If I Wanted To Scale A Service Business In 2026, Here's What I'd Do | Ep 999
In this episode of The Game, Alex Hormozi examines a service business run by a couple who help other entrepreneurial couples through group coaching and strategy programs. The business currently generates $480k in revenue but faces challenges with customer acquisition costs and time management.
Hormozi outlines specific changes to improve their business model, including streamlining their service offerings and adjusting their marketing approach. He suggests replacing weekly group calls with quarterly strategy sessions and annual events, transforming their virtual challenge into a condensed format, and reframing their events to better align with their target market's needs. The discussion centers on achieving better results through simplification rather than expansion.
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1-Page Summary
The Couple's Current Business Model and Challenges
A business service focused on helping entrepreneurial couples ('couplepreneurs') offers two main programs: a $5,000 "Rise Together Mentorship" featuring weekly group coaching, and a $25,000 "Couplepreneur Accelerator" providing personalized strategy support. While the business generates $480k in revenue with $206k in profit, the couple running it faces significant challenges with high customer acquisition costs and time management constraints.
Solutions to Improve Business Profitability and Scalability
Alex Hormozi suggests several key changes to improve the business model. He recommends eliminating time-consuming elements like Slack access and weekly group calls, replacing them with quarterly one-on-four strategy sessions and two annual in-person events. For lead generation, Hormozi advises transforming their five-day virtual challenge into a condensed four-hour "date night" event with a sales pitch finale. He also recommends a layered marketing approach, combining organic content with video clips and image ads to maximize testing while minimizing costs.
Aligning Business With Couple's Goals and Values
Rather than expanding services or hiring more staff, Hormozi emphasizes solving core business problems through simplification. He suggests streamlining their offerings to focus on their strengths and create more recurring revenue through in-person renewals. To address concerns about shame and confidentiality in group settings, Hormozi recommends reframing their events as "Couple's Getaways" rather than conferences, emphasizing both personal growth and relationship development opportunities.
1-Page Summary
Additional Materials
Counterarguments
- Eliminating Slack access and weekly group calls could reduce the perceived value and support that clients feel they are receiving, potentially leading to dissatisfaction or decreased renewal rates.
- Quarterly one-on-four strategy sessions and two annual in-person events may not provide enough regular engagement to keep clients motivated and accountable, which could impact the effectiveness of the programs.
- Condensing a five-day virtual challenge into a four-hour "date night" event might not allow enough time for couples to fully engage with the material or experience a transformative effect, which could lead to lower conversion rates.
- A layered marketing approach requires expertise in multiple areas of content creation and advertising, which might necessitate hiring specialized staff or outsourcing, potentially increasing operational costs.
- Simplification of services could lead to a loss of unique selling propositions or niche services that differentiate the business from competitors, potentially affecting market positioning and appeal to certain customer segments.
- Streamlining offerings to focus on strengths and create recurring revenue might limit the business's ability to adapt to changing market needs or miss out on opportunities to expand into new areas that could be profitable.
- Reframing events as "Couple's Getaways" may not resonate with all target demographics, and some clients might prefer the more professional connotation of a conference.
- Emphasizing personal growth and relationship development opportunities is important, but it must be balanced with clear business outcomes and ROI to justify the investment for entrepreneurial clients.
Actionables
- You can analyze your current service offerings and identify which ones require the most time but yield the least benefit, then consider phasing them out or restructuring them. For instance, if you run a small business and notice that custom orders take up 80% of your time but only contribute to 10% of your revenue, you might decide to limit custom orders and focus on your best-selling products.
- Create a simple feedback system to understand what aspects of your service or product your customers value the most. This could be as straightforward as sending a follow-up email with a survey after a purchase or service is completed. If you're a freelance graphic designer, you could ask clients to rank the importance of various aspects of your service, like turnaround time, design quality, or the breadth of options provided.
- Experiment with different marketing messages on your social media platforms to see which ones resonate more with your audience. You don't need a big budget for this; just post different types of content over a period and track engagement. For example, if you're a personal trainer, you could post a series of short videos focusing on quick workout tips, nutritional advice, and client testimonials to see which type of content gets more likes, shares, and comments.
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The Couple's Current Business Model and Challenges
Entrepreneurial pairs known as 'couplepreneurs' are receiving assistance from a niche business service that helps them to strengthen both their relationships and their business strategies. Despite achieving substantial revenue and profit, the couple running the service are encountering significant business challenges.
Couplepreneurs Aid Couples in Growing Businesses and Improving Relationships
The service offers two main programs: the Rise Together Mentorship and the Couplepreneur Accelerator, both designed to support couplepreneurs in business growth and relationship improvement.
Couplepreneurs Offers two Programs: $5,000 "Rise Together Mentorship" With Weekly Group Coaching, and $25,000 "Couplepreneur Accelerator" With Individual Strategy Support
The Rise Together Mentorship, priced at $5,000, is a 12-month program consisting of weekly group coaching calls. These calls help couples work better together by focusing on improving their working dynamic. Furthermore, the mentorship program entails recorded calls uploaded into a training portal, access to useful templates and cheat sheets, a private Facebook group for community support, and quarterly date night challenges to combine business with relationship-building exercises. Payment can be made in full or via monthly installments of $500.
