Leila Hormozi: From Minimum Wage Employee to $100M Net Worth By 29

23:12We're thinking about selling. And then I think there was even like a part two and a part three after the sale. And so it was pretty cool to see that that was all public. What did you guys... Three parts. What did you do with the money once you sold? Did you have a plan on where to invest it? Or did you just let it sit there? The second thing is, did you have a 10-20 year plan on where you wanted to go? Or is it like, I don't know what we're going to do. Let's figure it out. And then, we'll answer those two first. Yeah, yeah. The idea with the money was, we can put it in stocks in the short term.

23:44We had some real estate deals. We have one person we do real estate with specifically that we put some of the money in. And then the rest of it was for acquisition.com. So it's like, how do we get our first few deals? We're going to use this as like the nest egg to invest in those deals. Part two to that is we knew we wanted a headquarters. And so, you know, the headquarters was obviously, I mean, it's almost 40 ,000 square feet. It's quite expensive. So that was a big investment as well. So most of the money has gone into the first few deals, plus the headquarters. The rest of the money we put in real estate deals that have done really well for us.

24:20And then I would say remainder stocks. We have an oh shit fund and things like that too. But most of the times we want to be investing in how are we going to use the money to grow Acquisition.com faster. That's really what we think about with the cast. Did you have the idea of that before you even sold Gym Launch? The day after we sold, we started Acquisition.com. That's crazy. Yeah. And what was the genesis of that idea? I'm sure many conversations, but like, do you remember kind of what the, what would you call the origin? Really? It actually started with what am I best in the world at? What is Alex best in the world at?

24:53Right. That's one piece. The second piece to that is what is the ideal day to day for Alex to sustain so that he knows that he's not going to want to quit because the work he's doing with the people he's doing it, he doesn't like. Same for Layla, right? So it's like, do things you like with people you like. That's how you sustain performance, in my opinion. So then what does that look like for each of us? And then what is a business that where there's room in the market that we can capitalize on both of our skills when we build? And so, you know, Alex is, you know, he's constantly thinking of ideas.

25:30He's like, well, what about this? What about that? I'm like, no, no, no, no. What were some of those ideas? Well, I mean, there was like, we could go direct to consumer, for example. You know, we thought about, you know, the fact that he's so good at generating demand, and I can build a big team that's really like, well positioned for a direct to consumer business, whether it be in beverages, whether it be in food, or whether it be in, you know, some kind of like commerce. That was an idea. Another idea that we had was essentially like an actual, like health business. So like building a platform for, you know, people who wanted to lose weight or get in shape using some kind of technology, integrating an AI, and then everything we know about how to actually help people, you know, lose weight.

26:14But then we saw, you know, a Zen pic coming down the line. We're like, fuck that. And so those were two, like, strong front runners, I would say. And they were things that I could get passionate about. But then acquisition.com was the one that I just kept coming back to because I was like, you know, the reason that I wanted to sell Gym Launch was I just asked myself, do I want to be in the fitness industry for the next 10 years? And the answer was no. I was like, and I understand that I would probably get better returns on my time staying in the fitness industry because I know it so well, right?

26:48We're already a market leader. We know everything. We've come up in this. I've been doing it since I was however, whatever age. It's been over a decade now. So has he. We have a competitive advantage here. But I was like, I don't want to be in here the rest of my life. And the reasons for it, to be honest with you, are just like the networking in the fitness industry felt less appealing to me than the networking in private equity, for example, and the people that I would be competing with. And I think that who you compete with or who you compare yourself to, right, is like that sets the tone for who you wish to become in many ways.

27:23Like if I get in the room with whatever, you can just say Jeff Bezos or Elon Musk or whatever, and I have a company that I aspire to have like theirs, like I'm going to compare myself to them versus when I met some of the people had some of the biggest fitness businesses, they were not, though I could compare myself to them, and yes, they had done better by many measures, they were not necessarily people I aspired to be like. And so I just wanted to be in a different industry to get around different people and to acquire different skills that I didn't think I was going to get staying there. And so when we looked at acquisition.com, I was really like, what kind of person do I want to be?

27:57And then what kind of business will allow me to become that person? And then what kind of people do I need to have on my team to build that type of business. And so I think a lot of it actually like circles back, you know, Alex was talking about this last night to like, who do I want to be? And the business is just a vehicle for personal growth in many ways. And so for both of us, I think that we are better entrepreneurs and better people for building acquisition.com. And I think that some people choose businesses that make them worse, not better. And this one is definitely one that I think helps maximize our skills, but also gets us to be better people.

