Business Model Auditor

What it does

This skill, the Business Model Auditor, analyzes business models through the lens of Alex Hormozi's scale and leverage principles. It helps founders identify weaknesses and potential bottlenecks before they negatively impact their businesses. The skill doesn’t just offer advice; it executes a “stress test” by calculating unit economics and designing for scalability, aiming to determine if a business can grow without the founder being directly involved.

When to use it

This skill is helpful when:

• You're wondering if your business model can scale effectively.
• You feel like you are currently the primary bottleneck in your operations.
• You want to understand and calculate your unit economics.
• You’re feeling “trapped” by your current business model, trading time for money.
• You're curious about what aspects of your business will break if you experience a significant increase (e.g., 10x) in customers.
• You are evaluating the overall viability of your business model.

Key capabilities

• Scale Stress Testing: Evaluates a business model’s ability to scale without direct founder involvement.
• Unit Economics Calculation: Calculates key metrics like revenue per customer, cost of acquisition (CAC), delivery costs, and effective hourly rate.
• Bottleneck Identification: Identifies potential points of failure as the business grows.
• Time Dependency Analysis: Assesses how reliant revenue is on the founder’s direct time investment.
• Leverage Assessment: Determines whether the business is building assets or simply relying on the founder's labor.

Example prompts

• "Can this scale?"
• "I feel like I'm the bottleneck in my business; what's wrong?"
• "What are my unit economics?"
• "How do I get out of trading time for money?"

Tips & gotchas

• The skill requires detailed information about your business model, including revenue streams, costs, and time investment. Be prepared to provide specific numbers.
• This is a diagnostic tool; it doesn't offer solutions or implement changes directly. It provides insights that you can then use to improve your business.