Alex Hormozi: How They Keep You POOR Forever

The video is about how to avoid distractions and focus on doing the basics to grow a business, rather than constantly chasing new opportunities.

This video by Alex Hormozi was published on Nov 2, 2022.
Video length: 13:57.

In this video, Alex Hormozi discusses how entrepreneurs can keep themselves poor by constantly chasing new opportunities and neglecting the basics of their business.

He emphasizes the importance of focusing on the fundamentals and doing them better, rather than constantly seeking out new ventures. Hormozi uses the analogy of a bucket with holes to explain how businesses should first fix the leaks before trying to add more water.

He encourages entrepreneurs to make a list of obvious things they could do to improve their business and prioritize those tasks before moving on to new ventures.

• Growing a business is hard and requires singularity of focus.
• Success comes from doing the basics consistently and doing them better.
• Entrepreneurs need to learn to say no to distractions and new opportunities.
• Focus on doing better, not new, once you have product-market fit.
• Execution is key to success, even if the strategy is simple.
• Simple businesses can be successful if executed well.
• Don't be cute, focus on doing the basics well.

How They Keep You POOR Forever - YouTube

The Singularity of Focus

• Growing a business is hard because it's different than people expect it to be.
• The singularity of focus is important.
• Opportunities can distract us from doing the basics to grow a business.
• The bigger the business, the bigger the opportunities that get presented.
• Distractions and new opportunities are like the woman in the red dress in The Matrix.

Doing the Basics

• The vast majority of business success is doing all the stuff that you know you should be doing but aren't.
• Being advanced means that you never don't do the basics.
• Big businesses do the same things little businesses do but they do them better.
• Fix the holes in the bucket before increasing the flow to the bucket.
• Better is the lowest risk opportunity that everyone has.

The Woman in the Red Dress

• At every level of business, the woman in the red dress becomes more and more attractive.
• Entrepreneurs need to learn how to say no to distractions and new opportunities at every level.
• Mark Zuckerberg didn't have side hustles.
• Do one thing and do it right to get as big as you want.
• Success comes down to doing the obvious thing for an uncommonly long period of time.

How They Keep You POOR Forever - YouTube

The Obvious Things

• Make a list of the top 25 things that you could do in your business that you are not doing.
• Do the obvious things that you know would make you more money before doing the new thing.
• Fill all the holes in the bucket that you know you should be doing but aren't.
• Once you finish that list, you will see your business grow by default.
• It's spiritually difficult as an entrepreneur to stop doing the old thing and focus on the basics.

Focus on Doing Better, Not New

• Starting new things can be rewarding, but it's important to switch from new to better once you have product-market fit.
• Once people start buying what you're selling, the focus should be on doing better and more.
• Businesses that do everything their competition does but better will grow and beat their competition.
• Entrepreneurs who divert resources from their core business to new ideas often end up with multiple buckets with holes in them.
• It's important to fix the first bucket and make it better before moving on to new ideas.

Execution is Hard, Strategy is Easy

• Discipline is key to executing the basics well.
• Many businesses fail at execution, even if the strategy is simple.
• Businesses should focus on the obvious truth of delivering a good product or service consistently.
• When entering a marketplace, businesses can often demolish competitors by executing the basics well.
• Training, recruiting, incentive structures, and regular reviews are all important for executing the basics well.

Don't Get Fancy

• Many people want super fancy trick plays, but it's better to focus on simple backyard football.
• Businesses should focus on doing the basics well and not get distracted by new ideas.
• Simple businesses like dry cleaning, lawn care, and housing can be successful if executed well.
• Competitors who don't execute the basics well can be beaten by businesses that do.
• Don't be cute, focus on doing the basics well.

Conclusion

• Businesses should focus on doing better, not new, once they have product-market fit.
• Execution is key to success, even if the strategy is simple.
• Businesses should focus on executing the basics well and not get distracted by new ideas.
• Simple businesses can be successful if executed well.
• Don't be cute, focus on doing the basics well.

The Importance of Focus

• Success in business comes from consistent execution of basic tasks.
• Customers want clean clothes, fast service, and good quality.
• Fill every hole in the bucket to grow your business.
• Business is hard because people struggle to stay focused on one thing for a long time.
• People who believe in the mission of their business are willing to commit to it for an extended period of time.
• Successful entrepreneurs have been doing the same thing for a long period of time.

Avoiding Distractions

• Entrepreneurs should focus on one thing and do it better than anyone else.
• It is arrogant to think you can outcompete others who are fully focused on one thing when you are split on five.
• People who try to do multiple things at once will not be successful.
• Focus on one thing and pay down the ignorance as quickly as possible.
• Dividing your attention between multiple things will only lead to being barely good enough and making barely good enough money.
• Success comes from doing the same thing over and over again and getting better at it.

Watch the video on YouTube:
How They Keep You POOR Forever - YouTube