The Game with Alex Hormozi Why Most Businesses Stall After $3M | Ep 890
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May 21, 2025 Discover critical insights for businesses in the challenging growth phase of $1 to $3 million. Explore why making constant changes can hurt performance and learn about the overrated nature of virality. Understand the significance of customer lifetime value and acquisition cost metrics in scaling service-based businesses. Delve into the importance of focusing on one venture instead of diversifying too soon. This journey emphasizes strategic decision-making for sustainable growth and effective client targeting.
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The Cost of Change
- Changing business processes usually causes a 20% drop in effectiveness before improving.
- Constant small changes can lower overall performance instead of perfecting the business.
Prioritize Changes with ICE Framework
- Use the ICE framework: Impact, Confidence, Ease to evaluate ideas before implementing changes.
- Prioritize changes with highest impact, confidence, and ease to offset the cost of change.
Virality vs Revenue Retention
- Virality is overrated and depends on customer incentives and frequency of interaction.
- Revenue retention is the true gold standard for business growth, especially in B2B.