Million Dollar Equations

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)
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.

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.

[beybladeknights]

This type of content is unique on YouTube. Incredibly valuable, it doesn’t get more practical than this. Thanks Alex!

[GetNotableDotAI]

00:00 - LTGP:CAC
00:53 - LTGP (Life Time Gross Profit)
06:42 - CAC (Customer Acquisition Cost)
09:00 - ROIC (Return On Invested Captial)
13:10 - Payback
16:05 - Sales Velocity x LTGP
18:45 - Sales Velocity / Churn

[LesterDiaz]

This is a masterclass in business in a free YouTube video that universities charged $100k to learn from a professor who has never started a business.

[dudedavebassett]

I don’t know why anyone would spend 4 years studying at university learning from people who don’t have experience in this, when they could watch every video Alex and Leila have put out. The teaching is so simple to understand and thorough! You guys are so appreciated!!

[InsanelyYT]

this has to be one of the greatest videos i’ve ever seen on in depth finance of running a business. just received both of your books and they’re next on my list. great stuff alex

[adrianortega]

I have the utmost appreciation for you and Leila’s dedication and commitment to good systems and processes 🙏Happy Holidays 🎉🙏

[sheryaradil]

This is by far the most technical and most informative value you've given to date in all of your videos man. Good for you. Keep this sort of thing going for the average person and you're going to change a ton of lives.

[amir.rodz]

Hey! Business 101… but understandable and from someone who actually has done it, yay!


Love the fact that he has taken comedy and performance more seriously to get us to stick around.

[PianoLessonwithWarren]

I’m being honest, I still struggle to fully understand my numbers. I run a multi Six Figure membership that is build purely on content marketing (I don’t run ads). How would I tweak this equation find my ratios?

[Ramenko]

Wow. I have very little knowledge of business jargon. This video is EXTREMELY educational for a newbie. Appreciate you, bro.

[tonystephensonii]

This type of content is 10x better than the MBA I have 🔥🔥🔥

[trekgreenwood]

I probably learn more from Alex in one video than I would a four year business degree.

[BriskBrain]

Great content Alex, amazing editing Mozi Team ⚡️

[ambersucces]

Loved how product based businesses got some love in this video

[leonmauricesch.]

please do a video about risk.
I am currently working on analyzing the market, the customer and the competition.
Next step for me is to identify the problems, goals etc.. so i can create my offer. But in the past few weeks/months i was always confronted with the term risk management. Of course i can just learn it by myself, but your explanation videos are always great. They help me out a lot during my learning phase.

[seanlord]

Love this video on business ratios man! Would love to learn and apply more of this from you!

[LideraTuFuturo]

OMG, loved so much this video! After an MBA in international business and nearly 3 years with my project (currently at the phase of product building) I had no idea on how to set a price for a product. Now, after understanding and putting on an Excel LTGP : CAC ratio, I can finally look at the price I would need to set my product in order to get x in profit in a given period. And since my product will probably be 1 unit with no recurrence (due to its service educational nature) I really needed to understand these variables in order to set a good price. Thank you so much!!!

[yellowdrangon]

Bruhhh AMAZING CONTENT, Right to the point, great examples and no BS

[mjed]

Top notch content both in actual value delivered and in editing. Thank y'all!

[Kafufflez]

Where would you track things like LTGP: CAC / Sales velocity, etc?

I understand all the concepts but I’m not sure the best approach to track and monitor.