28:33You know, Alex has shared publicly many times, like he was like, when we first started acquisition.com, he kept saying like, I really want to be more patient. And you must be patient for this business to work. And so because he wants the business to work more than anything, right? Then he will learn to be more patient as a byproduct of that. And for me, in order for acquisition.com to work, and not just work work, but like really fucking work, like win and be number one, I have to learn how to make content and be public facing and be a better communicator overall. And so it's not that every day I wake up excited to do that, but it's that I want to win.

29:12And I know that in order to win, I have to learn these skills. And so it forces me to learn those things in order to achieve my goals. That's pretty badass. Yeah, that makes a ton of sense. Everything you said makes sense and is very aligned with how I view life. I always say, as a vehicle, it's a means to have the type of life we want and become the type of person you want. And then you think, okay, if this is a vehicle, who do I want on this road trip with me? And that's your co-founders, your partners, your investors. Who are the people I want in this car ride? Because we might get lost somewhere along the way, and I've really got to think that through.

29:46And I think it's very important to have that mindset because I think people think the vehicle is the end itself. And obviously, it's not. You see that because people do one vehicle, and then they need the next. They need the next. And why does Jeff Bezos need to go do his rocket company? And why does he need to buy the Washington Post? Why do they need to do these things? Because the business itself was just a piece of workout equipment. It's like going in and you see the bench press. It's there for me to get the workout, for me to get the gains. It's there to provide some resistance for me to get what I want out of life.

30:18Yeah. I have a question for you about acquisition.com. So you said you've seen, I don't know, a thousand businesses. I was talking to you before we started recording about businesses that surprise you because they're just kind of kick-ass. Maybe it's a business that you had maybe a category you hadn't heard of or just a business that people would overlook or maybe would underrate but and you don't have to name the names of these businesses but I'd love for you to describe a kick-ass business that you've seen somewhere along the way at acquisition.com whether it's one you guys bought or not. Yeah, I will say this more businesses suck than you would think so what I learned in starting no seriously in starting acquisition.com was just the amount of bad businesses there are.

30:53What's the profile of bad and good? Or like, what's that threshold? I think product market fit is not... It exists on a scale. It's not yes or no. But like poor, like weak product market fit, weak founders, low margin, low potential. You say weak with so much disgust. I love it. Yeah, I just need that clip. That's my alarm clock when I wake up from that one. I say weak again. because it's like, I'm like, let me fucking help you. But like, I can't if you're just fucking weak. So it frustrates me because I'm like, tough love, but like, this isn't going to work. And so I would say like, that has actually been more surprising than the good businesses I've seen.

31:37It's just the amount of businesses that I'm like, wow, it's shocking it's still here, you know? Or it's like, wow, I can't believe this person actually started this thing. And so there's been a lot more of that. I would say in terms of businesses that are really cool, and, you know, I think have inspired me in different ways. It's people that are actually able to take something traditional and make it and innovate it. You know, it's like, I always find those businesses really interesting. Like, you know, it could be anything like publishing books and turning that into, you know what, instead of publishing books the way that we have been, instead, let's learn how to use AI to publish books and make the entire process automated.

32:17that's a really cool business that I've seen play out I think that looking at a school which people know that we publicly associate with like that business I have a lot of admiration for because of if you look at it by all like by all stats and metrics of that business it is mind-blowing and that they've been able to take this element of community that people only really feel in person and bring it online to such a degree that now people also are doing it offline. And it's just, it's been really cool to see the network effect through that business. And then I would say like more traditional businesses like bakeries and how like traditional bakeries that make, you know, cookies or whatever have integrated tools like AI and technology to learn like, okay, what type of cookie profile is this person going to want to order?

33:11and like just ways that people can integrate that kind of stuff like technology into like traditional businesses. Do bakeries that use AI, is that a thing? Does that make it better really? I think that is all perception. Like I think value for a customer in many ways, it is perceived, right? And so it's like if you feel like this cookie is custom to you because of this technology that they have and they're able to like make it right there for you, then I think, yeah, people will pay a lot more money for it. That's for sure. I mean, I would, but clearly because it works for them. So I think those have been some of the cool businesses.

