How I Set Goals That ACTUALLY MAKE MONEY

Name: How I Set Goals That ACTUALLY MAKE MONEY
Uploaded: 2023-05-03T18:00:34.000Z
Duration: 14 min

Four-Step Goal Setting Process

In this video, the speaker discusses a four-step goal setting process that is different from what is commonly found in literature and videos. The process involves identifying the problem to be solved, creating a hypothesis, determining the input and output variables, and reviewing the results.

Identifying the Problem

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Lower-level employees may not be as connected to the company's overarching goals.

Goals should help get more customers, make customers worth more, or increase enterprise value.

Goals should be tied to solving a specific problem.

Creating a Hypothesis

A hypothesis defines both the activity (input) and expected outcome (output).

Stating goals as hypotheses allows for testing without guaranteeing outcomes.

Determining Input and Output Variables

The input variable is what will be done to solve the problem.

The output variable is what is expected to happen as a result of the input.

Reviewing results determines if desired outcomes were achieved.

Overall, this video provides an alternative approach to goal setting that emphasizes problem-solving and hypothesis testing. By breaking down goals into specific inputs and outputs, businesses can better track progress towards achieving their objectives.

The Importance of Incremental Improvements

In this section, the speaker emphasizes the importance of making small improvements over time to achieve significant growth in business.

One Percent Improvements

Making a series of one percent improvements can lead to significant growth in business.

Big businesses often grow by making a series of small improvements.

Excel math shows that making small improvements consistently can triple a business's revenue.

Systems for Growth

To compete with big businesses, smaller companies need to implement systems for incremental improvement.

Jim Launch grew 40% last year by doing everything they were currently doing just a little bit better.

Internal standard operating procedures and messaging are crucial for creating growth in a company.

Goal Setting Framework

In this section, the speaker discusses the importance of goal setting and provides a simple framework for effective goal setting.

Top-down Goal Setting

Goals should start from the top down and be broken down into multiple activities.

Employees at all levels should participate in goal setting to understand how their work ties into the bigger picture.

Hypotheses should be created based on goals, and progress should be measured regularly.

Simple Goal Setting Framework

The simplest goal-setting framework involves identifying problems, creating hypotheses, taking action, measuring results, and adjusting accordingly.

This framework has been successful across all portfolio companies.

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Video description

Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yt The easiest business I can help you start (free trial): https://www.skool.com/hormozi Business owners: Want to scale faster? We provide in-person advisory for companies doing at least $1M per year: https://www.acquisition.com/workshop-yt If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below. How I got here… 21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job. 23 yrs old: Left my fancy consulting job to start a business (a gym). 24 yrs old: Opened 5 gym locations. 26 yrs old: Closed down 6th gym. Lost everything. 26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time. 26 yrs old: In desperation, started licensing model as a hail mary. It worked. 27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months. 28 yrs old: Started Prestige Labs. $20M the first year. 29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months. 31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal. 31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it) 31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit. 32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses. 34 yrs old: I became co-owner of https://Skool.com to help the many people who want to start a business online do so. Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos). To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story. You either get an epic outcome or an epic story. Both mean you win. Keep crushing. May your desires be greater than your obstacles. Never quit, Alex DISCLOSURE Information shared here is for educational purposes only. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary. Copyright © 2025.