Simplicity As A Strategy Will Improve Your Business | Ep 886

In this episode, Alex (@AlexHormozi) lays out a ruthless framework for stripping your business and your brain down to what matters most. Drawing inspiration from Steve Jobs, Jack Dorsey, and his own $100M+ playbook, Alex breaks down why complexity is lazy thinking and how the highest-leverage growth comes from relentless focus. 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

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:01Alex Hormozi?

  Hey guys, welcome back to the game. I've got a very special episode for you. It is about simplicity and I can almost guarantee that anyone who's listening to this can look at their lives and get something very meaningful out of it that will improve sales, marketing, product, margin, growth, all from this kind of meta-concept which we'll break down.

• 0:24Alex Hormozi?

  I have a fun little exercise that I'm gonna walk you through, but fundamentally, it's about how to make a more profitable business and doing this from the top-down, from a strategy, marketing, sales, product, delivery perspective. So this is a top-down strategy shift and I want to take you through an exercise first and then I'll talk about it afterwards. So, let's imagine that I have a marketing campaign and I want you to understand some of the benefits of my services and my product, right? So I might have four different benefits that I think are really, you know, really material that I want someone to know, okay? And so the problem is, the vast majority of marketing looks like this. Ready? One, two, three, catch.

• 1:10Alex Hormozi?

  Well, it's very hard to catch all four at the same time, but if I just said, "Hey, real quick, I want you to understand something," catch, you'd probably be able to catch that. And so, it's a great visual analogy for the value of a simple message. And so, Ken Segal, who wrote the book, Insanely Simple, talks about this when he was in his meeting with Steve Jobs and that was an exercise that he took the marketing team through. Whenever they'd want to start saying multiple points, it would, he knew that it would eventually devolve into every single thing under the sun that we could possibly say about this thing, which meant that we hadn't done enough strategic thinking around what is the one thing that matters most. And so, the saying that they live by, which I really love, is, "Find the most compelling

• 1:54Alex Hormozi?

  point and communicate it in the most compelling way." I'll say that again because I think it's so important. You focus on the one most compelling point and then you communicate it in the most compelling way. A thousand songs in your pocket, right? It's how can we, how can we take this idea? And you're like, okay, well, yeah, how am I going to apply this to my business? Well, it's, I think, a discipline that has to be taken pervasively from the top down. It has to start with the business owner, has to start with the CEO, has to start with the founder. Whoever person is calling the shots in terms of what we're doing as a business. Because this level of simplicity, right? Takes more work than complexity. And that's what's crazy about it, is that complexity is less work than simplicity.

• 2:35Alex Hormozi?

  Because complexity is typically the child of lazy thinking. We can't prioritize, we're not sure which one of these four things is most important. So we'll just say them all. We have these four features. Rather than limit it to one and then make that one better. We're just going to see all four because we want to appeal to all sorts of different people. But most really big business ideas, in my opinion, are the opposite of what you would naturally do. Because if what people's natural instincts led them to do were the things that made businesses successful, then most people would have successful businesses. And that's anything but true. And so it's the constraint of forcing yourself to say no. Like, there are three things here. There is one of these that is more important and we have to keep ruddling it down

• 3:20Alex Hormozi?

  or chunking up the language such that this one point is the most compelling. And you're thinking, okay, well, maybe this is just only applies to marketing, right? No, it has to go all the way through. Because think about it, if you have, if you figure out that this one core promise or core feature, right? Is the most important thing. Then that informs our product strategy, right? What features are we going to build? What services are we going to deliver? And if we only have one to do, wouldn't we spend so much disproportionate amount of time trying to make that thing exceptional? Like, you look at Raising Canes, right? The chicken shop. They have seven ingredients on the menu. Like, they arguably couldn't have fewer ingredients in order to make a meal. They've got toast, they've got fries, they've got chicken tenders. And then they've got sauce and beverages.

• 4:04Alex Hormozi?

