How I Would Build a Business in 2025 (If I Had to Start Over)

About this Video

• Video Title: How I Would Build a Business in 2025 (If I Had to Start Over)
• Channel: Alex Hormozi
• Speakers: Alex Hormozi
• Duration: 27:02

Introduction

This video outlines Alex Hormozi's approach to building a business in 2025, emphasizing the importance of a sound business model over fleeting marketing tactics. He uses a ratio-based model focusing on maximizing the lifetime gross profit (LTGP) per customer relative to the cost of acquiring that customer (CAC). The core concept revolves around generating sufficient cash flow to ensure business sustainability and outspending competitors.

Key Takeaways

1. Focus on Models, Not Methods: Marketing methods are temporary; a robust business model focusing on financial sustainability is crucial for long-term success.
2. Prioritize Cash Flow: The number one rule is to avoid going out of business. Managing cash flow is key to achieving this.
3. Maximize LTGP/CAC Ratio: A successful business model makes significantly more money per customer than it costs to acquire them, enabling superior marketing spend and market dominance.
4. Automation Improves Ratio: Automating lead generation, conversion, and fulfillment allows for a lower LTGP/CAC ratio threshold for profitability. The required ratio increases with each manual process.
5. Improve LTGP/CAC Through Various Strategies: Increase prices, decrease costs, implement upsells/downsells, offer financing options, and adjust payment terms to improve this key ratio.