement data tracking to monitor operating margins and optimize sales motions. Focus on improving pricing and packaging to enhance cash flow, then reinvest in advertising and scaling thoughtfully.

3. Rob Jenkins – Legal Services for Judges in Texas

• Business Overview: Offers specialized services as an officer of the court to judges across Texas.
• Revenue Goal: From $15M to $20M.
• Obstacle: Market Saturation and Geographic Constraints – Dominates the Texas market but faces challenges in scaling to additional states due to legal and operational hurdles.
• Discussion Highlights:
  • Expansion Choices: Deciding between entering new states or deepening market dominance within Texas.
  • Alex’s Insight:
    • Quote:

      "If you're going to take a fork in the road, how do I maximize the risk-adjusted return on this move?" [29:17]

    • Recommendation: Focus on expanding the market share within Texas before venturing into new territories. Growing the existing market pie is more effective than attempting to replicate success in less favorable environments.

4. Dylan Larson – Welding Accessories Sales

• Business Overview: Sells welding accessories to welders.
• Revenue Goal: From $1.7M to $10M.
• Obstacle: Demand Plateau and Burnout – Struggling with content creation burnout and supply chain constraints.
• Discussion Highlights:
  • Content Strategy: Balancing content creation with burnout; considering expanding into new sales channels like Amazon.
  • Alex’s Advice:
    • Quote:

      "Find a format that you like and then figure out all the algorithm bullshit around it to make it, you know, all nice and clickable." [37:58]

    • Solution: Focus on producing content that is enjoyable and sustainable. Implement robust data tracking to optimize advertising efforts and diversify sales channels without compromising content quality.

5. Chris – Real Estate Advisory Services

• Business Overview: Provides real estate advisory services to C-suite executives and business owners.
• Revenue Goal: From $1.2M to $10M.
• Obstacle: Market Entry Strategy – Expanding into new markets without established relationships.
• Discussion Highlights:
  • Geographic Expansion: Planning to move from Seattle to Phoenix and strategizing customer acquisition in an unfamiliar market.
  • Alex’s Advice:
    • Quote:

      "If you're going for high-level people, then it's going to be more outreach driven because most high-level people are going to get everything from referrals." [43:18]

    • Recommendation: Employ a dual strategy of aggressive advertising alongside traditional high-touch outreach to establish credibility and secure high-level clients in new markets.

6. Colton – Beef Protein Chips Business

• Business Overview: Sells beef protein chips to athletes and outdoor enthusiasts.
• Revenue Goal: From $1M to $12M.
• Obstacle: Supply Chain Constraints and Manufacturing Capacity – Limited by manufacturing capabilities and seeking to scale production.
• Discussion Highlights:
  • Manufacturing Challenges: Balancing production capacity with demand; considering purchasing proprietary machinery.
  • Alex’s Advice:
    • Quote:

      "The core defensibility that you have." [53:05]

    • Solution: Investigate the proprietary machinery's value and potential for scalability. Explore financial strategies to fund equipment acquisitions and evaluate strategic partnerships to enhance manufacturing efficiency.

General Insights and Conclusions

Throughout the episode, Alex Hormozi underscores the critical importance of strategic focus, data-driven decision-making, and aligning business actions with long-term goals. Key takeaways include:

• Decision-Making Agility: Entrepreneurs often falter by overthinking decisions, leading to inaction. Hormozi advocates for decisive action even amidst uncertainty, emphasizing that every change entails a temporary dip in performance but paves the way for future gains.

  "I don't see one way as right or wrong. If you offered somebody, hey, would you like to make a million?" [08:38]

• Optimizing Core Business Functions: Prioritizing essential functions such as sales, marketing, and customer acquisition before delving into ancillary operations ensures a solid foundation for sustainable growth.

• Risk-Adjusted Growth: Balancing the potential rewards against inherent risks in strategic choices is crucial. Hormozi encourages business owners to evaluate growth opportunities based on their ability to enhance market share and profitability without overextending resources.

• Sustainable Scaling: Emphasizing the need for robust systems and processes, Hormozi advises against rapid, unfocused expansion. Instead, he recommends building scalable frameworks that support growth without compromising quality or operational efficiency.

• Leveraging Data: Implementing comprehensive data tracking mechanisms allows businesses to make informed decisions, optimize pricing strategies, and enhance overall profitability.

Notable Quotes

• On Decision Paralysis:

  "We just mentally masturbate to the idea that we have this goal, but our actions don't align to it." [01:45]

• On Compensation Issues:

  "Running the entire business on half your margin and there's just nothing left." [03:05]

• On Market Dominance:

  "Grow the pie of Texas." [31:24]

• On Content Creation:

  "Find a format that you like and then figure out all the algorithm bullshit around it to make it, you know, all nice and clickable." [38:25]

This episode serves as a comprehensive guide for business owners grappling with growth challenges, providing actionable strategies and insightful perspectives to navigate the complexities of scaling a business effectively.