From: alexhormozi
Growing businesses is challenging because it often defies expectations [00:00:11]. A critical aspect of success is the singularity of focus [00:00:15]. Opportunities arise daily that can distract entrepreneurs, and these distractions become more appealing as a business grows, making it harder to decline them [00:00:17].
The “Woman in the Red Dress” Analogy
The concept of new opportunities and “shiny objects” as distractions can be understood through the “woman in the red dress” analogy from The Matrix [00:00:25]. In the movie, Morpheus uses a simulation with a distracting woman in a red dress to teach Neo about the danger of losing focus [00:00:31]. Similarly, in business, new opportunities initially seem attractive, but they can evolve into pitfalls if they divert attention from the core mission [00:00:54]. The challenge of saying no intensifies at every level of business growth [00:01:00].
Prioritizing “Better” Over “More” or “New”
True business success is less about constant innovation and more about consistently executing fundamental tasks [00:01:18]. Innovation is important to a small degree, but the vast majority of success comes from diligently performing tasks known to be beneficial but often neglected [00:01:19].
The Multi-Business Trap
A common mistake is believing that having multiple businesses leads to greater success. One individual managed 60 businesses, collectively making eight figures annually [00:01:28]. However, when asked how easy it would be to grow just one of them to $30-50 million, he admitted it would be much simpler [00:01:41]. This realization led him to shut down many ventures to focus on the single largest opportunity [00:01:57]. Figures like Mark Zuckerberg did not pursue side hustles; they focused on one main venture [00:02:02].
The “Bucket with Holes” Analogy
A business can be likened to a bucket collecting water (traffic/customers) [00:03:23]. To increase the amount of water in the bucket, the primary step is to fix any holes (inefficiencies, poor execution) [00:03:37]. Only after fixing the bucket should efforts be made to increase the flow of water into it, and then, only after fully maximizing these, should one consider adding new buckets (new ventures) [00:03:41]. Most entrepreneurs neglect the first step, leading to multiple leaky buckets [00:03:49].
The mantra for business growth is “better, more, new” [00:03:51]:
- Better: Improve existing operations. This is the lowest-risk opportunity [00:04:05].
- More: Scale up what’s already working effectively [00:05:29].
- New: Introduce new products or services, only after optimizing the first two [00:03:47].
Big businesses execute the same basic tasks as small businesses, but they do them better [00:03:17]. Being “advanced” in business means consistently performing the basics without fail [00:03:06].
Execution Over Strategy
While new strategies and ideas can be exciting, the greater risk for most businesses lies in execution [00:07:08]. Simple businesses like dry cleaning or lawn care can become exceptional not through complex strategies, but by consistently delivering high-quality service, such as always delivering clean clothes on time [00:07:12].
“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] — Neil Strauss
Business is not complicated, but it is hard because individuals struggle to remain focused on a single objective for extended periods [00:10:20]. Many successful individuals have achieved their wealth by consistently performing the same task over a long duration [00:10:40]. Ben Francis, for example, started Gymshark at 17 and built it into a billion-dollar company by focusing on it for over a decade [00:10:52].
The Arrogance of Diversifying Early
It is arrogant to assume one can out-compete individuals who are fully focused on one thing when one’s own efforts are split across multiple ventures [00:11:41]. A dedicated lawn care business owner, driven by a deep personal mission, will likely outperform someone dabbling in lawn care alongside drop-shipping, consulting, and NFTs [00:11:57].
Attempting to launch multiple businesses simultaneously with the hope that “one will take off” is a flawed approach [00:12:41]. Any of them could succeed if given singular focus [00:12:45]. Experience shows that deep, compounded returns come from mastering one thing over time, rather than spreading oneself thin across multiple barely-understood ventures [00:13:31].