How To Do Anything Exceptionally Well (even if you’re starting out)

AAlex Hormozi
ManagementBooks & LiteratureAdvertising/MarketingSmall Business/Startups

Transcript

00:00:00I want to show you how I became number one in different fields, industries,
00:00:03and even broke a world record, and how you can apply the same process
00:00:06to winning or getting whatever it is that you want.
00:00:08My name is Joshua Muzzi.
00:00:09I'm a portfolio of companies at acquisition.com
00:00:11that generates 250 million dollars per year in aggregate revenue.
00:00:14I did a book launch that did 106 million dollars in a weekend
00:00:17and broke the Guinness World Record
00:00:18for the fastest selling nonfiction book of all time.
00:00:21And so there's my kind of proof behind that.
00:00:23So in this video, I'm going to explain a core shift in my understanding
00:00:25of getting what I wanted and specifically in business.
00:00:28So this will be a belief breaker for you guys.
00:00:29So I talked to business owners for a living every single day,
00:00:32like literally every week, and I have for, you know, a decade plus.
00:00:35And one of the things that drives me absolutely nuts
00:00:37is the idea of industry standards.
00:00:40So you've probably heard this.
00:00:40People are like, oh, this is industry standard.
00:00:42That's industry standard.
00:00:42And I'll tell you a real conversation that might shift this for you.
00:00:46So there was a company that I recently met with about a 500 million dollar company.
00:00:50So I have a billion dollar company, right?
00:00:52And, you know, they were efficient, but it's an old school model.
00:00:55So I met with the chiefs of that business and I met with the leaders, right?
00:00:58And the entrepreneur who runs the business wanted me to look at certain components
00:01:02of how they do things in terms of acquisition and things like that.
00:01:04And when I walk them through their acquisition process, I was like, hey,
00:01:09these are some things that need to change.
00:01:10And there was a lady who was there who was in charge of probably maybe half of it.
00:01:15And at least, you know, it fell under her purview.
00:01:17And as I would, you know, point out things that were bad
00:01:20or like needed improvement, she kept repeating the same thing,
00:01:24which is like, well, you know, we're industry standard.
00:01:26And she'd be like, we're meeting industry standards.
00:01:29And she would get really kind of flustered.
00:01:31And she kind of, I would say, maybe to a degree, got offended because I was saying, well,
00:01:35you know, this sucks and this sucks and these numbers aren't good.
00:01:37And they kept repeating, we're meeting industry standards.
00:01:40And so I paused and I was like, do you wake up in the morning and just say,
00:01:45I want to be an average company, right?
00:01:49We are average.
00:01:50Half the people are better than us and half are worse.
00:01:54We are average.
00:01:56Who gives a shit, right?
00:01:58I don't know about you, but like I didn't get in the game,
00:02:00whatever game you're playing, to be average.
00:02:02Like the average business is average.
00:02:03The average American is overweight, they're in debt, they're divorced, they're depressed.
00:02:07And so the average business makes almost no money.
00:02:09Why would I use industry standards, industry averages, anything like that at all?
00:02:14And I say this because I have people who will push back on some of the things that I talk
00:02:18about with regards to margin, when I think things I talk about in terms of timeline,
00:02:21when I talk in terms of pricing, right?
00:02:23And they'll say something like, well, you know, in HVAC, it's different.
00:02:26Or, you know, in SCO, it's a little bit different.
00:02:28Or, you know, we've got XYZ issue in trucking and it's different.
00:02:33It's logistics, it's different.
00:02:34No, it's not.
00:02:36You get what you tolerate.
00:02:38You get what you accept and deem good enough.
00:02:41You are the standard setter.
00:02:44It is the highest and most important job in the company.
00:02:47And it is why some companies prevail and some companies fail.
00:02:50It's the reason that Jobs was so important for Apple.
00:02:53Elon was so important for Tesla and XAI and all the other things that he does.
00:02:57And like at a certain point, you cannot actually do anything in the company except
00:03:02for hold the fucking line.
00:03:06And the person who should run every department or every division should be the
00:03:11person with the highest standards, right?
00:03:13And this applies to everything, right?
00:03:15Sales rates, closing percentages, profit margins, cash flow, the people you date, the
