4.9 • 4.4K Ratings
🗓️ 21 April 2025
⏱️ 34 minutes
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Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.
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0:00.0 | Five business lessons that I just learned crossing $250 million in 2024. |
0:05.0 | So the first one was the cost of change. |
0:07.0 | It was the first time that I've actually quantified how much is changing something in the business actually cost? |
0:13.0 | So if you would imagine a straight line, right, and saying, okay, this is normal business activity, right? |
0:18.0 | Straight line is going across. |
0:20.0 | Now, let's imagine we want to change something, right? So that's like our normal revenue, |
0:24.5 | but then we decide, you know what, I'm going to change something in the business. |
0:27.5 | So what ends up happening is this little line kind of dips down. |
0:31.1 | And I've estimated just for my kind of like, this again, there's no science behind this, |
0:34.6 | just my estimate, that I get about a 20% decrease in effectiveness |
0:38.6 | across any function that I'm going to change, especially if it's manual. |
0:42.7 | Now, if you split us a headline that's different, but if you're like, hey, we're changing |
0:45.5 | our onboarding process, or we're changing our sales process, we're changing our outbound |
0:48.6 | process, or we're changing our something that people are involved with, we tend to get a decrease |
0:53.4 | immediately of 20% in a performance, |
0:56.0 | right, which is pretty significant. |
0:58.0 | And so as soon as I realized that we had almost this guaranteed cost of change, which is about 20%, |
1:04.0 | I was able to quantify what things were worth doing. |
1:07.0 | Because if you're anything like me, I have like this big list of stuff where I'm like, |
1:10.0 | man, we should need to improve this, we should need to improve this we need to improve this we need to prove |
1:12.7 | this and I've all these ideas of things that I think that'll improve it but when I |
1:16.0 | actually am honest with myself and I think huh how much is number one gonna actually |
... |
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