33:45What about this workshop stuff? So you guys start, I started seeing ads for these workshops and I think you guys have probably done like, I'm just doing some napkin math, like something like$10 million of workshop revenue, which is a little bit surprising to me because I was like, why are they doing this? It's like a lot of time. The math being supposedly, or you maybe said this, I think, 1 ,800 people have gone through an acquisition.com workshop. And I think on your website, it's$5 ,000 to go. By the way, I know a couple of people who have gone and they said it was great. So I'm not saying it in a bad way.

34:16I guess what I'm saying is I was surprised you guys were doing it. I was like, oh no, this is actually great alignment, right? They like to teach its deal flow at a proprietary level. And then it's a win-win. Other people should get some value out of this. They come in, they get to focus on their business. What I wanted to ask you about is what's the number one recurring problem you see? Because now you've seen 1 ,800 founders come in and they paid a bunch of money to come to the workshop because they got a problem. What's the common problem you see and what's the solve that you think would help most of these businesses?

34:47The number one problem that I see is not technical. And it's not even a practical problem, but more of an emotional problem, which is I think founders lie on one of two spectrums, which is either they're incredibly impatient. And because of that, they never wait long enough to see if any kind of strategy will work, they just change it. And so it doesn't even they don't even give it a shot to see if it'll play out because they change too soon. And on the other side, you have founders that are too tolerant. And they basically just want to be liked at all costs. And they don't make good decisions for their business because of that.

35:24So I actually don't think that any of the problems that I see are technical problems. Is there a way to put like a benchmark? Like, for example, are you talking about like, you know, you should for a lot of people, they should be waiting a year to get results? Or, you know, or they react in weeks when they should be reacting in quarters? Is there a... Yeah. I think a lot of people think that waiting a quarter is a long time. And that's probably the issue. They think, oh, well, I waited three months. I'm like, try waiting 18. You know, I have things I'm doing in acquisition.com that you might ask about the workshops.

35:55I'm like, all right, well, if you see what's going to come out in the next four months, which I've been working on for the last 12 months, you'll see why it all makes sense. Right? But a lot of people, I think, one, don't have the ability to wait that long, and two, don't even know how to build something that takes that long.

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37:17Your husband seems like a guy who is stereotypical of a person who does not have patience? You said that he said, I want to be more patient. So I assume that means he didn't have patience. Has he been able to go with the flow of like, look, we're planning 18, 36 months out and that's what we're working on. So you're not going to see... Because I know when I'm working at something, I'm like, why don't I see results immediately? We're investing all this money and all this time and we don't have fucking results? Why aren't you out launching an MVP and talking to potential customers? Don't tell me about it.

37:48You know what I mean? That's how I feel. And I think that's why I understand probably how he feels. Yeah, I think something I've gotten a lot better at is showing him progress. So because I, this is what I've realized, which is just patience is just figuring out what to do in the meantime. The reason I can be more patient is because I'm fucking busy doing all the shit to make the thing happen, right? But if you're not the one in there, having the meetings, hiring the people, recruiting the stuff, putting the tech in place, then it feels like it takes a long time. And so because he sits more on the like demand gen side and doesn't have the whole team rolling into him, he doesn't get that reinforcement on a daily basis of seeing that progress.

38:25And so I look at myself as like my job is to tell him all of all those things that are happening, to show him, look at all the shit that we're doing and where it's going to end up and how close we are. And it might actually happen faster than we thought. And so I think that a lot of the times people feel impatient because one, they're not seeing progress because maybe they're removed from what's actually occurring. I think that the second thing is, you know, I always look at it as for him and for anybody, if he's not, you know, in the day to day operating, making the plan happen, then he's working on something for the future.

38:58You know, he's writing books, he's making content, he's, you know, oftentimes when we have really big problems in the business, maybe we'll have two or three at the same time, it'll be like, okay, you know, I know that these teams don't report to you, but I'm over here solving this problem. How about you solve this problem? And then, you know, we're going to communicate about these things. And so it's like, I also think he You can do special projects. That's something that like you do in the meantime. You know, I think from a traditional standpoint, I think what's really good about him in many ways is that he's impatient with things.

