May 14 • 🏢 Management
The Only 4 Ways to Scale a Service Business 💼⚡ – Alex Hormozi
(Pick one and scale FAST!)
If you have a profitable single-location, service-based business and want to make more money — here are 4 powerful ways to package your service into a scalable business model:
1. Private Chain 🏢💰
You open new locations and own everything.
Pros:
High enterprise value
Tons of high-margin potential
Cons:
Might lead to inconsistency of service, especially in highly specialized fields
When to start a Private Chain:
✅ Low build cost
✅ High margins
✅ Productized service
✅ Minimum variability in service delivery
2. Franchise Model 🧑💼🏪
A single model where investors buy in and set up new locations.
Pros:
High enterprise value
High profit margins
Cons:
Very expensive to start
Takes 1–2 years to see real profits
Slow model
When to start a Franchise:
✅ High build cost for new locations
✅ You're targeting 100+ locations in the long run
3. Licensing Model 📘📦
Package your knowledge and license it to others.
Pros:
0 build-up cost
High margins
High cash flow
Cons:
Very little enterprise value
Requires 80%+ license retention for an attractive exit
When to license:
✅ You have solid systems & proven results
✅ You want to earn without expansion costs
✅ You don’t care as much about selling the company later
4. Software / Tech-Enabled Service 💻⚙️
Use software to scale your service — works only if your service can be digitized.
Pros:
High enterprise value
Cons:
Requires software expertise
High development cost
Low initial cash flow
Huge time investment
Needs 80%+ client retention to be profitable
Warning:
❌ Don’t use software if you don't have a partner who understands tech — you’ll burn cash and waste time.
So... Which Strategy Makes the Most Sense for You?
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The Only 4 Ways to Scale a Service Business 💼⚡ – Alex Hormozi
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