Serious News

Chris Duff

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Why Most Entrepreneurs Fail (Hormozi on Strategy vs Ambition) | Ep. 257

This episode reveals Hormozi’s core success driver: strategy defined purely as relentless constraint prioritization (the Mozi Six framework), not ambition or urgency. Most businesses need more execution of existing ideas, not new ones—Hormozi’s team tackles one big idea per year despite massive resources, proving focus trumps volume of initiatives.

Key Takeaways:

  • Strategy Beats Ambition Every Time Hormozi attributes success to prioritizing core constraints over internal urgency—most entrepreneurs have ambition but spin wheels on wrong priorities for years without strategic blocking and tackling.
  • Consistency Is Incomprehensible Without Living It Hormozi and Layla worked almost every day for 13 years, defining workdays as minimum 10 hours—concepts like “100 straight days of 10+ hour work” can’t be grasped intellectually, only experienced.
  • Software Needs Three Metrics, Not Just “Software” High gross margins, sticky low churn, and viral potential create valuation—software isn’t inherently valuable, these outcomes are, and other business models can achieve them too.

Listen for Hormozi’s regret minimization framework around time allocation and why he values 2.5-hour daily exercise sessions despite the opportunity cost to wealth building.

(Podcast transcript below)

Welcome to Get Serious. I already have some very interesting big deals to review here today on the live Land Daily Diligence session. Excited for that, but in the meantime, I wanted to dive into more notes from the Hormozi live event. And I just wrote more about that on today’s earlier newsletter. I think that came out really well as I applied some of the

learnings directly to land businesses. So hopefully some of those unique insights or what I perceive to be unique considering I hadn’t even thought of them before, you know, until I sat down to write it. Hopefully they’re helpful for your own business, you know, applying those more general business tactics to exactly your own situation. So we’re going to dive further into the notes here. Again, I’ve done now a number of these.

Podcast from that live event You know again, it was structured as 11 straight hours with Alex Ramozi, you know across various one-on-one fireside chats with other entrepreneurs As well as an open mic audience session here tons and tons of notes and it was primarily marketers in The audience there no surprise given it was an event for his affiliates from the

most recent book launch. And so, you know, this particular topic certainly hit home because I was, I guess I shouldn’t have been that surprised. It’s like, you know, I think a lot of ambitious entrepreneurs, like they have somewhat similar thoughts on which, know, you know, there’s only, there’s only so many avenues that you can kind of create a business in. And, you know, some businesses are just naturally going to be.

you know, potentially more lucrative than, than, than others. and so I think a lot of folks might think of similar type of plays, to, to go after. And, know, like I mentioned in today’s newsletter and something from most like always references, like the, you know, the three components to run a business is you need marketing, sales, and the ability to deliver. If you have those three things, you have a business.

again, assuming you’re financially solvent. So with that in mind, like there were a number of entrepreneurs who were just thinking, oh, you know, I have a coaching business. I have an info product. I have an agency or just like running a affiliate business. And they wanted to create a software around whatever core product they had, particularly utilizing, you know, these new AI coding techniques and

you know, the cost of development, engineering cost, like it has just steadily gone down since, you know, the advent of, you know, quad code and what is it, Codex or something on the open AI platform. So it’s just, I think really attractive. I don’t know if it’s quite a fad, but you know, it’s probably just going to continue to lend itself to where, you know, these entrepreneurs are just saying like, okay, the,

threshold to build a software product is just lower now, so why not take our expertise and try to build another product on top of what we’re already doing and take advantage of the AI potential bubble that we’re in and get an exit for a bigger payday, sooner rather than later. So, again, this is not unique.

