The New 80/20 Rule

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.

[FKLive]

Another example I'll add to this would be incase of student life
80% of the day goes by in school and homework, if you utilize the remaining 20% and put that into something worthwhile instead of wasting it you'd be a top performer.

[Destroyyyer]

i love the thinking and it actually makes sense. I always thought "why do one business 100% if with 20% work i get 80% of the outcome". So its smarter to do 3 things 20% because i get 240% out of them. Instead of only 100% with one business. But now i realise, that the value is in the last 20%. And if you give people these last 20% to reach 100, you are way different from anyone thinking like you "i just do the 20% to get the 80% outcome". ANd thats where the money is.

[rickharris]

The only flaw I can see is that this presumes that spending all your time on one venture will guarantee that you will be the best, presumably because you worked harder/longer. Too bad that doesn't work.

[justduder]

decided on selling my rental, tenant leaves tomorrow - rolling profits into something else (stuck between starting an agency or buying a business)

[MrSaeedted]

Yeeeaah this is a very wild take on the Pareto Principle.. I'm unsubbing