The Four Big Levers to Scale Your Business by Alex Hormozi

Aug 2 (edited) in 💎 Offer

Most small to mid-sized businesses struggle to grow because they focus on the wrong tasks. Here’s a breakdown of the four key levers by

@Alex Hormozi

that can drive growth:

1. Traffic 🚦

2. Conversion 🔄

3. Price 💰

4. Churn ♻️

If your business isn’t growing, one of these levers is likely out of balance. Here’s how to diagnose and adjust each one:

Traffic 🚦

• Issue: If your business model and economics are sound but growth is stagnant, you might need more traffic.

• Solution: Scale your efforts until you hit a breaking point, then fix that specific issue and continue scaling.

Conversion 🔄

• Issue: If your conversion rate is low, more traffic won’t help.

• Solution: Improve your landing pages, tweak your about page, create a better VSL, add carousel images, and refine your copy. Spend time making your conversion path as efficient as possible.

Price 💰

• Issue: Underpricing can cap your revenue.

• Solution: Experiment with pricing. If everyone pays a bit more, your revenue grows without needing more traffic.

Churn ♻️

• Issue: High churn rates can nullify other efforts.

• Solution: Address why customers leave. Improve onboarding, reduce complexity, and remove non-essential elements that overwhelm users.

Practical Example

If reactivating a free group could increase traffic, compare it with other traffic sources. Would better ads or increased ad spend yield more results than the time invested in the group?

Decision Process

1. Identify the biggest constraint. 🚧

2. Focus on improving that area first. 🎯

3. Scale your efforts until another lever needs adjustment. 📈

More, Better, New

1. More: Can you do more of what’s working? ➕

2. Better: Can you improve the quality of what you’re doing? 🌟

3. New: Only try something new when you can’t do more or better. 🔄

Conclusion

Stay focused on tasks that drive growth. Avoid distractions and keep iterating on what works.

Have Questions? Comment below and let’s discuss how to identify and fix your business’s levers!

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