From: alexhormozi
Many common growth strategies are ineffective because they lead people to work on things that do not significantly move their business forward [00:00:02]. Growth is often counter-intuitive [00:00:28]. To achieve significant growth, it’s crucial to identify and prioritize the single most impactful problem, rather than getting caught up in numerous smaller tasks [00:01:27].
The Business as a Tree Analogy
Imagine your business as a tree, where its height over time represents your revenue [00:00:30].
- Offshoots (B+ Problems): These are minor issues or improvements, such as adding to an email sequence or working on a fall plan [00:00:49]. While they seem like “solving problems,” they divert resources (time, effort, capital) from the main trunk, causing growth to stagnate [00:01:00]. You might feel busy, but your revenue remains flat [00:01:07].
- Pruning for Growth: Just as pruning keeps a tree healthy, cutting off these distracting offshoots directs all resources directly into the main trunk [00:01:17]. This focused effort allows the business to grow vertically and remain concentrated on the one thing that will move the tree (revenue) up the most [00:01:27].
“It’s not about the amount of tasks that you finish, it’s the amount of growth each task gets you.” [00:01:33]
The A+ Problem vs. B+ Problems
Entrepreneurs often have a long list of things they believe they should do [00:02:05]. However, they tend to tackle numbers five, three, or two on the list first because these are quick and easy to “knock out,” providing a fast dopamine hit [00:02:08]. This leaves the number one problem, the most important one, untouched at the end of the day [00:02:17].
- B+ Problems: These are easier to solve because you know how to approach them, making you feel productive [00:02:32].
- A+ Problems: These are typically more complex, have more variables, require analysis, and need iterative solutions [00:02:40]. Because they are harder and often soaked in the unknown, people prefer to delay them [00:02:49]. However, solving the A+ problem can make all other problems on the list irrelevant by comparison [00:02:26].
The Theory of Constraints
This entire approach is based on the Theory of Constraints [00:07:23]. This theory posits that in any system, there is only one constraint limiting growth [00:07:26]. Once that constraint is identified and addressed, the business can experience significant breakthroughs [00:07:31]. The goal of strategy is to prioritize limited resources against unlimited opportunities [00:08:07]. There are millions of ways to grow a business, but usually, there’s one thing that will accelerate growth more than anything else [00:08:18].
“The people who move the fastest in terms of distance covered are the ones who get the most for every unit of effort, which is not about how fast they do things, but at how much speed they cover with the things they choose to do.” [00:09:04]
The Big Wheel Analogy
Many people try to make a small wheel spin faster, working hard on minor tasks [00:09:20]. The key is to find the “big wheel” – that one major initiative where a single revolution generates more progress than ten revolutions of a small wheel [00:09:36].
Implementing a Focus Strategy
To effectively implement this strategy and achieve business growth and scaling, especially with a team, consider these tactical steps:
- Prioritize: Identify the one most important thing that will move the needle the most [00:11:02].
- Increase Urgency and Cadence:
- Change meeting frequency for the priority task from weekly to daily or even twice a day [00:11:20]. This communicates its immense importance [00:11:24].
- Set clear deadlines [00:11:41].
- Increase communication frequency; check in after an hour to show urgency [00:12:13].
- Eliminate Alternatives (Commitment):
- Commitment is the elimination of alternatives [00:01:49].
- Communicate to your team that everything else they are working on is less important and they need to “let some fires burn” [00:12:00]. This means accepting minor issues elsewhere to fix the major constraint [00:03:31].
- Assure your team that they will not be blamed for letting smaller issues persist [00:03:41].
- Make Winning Obvious & Provide Incentives:
- Create a dashboard or progress marker to visibly show progress [00:12:46]. This acts as a reinforcement loop for the team [00:12:54].
- Implement a “pot of gold” reward for achieving the priority, such as a team dinner or a day off [00:13:02]. This shows “what’s in it for them” and helps maintain commitment [00:13:18].
- Reassess and Re-prioritize: Once the primary constraint is solved, reassess the situation and identify the next single most important thing to focus on [00:15:29]. The solutions to the previous A+ problem may have rendered other items on the list irrelevant [00:06:01].
Case Studies and Practical Application
Paid Ads Team Example
A portfolio company’s paid ads team was struggling with pixel tracking issues for three weeks, distracted by various funnels and follow-up sequences [00:04:50].
- The Constraint: Incorrect pixel tracking meant none of the conversion rate optimization efforts would matter [00:05:04].
- Action Taken: All other issues were ignored [00:05:31]. An immediate end-of-day meeting was scheduled [00:15:59]. Team members were explicitly told to drop other meetings and daily tasks [00:16:02]. Every line item for pixel fixing was assigned with minute/hour timelines [00:16:24].
- Outcome: The pixel issue was fixed, and the team was ready to tackle the next priority, knowing their focused effort yielded results [00:17:25].
Sales Event Show-Up Rate Example
Another portfolio company had a low show-up rate for their sales events, complaining about lead quality [00:18:18].
- The Constraint: Improving the show-up rate to industry standard would increase revenue by 35% and more than triple profit (given a 10% margin), with no risk [00:18:36]. No other initiative offered such a return [00:18:54].
- Action Taken: Everyone in the company was given the sole priority of increasing the show-up rate [00:19:08].
- Outcome: The business grew by over 35% due to this unified focus [00:19:21]. Other less important issues (customer service, sales department glitches) were allowed to “burn” but did not derail the primary goal [00:19:28].
Avoiding Half-Built Bridges
Many businesses lose money by starting numerous projects but never completing them [00:18:09]. They build “half-built bridges” across the river, spending resources without ever getting their “dollars across to the bank account” [00:17:40]. Focus ensures completion and realization of returns.
Overcoming Challenges: Fear of the Unknown & Team Alignment
Tackling the Unknown
A+ problems are often “big hairy problems” because they are “soaked in the unknown” [00:20:26]. You might not know where to start or how it will end, but you know its fundamental importance [00:20:51].
- “Pulling the Thread”: Start by taking the first step to understand the problem [00:21:20]. Each subsequent step becomes clearer as you unravel the issue [00:21:28].
Information Transparency
Entrepreneurs often fear sharing too much financial or operational information with their team [00:22:10]. However, major publicly traded companies operate with full transparency to all employees [00:22:20].
- Benefit: Increased information transparency means everyone knows the financial state, conversion rates, and profit margins, enabling the entire team to help solve problems effectively and align with the priority [00:21:54]. This eliminates irrational fears about transparency [00:22:33].
Managing Team Anxiety
When a new priority is set, teams can get overwhelmed if they still have old tasks [00:22:56].
- Practice: Review team members’ agendas [00:23:05]. Explicitly tell them which tasks to drop, table, or delay, reassuring them that old priorities are no longer relevant [00:23:13]. This provides clear direction and reduces anxiety [00:23:44].
By applying these strategies for business growth and improvement, businesses can avoid common pitfalls and achieve fast business growth strategies by consistently focusing on the single most impactful problem.