Read time: 4.5 minutes

Ever wonder why some entrepreneurs seem to have the Midas touch? Everything they build turns to gold, while others struggle to get off the ground. What's their secret?

Today, we're diving deep into the wisdom of Alex Hormozi – a man who built and sold seven businesses by the age of 33. He's identified three core skills that separate the winners from the dreamers in business. Let's break them down and explore how you can apply them to your business.

1. Selling: The Art of Value Exchange

"If you can't sell, you're just a dreamer with a hobby." - Alex Hormozi

Hormozi's approach to selling is all about creating irresistible offers.

He calls these "Grand Slam Offers" – deals so good that people feel stupid saying no.

A Grand Slam Offer isn't about lowering prices though...

It's about strategically combining nine key elements:

1. Pricing: Tie it to the value you're providing, not market rates

2. Value: Offer more than competitors, solving multiple problems at once

3. Guarantee: Remove risk for the customer

4. Naming Strategy: Make it memorable and appealing

5. Scarcity: Create limited availability

6. Urgency: Encourage immediate action

7. Bonuses: Add extra value to sweeten the deal

8. Problem-Solution Alignment: Address specific customer pain points

9. Trimming and Stacking: Optimise for high value and low cost

Hormozi emphasises finding the sweet spot on the "Sales to Fulfillment Continuum" – selling something well that's also easy to fulfil.

So how has Hormozi leveraged this?

When adjusting his marketing agency's offer, Hormozi made a clever change. We see it a lot nowadays and Hormozi's influence is a big reason behind this. So what did he do?

He shifted from a commodity-based model to a results-based approach. Instead of charging $1000 upfront plus $1000 per month, clients paid once, then a percentage based on results. If he didn't deliver 20 leads, the next month was free.

This bold move not only increased client acquisition but also had a huge impact on retention. It's a great way of reducing the risk for your clients too. It means that regardless of the outcome, they come out on top. They cannot lose!

Here's a world of warning though:

Using a results-based approach means that you take on more risk. So as the saying goes 'Don't bite off more than you can chew'. Yet this shouldn't be a problem if you can deliver results.

Auditing your current offer:

How can you increase its value without raising costs?

Can you add a bold guarantee?

These are some quick questions that may come to your mind.

But here's a quick exercise to help you audit your current offer:

1. List your current offer's components

2. Apply the "10x Test": What would you provide if customers paid 10x your current price?

3. Use the "1/10 Test": How can you ensure success if they paid 1/10 of the price?

4. Trim down possibilities, focusing on high-value, low-cost items

5. Stack the remaining elements to create a unique, high-value package

6. Craft a bold guarantee that addresses your customer's biggest fear

7. Create 3 potential names for your new offer that highlight its unique value

8. Add elements of scarcity and urgency to your offer

9. Test your new Grand Slam Offer with a small group of customers and gather feedback

2. Building: Solving Problems That Matter

Hormozi's secret to building successful businesses lies in his Diagnostic Sales Process.

Because let's be real... your business is much more than creating products or delivering services; it's about deeply understanding and solving client problems.

The Diagnostic Sales Process involves seven crucial steps:

1. Understand the customer's current situation

2. Identify their desired state

3. Quantify the gap between current and desired states

4. Calculate the cost of inaction

5. Uncover obstacles

6. Present the solution

7. Incentivise prepayment

Hormozi put this process to work when he acquired a chain of 14 brick-and-mortar locations. By implementing his Diagnostic Sales Process, he expanded to 32 locations in just 18 months. He focused on understanding business constraints, repackaging offers, and anticipating customer objections. The result? Average revenue per customer skyrocketed from $200 to $800.

Implementing the Diagnostic Sales Process:

Using this Diagnostic Sales Process brings extra clarity to everything you do. It gives you a strong and repeatable system that you can work with.

Here's how you can start piecing this together:

1. Choose one of your products or services

2. Interview 5 current customers, following the 7-step process

3. Identify common themes in their responses

4. Revise your product or service based on these insights

5. Create a new sales script that addresses the gaps you've uncovered

6. Test your revised offering with new prospects and measure the results

3. Leading: The Multiplier Effect

For Hormozi, leadership is about creating systems. These systems then allow your business to scale beyond your personal capacity. It's not just about being in charge; it's about multiplying your impact through others.

There are some key principles that govern how he thinks about leadership too. We can summarise these as follows...

Key leadership principles Hormozi swears by:

• Hire for capability, train for skills.

• Create systems that run the business, and people who run the systems.

• Focus on enhancing your team's performance to raise your own ceiling.

When scaling his gym business, Gym Launch, Hormozi put these principles into action. He developed a repeatable system for success by creating detailed processes for everything from sales to operations. This made doing business far more efficient.

By doing so, Hormozi rapidly expanded and eventually sold the business. The key reason behind this? His success wasn't dependent on his personal involvement.

Building systems in your business:

Having systems in your business makes it a whole lot easier. Here's a practical approach you can follow:

1. Identify one recurring task in your business

2. Document the process in detail, step-by-step (known as SOPs - Standard Operating Procedures)

3. Create a checklist or flowchart for this process

4. Train a team member to follow this process

5. Have them perform the task while you observe

6. Refine the process based on their feedback and performance

7. Repeat this for other tasks until you have a comprehensive operations manual

Moral of the story

You don't need to master all three skills at once. Getting good at them takes time, so don't think you can rush them. The best way is to start with one and work from there.

Think of these 3 core components like this:

• If you can sell, you'll never go hungry

• If you can build, you'll never lack opportunity

• If you can lead, you'll never lack resources

But here's where the magic happens:

Each of these three skill amplifies the others:

• Selling funds your building.

• Building gives you something worth selling.

• Leading multiplies your ability to do both.

Now remember, Hormozi didn't build seven successful businesses overnight. He built them one skill at a time, focusing on:

• Creating value

• Solving real problems

• and building systems for scale.

But let's go back to you: what skill will you start improving today?

Pick one action step and commit to implementing it this week. Your future self will thank you.

Until next week,

Ryan