I Lost $35M

Summary

• I experienced a substantial financial loss, to the tune of $35 million, when I was distracted by a competitor's actions.
• In an attempt to stay competitive, I increased services while decreasing prices, but this strategy failed to attract additional customers.
• The only significant change was a reduction in my profits which never recovered, even after selling my company for $46.2 million.
• Reflecting on the situation, the lesson is clear: focusing on the competition instead of paying attention to customers' needs is a mistake.
• Remember this: while losers concentrate on what others are doing, winners keep their eyes on achieving their own success.

Video

How To Take Action

A good way of doing things is to not get sidetracked by what others are doing. Here's a step-by-step plan to keep you focused on your customers and your success without spending too much time and money:

1. Assess Your Services: Look at what you're offering. Ask yourself if each service is something your customers really want. If not, consider dropping it. This keeps things simple.
2. Price Smart: Don't just drop prices to beat competitors. Make sure your prices reflect the value you give to customers. If you offer great stuff, don't be afraid to charge for it.
3. Listen to Customers: Spend time and maybe a little money to get customer feedback. Surveys or just talking to them directly are good ways. Find out what they need and how you can help.
4. Ignore the Noise: Others will always be doing things – new products, slashing prices. It's easy to get distracted. Your job is to focus on your own business.
5. Adjust Carefully: When you see competitors doing something, don't just copy it. Think if it's right for your customers. If it isn't, don't bother.

Remember, concentrate on your customers and on doing your best. You'll save money and time, and these small steps can really lead to big wins in your business.

Quotes by Alex Hormozi

"losers focus on winners winners focus on winning"

– Alex Hormozi

Full Transcript

I lost $35 million I had a competitor come out and make a new offering and I thought I had to change my business in response to that and so what I did was I added more services to my main service and I decreased my cost and nothing happened the same amount of customers stayed they just paid less and I took all of that off of my profit when I sold my company for $ 46.2 million a few years later I never had recovered that profit that I lost and the difference was $35 million all because I was thinking about my competitors more than my customers losers focus on winners winners focus on winning