Momentum Podcast: 127

What Explosive Growth Feels Like Wtih Leila Hormozi

by Alex Charfen

Episode Description

Every entrepreneur dreams of running a company that grows fast. Not just a normal fast, but explosively fast. As fast as we want to make our contribution, as fast as we want to make a difference, and as fast as we want to make an impact.

Very few entrepreneurs ever get to experience this dynamic. Most know they can do more, contribute more, and make more happened but they can't get everything to come together so the growth will happen all at once.

Entrepreneurs were able to pull this off are rare. Alex and Leila Hormozi are the exception. Between July to November 2017, they have done their team from three to over 20 and their revenues from a couple million dollars a year, to over $1 million dollars a month!

This interview with Leila will give you insights as to how you can make this happen in your company.

Full Audio Transcript

I'm Alex Charfen, and this is the Momentum Podcast, made for empire builders, game changers, trailblazers, shot takers, record breakers, world makers, and creators of all kinds, those among us who can't turn it off, and don't know why anyone would want to. We challenge complacency, destroy apathy, and we are obsessed with creating momentum so we can roll over bureaucracy and make our greatest contribution.

Sure we pay attention to their rules, but only so that we can bend them, break them, then rewrite them around our own will. We don't accept our destiny, we define it. We don't understand defeat, because you only lose if you stop, and we don't know how.

While the rest of the world strives for average and clings desperately to the status quo, we are the minority, the few, who are willing to hallucinate there could be a better future, and instead of just daydreaming of what could be, we endure the vulnerability and exposure it takes to make it real. We are the evolutionary hunters. Clearly the most important people in the world, because entrepreneurs are the only source of consistent, positive-

Alex Charfen: Welcome to what explosive growth feels like.

Alex Charfen: ... human evolution and we always will be.

Every entrepreneur I've ever worked with dreams of running a company that grows fast, not just normal fast, but explosively fast, as fast as they want to make a contribution, as fast as they want to make an impact, as fast as they want to make a difference. And one couple that I'm working with that is doing exactly that are Alex and Leila Hormozi, who are the founders and owners of Gym Launch, which is a company that helps gyms get started, and not just get started, but helps existing gyms actually become profitable, most of them aren't.

And the two of them are so dynamic, and so incredible. I was invited to a private mastermind in July by my friend Russell Brunson, and I flew out to Vegas. Alex Hormozi was there, and I already knew Alex for about a year and a half, and he introduced me to his new wife, Leila.

And the two of them are an amazing couple, mutually supportive. They communicate, they care about each other, they pull together when things go wrong, they support each other in a way that very few entrepreneurial couples do. They impress me like crazy. They set an example for me and for everyone else.

But that's not it. When we were at this mastermind, Alex got up and shared their new business plan, and I remember at the end of his presentation he said, “So I think we have a $10 million dollar company here, guys,” and this is five months ago, mind you. It's now December, but it was about five months ago, because it was in the middle of July.

And I walked up to him after the presentation, I said, "Alex, that's not a $10 million dollar company, that's a $100 million dollar company if it's anything, and you guys have a crazy opportunity." And he and Leila both looked at me like I had just said something really shocking.

And I'm going to let you listen to Leila share with you how they've done this, and I want you to listen to her insights as to how she's doing this. What are her thought processes? What is she doing to make this happen? Because she is extraordinary, and she spent about 15 minutes on the phone with me, I'm going to share the interview with you, just explaining what has happened and how she's making this happen.

Because I want to give you an idea of how insane their growth is. In July, when I met them, three people. Today, over 20, without counting Alex and Leila. In July, when I met them, around a couple million dollars a year. Last month, 1.15, or 1.2, and this year is going to be even higher. They've gone from a two million dollar run rate to over $15 million dollar run rate this month in only six months.

This is one of the fastest growing companies in the United States today. They blow me away, and I think that you will gain insight, and intelligence, and strategy, from Leila Hormozi, that I don't know that you can get anywhere else. She is absolutely one of a kind, and as a couple, she and Alex are one in a billion.

With that, I want you to take a few minutes and listen to this exchange I had with Leila, and I know that you're going to be every bit as impressed with her as I always am.

And I know it's super busy for you guys right now, end of the year, the company has just gone crazy, hasn't it?

Leila Hormozi: It has, it's insane. Today my director of operations, because we have one of those, she messaged me, and she was like, “We have over 20 people now, like, without you guys. Isn't that weird?” And I was like, “That's super weird.”

Alex Charfen: Yeah, you've grown this team incredibly fast. So, how long ... So, in July, how many people did you have? Leila Hormozi: It was me, Alex, and Jen, so three of us, and then we had Mel working part-time.

Alex Charfen: And you've gone from three with a part-time person to over 20 full-time people?