00:03:19body fat percentage you hold, how fast you expect something to get done.
00:03:23Literally everything.
00:03:24Real quick, I'm going to show you the exact 10 stage roadmap from zero to a hundred
00:03:29million plus that less than 1% of companies finish.
00:03:32I've now done multiple times.
00:03:33And so I can say with a lot of confidence that these are the stages as headcount
00:03:36increases that you need to get through.
00:03:39And I broke each of these down by eight different functions of the business, what
00:03:42the constraint feels like, like what are the symptoms of it when you're going
00:03:45through it, and then what steps we actually took to graduate.
00:03:48And we've done this across software, physical products, service businesses,
00:03:52brick and mortar, all of this, and it works.
00:03:55And it's my gift to you.
00:03:56It's absolutely free.
00:03:57And so the link's in the description, but you just go acquisition.com/roadmap.
00:04:00Just enter your info and it'll spit it right back to you all free.
00:04:02So let me tell you a story about a billionaire mentor of mine.
00:04:05Again, had a conversation many years ago.
00:04:07And he said this thing to me that I'll never forget.
00:04:09He said, profit is unnatural.
00:04:13And I was like, what does he really mean by that?
00:04:15He said, it's common and normal for people when money is in a bank account to spend it.
00:04:22And that's why most people don't have money.
00:04:24He said, so if you have a company and it makes money and it actually starts to
00:04:28succeed, that success has this constant pressure of normalcy that fights against it.
00:04:33And so there has to be someone who holds the line and is like, no, we will not
00:04:39spend more, but we will keep making more.
00:04:41We will get more customers and we will not hire more people.
00:04:43We will find a way to service these customers better than we did our last customers
00:04:46without adding headcount.
00:04:48And we're going to do it even better, even faster with less.
00:04:51And so let me tell you another example of something that just happened in one of our
00:04:55portfolio companies. So they needed to add 15 sales reps to hit their Q1 goals.
00:05:00And so the leader was saying how his plan was to hire five reps a month every single
00:05:04month. And doing it this way, he said, would stretch the team, but it would still kind
00:05:08of ensure quality, make sure the culture wasn't too stressed, etc.
00:05:12And honestly, it was a fair plan, right?
00:05:14But for this business, the extra sales guys were going to add about four million in
00:05:18profit that quarter.
00:05:21That's how much extra he was going to add, just that quarter.
00:05:23So I pushed back and I said, why can't we do it in a month?
00:05:27He had a lot of different reasons of, you know, like it'll be cultural, I think we'll
00:05:31stretch the team, we might lose other sales in other places.
00:05:33And I kept pushing and pushing, but he had some reasons to come back.
00:05:36And thankfully, he's a stud.
00:05:38And then after the meeting, he messaged me back and said, two of our guys have bandwidth
00:05:42who are more senior. They can assist the new manager and onboard three to five guys each.
00:05:45If we do that, we can actually do it in a month.
00:05:47And boom, four million dollars more potential next year in Q1 because of one thing, a
00:05:55higher standard. Just saying like, why does it need to take that long?
00:05:59Why can't we like if we were if we were doing a billion in sales in this business, we
00:06:04probably wouldn't say we need to hire five guys a month.
00:06:07No way. Right. We'd be like, we need to start with 50 and maybe add 50 every other week.
00:06:11Right. The it's just this minimum standard of of something that you decide is enough or
00:06:17acceptable. And the crazy part about it is like we're the ones who decide this and then
00:06:21we're upset that we don't get or that we're upset that we got the fruit of our very low
00:06:25standards. And so the way that you can kind of know kind of what your standards are, what
00:06:30the standards of somebody else on your team is, is how many attack vectors you use to
00:06:35approach or solve a problem.
00:06:36Right. So it's not about doing the same thing 100 times.
00:06:39That's not smart. Right.
00:06:40It's about trying to accomplish the same goal with a hundred different iterations and
00:06:44angles until one finally gets through till you pass the goalie till you till you chop down
00:06:50the tree. Right. It's like, well, I'm hitting it this way and I'm getting rock.
