In this episode, Alex (@AlexHormozi) breaks down the four ways you can win in business: speed, risk, price, and ease. You only need to dominate one of them to crush 99% of your competition.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition Mentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap
Chapter 1: What is the main idea for beating competition in business?
I think you can beat 99% of people not by beating them in every possible facet, but just picking one thing to beat them on. And that's how you can win in competition. Now, if you can do more than one, you dominate. What's going on, guys? This will be either the absolute best video you'll ever see, the worst video you'll ever see, or somewhere in between.
So, listen, you can beat 99% of other businesses if you only pick one thing to beat them on. Now, if you can beat them in two vectors, you become a possible. But there's four that you can compete on. All right, and so that's what we're going to talk about. Now, the first of the four vectors is speed. How do I do what I'm going to do faster than everybody else?
Now, what's interesting about this is that I have been doing business for a minute now, and I would say that of the four vectors, I'm starting with speed because I actually think it's the most important of the four. And I think the reason for that is that humans learn behaviors with decreased latency, meaning...
If like Facebook and Instagram or whatever you're watching this on has trained us to come back, not because they pay us to come back, because they have compressed latency for some positive outcome. And the positive outcome they give us is a thumbs up. They literally give us a little red light. And other people give actual money, but at a delay, and they struggle to get people to do things.
So think about it like this. You pay someone who works for you every two weeks. It's much harder to motivate them than if you actually paid them in real time. And paying someone in real time is actually so effective, it's illegal. And so truckers, for example, used to be able to get paid per mile and like almost essentially in real time.
And so they actually outlawed it because guys would just keep driving to the point of like insanity and wouldn't sleep for days. And it was unsafe. All right. That's how powerful speed is because that is what trains behavior. And so functionally, the questions that we have to ask ourselves is, okay, if speed is going to be my competitive advantage, it doesn't matter what we do, right?
If you're in lawn care, there's components to speed, right? So on one angle, like you have to think about each of these larger vectors and smaller sub-vectors. So for speed, it could be the distance between when someone purchases and when they get something, right? That's one vector of speed.
The other vector is that if you're doing something on a recurring basis, how much time is it going to take each time? So, for example, if I had a 10-minute workout, it's going to be more valuable than an hour-long workout if I could get the same results, right?
If I say I'm going to help someone get leads and I can help them get those leads in an hour versus waiting a week to turn on the ads, that's more valuable. And so at all times, it's always like, how can we take what we're currently doing and do it faster?
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Chapter 2: How can speed serve as a competitive advantage?
And so if someone says, hey, I have an appointment in four days or I have an appointment in one day, they're probably far more likely to come to you and be willing to pay more for that one appointment. But how do you increase availability? Sometimes it means you have to pay people more or extend their hours or hire more people. But the reality is that
This is one of those things that is one of the largest vectors in terms of increasing throughput on a business that is underappreciated by the vast majority of business owners. And so when I invest in a company or I look at a company, a lot of times I'm like, ooh, like it's one of those huge hidden diamonds.
I probably shouldn't even share this, but it's one of those hidden diamonds that I could almost always drive 20, 30, 40% more through business by simply better staffing the hours. And so like even, even at acquisition.com, we currently sell 12 hours a day, seven days a week. And we're now investing so we can get to 20 hours a day because we have such a larger international market, right?
So it's like, we always want to increase our availability because I know the math behind this and it's a huge impact on the bottom line. All right. So the first vector macro vector that you can win on, and you only need one, but if you have more than one, you just dominate everyone. All right. Is that we went over speed. Now, the second is risk. All right. So how can we make our thing not risky?
Now, think about McDonald's, the example I gave earlier. Well, they're both fast and they're not risky. So what does that actually mean? Now, part of you are like, oh, no, they're risky because of cancer and all this stuff. Well, let's ignore that. Because why? Why do people not care about this stuff? Actually, it's funny. Speed.
it's not latency if you ate a burger and immediately had something growing on on you no one would eat the burgers but because it happens 40 years from now no one cares speed changes behavior and lack of speed doesn't so what about risk so a way you can translate risk is reliability and consistency it's a different way of saying it which is when people but this is especially important for services that are recurring where people get month after month after month after month they keep coming back again and again and again
And so the question is, how can we consistently match conditions between the perfect and ideal state and every state that happens afterwards? And most people dramatically underestimate the amount of variables that exist in any given encounter. And so as a result, they have far less consistency than they otherwise should. All right. So that's just the output.
Now, what are the other components of this? So I'll say one is consistency, right? In terms of in terms of decreasing risk. We can also consider that reliability. If you say you're going to cut someone's grass, but sometimes you're late or you show up a different day or you don't show up one week, that's a major hit. People just don't want to deal with that stuff. They're not willing to.
On the flip side, if you're the type of guy where someone's like, you know what? I could undercut your lawn care guy. You know what? I could clean instead of your cleaning person. A lot of people are like, you know what? I've been with Rose for 10 years and and she's never missed a day, you're like, I just, I'm not willing to take the risk because she's already paid down so much.
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