On the other end of the spectrum, the Couplepreneur Accelerator is a higher level 12-month program that costs $25,000, with an available payment plan of $2,500 a month. It provides customized business growth plans for the couple and entails personalized support that includes quarterly two-on-two private strategy calls, weekly small group coaching, and access to Slack for direct communication. The first strategy call is a 90-minute deep dive, followed by subsequent one-hour calls.
Both programs also feature annual live events, designed to provide a real-life networking and educational experience to participating couples.
Couple Stressed by High Acquisition Costs Despite $480k Revenue, $206k Profit
The couplepreneur couple is currently under stress due to high customer acquisition costs combined with limitations in time. They deliver high-touch service, which has led to constraints in terms of capacity. They work intensely on custom action plans, investing 4 to 6 hours per couple, followed by a call, ...
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The Couple's Current Business Model and Challenges
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Clarifications
- "Couplepreneurs" refers to couples who jointly start and run a business together. This term highlights the dual focus on both their romantic relationship and their entrepreneurial partnership. They face unique challenges balancing personal dynamics with business decisions. The service mentioned supports these couples in managing both aspects effectively.
- A "high-touch service" involves personalized, hands-on interaction with clients, often requiring tailored advice and ongoing support. It demands significant time because each client receives customized attention, detailed planning, and frequent communication. This approach contrasts with automated or self-service models, which require less direct involvement. High-touch services aim to build strong relationships and deliver highly specific solutions.
- Five-day challenges are short, free or low-cost online events designed to engage potential customers by providing valuable content and actionable tasks over five consecutive days. They build trust and demonstrate the business's expertise, encouraging participants to invest in higher-priced programs afterward. These challenges serve as a lead generation tool, helping to attract and qualify prospects for paid offerings. Their effectiveness directly impacts customer acquisition rates and overall sales conversion.
- Conversion rates measure the percentage of potential customers who take a desired action, like signing up or purchasing. Higher conversion rates mean more sales from the same number of leads, improving revenue. Low conversion rates require more marketing spend to achieve sales, increasing costs and straining cash flow. Efficient conversion helps maintain steady income and reduces the time needed to recover customer acquisition expenses.
- Customer acquisition cost (CAC) is the total expense a business incurs to attract and convert a new customer. It includes marketing, advertising, sales efforts, and any related costs. CAC is crucial because if it exceeds the revenue gained from a customer, the business loses money on that sale. Managing CAC effectively ensures profitability and sustainable growth.
- "Downscaling the high-ticket offer while maintaining the price" means simplifying or reducing the complexity and time required to deliver the service without lowering its cost. This approach allows the business to serve more clients simultaneously, increasing overall capacity and revenue potential. It helps improve cash flow by shortening the delivery cycle and reducing resource strain. The key is to keep perceived value high so customers still accept the premium price.
- Alex Hormozi is a well-known entrepreneur and author specializing in business growth and scaling strategies. He has extensive experience in helping service-based businesses increase revenue and improve operational efficiency. His advice is relevant because he offers practical solutions to common challenges faced by high-touch, high-ticket service providers. Many entrepreneurs respect his insights for boosting profitability and capacity without lowering prices.
- Group coaching involves multiple participants learning together in a shared session, fostering peer interaction and collective problem-solving. Individual strategy support is personalized, one-on-one guidance tailored specifically to a single couple's unique business needs. Group coaching is generally less customized but ...
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Solutions to Improve Business Profitability and Scalability
The couple discussed with Alex Hormozi how to improve business processes, profitability, and scalability.
Alex Advises Cutting Slack Access and Group Calls, as They Drain Time Without Enough Value
Offer: Quarterly 1-On-4 Strategy Sessions, Initial Deep Dive Call, two Annual In-person Events
Alex Hormozi identifies several time drains that do not necessarily add value to the client experience or contribute to repeat purchases. He suggests eliminating tools like Slack and weekly group calls, which disrupt business operations and economics. Instead, he proposes providing value in ways that require less constant usage by the business owners, such as quarterly one-on-four strategy sessions, an initial deep dive call, and two annual in-person events. This simplification of service would be based on the number of calls the owners can feasibly conduct, becoming the main value adds of the offer.
Lower-Priced Shift: 5-Day Virtual Challenge to 4-Hour "Date Night" With Sales Pitch Finale
Condenses Delivery, Doubles Attendance, and Increases Efficiency
Alex Hormozi suggests a strategic shift from a five-day challenge to a 4-hour "date night" event with a sales pitch to conclude. This restructuring aims to condense delivery, double attendance, and increase efficiency. By avoiding repetitive intros and outros, the presenters can focus on delivering concentrated quality content. He proposes making this event an advertised spectacle, possibly dubbed as the world's biggest date night, to attract participants. Additionally, leveraging customer experiences with a rebate offer for videotaping their date night could serve as promotional material, creating a more efficient marketing strategy.
