net free cash flow

“You can bet on yourself, but there are so many more stories of guys who bet everything on themselves at the casino and walked away empty handed.” Today, Alex (@AlexHormozi) shares the key aspects of business valuation, debunking common misconceptions and highlighting seven critical metrics: contract value, lifetime revenue, business valuation, yearly revenue, profit or EBITDA, net free cash flow, and personal net worth. At the end, he ranks which of the metrics are best to use and why you should not be looking at the others to determine the value of a business.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(0:56) - 1st Metric: Contract value

(2:35) - 2nd Metric: Lifetime revenue

(4:58) - 3rd Metric: Business valuation

(7:10) - 4th Metric: Yearly revenue

(8:14) - 5th Metric: Yearly profit

(10:11) - 6th Metric: Net free cash flow

(11:07) - 7th Metric: Net worth

(13:32) - Ranking each business valuation metric

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(This episode is a re-run. Original airdate was on July 1, 2021)

And if you give more than you take, the marketplace will always reward you... Today, join Alex (@AlexHormozi) as he guests on Foundr Stories’ YouTube to talk about some of the common mistakes that are happening in the entrepreneurial space, break down the concept of “tiny market, big money”, and how you speak, think, & approach scenarios and situations are going to predicate how successful you are in any endeavor you do.  This is part 2 of the interview. 

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Check out the episode on Foundr Stories’ YouTube Channel!

Timestamps:

(1:04) - "Tiny market, big money" process: Find lucrative niche markets.

(4:22) - Manage 100x price increases and attract more clients.

(6:13) - Key takeaway from educational efforts?

(9:24) - Entrepreneurial mindset: Acquired or innate skills?

(15:03) - Common 2021 entrepreneur mistakes.

(17:51) - Rapid-fire: Money, 10-year vision, and more.

Follow Alex Hormozi’s Socials:

LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Keep the cash flowing! Today, Alex (@AlexHormozi) talks about the number one mistake he says a lot of entrepreneurs make in terms of making more money. He also talks about the number one metric that he uses to track his businesses, and why you should follow this concept. if you're thinking about reinvesting in the business, make sure that the dollars that you're choosing to reinvest, you're getting the best return on capital you possibly can.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(0:25) - Alex's top metric: Net Free Cash Flow.

(3:20) - Reality: 99% of businesses never get sold.

(4:24) - Entrepreneur mistake: Neglecting Net Free Cash Flow.

(5:49) - Net Free Cash Flow: Profit exceeding business needs.

(9:22) - Regular exposure to discounted risk: Operational Risk.

Follow Alex Hormozi’s Socials:

LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition