How Alex Hormozi runs his holding company.

12 Sept 2023 · 1 min

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In this monologue, Alex Hormozi explains how he structures and operates his holding company. He likens the holdco to a marketing agency that "owns" a portfolio of 13 companies, each run by its own CEO and leadership team, while the holdco itself has a separate leadership team. Hormozi reflects on an early mistake of acting as CEO of multiple businesses simultaneously, which became a nightmare. The turning point came after he sold Gym Launch, allowing him to step "above the business" and view the holding company as a distinct business with its own value proposition. He emphasizes that a holdco should be treated as a standalone enterprise and can be niche‑down to serve a specific type of customer—namely, the portfolio companies it owns.

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I have one holding company. And if you were to reframe it as like, I own a marketing agency and I have 13 clients, it feels that way, except I own them. You know what I mean? But there's a full CEO and leadership team that run each of the companies. And we have our leadership team that runs that. And so like, I own the holding company and that's my work. You know what I mean? But where I've made the huge mistake when I was earlier on is like, I have one company that makes money, I'll start another. And so then you end up becoming CEO of 3 companies and it's a nightmare. And so that's the part, like, I was only really able to understand how to do multiple things once I sold Gym Launch. Because then I think it was the first time I was really above the business. And then at that point, I was like, okay, so above the business is the one thing, the portfolio is the one thing. And then that's when you're like, your value prop as a holdco— the holding company is a business in and of itself. And I think that's the big epiphany that I had is like, it is a business. And then you get really specific, you niche down just like you do in any other business on what specific type of customers, even though they're not customers, you serve.