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When a tariff could cost 200 jobs, Alex Hormozi's decision framework
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Key takeaways
- For years, US buyers have been one of our biggest markets, but with all this talk of a huge tariff on furniture imports, this could be the first time trade policy is threatening my entire business.
- If you do think it's going to be a material threat to the business, then what you need to do is have a plan.
- And then once you have the plan written out, you put it away, and then you just keep doing business.
- You don't even think about them because they're just the obvious choice.
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Full transcript
Locally archived YouTube transcript with timecodes. Speakers are assigned heuristically and may be corrected editorially.
0:00Hey Alex, I may have to let go of 200 employees overnight. I run a company that sells furniture. For years, US buyers have been one of our biggest markets, but with all this talk of a huge tariff on furniture imports, this could be the first time trade policy is threatening my entire business. What do I even do here? >> So, number one is if I can, I'm not going to think about it. If you do think it's going to be a material threat to the business, then what you need to do is have a plan. If this happens, what will I do? What is it going to change?
0:27And then you come up with a plan. And then once you have the plan written out, you put it away, and then you just keep doing business. One of the hardest parts of entrepreneurship is that you have often times lose-lose decisions. Because, and I think Ben Horowitz said this, the win-lose decisions are very easy to make. You don't even think about them because they're just the obvious choice. The hard choice is where you have to choose between two terrible things, and you have to pick the lesser of two evils. I am tortured by this decision. It has kept me up for nights, and I've been hoping and praying that this tariff didn't happen because I knew that if it did, I would have to pick between having some people uh lose their jobs and having everyone lose their jobs. My biggest thing with this stuff is when I have those hard decisions or hard announcements, state the facts and tell the truth.