00:06:52It's like, OK, well, then let's try from another angle.
00:06:54Let's try underneath. Let's see if we can poison the tree like whatever we need to do.
00:06:57Like, can we reach out to our network and give a hundred thousand dollar bounty for another
00:07:01SDR? Is there a company with a largest your team that doesn't make as much as that we can
00:07:05buy? Can we can we hire five recruiters to speed up the process?
00:07:09Can we fly all of the SDRs in person to get them trained up faster so we don't lose
00:07:14cultural issues and we can get them on ramped in in three days rather than in 30 days?
00:07:19Right. In the top two, you know, most experienced guys who have some blank space have
00:07:23them sub in. Bingo.
00:07:24Right. All of these have costs, obviously, but of the costs, they're still worth it.
00:07:30So you're not getting what you want because you're not attacking the problems you have
00:07:34enough times in enough ways.
00:07:35So you're trying one or two things and then saying, like, I tried that and it didn't
00:07:38work. I tried Facebook ads.
00:07:40You know, I tried making content.
00:07:41I tried hiring a salesman and it didn't work.
00:07:43It's like, no, it's not that it didn't work.
00:07:46It's that you weren't skilled enough to make it work.
00:07:48Very big difference.
00:07:50And so you're going to tell me that no one on Earth has ever had the same problem that
00:07:54you have right now. And of those many people on Earth without it, no one solved it.
00:07:59You have somehow come across the Gordian knot of problems.
00:08:02No one has hired more than five SDRs in this period of time for a company of this size.
00:08:07Of course they have.
00:08:08And that's why those people won.
00:08:10And they didn't just accept that it wasn't possible within this timeline.
00:08:14And so the rules that I would encourage you to live by is that unless the laws of physics
00:08:18prevent it, consider it mental handicaps that your competition gets to live by and measure
00:08:22themselves by. Not a suggestion, a recommendation and certainly not a fucking law.
00:08:27Right. Industry standards are a handicap that you like your competitors use and think
00:08:31they're doing well. That is the gift that we get as soon as you get out of this belief,
00:08:36because if you want to be average, use industry averages.
00:08:39And most industry average businesses suck.
00:08:41Right. Why would we look at them to judge ourselves by like, oh, this guy's completely
00:08:46broken, distracted, has no idea what he's doing.
00:08:48I should look what his numbers are and say, oh, we're about the same.
00:08:50Is that an accomplishment? Should we be looking forward to something like that happen?
00:08:54Like if you want to be the best, use physics and math and then work backwards.
00:08:58And so I think something that'd be really good to finish on is this great piece by Jeff
00:09:03Bezos. And I want to read it to you because I think it just really drives this point home.
00:09:06Differentiation is survival and the universe wants you to be typical.
00:09:10This is my last annual shareholder letter as CEO of Amazon.
00:09:15And I have one last thing of utmost importance.
00:09:17I feel compelled to teach.
00:09:18I hope all Amazonians take it to heart.
00:09:21So here's a passage from Richard Dawkins' extraordinary book, The Blind Watchmaker.
00:09:25It's about the basic fact of biology.
00:09:27Staving off death is a thing that you have to work at, left to itself.
00:09:33And that is what it is when it dies.
00:09:34The body tends to revert to the state of equilibrium within its environment.
00:09:39If you measure some quantity, such as temperature, the acidity, the water content or
00:09:44the electrical potential in a living body, you'll typically find that it's markedly
00:09:47different from the corresponding measure in the surroundings.
00:09:50Our bodies, for instance, are usually hotter than the surroundings.
00:09:53And in cold climates, they have to work hard to maintain that differential.
00:09:57When we die, the work stops.
00:10:00The temperature differential starts to dissipate and we end up the same
00:10:04temperature as our surroundings.
00:10:05Not all animals work so hard to avoid coming into equilibrium with their
00:10:10surrounding temperature, but all animals do some comparable work.
00:10:14For instance, in a dry country, animals and plants work to maintain the fluid
00:10:19content of their cells, work against a natural tendency for water to flow from
00:10:24them into the dry outside world.
00:10:27If they fail, they die.
00:10:30More generally, if living things didn't work actively to prevent it, they would
