Alex Hormozi: How I Set Goals THAT ACTUALLY MAKE MONEY

Alex Hormozi introduces a four-step goal-setting process that is different from what is typically found in business books. The first step is to identify the problem that the goal is trying to solve. If a goal cannot be linked to customer acquisition, customer value, or increasing enterprise value, it should not be pursued. The second step is to create a hypothesis to test the assumption that doing something will lead to a specific outcome. The hypothesis includes an input (the activity) and an output (the expected result). The third step is to execute the input and measure the output. If the expected result is not achieved, the hypothesis needs to be revised and retested. The fourth step is to review and iterate the hypothesis until the desired outcome is achieved.

How I set Goals that ACTUALLY MAKE MONEY 💰

The 4 Steps, Broken Down

1. Define the problem you're trying to solve

   • Identify whether the goal will help get more customers, make customers worth more, or increase enterprise value
   • Articulate how your department or function provides value to the business

2. Create a hypothesis

   • Define the variables in the hypothesis: the input (what you will do) and the output (what you think will happen)
   • State the hypothesis in a testable form

3. Define the inputs and outputs

   • Specify what you will do (the input)
   • Identify what you think will happen (the output)
   • Measure the baseline (the "before" phase) and the desired outcome (the "after" phase)

4. Evaluate the results

   • Assess whether you achieved the desired outcome based on your hypothesis
   • Record the results and make any necessary adjustments to the process for the future