Seasonality Isn’t a Problem, It’s a Profit Opportunity | Ep. 952
3/12/20267 min
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How do you double revenue without reinventing your business model? In this episode, Alex Hormozi reveals how the predictability of seasonal fluctuations can be a massive advantage if you know how to scale it. Alex breaks down how to make more money by doing less and focusing on what’s already working. From the Theory of Constraints to cracking PPC and Meta ads, his insights will show you how to grow a seasonal business with predictable cycles without the typical stress and distractions.
YouTube Timestamps
00:00 Does catering have to be seasonal?
02:58 Why PPC and SEO are the main growth channels
04:00 Volatility vs. risk: embracing predictable business cycles to scale
06:30 Theory of constraints: why saying "no" is necessary for success
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Clips
Transcript preview
First 90 secondsAlex Hormozi· Host0:00
All right, let's rock. Revenue, business, and, uh, problem.
Matthew· Guest0:05
All right, uh, my name is Matthew. I sell premium catering experiences to private clients looking to celebrate milestone events in Sydney.
Alex Hormozi· Host0:12
Great.
Matthew· Guest0:12
We do about two point eight million this year with forty percent net profit.
Alex Hormozi· Host0:16
Whoo!
Matthew· Guest0:16
We'd like to be at eight million in two years.
Alex Hormozi· Host0:18
Let's go.
Matthew· Guest0:18
The main constraint, season-seasonality. So we do about sixty-five percent of our annual revenue in six months, and if I don't solve this, I either say no to demand in summer or I am overstaffed in winter.
Alex Hormozi· Host0:30
Yeah. So one thing right off the bat I will say is that this is a feature, not a bug of the industry that you're in, right? Same thing as lawn care guys, same thing as guys who do snow plowing. It's just a, it's a super common thing. Swimming pools sometimes, obviously in the summer.
Matthew· Guest0:42
Mm-hmm.
Alex Hormozi· Host0:42
So like, there, there are industries that are just going to be more... Smoothies if you've summer versus Italian ice store. Like, there's a lot, right? Um, that are seasonal.
Matthew· Guest0:50
Yeah.
Alex Hormozi· Host0:50
Now, couple questions. So catering, what is your, what is your hot season again?
Matthew· Guest0:55
Pretty much, uh, September through February.
Alex Hormozi· Host0:58
Okay. And so from now until September is when it's slow.
Matthew· Guest1:03
Yes.
Alex Hormozi· Host1:03
So what, why are people not celebrating from now until September? Actually, I'm not even sure, like why not?
Matthew· Guest1:08
It's not festive season, I th-I think. Yeah, it's, it's not, it's not as much of a festive season. I think people don't spend as much money, um, going through winter.
Alex Hormozi· Host1:17
Ah.
Matthew· Guest1:17
I don't know if any of that has to do with- But you still have like- ... the economy in general.
Alex Hormozi· Host1:21
East-- Uh, don't worry about the economy. It's, whatever. Uh, just remove economy from, from Lexington. There's nothing you can do about it. So, okay. So people don't do Easter,