He'd Fall Asleep On The Floor In The Evenings!


Size matters.

And no, I'm not being dirty — I'm talking about market size!

All investors and consultants will tell you that market size matters:

  • If you become a leader in a small market — you're still relatively small
  • If you’re doing okay-ish in a big market — you're not only nominally bigger, you also have much more opportunity for growth!

However, there’s a catch…

Being in a small market initially might actually be a great strategy.

In the mid-2010s, Alex Hormozi opened his first gym.

The niche was so competitive and business was so challenging that he couldn't afford to rent anything aside from the gym…

He'd work with clients during the day...

And fall asleep on the floor in the evenings!

But he stuck with his small competitive market, and ended up opening 5 more.

With each new launch, he'd learn new marketing and scaling tactics.

But even with all this experience… running 6 gyms is time, resource, and energy intensive!

So, instead of being stuck with a series of gyms and thinking where he could open the next one, he changed his perspective and concentrated on what he did best:

Lead generation and creating funnels for growing gyms.

He sold his 6 gyms and created Gym Launch.

And in 2 short years, he helped others launch 33 gyms.

Then he turned his knowledge into a course, a consulting business, and a book — all about lead generation for gyms.

By changing his perspective, he went from owning 6 gyms to licensing out a gym business model to thousands of clients.

Suddenly his small market became huge.

This netted Hormozi hundreds of millions of dollars…

… and he could finally afford to sleep on a decent bed in his own apartment!

Ben Horowitz employed a similar strategy.

In 1999, together with Marc Andreessen, he founded LoudCloud.

Their company was one of the first to offer cloud computing and software as a service!

And less than a year later, they raised $120 million — the largest second round of funding ever up until then!

But a few years later, the tides turned…

The dot-com crash had put a dent in them, their investors didn't want to support them, and they had no choice but to go public.

Ben aimed for $10 per share on their IPO, but they ended up having to sell at $6 — losing out on nearly $550M!

His once million-dollar startup was nearing bankruptcy…

So Ben changed perspective.

He focused on the core part of their business, improved their best solution, and created an enterprise solution around it.

Again, the market became huge!

And from near-bankruptcy, they ended up selling to HP for $1.6 billion!

So how do these "huge" lessons apply to you?

As a crowdfunder, as a small business, a new brand, a creator?

Crowdfunding inherently seems like a small market.

But when you're in a small market, don’t fret.

Focus on your core competencies, what you do better than anybody else.

And after gaining the experience that can set you apart, change your perspective.

Think about how you can help others achieve the results that you achieved.

And scale into a huge market!