39:27And so because of that, I'll say this, okay. I think it's good to be patient. It's also good to be impatient with things. It's just like, which one? And so I think what I love about his impatience at times is that he's able to isolate it to the way that people do things. Why does it take this long to do a video? Why does it take this long to talk to a customer? Why does it take this long to build a department? And he questions things that other people just accept as fact because somebody else and some book said that's how you do business. And I love that he questions those things and is impatient about how inefficient things in business can be.

40:01I think that's fantastic. Naval has the best quote on this. He said, impatient with actions, patience with results. So impatient on the inputs, patient with the outputs is the sort of unstoppable formula. 100%. It's an advantage because I am patient with results. I can also be too patient sometimes with the action. And so I have learned from him. I think we do a good job learning from each other. I think that he's learned from my patience with results. I've learned from his impatience with inputs or actions. And that's benefited the business a lot. We got to ask you, we used to say we have seven female listeners.

40:34And I think as the podcast has grown, there's now tens out there. And I'm sure you get a lot of women who look up to you, who ask you for advice. Nice. So this is the, you know, here's the mic. And if there's a female entrepreneur watching this, what's your message to her? You might think that because you're female, things are less fair, or that people will treat you differently, or that business is harder, and there are things that you're going to have to overcome. And while all those things might be true in certain circumstances and certain times, and that some are irrefutably true, the question to ask yourself is, is this useful?

41:11You know, a lot of people come to me and they say, Isn't it hard to do business because like, you know, you're a woman and you're married to Alex? Like, do people take you seriously? I'm like, I don't know. Is that a useful thought? If it's not, then why the fuck would I focus on it? And so I just completely abolish any of this like female entrepreneur, what's it like stuff. And I've made one video about it because I wanted people to understand, yes, there are differences. There are also advantages. so like you can either focus on what sucks and what's worse or you can just focus on you know maximizing your strengths and taking advantage of the advantages and also just choosing to focus on shit that's useful you know what i mean like we can all point to reasons as to why people treat us differently we can also just like be better i'll tell you this which is like a joke between me and alex is like so many people have tried to break us up um and like the key line is always like, Leila, you know, he's suppressing you because he's, you know, Alex.

42:11I always just like have this internal dialogue, which is like, and that is why you will not win. Because you see people that are powerful as having an ability to suppress you. When I look at people who are powerful as what can I learn from them to be better so that when I'm in a room, people would not say that about me. They would not say, oh, you're being suppressed. Like, what do I have to learn to be a person who is more powerful. And I think that a lot of women throw around these terms and do these things, but it's like, you can either look at it as a disadvantage or something to be an advantage to you.

42:46You know, I think that I've had to probably accumulate more skills that some men would not have to, because I've had to learn to be better at things to be taken seriously in certain ways, right? Or I've had to, you know, accumulate emotional skills that I wouldn't have to otherwise i think those are all pros and like if i have more challenge i also get the opportunity to acquire more skills so i just don't look at it like a bad thing and i look at it if anything like a good thing and i any thoughts that arise that are not useful i do not focus on ever you're the shit perfect answer you're you're you're fantastic you know you guys are um what an interesting couple you know typically like uh like my wife and i are are are fairly different in a lot of different ways um but you guys are both uh very similar in your intensity but also in your way to like uh come up with like interesting ideas and interesting theories as to why the world is the way it is and how you're gonna react to that uh most relationships i don't think are like that.

43:49And so it's so funny. You guys are both highly intense in great ways. It's so fascinating. I'm going to make that my new profile. Highly intense. Yeah. We'll LinkedIn endorse you on that. Yeah. My best compliment to you guys is I think what's really admirable about your relationship is that I think you both have a very high desire to self-improve. And it takes me back to one of my favorite quotes about relationships is, I'll take care of me for you and you take care of you for me. Whereas I think most people approach relationships as the opposite. You're supposed to take care of me and I'm supposed to take care of you and you're never doing enough for me and I'm never doing enough for you.

44:26And I think it is really great. You guys are an A plus example of two people who say, I'm going to self-improve in all the ways that I can. And that's what makes me a great partner for you. Yeah. And I think, honestly, I just wish for everyone that listens to this to take that to their business relationships and to their personal relationships, because I think it applies to both. All right. Well, thanks for coming on. I appreciate you. Thank you, guys. That's the episode. I feel like I can rule the world. I know I could be what I want to. I put my all in it like no day's off. On the road, let's travel, never looking back.

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46:01For more information, check out Mercury.com. Mercury is a financial technology company, not a bank. Check show notes for details.