00:10:34eventually merge into their surroundings and cease to exist as autonomous beings.
00:10:38This is what happens when they die.
00:10:40While the passage is not intended as a metaphor, it's nevertheless a fantastic
00:10:43one and very relevant to Amazon.
00:10:45I would argue it's relevant to all companies and all institutions and to each
00:10:48of our individual lives too.
00:10:49In what ways does the world pull at you in an attempt to make you normal?
00:10:53How much work does it take to maintain your distinctiveness, to keep alive the
00:10:57thing or things that make you special?
00:10:58I know a happily married couple who have a running joke in their relationship.
00:11:02Not infrequently, the husband looks at his wife with faux distress and says to her,
00:11:06can't you just be normal?
00:11:07They both smile and laugh.
00:11:09And of course the deep truth is that her distinctiveness is something that he loves
00:11:12about her.
00:11:13But at the same time, it's also true that things would be often easier, take less
00:11:16energy if they were a little more normal, right?
00:11:19This is, this phenomenon happens at scale at all levels.
00:11:23Democracies are not normal.
00:11:24Tyranny is this historical norm.
00:11:26If we stopped doing all of the continuous work that is needed to maintain our
00:11:30distinctiveness in that regard, we would quickly come into equilibrium with tyranny.
00:11:34We all know that distinctiveness, originality is valuable.
00:11:38We're all taught to be yourself.
00:11:40What I'm really asking you to do is to embrace and be realistic about how much
00:11:44energy it takes to maintain that distinctiveness.
00:11:46The world wants you to be typical in a thousand ways it pulls at you.
00:11:49Don't let it happen.
00:11:50You have to pay a price for your distinctiveness and it's worth it.
00:11:54The fairytale version of be yourself is that all your pain stops as soon as you
00:11:57allow distinctiveness to shine.
00:11:58That version is misleading.
00:12:00Being yourself is worth it, but don't expect to be easy or free.
00:12:04You'll have to put energy into it continuously.
00:12:07The world will always try to make Amazon more typical, to bring us into equilibrium
00:12:11with our environment.
00:12:12It will take continuous effort, but we can and we must be better than that.
00:12:16You have to hold the fucking line.
00:12:17Like this is the last letter that Jeff Bezos wrote.
00:12:21And can you think about like all the things that he wanted to say, the thing that he
00:12:25chose to leave on was the line, was this is the standard.
00:12:29This is what makes us different.
00:12:30And of course, it's going to take work.
00:12:32Of course, it's going to take more ways to solve the problem.
00:12:34It might cost millions more in order to do the better solution than the easy solution.
00:12:40But like I, if I could just transfer this one thing, like you can tell how good
00:12:47someone will be as an entrepreneur by the standards they keep for themselves.
00:12:51They continue to push back and say, like, why can't it be faster?
00:12:54Why can't it be easier?
00:12:55And there's famous stories of Steve Jobs putting the phone book on the desk and saying
00:12:59it has to fit in there.
00:13:00As people say, like, it's never been done before.
00:13:02Right.
00:13:02And you've got Elon Musk going on, you know, on the manufacturing line saying this could
00:13:06have two bolts.
00:13:07And like, there's no way no one's done it before.
00:13:08And he's like, break it down to physics.
00:13:10Why can't we do this?
00:13:11Right.
00:13:12And so when someone pushes back on you and says like, you know, we can't hire that fast.
00:13:16It's like, why?
00:13:16What physical law is preventing us from hiring that fast?
00:13:18If another company who's 20 times their size can hire 100 people a day, why is it taking
00:13:23us a year to do it?
00:13:23Right.
00:13:24What choice are we choosing or what cost are we not choosing to bear that we could bear to
00:13:28make the investment to pull our future forward?
00:13:29And I think it's like that push, that relentless energy, the drive to choose to be
00:13:36different, right?
00:13:37To choose to hold a value, the perfect value that you have as the ideal, and then to
00:13:43strive continuously and though imperfectly to try and live that out.
00:13:48And I think of that as like the reason you win or you don't win.
00:13:52And again, I'm not talking table stakes.
00:13:53If you want to be average, then just look at industry averages, right?
00:13:56Look at industry norms, industry standards.
00:13:58But most businesses, if you looked at the average business in the U.S., they break even.
