The Game with Alex Hormozi
5 Things I Just Learned After 14 Years of Business | Ep 873
Apr 21, 2025
Discover the strategic costs of business changes and why they often lead to a 20% drop in effectiveness. Learn about the ICE framework, which helps weigh the impact, confidence, and ease of improvements. Dive into pivotal insights about customer retention and the unique challenges faced by businesses earning between $1 to $3 million. Alex shares hard-won lessons on the critical role of focus and thoughtful decision-making in scaling success.
34:16
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Quick takeaways
- Changing processes in a business can result in a 20% decrease in effectiveness, highlighting the importance of carefully weighing potential benefits against guaranteed losses.
- Focusing on customer retention rather than solely aiming for viral growth is essential, emphasizing the significance of the LTV to CAC ratio in ensuring business sustainability.
Deep dives
Cost of Change
Significant insights reveal that the act of changing processes within a business incurs a measurable cost, specifically a 20% decrease in effectiveness during transitions. This loss occurs predominantly when modifications involve manual functions, illustrating the need for careful evaluation when considering improvements. The realization that not all changes yield sufficient benefits prompts wiser decision-making, leading to prioritization of initiatives with potential gains greater than the guaranteed losses. Emphasizing the cost of change helps in understanding that sometimes accepting imperfections is essential for maintaining overall business performance.
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