5 DEADLY mistakes business owners make that put them OUT OF BUSINESS…

Summary

• When making changes in your business, rely on statistics, survey data, and financials rather than emotions, intuition, or opinions. For example, when we reduced our prices based on gut feelings, we lost around five or six million in top-line revenue which taught me the importance of data-backed decisions.
• Focus is crucial for business teams; split attention leads to decreased performance. When we tried to allocate team members to work simultaneously on different projects like Gym Launch and Prestige Labs, it didn't work well. Ensure adequate resources and infrastructure before expanding product lines or services.
• Pay close attention to customer feedback instead of assuming what they want. We invested a million dollars in a retention-based CRM for gyms while our clients primarily wanted more leads. This mistake highlighted the importance of understanding customer needs directly and acting on that information.
• Maintain clean data and accurate financials in your business, which is fundamental for making informed decisions. Previously, incorrect churn data nearly led us to unnecessary business changes, demonstrating the impact of reliable data on business health.
• Be cautious when delegating hiring responsibilities, especially to inexperienced leaders. Unqualified or overhired teams can cause inefficiency and damage to the company as seen with our marketing department fiasco in 2018, which resulted in significant restructuring.

As an actionable strategy, consider asking "how would I break my business?" and then do the opposite to identify clear steps for growth and improvement. This approach helps simplify complex decisions and avoid common pitfalls in business management.

Video

How To Take Action

To make smart changes, I would first look at the numbers, like stats and financials, before just going with what I feel. If I think prices need to change, I'd check surveys and data to make sure it's the right move.

When adding new stuff to the business, I would make sure my team isn't spread too thin. More projects mean we need more hands on deck, so things don't slip through the cracks.

Listening to customers is super important. I would ask them what they need most before I start working on a solution. Instead of guessing, getting direct feedback means I won’t waste time and money on the wrong thing.

Keeping track of money and data helps me make good choices. If my numbers are messed up, I might do something silly for my business. So, I'd have someone I trust keep those details clean and organized.

When hiring people, being careful is key. I wouldn't let just anyone hire for me, especially if they're new to it. It's better to have a few good workers than a bunch who aren’t the best fit.

Last thing, asking "how could I mess up my business?" might seem weird, but doing the opposite of that gives me clear steps to make things better. When I see someone else do something that doesn't work, I'd just avoid doing the same in my business.

By following these steps, I can avoid common traps and grow my business in a solid and smart way.

Quotes

"Making changes in your business based off of emotion, intuition, opinions rather than stats, data etc."

– Leila Hormozi

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"Focus is more important than time."

– Leila Hormozi

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"Ignore my customers' feedback."

– Leila Hormozi

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"Neglect systems for clean data and clean financials."

– Leila Hormozi

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"Allow inexperienced people to hire always."

– Leila Hormozi