Alex Hormozi: How I Set Goals That ACTUALLY MAKE MONEY

Last updated: Jun 18, 2023

The video is about Alex Hormozi's four-step goal setting process, which involves identifying the problem being solved, creating a hypothesis, determining the input and output, and reviewing the results.

This video by Alex Hormozi was published on May 3, 2023.
Video length: 07:00.

In this video, Alex Hormozi shares his four-step goal-setting process that he believes will actually make money.

He emphasizes the importance of identifying the problem that needs to be solved and tying goals to one of three things: getting more customers, making customers worth more, or increasing the enterprise value of the company. He also stresses the need to create a hypothesis and define both the input and output variables.

Finally, he encourages businesses to focus on making small, incremental improvements rather than trying to reinvent the wheel.

  • Goals should solve a problem.
  • Goals should be tied to getting more customers, making customers worth more, or increasing enterprise value.
  • Goals should be stated as hypotheses with clear inputs and outputs.
  • Goals should be reviewed after completion and adjusted if necessary.
  • Measuring metrics may be the most important goal for early-stage businesses.

How I Set Goals That ACTUALLY MAKE MONEY - YouTube

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Identifying the Problem

  • Goals should solve a problem.
  • Lower-level employees may not understand the company's overarching goals.
  • Goals should be tied to one of three things: getting more customers, making customers worth more, or increasing the enterprise value of the company.
  • If you can't articulate how a goal will achieve one of these three things, you shouldn't pursue it.
  • Examples of goals tied to these three things include decreasing page load times to get more leads, improving the sign-on process to reduce customer churn, and increasing the number of scheduled appointments.
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Creating a Hypothesis

  • Goals should be stated as hypotheses.
  • A hypothesis should include both the activity being done (input) and the expected outcome (output).
  • For example, a sales goal might be stated as "If we decrease the time to call leads from 30 minutes to 5 minutes, we will get a higher percentage of leads to book calls."
  • Stating goals as hypotheses allows for testing and adjustment.
  • Goals should be based on what you think will happen, not what you hope will happen.
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Determining Input and Output

  • Goals should have a clear input and output.
  • The input is the activity being done to achieve the goal.
  • The output is the expected result of the activity.
  • For example, the input for a sales goal might be calling leads within 5 minutes, and the output might be getting a higher percentage of leads to schedule appointments.
  • Goals should have a baseline for the current input and output, and a target for the desired input and output.
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How I Set Goals That ACTUALLY MAKE MONEY - YouTube

Reviewing Results

  • Goals should be reviewed after they are completed.
  • Review should include whether the input was done and whether the expected output was achieved.
  • If the expected output was not achieved, the hypothesis should be adjusted and the goal should be retested.
  • Small improvements over time can lead to significant growth.
  • Measuring metrics may be the most important goal for early-stage businesses.
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The Four-Step Goal Setting Process

  • Start from the top down and have everyone in the organization do this.
  • Identify the problem being solved, which is usually getting more customers.
  • Create a hypothesis, such as doubling the amount of shorts to get more traffic to the website.
  • Determine the input and output, such as creating more story-based content to get more link clicks to the website.
  • Review the results and see if the hypothesis was true or not.
  • Goal setting should make you think about why you do what you do and how it ties into the bigger picture of how the company grows and makes more money.

Watch the video on YouTube:
How I Set Goals That ACTUALLY MAKE MONEY - YouTube

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