How Most Companies Die
Summary
- Most companies fail due to internal issues rather than external forces.
- Rapid growth that neglects the importance of company culture and people leads to self-destruction.
- Disregarding core values within a company often becomes apparent over time.
- A false sense of security can develop in the early years when no major issues arise.
- Negative sentiment towards company leadership serves as an early warning sign of potential problems.
- Achieving short-term success is simpler than maintaining long-term success over five, seven, or ten years.
Video
How To Take Action
I would suggest focusing on building a strong company culture first. It's important to spend time understanding what values are most important to you and your business. Write these values down and make sure everyone in your company knows them. Then, live by these values every day.
A good way to prevent internal issues is to listen to your team. See if they're happy and believe in the company. If they're saying negative things, especially about the leaders, it's time to act. Talk to them. Find out what's wrong and fix it.
If you're growing fast, remember to keep your people and culture in mind. Don't just think about making money or getting big. Growth is good, but not if it hurts your company in the long run.
To make sure your business lasts for a long time, check on the health of your company. Ask yourself: Are we growing in a healthy way? Do we have a good culture? Do our people still share our values?
If you're early in your business journey, don't get too comfortable. Problems may not show up in the first few years, but they can come later. Keep working hard to keep your company strong on the inside.
Here's a simple plan to follow:
- Write down your core values.
- Share these values with your team, and make sure they're part of everything you do.
- Listen to your team. If they're unhappy, find out why and solve problems before they get big.
- Balance growth with keeping your company's culture healthy.
- Keep checking the health of your company, even when things seem good.
By doing these things, you can help your business be successful for many years, not just a few.
Quotes by Leila Hormozi
"most companies die from the inside out not the outside in"
– Leila Hormozi
"they just grow at all costs and disregard culture"
– Leila Hormozi
"they disregard people they just recard values and it shows up"
– Leila Hormozi
"they just think their doesn't stink because they're in year three or they're year in year four"
– Leila Hormozi
"it's easy to win for 2 or 3 years"
– Leila Hormozi
Full Transcript
most companies die from the inside out not the outside in most of them implode themselves they just grow at all costs and disregard culture they disregard people they just recard values and it shows up they just think their doesn't stink because they're in year three or they're year in year four and like nothing bad has happened yet but all the leading indicators are there that something's about to happen because there's not a good culture there's no good engagement they're not saying good things about the CEO and I'm like those are all leading indicators that something bad's about to happen and it might not show up now but it's easy to win for 2 or 3 years it is easy to do that it's not easy to win for five seven or 10