  There are six and there's one more, I can't remember what it is, right? And so I think coleslaw or something like that. But anyways, point being, they could, like, someone saying, hey, have you considered adding an eighth item? Yeah, they probably thought about it. But the ability to say, this is what matters most. If we, and this is the question I love to have. If we only did this one thing, would we accomplish all of our goals? And I think it's one of the most powerful questions. Frank Flutman, who wrote the book Snowball, talks about this one thing. Where he says, "A lot of companies will take, you know, they'll have five objectives and ten, five sub-objectives and they go into sub-objective nightmare, right?" He says, "If we cannot say what the one thing that's most important in the business, and then how all departments relate to that one thing,

• 4:45Alex Hormozi?

  if we can't say that, then the job of the CEO, that CEO has failed." And I'm guilty of this too, so I'm not saying, this is not me saying this from a pedestal. This is me, you know, this is me trying to document my own thinking rather than say this as a sermon. Is that what one thing, if it were true 12 months from now, would change everything for our business? And what's interesting is that when you ask that question, like what one thing would have to be true? Like if we had a dedicated lead channel that we owned, that one thing would change everything. If we just had a great supply of talent for our HVAC company, for new technicians, if we just did that by the end of the year, it would change everything for us. If we were just able to pull cash flow from 90 days to 30 days for each sale that we do, that would change everything for us.

• 5:30Alex Hormozi?

  Thinking about that as the what must be true then becomes the most important business objective, because you might have objective 2, 3, 4, 5, but if you just did one, then it likely makes 2, 3, 4, 5, 1 irrelevant. 2, by the time you accomplish number 1, 2, 3, 4, 5 might have changed, because you will now have new resources and new assets at your disposal. And so you're basically trying to make a decision about variables before the board has changed from the decisions that you're ultimately trying to make, right? And one of the difficult parts, and this is the really nefarious one. Once you make that one simple decision, like this is the priority, this is what we're doing, all systems go, every department seeks to make this one thing true about our world, so that it relates back to this business.

• 6:15Alex Hormozi?

  Sometimes, solutions take time. And so, what that means is, sometimes you have to sit with the pain of an unbuilt bridge without building a second bridge. So, let's say you know that, like, you've got, let's use the technician example. You're like, "Man, we got the phones ringing off the hook. I could expand my practice, I could expand my X, Y, Z if I just had more talent to deliver." Right? Well, if you're in that boat, then, you know, once you've realized that, you might kick off some sort of recruiting search, you might kick off some sort of community, or some sort of play where you get referrals from all these different networks that would generate technicians for you, or internships, or whatever, right? But the thing is, is that one month in, that still might not really have happened. As in, like, you might not have this overflow of new talent in the business, right?

• 6:58Alex Hormozi?

  But you know that if that one thing were true 12 months from now, that that's the only thing that matters. And so, the hardest part, and this is a lesson, I'm kind of making this public so that me, sticking with it too, is that sometimes you have to let the little fires burn. Is that like, you could, and like, what we sometimes do, and this is, I'm guilty of this, is that I will, I will kick off a real meaty solution to a big thing. Like, if we do this, it's the only thing we have to do, and we'll crush it. But then, because I'm impatient and a human being, I'll be like, it's, you know, 30 days later, and I'll be like, "Oh, my God, it's not solved yet." And then I'll want to try and solve it another way. When, in reality, me trying to solve it in two or three ways ends up just pooling resources from the one way that I know will work, but will take time. And so, I would rather take the sure bets on the thing

• 7:42Alex Hormozi?

  that has the absolute highest leverage, impact on my business, rather than many small bets that might or might not work. Because the thing is, is like, this is the death by a thousand paper guts. And so, it's that, that one thing that then also simplifies what everyone's doing. So, this is a absolute high-level strategy thinking process. But what's really fascinating about this is, and so, they talk about Steve Jobs in the book, which I really liked, is- Actually, this is from a different book. It's from Arthur Brooks. Talks about differences in happiness for the second half of your life. Anyways, I read that book recently. But he has this great comparison between art of Western art and Eastern art. And you're like, where's he going with this? I'll explain. So, Western art, when they, when most people imagine like creating art, they think of a blank canvas, right? Or a blank document.