Leila Hormozi: Yep. So, it's kind of crazy.

Alex Charfen: It is. Well, tell us a little bit about the business so everybody can establish, like, who you are and what you do.

Leila Hormozi: Yeah, you know, essentially, what we do, it's like, what did we used to do versus what we do now? We help gym owners become profitable, so most of them ... I would say, when I used to be the one talking on the phones with them, eight out of 10 that I would talk to are barely breaking even, if not in the red.

And then, aside from that, it's just ... It's the worst ... I guess you could say red ocean right now that you could be in is the marketplace for, I guess, gyms, fitness, anything like that, you know? Because there's online, there's weight loss, all this.

And, so, our whole thing is providing direct response marketing to gym owners. Typically, within 30 days we take them from losing money to making money. I say that typically because a lot of times it's faster than that.

And, so, we basically provide them with the whole ... I guess it's almost like a business in a box. I hate using that term though, because it's, like, cliché, but basically provide them with the front to the sales, the resale and ascension, and then the customer service that they need so that they can have everything in their tool belt to not only get the customers in the door, nurture the lead, sell them, but keep them and provide amazing service so that they can have the impact on these peoples' lives that we want them to have, and that they want to be having, ultimately.

And then get them out of working so much, with some of our higher level programs. So, learning how to outsource themselves.

Alex Charfen: So, Leila, we started working together in July, right?

Leila Hormozi: Yeah, after we met-

Alex Charfen: So it's been-

Leila Hormozi: ... at Pirate's Cove.

Alex Charfen: Yeah, it's been about six months. So, in the last six months you went from three people with a contractor, and about a two and a half million dollar a year business, to, like, where are you guys now?

Leila Hormozi: We're seven figures a month, so, I mean, I think that this past month is a record month for us, I mean, we got, like, 1.2, we hit, and it doesn't look like it's slowing down. If anything, our plans for growth ... like, our goal is eight figures, which is insane. Like, it's so crazy, because I look at where we were when we met, and I look at where we are now, and I'm like ... I can't even fathom the amount of growth. But I also can't fathom having not, because I don't know what else we would have done.

Alex Charfen: Right, no doubt. I mean, when we met at Pirate's Cove, you ... I remember Alex saying, “Hey, I think we've got a $10 million dollar business on our hands,” and I said, “I think you've got a $100 million dollar business on your hands, if you have anything.” And last month, you guys hit an over $10 million dollar run rate. Like, you're at about a $14 million dollar a year run rate already in six months. Did you ever expect that it would happen that fast?

Leila Hormozi: No, and, you know, it's funny, because I remember when you said that to us we were like, no way, like, 100 million? Like, how? And now we see it, which is the coolest thing of all is we totally believe it, we see it, and our team does, too.

Alex Charfen: So eight figures was your original goal, nine figures is now something you can actually look at and believe?

Leila Hormozi: Yeah, 100%.

Alex Charfen: So awesome, Leila.

Leila Hormozi: It is really cool.

Alex Charfen: So, most entrepreneurs that build a team, if they bring on one or two people it's stressful. You've brought on over 20 people in six months, how have you done that without it being just completely overwhelming and stressful?

Leila Hormozi: We hired you. I mean, in all seriousness, I think you know, our strength was, and Alex is brilliant, he's a brilliant marketer, and-

Alex Charfen: This is your husband Alex, not me.

Leila Hormozi: Yeah, yeah, my husband Alex is a brilliant marketer and entrepreneur, and he has an amazing product for these gym owners, but we were not working smart in our [inaudible 00:09:01] together, for one. And, you know, he has grown ... You know, he had his small businesses and such, but I think we all know, you can't wear all the hats, for one, if you want to grow, and for two, it's much different growing a small, you know, business that does ... I don't know, 20 to 50,000 a month than it is to grow an online virtual business with a team that is doing seven figures a month. It's completely different.

I don't even remember what the question was anymore, but ...

Alex Charfen: Well, you answered it really soon, I said, “How did you do it without freaking out?” And you said, “Hiring you.” Like, what are some of the things that have been most instrumental for you, Leila? Is it the content? Is it being part of the group? Is it seeing the other members? What is it for you?

Leila Hormozi: I mean, everything you have said, I have trusted you to do. Like, I have trusted everything you've said, and I've just done it. And so, it's like, I don't see how, if somebody doesn't implement what you tell them, that they're not going to have the same success.

Like sticking to ... Not only in what we adhere to in our company, and the kind of values we uphold, and the philosophies that we stick to, but then also how you hire, and how you delegate, and how you talk to your people and your customers. And then the delegation between team members. And then the relationship with Alex and I, and how to scale the company.