Thought of that myself from the land price perspective as well too, of pursuing a software on top of other line of business. Alex was pushing back often on this just because I guess it’s not that easy to build. Software works really, really well as a business model. Once you get over the initial hump, it’s more of a…

slow, very, very slow ramp up because of all the time to make your product good and the development required, et cetera, and gain users and so forth. But once you can get it to the point of scaling, like it scales very, very well. So you just have to be aware of those type of, or that type of business paradigm versus like an intro product or, you know, potentially a, you know, service business where it might be more linear or, you know, just faster growth compared to,

software and you know Alex was just mentioning you know how often that he’s seen that you know marketers tend to be bad product people I’ve kind of learned that firsthand myself as well too with just like the skill set that you have to overcome and that was something you know that Alex was mentioning often as well too is like it it typically takes like five years five years in business to

to start to understand how the industry actually works and to see all of the kind of moving parts that you need to address and take advantage of to really grow your business more. like jumping into another type of product or even full on industry sometimes, you have to restart that five year process technically. So.

It’s just something to keep in mind. like, he does, he just hasn’t seen, you know, he’s just trying to think of examples of other folks who have done that successfully, like markers, okay, build another product, especially software at the same time they’re doing a business. And it’s like, yeah, it’s just not, something that, that he’s seen, firsthand, like really ever done. and a lot, you know, not saying like it couldn’t be done because like I can name, you know, my mentor, you know,

Brian Leveque in the internet marketing space who built up an internet marketing company, Info Product as well as Bucket.io, a software company and sold both at the same time. That being said, I saw him recently, was like, yeah, if we were to just focus on one business, we probably could have even had a larger exit. And he had like a really killer team. mean, a hundred people in his organization, like super, super solid, well resourced, like.

It was feasible, which is not easy to do. So it’s like, you know, kind of more to Alex’s point, you need to be like pretty special to pull it off. And the fact that a lot of marketers like they’ll focus on, you know, the sales side, it’s more like, okay, we’re going to build a product and you know, whenever they’re being marketers, like, okay, how do we get the conversions? So they think it’s, you know, building a product or software.

is much more of, right, we just have to line it up to get conversions in the door, just orient around sales. But the problem is for software is like the product needs to be good. And so you need to focus a lot more on the delivery of the service and product compared to just optimizing for sales. And so that’s something that marketers just don’t get right most of the time. And again, I had to learn this, this lesson.

firsthand as well to They gotta come from more of a marketing background And yeah, really I fell into like the same trap like focusing more. yeah, I can kind of The reputation everything that we’ve done is orient around sales, but like okay We have to make sure that the product is better than You know anything else here and our ability to deliver

like has to be paramount and that’s just what so many more marketing oriented entrepreneurs fall prey to when they attempt to build a software. And Alex really push backs like, okay, people get attracted to those big dollar signs and possible software exits, et cetera. But he was really saying, hey, software in and of itself is not valuable. Like software just writ large is not a valuable thing inherently.

What is valuable is having a product that has high gross margins is sticky and anything like low churn rate and you know has a potential viral component. So if you put all three of those together, like that’s what makes a business very very attractive from a valuation standpoint.

but that’s not inherent to software. There are other businesses that can nail those three with software. If you do it well, like nail all of those three probably more consistently than any other type of business offering. But know, Hermosy was really pointing that out. It’s like, yeah, it’s not the software that’s that’s valuable. It’s what, you know, the metrics that you can build from software that, you know, make that business valuable. It’s like you have to be able to separate, separate out those two.

And again, he really went back to like, yeah, the only examples he’s seen of like bigger marketers that pulled off, you know, larger software exits, like not just, you know, kind of side gig type things. they really had to go all in and, you know, kind of give up their previous businesses. Like he’s, he was mentioning, you know, there were a couple of examples. I forget the names here, but, you know, one of his

marketing friends that had done very well and then went into a cave basically and just trained himself on this new software play for four something years. This might have been the guy who started school, I think. Just learning the product side, how do we build a platform? And getting through 600 CTO interviews before they settled on a CTO, I just…