• 8:27Alex Hormozi?

  And so then what you do is you add to that document, right? What's interesting is that the Eastern philosophy is opposed to this. So they think of it as like you have this big slab of jade. And so all we're doing is removing the excess to reveal the art or the sculpture underneath. And so it's the difference between Eastern and Western philosophy. And as it applies to business, it's kind of the same way, which is like, the iPhone is what is the result of what happens when you delete everything that sucks about a phone? When you delete everything that sucks about a phone, what remains is an iPhone? Right? And so I think about that with services a lot. Because a lot of times, it's so easy to just say like, okay, well, I'm gonna add more to the canvas, right? But when you, when you think about it from, from pulling things away, it's like, what are all the distractions that I'm, I'm creating

• 9:12Alex Hormozi?

  internal to my business, but also to my customers? Because you think about that, that, that, that crumpled paper, right? If I say, I'm gonna help you with this one thing, then just help with that one thing. That's it. And Jack Dorsey says this, and I love this quote. He says, "Perfect every detail and limit the number of details." It's so elegant. "If you're gonna do it, do it well. And the vast majority of things, you can't do." Hey guys, first off, thank you so much for continuing to share the podcast. Like, I'm beyond words. I'm at a loss for words. I'm very grateful for the continued sharing that you guys do. It's the only way that this podcast grows. And it continues to grow because of one person, you, the person listening to us. And so if you know somebody who would get value from this,

• 9:55Alex Hormozi?

  one, if you could just like text them, or DM them, or Slack them, or share it on your Instagram, it would mean the world to me. It's how more people find out about our stuff. And ultimately, hopefully, help us change the world for the better and help more businesses, help more people, and ultimately, get some dollars and live better lives.

• 10:12Alex Hormozi?

  This has been such a struggle for me for my entire entire career. Because the more capable you get, the more resources you have at your disposal, the more opportunities present themselves, the more, the harder it is to consistently say no. Jobs also said, "Focus is the the number of amazing ideas that you say no to." Right? "I'm just as proud of the things we did as the things we didn't do," is one of his famous quotes. And so, the idea that they liked saying over and over again was amazingly simple and simply amazing. Right? Like, how do we, how do we just think like, "I'm just gonna make one sandwich." And if I just made this one sandwich to be the best sandwich in the city, I will probably have lines out the door. I don't need to have 20 sandwiches, because if I just make this sandwich the best sandwich.

• 10:55Alex Hormozi?

  And I, and I think about it from the, the experience of someone eating it, the experience of them waiting for it, the experience of them ordering it, how I source the ingredients, how those are gonna get combined, at what temperature, in what order. Right? Who's gonna be the one providing them? Like, what are the price points that we're talking? Like, all of these types of things are, it's the obsession on the details. Because you can't go deep if you have too many things. And fundamentally, that's the problem, is like, myself included, we all have too many things going on. And you just can't go that deep when you're spread too thin. And the thing is, is that all of the outsized returns come on the, the, the, the, the end of the curve. Right? So it's like, you do this work, do this work, do this work. And it's only when you're like, "Okay, I'm, I'm at the 50% mark," meaning I'm like, about average. Right? And you're at the 75% mark, you're above average, you may be a little bit better.

• 11:40Alex Hormozi?

