The DIFFERENCE between 7 FIGURE and 8 FIGURE CEOs..
Summary
- As a successful CEO, it's important to recognize that having problems in your business doesn't mean it's broken; it's a normal part of business and life.
- At seven figures, CEOs often mistakenly see every issue as a problem needing a fix, but many of these are just facts of business that need managing, not fixing.
- Effective leadership involves distinguishing actual problems from mere challenges that are inherent to the business model you've chosen.
- High churn in a low-cost gym, like Planet Fitness, is not a problem to be fixed but a consequence of a business strategy with a low barrier to entry.
- The time and energy of a CEO should not be wasted on "problems" that aren't truly impactful. Reflecting on my own experience, many meetings I called to address issues were unnecessary in hindsight.
- Elevating to eight or nine figures requires a CEO to be very selective about what is labeled a problem and to focus on issues that are both consequential and irreversible.
- Before making significant decisions on consequential and irreversible matters, testing with small, controlled experiments can reduce risk and provide valuable insights.
- Consequential issues with irreversible impacts, like changing pricing for all customers or launching a new product line, warrant careful consideration and testing before full implementation.
- Moving from seven to eight or nine figures involves improving the strategic approach to problem-solving, focusing on growth, and advancing the team, rather than fixing non-issues.
Video
How To Take Action
I would suggest recognizing that problems are normal in business, just like in life. If you want to grow your business or yourself, you should focus on the real challenges, not just small issues.
Here's a good way of doing it: Look at your business like a low-cost gym model, where high churn rates are just part of the strategy, not a problem to fix. Spend your time and energy on big issues, not on what's expected. This helps you stay calm and not waste time.
When facing big decisions, like changing prices or starting a new product line, first try small tests. Controlled experiments give you clues on what will work without risking too much. This is much smarter than changing everything at once.
If you're busy all the time trying to solve every little thing, you might be stuck. Instead, manage the challenges that come with your business model and grow your team and business.
To move from seven to eight or nine figures, think about what's really a problem. Ask yourself: Does this challenge have a big effect and can't be changed back easily? If yes, it deserves your attention. But always test your ideas in a small way first. This way, you reduce the risk and learn important things that can guide you better.
By focusing on what's truly important and testing ideas before fully committing, you'll make smarter choices. Remember, not everything is a problem that needs fixing. Choose wisely what to work on and you'll grow faster and smarter.
Quotes
"50% of business is pretty much problems"
– Leila Hormozi
<<<
"Most people are so busy solving problems that don't actually matter"
– Leila Hormozi
<<<
"Is this just a fact of business? Is this the downside of my upside?"
– Leila Hormozi
<<<
"If you're at seven figures…you're just trying to solve problems that aren't problems"
– Leila Hormozi
<<<
"You want to be solving problems that are consequential and irreversible"
– Leila Hormozi
