The Game with Alex Hormozi Analyze your business | Ep 341
Oct 28, 2021
Discover essential business analysis frameworks that can help unlock your company's growth potential. Learn how to measure key metrics like churn rate and customer lifetime value to improve profitability. Explore strategies for reducing churn while balancing customer acquisition costs. Dive into the importance of identifying business constraints to foster growth and enhance overall stability. Plus, gain insights from a hypothetical case study that illustrates practical applications of these concepts!
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Mental Math for Entrepreneurs
- Master mental business calculations to avoid relying entirely on formal reports.
- This empowers quicker, more agile decision-making.
Key Business Metrics
- Key business metrics include new sales, revenue, price, churn, lifetime value, and gross profit.
- Understanding these variables helps analyze business health and potential.
Business Analysis Example
- Alex Hormozi analyzes a business with 100 new sales per month, $400k revenue, and 380 clients.
- He calculates churn (13%), LTV ($7,700), and hypothetical max revenue ($9 million annually).