understanding, we need somebody super, super solid for the dev side, just knowing that delivery was more important than anything else related to that particular business. So like, just like a sacrifice that a lot of people aren’t willing to do. And where, you know, especially if you found some success in another line of business, it’s like, a lot of people don’t want to go backwards with their lifestyle. So if you’ve already like worked that hard to like earn

some type of income and increased lifestyle here. it’s, it usually like sets a new baseline that you’re just expecting almost for the rest of your life. Like there’s only a handful of folks that are willing to go backwards in lifestyle or, you know, risk their current lifestyle in order to potentially, you know, see something even greater on the other side. But like a lot of people don’t want to risk that. So, and at the same time it’s like you might’ve

you know, besides lifestyles, like developed a lot of reputation or expertise in, um, you know, just kind of the capability in the area of focus that you’ve had before. But, you know, if you’re going to try to build like software product or get into some other industry, like you have to jump to a lower skill set. Like you started at zero again, and now all of sudden you’re zero on the product skill set that you might’ve been, you know, an eight or nine, potentially even a 10 in other areas that you got recognized and paid for. So.

Again, I can very much relate to this with how different software build-outs are compared to running a capital kind of funding business. So you just have to be able to eat that humility in the meantime. again, software and building software product just tends to be expensive. Even with the advent of AI and so forth, it’s just on average more difficult.

you got to try to bootstrap your way in. Again, it’s hard to get software companies off the ground. So like you might have to be eating up savings and it just might not work like this. There’s the inherent risk there. You’re going to enter into more uncertainty. again, Hormozu was like just pointing this out of like, the guys you’ve seen succeed do it. Like they had to go into a hole in a cave for years to sort it out and being willing to, you know, go all in on that venture and potentially risk again what they had already built.

And you know having to build up from zero again from another skill set perspective like it can be done. It’s just It’s very very difficult and that You know, think his overall message like yeah, it’s just not It’s not as easy as everybody thinks so then I was I was just I guess I shouldn’t have been as surprised again Just like given entrepreneurs always trying to find a way to make an extra buck and so forth. But like how many other Business owners were at that live event

that we’re just like, yeah, we’re running our own business, let’s start software around it, AI oriented, just trying to get an exit and so forth. So, yeah, it was helpful to hear her mostly like point out a number of the pitfalls within that, within that pathway.

So then just a couple other things to mention here as I jump into another

fireside chat is that

You know, one of the entrepreneurs there was just kind of asking Alex like where, you know, all the success that he’s gotten, was that like more from like internal urgency, just like kind of an inbuilt belief to himself. Like, yeah, it’s important. But, you know, by far, he was like, yeah, the main reason he’s had so much success is just like, just focusing on strategy, which he…

defines purely as like prioritization of tackling the core constraint within his business, which again, goes back to that mozy six, which I’ve talked about before. It’s like, why can’t you do more? It’s just like relentless focus on that. And he says, you know, he’ll talk with his 85 year old self and like it usually centers around like that mozy six paradigm. Like, okay, what else can I be doing that, you know, doing more of.

that we’re currently not. What is that core constraint here? It’s like, the actual blocking and tackling, orienting around priorities, it’s just, that is the primary reason it’s been so successful versus any kind hardcore verve of just ambition for ambition’s sake. That is important, having a sense of urgency, but plenty of folks have that, but they just have the wrong.

Like I think a lot, like most entrepreneurs have that, right? It’s just like how many of us just prioritize around the wrong stuff and we just spin our wheels for years. So I think that was a really relevant takeaway there. And, you know, that kind of is coupled with, you know, where he was mentioning that, you know, most businesses, like they just need more execution, less ideas. Like that’s hard. Yeah, this is a routine thing that came up and I have to remind myself that constantly.

Yeah, most entrepreneurs like we’re just we’re ideas people vision and we can do this this this this like Alex say like, you know, even with all the resources that he has a big company out like they might tackle like one big idea per year one and we have like way less resources on average compared to like acquisition comm and so forth. So it’s like why not just focus on just executing what you’ve already got going well for us just doing more and more and more of that.