Layered Approach: Organic Content, Video Clips, Image Ads Recommended by Alex
Maximizes Ad Testing, Cuts Costs, Boosts Leads and Sales
Alex Hormoz ...
Here’s what you’ll find in our full summary
Solutions to Improve Business Profitability and Scalability
Additional Materials
Counterarguments
- Cutting Slack access might reduce immediate communication and collaboration opportunities among team members, potentially impacting team dynamics and problem-solving efficiency.
- Eliminating weekly group calls could lead to a loss of regular touchpoints that help build community and accountability among clients or team members.
- Quarterly strategy sessions and annual events may not be frequent enough to maintain high engagement levels or address timely issues that arise in a dynamic business environment.
- A 4-hour "date night" event might not be suitable for all types of content or audiences, as some participants may prefer the spread-out nature of a five-day challenge for better absorption and implementation of information.
- Condensing a challenge into a shorter event could lead to information overload for participants, reducing the effectiveness of the content delivered.
- Relying on a single sales pitch at the end of a condensed event might put too much pressure on that moment, potentially leading to lower conversion rates compared to a more distributed sales approach.
- Incentivizing customers to videotape their experiences could raise privacy concerns or make some participants uncomfortable, which might deter them from attending.
- Producing daily organic content could lead to burnout or a decrease in content quality if not managed properly, potentially harming t ...
Actionables
- You can streamline your client communication by setting up a monthly newsletter to share updates and insights, which saves time while keeping your audience informed and engaged. Instead of frequent check-ins, a well-crafted newsletter can serve as a touchpoint that delivers value and keeps your clients in the loop about your business's progress and offerings.
- Consider hosting a semi-annual "insight exchange" webinar where clients can share their experiences and learn from each other, fostering a sense of community and providing value without the need for constant meetings. This creates an opportunity for clients to connect, share best practices, and learn from one another's successes and challenges, enhancing the overall value they receive from your service.
- Develop a customer referral progra ...
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Aligning Business With Couple's Goals and Values
Alex Hormozi shares insights on how a couple's business offerings can be refined to align with their personal and professional goals. By focusing on their strengths and addressing customer concerns, they can create a more impactful and streamlined service.
Alex Prioritizes Solving Core Business Problems Over Adding New Products or Services
Hormozi suggests a strategic approach where the couple concentrates on solving the fundamental issues within their business instead of expanding their offerings.
Streamlining Offers Maximizes Value and Reduces Costs
Hormozi encourages focusing on what the couple does best and growing the business in that direction. He advises against diversifying the business through hiring more people, referring to Keyman Risk, and instead suggests solving core business problems through simplification. Alex is keen on introducing one combined offer that serves both backend and front end purposes, with a one on four delivery ratio to unlock growth that aligns with business goals. He proposes building more recurring revenue in the business by having all the renewals occur in person.
In his book on offer creation, Hormozi emphasizes the 'trim and stack' method where unneeded services are cut, and the most valuable elements are combined to make lean, impactful offerings. He believes this aligns more closely with the couple's goals of streamlining their business and maximizing value while minimizing additional costs.
Framing Group Coaching as a Community Eases Concerns About Shame and Confidentiality
To address the issue of shame and guilt, Hormozi suggests bringing these issues to light. He emphasizes the difference between shame (breaking others’ rules) and guilt (breaking one’s ...
Here’s what you’ll find in our full summary
Aligning Business With Couple's Goals and Values
Additional Materials
Counterarguments
- While focusing on core business problems is important, diversification can be a valid strategy for risk management and reaching new markets.
- Solving core problems through simplification might not be suitable for all business models, especially those that require complexity to meet diverse customer needs.
- The one on four delivery ratio may not be optimal for all types of services or products, as some offerings might require more personalized attention or a different structure.
- Building recurring revenue with in-person renewals could limit the business if customers prefer the convenience of online transactions.
- The 'trim and stack' method may lead to the elimination of services that are not immediately profitable but could provide long-term value or serve niche customer segments.
- Group coaching and community building might not address the needs of clients who prefer one-on-one interaction or more privacy.
- The distinction between shame and guilt, while useful, may not resonate with all individuals or cultures, and the approach to addressing these emotions might need to be tailored.
- Positi ...
Actionables
- You can align your personal shopping with your values by choosing stores that prioritize sustainability if environmental concerns are important to you. For instance, if you value eco-friendliness, opt for retailers that offer products made from recycled materials or that have a transparent, ethical supply chain, thus ensuring your purchases reflect your personal and professional goals.
- Consider consolidating your subscriptions or memberships to focus on those that provide the most value in your daily life. Evaluate the services you're subscribed to, such as streaming platforms, magazines, or gyms, and keep only the ones that you use frequently and that contribute significantly to your well-being or productivity, thereby streamlining your expenses and reducing clutter.
- Create a personal growth ...
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