Leila Hormozi on How to Build and Exit a Company Before You Turn 30

Written in partnership with George Nellist

The early years of entrepreneurship are filled with excitement, uncertainty, and new discoveries. In addition to figuring out how your business operates and building a loyal customer base, you’ll have to focus on managing finances and finding ways to attract investors. One key question is: “How do I know when it’s time to sell my company?”

Leila Hormozi, an investor and entrepreneur, has actionable tips to help us sufficiently answer that question. An expert with over six years in the business world, Leila is well-known for her expertise in scaling companies by creating rock-solid culture, talent acquisition, and customer success. With her husband, Alex Hormozi, Leila has helped different entrepreneurs scale their ventures to the next level in their entrepreneurial pursuits.

The couple has owned several successful businesses, including Gym Launch and their investment company, Acquisition.com, which currently generates over $200M in revenue annually. Acquisition.com functions as a platform for Hormozi to invest her wealth (both monetary and intellectual capital) into other businesses to help start-ups grow. After working in the trenches, building several companies, taking them to the highest pinnacle of success, and exiting them, Hormozi has learned crucial lessons.

According to Hormozi, building a business that delivers maximum value to the market from the get-go is the key to leading your company to a successful exit. Start with solving a problem. Identify what customers want and provide it before anyone else does. You don’t even have to build something new; identify the gaps and offer innovative solutions. The idea here is not just profitability but focusing on the big picture at all times.

Leila explains that this will help you stay ahead of the competition even when it’s time to exit the business. It is impossible to control when the IPO or acquisitions market will be hot; for most, the only available option is to wait. But it isn’t easy to do so when you want the cash urgently. By increasing the value of your business, you give buyers a good enough reason to pay double or triple the amount whether the market is hot or not.

As the business grows, invest in your network, as it will affect your company’s trajectory and exit price. Hormozi recommends surrounding yourself with people who will help support you along the way, such as mentors or investors. Having the right team by your side from the start can help you grow your brand and affect the worth of your business, as potential buyers will gather information about it from your network. Sometimes, the buyer might even be in your network, says Hormozi.

But a common mistake here is going after only the biggest fish in the pond. Leila explains that most times, small business owners are tempted to only go after the biggest fish and forget the others who are also important. While they make the best offers, the highest price is sometimes from other smaller companies. Therefore, it is best to connect with anyone you feel might be interested in your business.

Lastly, Leila notes the importance of patience, which will help you win. Building a business to succeed in the long term takes time, and you must be ready to invest your time and resources if you want a great profit. This means working hard and knowing what you can do differently from your competitors to make your business indispensable.