From: alexhormozi
Growing a business is challenging because it often differs from expectations, particularly regarding the need for singular focus [00:00:11]. Entrepreneurs are constantly presented with opportunities that can distract them, and as a business grows, these opportunities become larger and more attractive, making it harder to decline them [00:00:20].
The “Woman in the Red Dress” Metaphor: Avoiding Distractions
The concept of distractions in business can be understood through an analogy from The Matrix, involving the “woman in the red dress” [00:00:25]. In a training program, Morpheus teaches Neo a lesson about observation by pointing out a woman in a red dress in a crowd, which distracts Neo from his primary focus [00:00:31]. When Neo looks back, the woman is an Agent Smith pointing a gun at his head, symbolizing the danger of succumbing to distractions [00:00:50].
In business, new opportunities or “shiny objects” are likened to the woman in the red dress [00:00:55]. At each stage of business growth, these “women” become increasingly appealing, requiring entrepreneurs to learn and re-learn how to say no, even to opportunities that initially seem promising [00:01:00]. This emphasizes the importance of focus and saying no to maintain direction.
Execution Over Innovation
While innovation has a small degree of importance, the vast majority of business success comes from consistently performing the fundamental tasks that are known but often neglected [00:01:18]. Being “advanced” in business means never neglecting the basics [00:03:06]. Big businesses achieve their scale by doing the same things as small businesses, but doing them better and filling all existing gaps [00:03:16].
The “Better, More, New” Framework
To guide business growth, a framework of “better, more, new” is recommended [00:03:51]. Before pursuing “more” (scaling) or “new” (new ventures), the focus should always be on “better” [00:03:56]. “Better” represents the lowest risk opportunity for growth and involves improving existing operations, such as:
- Following up faster and more frequently [00:04:08]
- Creating better content and copy [00:04:10]
- Optimizing websites [00:04:12]
- Hiring and training better personnel [00:04:12]
- Implementing superior management and incentive systems [00:04:14]
This consistent improvement of existing operations is the pathway to significant growth [00:04:22]. For example, if a business isn’t actively on every platform, engaging in regular email marketing, building SEO, or fully training its sales team, it shouldn’t consider starting a new venture [00:02:39]. This directly supports Focus on Quality for Business Growth.
A strong quote from Neil Strauss highlights this:
“Success comes down to doing the obvious thing for an uncommonly long period of time without convincing yourself you’re smarter than you are” [00:02:22].
The Danger of Divided Focus
Many entrepreneurs make the mistake of diversifying into new ventures too soon, diverting resources and attention from their core business [00:05:51]. This is akin to trying to fill multiple buckets when the first bucket still has holes [00:06:31].
Case Studies in Focus
- The 60-Business Entrepreneur: A friend managed 60 businesses, collectively generating an eight-figure income [00:01:26]. When asked how easy it would be to grow one business to $30-50 million if he eliminated all others, he admitted it would be incredibly easy [00:01:41]. This realization led him to shut down numerous businesses to focus on the one with the biggest opportunity [00:01:57].
- Mark Zuckerberg: Famous for not having side hustles, demonstrating the power of singular dedication [00:02:03].
- Service Businesses: Simpler businesses like dry cleaning or lawn care can become exceptional by consistently delivering on basic promises: clean clothes, on time, with good service [00:07:12]. The strategy is simple; the execution is where others fail [00:07:18]. These “boring” markets often lack sophisticated competition, allowing well-executed basics to dominate [00:08:00].
- The Roofing Contractor: An acquaintance running a roofing business generating $4 million annually also diversified into real estate flipping, general contracting, and glass/window services [00:12:57]. While he claimed it was for “vertical integration,” it was seen as distraction, hindering his ability to scale his roofing business to the multi-billion dollar potential of the industry’s leaders [00:13:11].
Why Staying Focused is Hard
The difficulty in business isn’t its complexity, but the challenge of maintaining focus and perseverance on a single objective for an extended period [00:10:20]. Entrepreneurs are often initially rewarded for starting “new things,” which reinforces the wrong behavior [00:05:01]. This leads to a misconception that continually starting new ventures is the path to success [00:05:06].
However, once product-market fit is achieved, the “new” phase should end, and the focus must shift to “better” and “more” [00:05:23]. Neglecting this shift can lead to self-punishment and stagnated growth [00:05:16].
It is arrogant to believe one can outcompete others who are fully focused on one thing while oneself is split across five [00:11:41]. Trying to manage multiple ventures simultaneously means none of them will likely take off, because any one of them could succeed if given dedicated focus [00:12:42].
Conclusion
Success in business, particularly long-term wealth, comes from commitment and focus in entrepreneurship on one core activity for an extended period [00:10:42]. Figures like Ben Francis of Gymshark exemplify this, building a billion-dollar company by consistently focusing on a single venture for over a decade [00:10:52]. The key is to select a business based on an enduring need and then tirelessly work to make it better and do more of it every day [00:11:18]. This focused effort leads to compounding returns and significant scale, unlike a fragmented approach that yields only “barely good enough” results [00:13:31].