Suddenly ... Like, before it was like this big black hole of I don't know, and so we were like, well, we'll just ride this wave for a little while and it will be the two of us plus, you know, maybe we'll hire a couple more, and we'll just kind of stick with this. Like, it was, I guess you could say, easy money, in a sense of, like, we liked what we were doing and we felt fulfilled, but we weren't pushing for growth.

And then a lot of it was because I had this mental barrier that we couldn't grow anymore. And I was, like, I don't know how to do all of that, and I don't have any experience, and I think, like, you instilling that believe in me, and then giving me the plan to get there with the content, with the ... you know, doing the day with you, being able to vox you, be in communication with you.

And then here ... I think, also, being able to observe you, which is something that people should have way more value on, is being able to observe how to approach not only me, but other people in the group, and advising them on their questions. It's like ... I'm like ... I'm just soaking it in and seeing, like, I need to talk to my people like that.

It's literally everything. I just watch you like a hawk, and then I listen to what you say, and I do it.

Alex Charfen: That's awesome. You know, when we met I had this feeling that you were going to be one of the most talented operators I've ever worked with, and I told you that, and you looked at me funny. Do you remember?

Leila Hormozi: Yeah.

Alex Charfen: You gave me a look, like, what are you, crazy? And now do you know what I meant?

Leila Hormozi: Yeah, and I think, like, for so many people I see it, it's just a self belief that they have that they have to get over. They're like, I'm not the kind of person who can do that. I can't scale a business. I've done it this way for so long. I've, you know, always been [inaudible 00:12:05] I've been stuck here for three years, or I've never done anything like this before.

It's like, I just want to shake them, because I realized through what you were telling us that my self belief was what was going to stop the company from growing if I didn't get over it, and the way I got over it was just by doing what you said, and it was kind of more your belief in me, and having the right plan, did it, and made me believe in myself.

So it was like, before you believe in yourself, just do what Alex says, and just follow the blueprint, and then you'll start to believe in yourself.

Alex Charfen: That's awesome, Leila, I really appreciate that. For you, running a ... what is now about a $14 million dollar business, for a lot of people that would be completely overwhelming and totally intimidating, because you've never done it before, right? This is by far the largest ... Go ahead.

Leila Hormozi: No, I've never run any company before.

Alex Charfen: So you started operating a business at this capacity in July of this year?

Leila Hormozi: Mm-hmm (affirmative). Alex Charfen: So, with operating a business that's $14, maybe $15 million dollars in run rate, you know, for a lot of people that sounds completely overwhelming, like there's no way they could do it. Has your life fallen apart? Has it gotten harder? Like, because most people expect that it would.

Leila Hormozi: No, I think what people don't realize is that I just kept listening to what you said, and reading your stuff, and consuming your content, until it really hammered down that my life needs to be getting easier, otherwise I'm not building the business right.

And it almost feels selfish, in a way, for people, or at least for me it did. It was like, my life shouldn't be getting easier. I'm hiring people, I'm doing all of this, it should be harder, right? And it shouldn't. And I've heard that so many times, and I get goosebumps right now talking about it, because it just ... it's so insanely true, and if you don't put the responsibility on your team and everyone else to help you grow that business, then it will not grow. And if you put it on yourself, and if you make your life harder, it won't grow.

And, so, it's almost like you're doing a disservice to not only your customers, but to your business, by making it so hard on yourself. And, so, that's something that I've just learned through all your material, and all you've taught me about self care and things that I ... I got so caught up in doing the business for so long that I didn't remember having a morning routine, doing all of these things, but ... It's just crazy how much of a difference it makes.

Alex Charfen: And that holistic approach of you as a person, the business, the marriage, all of it together, has that helped keep the foundation going for you?

Leila Hormozi: 100%. Through ... I think what any entrepreneur has, it's like, you know, you travel all the time, you have things that pop up, you've got fires you've got to put out, you have ... There's so much changing on a daily basis that if you don't have rituals that you stick to no matter what, I feel like then you feel like your entire life is out of control.

And that's where so many people are, because they can't stick to a solid set up routine and habits, and then kind of let the rest fall into the place after those are in place, you know what I mean? You need those foundational pieces, and those can't move. Everything else is moveable except for those.

Alex Charfen: Yeah, that's huge. Is there anything else you would tell somebody who's considering the Grow and Scale Program, Leila? Somebody's, like, they're growing a business, they have the opportunity, they can't see how to put it all together.

Leila Hormozi: That you're ... Nevermind, that was going to be mean. I was like, just do it, you're an idiot.

I would say just stop letting your fear get in your way. Like, I hear so many people say, like, I just don't know about different program, like, I've bought stuff from this person, or this person, all this, and, like, I tell everyone, I'm like, when I met Alex, you, like, I saw you online and that was different from meeting you in person.