00:14:04The median business owner almost makes no money.
00:14:05Right.
00:14:06And so it's like, why would we measure ourselves by that?
00:14:08We have to, by very definition, reject the vast majority of what other people do in order
00:14:13to achieve what other people can't.
00:14:15And I think that that is like, like I would I would encourage you to be less reasonable.
00:14:20And I would say that it has been a skill that has served me well.
00:14:23I mean, you can imagine having saying, hey, I want to break the world record that every
00:14:28other person who has had a book has had massive media empires.
00:14:32They've had big deals.
00:14:33They had national media behind them for presidents and monarchs who released books.
00:14:38And I'm saying I'm just some guy in America saying like, let's see if we can do more than
00:14:43all of them. And we did.
00:14:46We fucking did. Right.
00:14:47We outsold Prince Harry Obama combined within 24 hours.
00:14:53And please don't kill me for having some point of disrespect for whatever secret nations
00:14:58exist. Right. But I'm only saying this to make the point, which is like when I when I set
00:15:02that goal originally, can you imagine the amount of people who are like, I don't know if
00:15:05that's realistic, man, like, hey, that's a really big number.
00:15:07Like, I've really thought I mean, like, but what if it doesn't happen?
00:15:09I had someone ask me that. They said, well, what if we don't hit the goal?
00:15:12And I said, we dare greatly, motherfucker.
00:15:15That's the point. Like, so what if we don't hit the goal?
00:15:18It doesn't mean we don't we give ourselves an excuse to not try, but like try in earnest,
00:15:23not say like, oh, we're going to do this and we hope this happens.
00:15:26It's like, no, we want to have five different versions of this thing going wrong and it's
00:15:30still hitting the goal.
00:15:31And so I say this because like the goals that I have and probably the goals that you have
00:15:36never apologize for them.
00:15:38They're there. It's normal for them to be unreasonable, but you don't need to be
00:15:42reasonable. The world wants you to be reasonable.
00:15:43It's like you need to be unreasonable.
00:15:45You need to stick your feet in the mud and the certain amount of stubbornness that's
00:15:48required. And I think part of the reason that Peter Thiel and some of these great
00:15:51investors talk about phenomenal entrepreneurs is that they have sometimes they don't have
00:15:55super high agreeableness is that they don't need consensus.
00:15:57They don't need everyone else to like them because they they believe what they believe.
00:16:01Right. And the thing is, is that in order to have an outsized return at anything, you have
00:16:04to bet against conventional wisdom.
00:16:06Right. And conventional wisdom can be right.
00:16:09And so that means that fundamentally either you're an idiot or you're right and you're
00:16:12early and that's where you get rewarded.
00:16:14And so you have to think like at least the process I come down to is always like what
00:16:18physical law of reality prevents us from selling this many books.
00:16:21And that's why it came down to like, all right, we'll have multiple generators like we
00:16:24don't have power. We can't sell books.
00:16:25We have to make sure that we have backups for Internet.
00:16:28We don't have Internet. We can't sell books.
00:16:29OK. Do we have enough books?
00:16:30So we got to print them. OK, great.
00:16:32We have to have logistics that we have hundreds and hundreds of people ready to actually
00:16:34ship those books out. OK. If we have each of these things, then all that it really takes is
00:16:38enough people to see it and an offer enough that is compelling.
00:16:41That makes sense for a big enough audience to say yes, that's it.
00:16:45And so you have these problems in your business.
00:16:49You're not cash flowing enough. You're not hiring fast enough.
00:16:51You're not your price isn't what you want it to be.
00:16:53If you believe and you could reason it say like what prevents us from doing this.
00:16:57I think that that's where you can get these special outsized returns.
00:17:02I think that's where you can have the unreasonable accomplishments.
00:17:04But it comes first from having unreasonable conviction that you will hold the line, that
00:17:09this will be the standard that you have.
00:17:10And the fact that no one else has ever done it before means absolutely nothing to you
00:17:14because there's no reason that they couldn't have done it.
00:17:16And good on you for ignoring the fact of their mediocrity.