  Right? But not, not that much better. You're at the 90% mark, okay, now we're starting to see it. But the difference between 90th percentile, 95th percentile, boom. Between 95th and 99, boom, in terms of who captures the market. Who's the one that people just can't help but say good things about you? Right? And so I just think about, what are these need to believe? What are the things that if I, if I just did one thing? And if you're thinking about this, you're like, "Well, there's a lot of things that if I did this, it would grow my business." We're not thinking increments, we're thinking in orders of magnitude. So yes, if you improve your sales close rate, you, your business will grow. If you bumped your, your margin by 10%, your business will grow. If you, if you increase your lead, sure, the business will grow. But I'm not talking about those improvements. Those are what I consider the sausage-making of business. That's the daily, that's the in and out, that's just like how you run a business. I'm talking about what are the orders of magnitude changes,

• 12:23Alex Hormozi?

  the bets that we're gonna make with our additional resources. Could fundamentally, let's say you've got, you know, 100 people who work for you. It could be 10, it could be 1, doesn't matter. The point is that you have X amount of people work for you. Maybe they're at 70% utilization or 80% utilization. They've got a little bit of bandwidth on top of the sausage making they have to do every day to keep the trains going. So you have to scoop that little 20, 30%, right? And you have, you only have, you know, like one real bet that you can make on it. And so it's like, you want to make that bet worth it. What's interesting is like, how do you, how do you come up with these ideas, right? And so I think this level of like, how do we just remove everything that doesn't matter? And I've been, I've been trying to reverse my thinking process. This is a lot like Munger's invert, like, okay, if I wanted to destroy my business, what would I do?

• 13:08Alex Hormozi?

  Like, it's a really powerful frame. This is a different frame, which is how much can I take away? And still have it be good and not only be good, but it probably is better. And so I'll give you a real world example. So on school, in the school games, we basically used to have more calls that we did. And we had more stuff that we put in the community. We had like three a week. And then we also had like, content was getting dumped in there. And basically the number one reason that people were canceling was overwhelm. It was not, I need to provide more value. It was, I need to provide more value per second in fewer total seconds. And so rather than say, okay, so what we did was we removed two of the three calls, kept it to one. And we moved the, the big download from once a month to once a quarter.

• 13:52Alex Hormozi?

  So that people could, could, could get on top of it, right? And we removed some of the things that were native and turned on inside of the app. So that people would have fewer things to do when they got in. So they were like, oh my God, there's so many things I have to do. I can't think about it. And then they leave, right? And so we kind of like, you want to, like, you only introduce something when it's required or necessary for that person to get the desired value. Rather than say, here's all the different things you can do. It's like, well, why don't we just do this one thing that most people find valuable first? And then perfect that step. And then once we've done that, maybe we'll show the next step. And so what's interesting about this is that if you think about this, because if you're actually subscribing to this ideology, which is something that I'm really trying hard to. I'd say like, the inversion process is how I've made a lot of strategic decisions.

• 14:36Alex Hormozi?

  And I'm also thinking more and more often with this, this frame of one. Which is if I can't decide what the one most important thing is, then I'm not doing my job and I need to think about it longer. Because the thing is, is that one provides more efficiency than just about any strategy. You want to cut costs, improve your margins, do one thing. There's way fewer things to do. And if you do one thing, you also need to have way fewer meetings about it because there's only one thing. And when you have just one thing, you don't need to have lots of people at the meetings. You just have a very small group of very smart people. And fundamentally, that's how these products start to get organized. And the easiest way to screw up a project like this is to give it too much time. And so if it is simple, you can also do it faster.

• 15:20Alex Hormozi?

  So you could say in 12 weeks, and it doesn't, what's crazy about this is that you can do projects even at like huge company levels in 12 weeks because you have more resources, right? And so just thinking, what is the one thing that matters most? If I'm not sure, what are all the things that I can delete away and have it still be valuable? And if I do know what that one thing is, how deep on that one thing can I go? Because if I made this one thing true at the end of the year, all of my other problems would shrink into irrelevance. They would no longer matter. And so by thinking about it like that, it makes the noise go down. But the thing is, is that you have to subscribe to this philosophy through and through, like you have to believe in it balls to bones because the, you know, like you, you think you're overwhelmed. I promise your team's 10 times more overwhelmed because they don't know what direction you're in because you're changing it all the time because you have so many different conflicting