Because when I met you in person I had this feeling all of a sudden, and I was like, Alex, my husband, I was like, I want to work with him, I want to give him money. I don't know what it is. I didn't ... Like, just for some reason I trust him. And he was like, really? And I was like, yes, I feel like he gives me relief when we talk, and I feel like there's no way that if we don't work with him it's not going to give me more relief.

And that's all it's been, and I don't know how I would be able to do it without your guidance, and knowing that we have you in our corner is the most comforting thing for me, because I know how big this can scale. And it's like every time I tell you of, like, what I'm feeling, or what I'm sensing, it's like you already know what's coming, or what I'm experiencing.

And having someone who has that experience under that belt, it's really rare to find, because most people are faking it nowadays. And it's more helpful than anything, because it's like in hiring any coach, you have to hire someone who's done it before, and who's been in this situation before.

So, it's like the fact that you've done, it's like you know all the stuff I'm going through, so not only can you empathize, but you can coach me on how to deal with it [inaudible 00:16:56] you know, I mean, like, what else do you pay for rather than condensing your time.

We've been able to grow it this fast because we paid for your experience and time that you took, you know, X amount of years, and I've been able to condense it by just putting your lessons, that you learned, into place really fast.

Alex Charfen: Yeah.

Leila Hormozi: That's literally all it is. And, like, how I look at it is if we hadn't paid to work with you, then we would have lost all that money we could have made in the last six months. That would have been millions of dollars.

Alex Charfen: It really is millions, right, Leila?

Leila Hormozi: Yeah, and-

Alex Charfen: It's funny how-

Leila Hormozi: ... it really is.

Alex Charfen: ... every time you say millions of dollars, like, you can tell it's weird for you still.

Leila Hormozi: It's weird for me. I still, like, look at the best deal I can get on food at the grocery store, so ...

Alex Charfen: Oh, man. Leila, thank you so much for doing this. I tell everyone I talk to that I think you and Alex are ... Well, I know you're running one of the fastest growing companies in the country. You can just look at the companies that are out there and you guys are exploding, but I think, in a few years, the entire landscape of the fitness industry is going to be radically modified by what you guys are doing. And its, you know, fitness owners, gym owners, they're going to make more money. But that just means more people are getting effected, more people are getting healthy.

In the '90s, Bill Phillips put out Body for Life and changed the entire fitness industry. I think you and Alex are doing it all over again. I'm so proud to be involved.

Leila Hormozi: Thanks, Alex, and if there is anyone that's watching this that's curious, like, I'm open to if someone wants to reach out and talk to me. I'd be more and happy to sell them on [inaudible 00:18:34] because I know that they need it.

Alex Charfen:

Leila, I love you both. Thank you so much.

Leila Hormozi: We love you too, thanks, Alex.

Alex Charfen: All right, we'll see you soon.

Leila Hormozi: Bye.

Alex Charfen: If you haven't checked them out yet you should. The company's name is Gym Launch, and Leila and Alex are changing the world, just like I said there in our wrap up. My friend, Bill Phillips ... And, you know, he wasn't married to Maria just yet, but when Bill was ... or Bill reset the entire fitness industry in the '90s with his 90-Day Challenge, with the Body for Life challenge, with the supplements that he put out, with the directions that he put out.

He took bodybuilding from this obscure thing that a lot of us used to do in, like, dark gyms that nobody would even talk about, to bodybuilding became mainstream. Everybody became a bodybuilder. Everybody was doing the 90-Day Challenge.

Well, when you look at what Alex and Leila are doing, it's even more dynamic than that. They're helping hundreds of gym owners attract tens of thousands of clients, who not only are coming in, and paying, and signing up, but because Alex put together the programs the way he did, and because Leila's running the company the way she is, and because they support their clients at the level that they do, they don't just get amazing results for their clients, they get amazing results for their clients' clients.

They show their clients how to get incredible results from the people who join their gym, so not only are they helping small business owners, gym owners, change their lives, and their families' lives, and the rippled effects that that creates, but they're helping tens of thousands of people around the world join programs that actually get them in incredible shape, help them optimize and create momentum in their lives.

As a coach, as a consultant, this is the type of client you dream of, where you can work with incredible entrepreneurs who are aware, and ready to create momentum, and ready to change the world, and they are having a massive impact in the world. So, Alex, Leila, thank you, love you both.

And for all of you, if you haven't yet, download a copy of my book, the ... I was going to say the momentum book. Download ... That's the next one. Download a copy of my book, The Entrepreneurial Personality Type. It will tell you more about yourself than anyone ever has. It takes about 45 minutes to read it. It's optimized for mobile. You don't want to miss this.

The sooner you read this book, the faster you have leverage in all areas of your life.

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