Seasonality Isn’t a Problem, It’s a Profit Opportunity | Ep. 952 - The Game with Alex Hormozi Recap

Podcast: The Game with Alex Hormozi

Published: 2026-03-12

Duration: 7 min

Summary

Seasonality in business, often seen as a constraint, can be reframed as a predictable feature that allows for strategic planning and growth. Alex Hormozi advises focusing on doubling down on what's already working instead of pursuing distractions like launching new ventures.

What Happened

Alex Hormozi discusses a listener's catering business, which generates $2.8 million annually with a 40% profit margin but experiences significant seasonality, with 65% of revenue concentrated in six months. Hormozi reframes seasonality as a predictable feature of the industry rather than a problem, comparing it to businesses like snow plowing or holiday chocolate sales that thrive on seasonal demand.

When the listener mentions ideas like creating a corporate catering division to balance demand, Alex advises against it, warning about the risks of distraction and the inefficiencies of starting a new business. Instead, he emphasizes the importance of focus, leveraging existing successful channels to scale.

Alex urges the listener to double down on what's already working, such as PPC advertising and organic SEO. He challenges the listener to increase investment in Google Ads and expand into Meta Ads, given the current 12-to-1 return on ad spend.

Hormozi introduces the concept of distinguishing between volatility and risk. While seasonal businesses are volatile, they are not inherently risky if the cycles are predictable and profitability is maintained year-round. He cites examples like Harry & David's chocolate business, which earns most of its profit in December, and insurance companies that face predictable yet volatile cycles.

The listener reveals that the business remains profitable even in the offseason, which reinforces Alex's point that seasonality is not a problem. He notes that many competitors waste resources trying to smooth out seasonal fluctuations, but success often comes from focusing on the core business.

By the end of the conversation, Alex identifies the real constraint as the listener's own time and mental bandwidth. He advises allocating resources toward scaling proven strategies rather than chasing new ideas, which could dilute focus and slow growth.

Hormozi concludes with a call to action: stop overthinking seasonality, view it as a competitive advantage, and focus on maximizing performance within the business's current model. This targeted approach, he believes, will enable the listener to hit ambitious growth goals without unnecessary complexity.

Key Insights

• Seasonal businesses like snow plowing or holiday chocolates aren't risky if their cycles are predictable. Harry & David makes most of its profit in December, yet remains profitable year-round by embracing volatility instead of fighting it.
• A catering business generating $2.8M annually with a 40% profit margin should avoid diluting focus by launching new divisions like corporate catering. Adding complexity often slows growth more than seasonal fluctuations do, especially when existing channels like PPC advertising deliver a 12-to-1 return on ad spend.
• Competitors in seasonal industries often waste resources trying to smooth out fluctuations, but maximizing peak periods can be a smarter strategy. Alex Hormozi argues that doubling Google Ads spend or expanding into Meta Ads could outperform efforts to balance demand throughout the year.
• Seasonality is a competitive advantage if off-season profitability exists. Many businesses fail by treating volatility as risk, but predictable cycles free up mental bandwidth to scale proven strategies without chasing distractions.

Key Questions Answered

What does Alex Hormozi say about seasonality on The Game podcast?

Hormozi argues that seasonality is not a problem but a predictable feature of many industries. He advises leveraging the predictability to scale during peak seasons rather than trying to eliminate fluctuations.

How does Alex Hormozi recommend scaling a catering business?

Hormozi suggests doubling down on successful channels like PPC and SEO rather than launching new ventures. He emphasizes focus and advises increasing ad spend, particularly on platforms like Google and Meta.

What is the difference between volatility and risk according to Alex Hormozi?

Hormozi explains that volatility refers to predictable fluctuations, like seasonal demand, while risk involves uncertainty. He argues that businesses with predictable cycles, like catering, are volatile but not risky.