You don’t need more ideas. You just need to execute even better. It’s the boring stuff. It’s boring stuff that that drives the results And You know I know sometimes for most you’ll talk like it okay, yeah hard work or etc and He’s just mentioning, you know, it’s Really difficult to understand what consistency means unless you’re there with the person being

consistent yourself. Like what does it mean to show up every day at 6am and work for 12 hours straight, 6 or 7 days a week. Like you can conceptualize that in your head, maybe you’re even doing that personally. But I think that’s when you hear the amount of time Alex and his team and him and Layla have just put in year after year after year, it’s really hard to grasp.

you know, internally, unless again, you’re actually showing up and you just made that point or like same thing going to the gym, like what does it mean to be consistent going to gym? Like you have to kind of be there to even understand what it takes to show up day after day after day. And, you know, he was just mentioning, you know, him and Layla have worked like almost every day for like the last 13 years.

Over a decade almost seven days a week for You know that amount of time like it’s just it’s a stunning amount of so, you know, it’s over 3,000 days Well over Well over that actually like just you know start stringing that out and he’s like and and what he considers a workday is like The minimum 10 hours he’s like, yeah, you know stop working before like 2 p.m. That doesn’t count

Like, you know, if get to that 10 hour number, like that is what he would consider a true work day. And again, when you’d like actually put that in perspective and, you know, can talk about that, like, yeah, okay, we can conceptualize, but it’s, it’s hard to entertain. unless you were like actually showing up at the office and understanding, okay, yeah, this guy is.

this hardcore. Like there’s only a handful of people that can truly pull that off and like there’s a reason. They have just so much incredible content out there and the world record book launch, all that type of stuff. Because it shows, right? The work shows just how much more productive him and his team have been over this very extended period of time. If you want these type of results for yourself, that’s what it takes to do.

I just think like that bears worth reminding because like even hearing that it like makes us probably even a bit uncomfortable internally like I don’t know if I can really pull that off or you know, it’s good for it, but it’s like hey This is the example like if you’re trying to learn from The the best here. This is you know, probably the reason you know Or maybe even solely the reason why they’ve they’ve achieved the results that that they have Like Alex was saying earlier, you know, it’s the strategy and prioritization

know ruthless amounts of it is is the core reason And just willing to to deal with with the pain of that so it’s like Okay, keeping that in mind as a precedent even if you don’t want to live that lifestyle like can you can you do a fraction of that can you even do like a year’s worth and you our most it’s like Not always, you know, it’s a lot of pain tolerance, right? He’s like, yeah like this over this previous year. There was like one day where he worked, you know, a hundred days just straight

You know, again, at least 10 hours, that’s at least a thousand hours put together just for a hundred days straight, no days off ever. Like that is just, it’s a tremendous amount of time. Like again, you really have to put that, put that into perspective for what it takes to be the best out there. That’s what the best are doing. So, you know, that’s what he just mentioned. like, okay, what levers can you pull to get any of this done? Like what?

What are you not doing that other people are willing to sacrifice in order to get those results like You’re you’re bound to have other lovers that that you have not pulled yet or not considered pulled yet or just too scared or Uncomfortable to pull at the moment So what do you need to do within your business? To get that next level because you know all of us if we haven’t achieved the results that that we would like It’s because we aren’t good enough yet, and you just have to be honest with yourself

for what it’s going to take to get that good, to get to that level. So that’s just the name of the game. that’s…

the to that page of notes there. Hopefully this one was helpful. Again, I get so much out of that, but just by refreshing what what I wrote down. So looking forward to the next time around here, we’re definitely over the halfway point here. There’s still some like really more critical insights looking forward to it. Seriously land dot capital for any of your funding needs and Land Daily Diligence Facebook group, like I mentioned, subscribe and share everybody.

Sign up for a serious news newsletter if you haven’t already. Continuing to grow week by week. Take care everybody. Bye.

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