• 16:05Alex Hormozi?

  priorities. And so having this focus of one is easy to communicate. People remember it because it's only one crumpled piece of paper, right? It's easy to sell because it's one thing and you can just make that point as compelling as humanly possible. When you're delivering on product or services, you just perfect that one result, that one deliverable. Because sometimes it's like, like I'll give you a simple example. It's even a marketing agency, right? A lot of marketing agencies just expand and expand and expand their, their breadth of like what they do, all these different services they tack on, tack on, tack on, right? Now, if you're in an enterprise business, those companies, if you're serving Fortune 100, it's a little bit of a use case there. Because for them, the one thing is full integration, right? Like that would be the chunked up one thing for that business, right?

• 16:49Alex Hormozi?

  If they actually had one person that could globally support their business, then that would be the one big thing we try and solve for, right? But many businesses, it's like if you just got them leads consistently, they would be happy. Like you don't need to offer these other, other services, the other quote, value benefits. Because if you just did the one thing that mattered, they wouldn't care about anything else. And I remember there was this moment in GymLaunch when we had a handful of gym owners reach out and say, hey, can we hop on a call? And I said, sure. And you know, we're like, hey, we're trying to improve the product, blah, blah, and they just like cut us off and they were like, we just need leads, like just more leads. That's it. Like, if you just give us more leads, we'll be happy. And so it was one of those like, you know, it's, it's, uh, it's the economy, stupid, right? It's kind of like the present, like if you just fix the one thing that matters.

• 17:35Alex Hormozi?

  And if I'm, if it sounds like I'm hammering this a lot, it's because I'm hammering it into my own brain. And if you think of like, if you were to deconstruct this, like, I love this little quote of, to achieve great things, two ingredients are needed, a plan and not enough time. And so it forces you to prioritize so that you could actually do the things that matter most. And I think that this is something that I'm trying to artificially do. You see like Elon talk about this. Uh, for those who hate Elon, just pretend he's cool for this conversation. If you see the rate of innovation that they're able to do across the companies that he owns, a big part of it talks is accelerating timelines, which is making unreasonable goals because the, the, the unreasonable goals create a forcing function for performance. Brian Chesky talks about this from Airbnb. There's a bunch of other Y Combinator founders who talk about this,

• 18:20Alex Hormozi?

  where they're like, if you want to speed up something happening, number one, big public goal. Number two, make it really aggressive on timeline. Number three, check up frequently. Number four, remove people who shouldn't be on the project because they just create more communication cycles and more waste and more people to talk and, and get, you know, approvals from. Fundamentally, you have to make bets and sometimes you just have to let people go, as in like, let them work, let them cook, right? Cause if you get out of their way, a lot of times, if you have a clear goal, clear objective, you're checking in regularly, you don't need to do much more than that. And so this is something that I'm half shouting at myself, uh, as a reminder of the few things that matter most. And if I do not have that one thing for my team, then I have failed, not them.

• 19:04Alex Hormozi?

  So that is my insanely simple, it's been top of mind because I just read a couple of books that mentioned jobs recently and, um, it's been really valuable for me. And so when I'm thinking about my own marketing campaigns, I'm like, what is the one thing? What is the one most compelling thing I can bring up? And how can I say that one thing in the most compelling way? And I think it's a grace for, great forcing function for what we're going to spend our time on and we're going to spend our time talking about to customers. Because believe it or not, if you have a sales call and you say, I can do this one thing and the person's like, that's exactly what I need, you don't need to talk anymore. You can just ask for payment. With that, keep being awesome. Love you all and I'll see you guys in the next one. Bye.

• 19:41Alex Hormozi?

  Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Leila and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part

• 20:25Alex Hormozi?

  that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com/roadmap. R-O-A-D map. Roadmap.