Key Takeaway

To achieve extraordinary success, one must reject industry averages and maintain an uncompromisingly high standard through relentless problem-solving and first-principles thinking.

Highlights

Rejecting "industry standards" as a benchmark for average or mediocre performance.

The concept of "Profit is Unnatural" and the necessity of resisting the pressure to increase spending as revenue grows.

The importance of being the "standard setter" and holding the line on high expectations within an organization.

Using multiple "attack vectors" to solve problems rather than giving up after one or two failed attempts.

The biological and organizational necessity of maintaining distinctiveness to avoid the "equilibrium" of death or failure.

Applying first-principles thinking by asking what physical laws prevent a goal from being achieved.

Being "unreasonable" and stubborn in the pursuit of outsized returns and world-record goals.

Timeline

Introduction and the Trap of Industry Standards

Joshua Muzzi introduces himself as a portfolio owner at acquisition.com, highlighting his success in generating 250 million dollars in aggregate revenue and breaking a world record for book sales. He critiques the common reliance on "industry standards," arguing that these benchmarks are merely synonyms for being average. In business, being average often means making no money, similar to how the average person may struggle with debt or health. He shares a story about a 500 million dollar company that defended its poor performance by claiming to meet these mediocre standards. Muzzi asserts that a leader's primary job is to be the standard setter and to reject anything deemed "good enough" by the masses.

Holding the Line and the Nature of Profit

The speaker explains that the most important role in a company is holding the line on standards, citing leaders like Steve Jobs and Elon Musk as examples. He introduces a lesson from a billionaire mentor: profit is "unnatural" because the natural human tendency is to spend whatever money is available. Maintaining success requires constant resistance against the pressure of normalcy and the urge to increase headcount or costs. The goal is to service customers better and faster while keeping resources lean. Muzzi also offers a free "10 stage roadmap" to 100 million dollars available at his website to help others navigate these organizational growth stages. This section emphasizes that success is a constant fight against the gravitational pull of mediocrity.

Accelerating Results through Attack Vectors

Muzzi describes a real-world scenario with a portfolio company that planned to hire 15 sales reps over three months to ensure quality. By challenging the leader to do it in one month, they discovered a way to leverage senior staff for onboarding, potentially adding 4 million dollars in profit for the quarter. He argues that people fail to get what they want not because it is impossible, but because they do not use enough "attack vectors" to solve problems. It is not about doing the same thing 100 times, but about trying 100 different iterations and angles until the goal is met. He lists various creative strategies, such as hiring recruiters, offering bounties, or flying staff in for intensive training. This proactive approach separates winners from those who simply say, "I tried that and it didn't work."

Biology, Physics, and the Price of Distinctiveness

The speaker insists that unless the laws of physics prevent a goal, any limitation is merely a "mental handicap" adopted from the competition. He references Jeff Bezos' final shareholder letter, which quotes Richard Dawkins on the biological imperative to stay distinct from one's environment. In biology, a body that reaches equilibrium with its surroundings is dead; similarly, a company that becomes typical ceases to be special. Maintaining distinctiveness requires a continuous expenditure of energy and a willingness to pay a high price. The world will always try to pull individuals and companies toward the "typical" or the norm. Muzzi urges the audience to embrace the struggle of being different because that originality is where all value resides.

Unreasonable Conviction and Breaking World Records

Building on Bezos' message, Muzzi emphasizes that the best entrepreneurs are those who are "less reasonable" and refuse to seek consensus. He shares the behind-the-scenes mentality of his record-breaking book launch, where he aimed to outsold figures like Prince Harry and Barack Obama. While many people questioned if his goals were realistic, he focused on first-principles thinking and identifying physical requirements like power, internet, and logistics. He argues that conventional wisdom is often the barrier to outsized returns, and betting against it is the only way to win big. By ignoring the mediocrity of others, he was able to achieve what seemed impossible to observers. This section reinforces the idea that conviction must come before the result is visible.

Conclusion: Choosing the Standard of Excellence

In the final segment, Muzzi reiterates that being unreasonable is a skill that has served him well throughout his career. He encourages the audience to never apologize for having massive, seemingly impossible goals. Even if a goal is not hit, the act of "daring greatly" and preparing for multiple failure points ensures a higher level of success than aiming for the average. He reminds viewers that the median business owner makes almost no money, so rejecting what "everyone else does" is a logical necessity. Success comes from an unreasonable conviction to hold the line and a refusal to be governed by the standards of others. He concludes by validating that it is okay to ignore the mediocrity of the world to pursue greatness.

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