From: alexhormozi
The hardest respect to earn is one’s own [00:00:00]. Alex Hormozi and his wife created Acquisition.com, a portfolio of companies that generate approximately $85 million annually [00:00:04]. People often ask how to create these businesses, sell products, and live a successful life [00:00:09]. The core purpose of understanding business growth and scaling strategies is to learn how to actively build wealth and an empire [00:00:43].
The Tri-Component Goal Achievement Model
People often get “tripped up” when trying to achieve their goals [00:00:48]. There are three key elements to any goal [00:00:52]:
- External Result: The desired outcome, such as making more money or achieving a physical goal [00:00:56].
- Processes/Behaviors: The activities performed to achieve the goal, which is “doing the work” [00:01:01].
- Identity (Being): Becoming the type of person who inherently performs those necessary behaviors [00:01:09]. This concept, often summarized as “Be-Do-Have,” is discussed by behavioral psychologists and authors like James Clear in Atomic Habits [00:01:19].
The Flaw in Goal-Setting Alone
Simply writing down a goal, while providing direction, is not a guarantee of success [00:01:59]. [00:02:01]
“Winners and losers have the same goals.” [00:02:14]
In business, everyone aims to increase revenue or gain more customers [00:02:20]. The uniqueness lies not in the goal, but in what happens beyond it [00:02:26]. If two individuals have the same goal but only one achieves it, the goal itself isn’t the primary driver of success [00:02:36].
Beyond Activities: The “Why Not?”
Digging deeper, the behaviors that create the goal are critical [00:02:47]. For example, to get more customers, one needs to “advertise” (make known) through private communications (e.g., cold calls, DMs) or public communications (e.g., social media posts, broadcasting) [00:02:59]. While people often know what activities are necessary, they frequently fail to do them [00:03:40]. The central question becomes: why not, and how can we correct this? [00:03:52]
The Keystone Habit: Identity-Based Action
The simplest and most effective “hack” for success and building wealth is to consistently ask yourself: [00:03:58]
“What would a person who does this type of thing do in this instance?” [00:04:04]
This refrain helps shift identity [00:04:45]. Instead of remembering a long checklist of activities, asking this question serves as a powerful chorus throughout the day [00:05:00].
Examples of this question in practice:
- “What would a wise man do?” [00:04:18]
- “What would a billionaire do?” [00:05:12]
- “What would someone 10 times smarter than me do in this situation?” [00:06:03]
- “What would a person with a six-pack do?” [00:07:07]
- “What would an amazing husband do?” [00:07:13]
This framework can be applied to a vast number of scenarios, fixing the “being” rather than just the “habit” [00:07:24].
Reinforcing Identity Through Evidence
Affirmations alone (“I am a lion”) are generally ineffective unless backed by action [00:06:31]. To become the person you desire, you must create evidence through consistent activity [00:06:53]. Your identity (from Latin “repeated beingness”) is literally shaped by what you repeatedly do [00:08:33].
This creates a reinforcing cycle: “I am this type of person, therefore I do these things, and because I do these types of things, I am this type of person” [00:08:44].
Applying to Business Growth
To build a valuable business or achieve business success, identify the type of person you need to become (e.g., a billionaire, a successful entrepreneur) and then consistently ask, “What would that person do?” [00:11:17].
Consider role models who embody desired traits:
- King Solomon (rich and wise) [00:10:16]
- Warren Buffett and Charlie Munger (for investment and financial advice) [00:10:27]
- Even a spiritual figure like Jesus (for moral guidance and actions) [00:09:46]
Addressing the “I Don’t Know” Objection
Often, when people say they don’t know what a successful person would do, they actually do know [00:13:30]. [00:13:38]
“We need to be reminded more than we need to be taught.” [00:13:40]
Most people know what they need to do to achieve their goals but aren’t taking action [00:13:42]. For example, if a family were kidnapped, individuals would take massive action to save them, demonstrating they knew what to do all along but lacked the motivating circumstance [00:13:47].
If you genuinely don’t know, you can:
- Start with a more attainable identity (e.g., “What would a millionaire do?” or “What would someone trying to become a millionaire do?“) [00:14:24].
- Seek knowledge from those who have achieved similar success [00:14:30].
The Path to Effortless Change
The people who achieve extraordinary things do the “uncommonly obvious thing for an inordinate period of time” [00:15:00]. They do it because it’s who they are, not just to achieve an external outcome [00:15:08]. This internal motivation allows them to “play the game indefinitely,” leading to outsized returns [00:15:16]. Conversely, someone driven solely by external money might pull back once they hit a financial target, hindering sustained growth and building a sustainable business model [00:15:21].
By asking “What type of person do I wish to become?” and making that question a guiding principle, you can create deep, long-lasting change that eventually becomes effortless [00:12:45]. This shifts your identity, which in turn directs the actions you take, reinforcing who you are becoming [00:11:04].