8 Key Takeaways from a Video on Building a Successful Business

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1. Product-Market Fit (PMF): Many businesses plateau because they sell something that people don't actually want. PMF means that people actually want the product or service being offered.
2. Three eventualities that happen in every business:
   • Cost Per Impression (CPMs) increase over time.
   • Conversion rates decrease as the audience becomes colder.
   • Business costs of infrastructure increase, leading to decreasing margins.
3. The importance of understanding sequence: As businesses scale, they need to adapt to these eventualities and focus on increasing the invisible hand of word-of-mouth marketing to drive down costs and increase revenue.
4. The importance of customer success and experience: Businesses need to prioritize creating a positive customer experience, including increasing time-to-value, NPS scores, and customer health scores, to drive referrals and word-of-mouth marketing.
5. The danger of negative word-of-mouth: Negative word-of-mouth can compress margins and lead to business failure if not addressed. Businesses need to prioritize creating a positive brand reputation by meeting expectations and exceeding customer expectations.
6. The importance of setting modest expectations: Businesses should set modest expectations and focus on over-delivering to create a positive brand reputation and drive word-of-mouth marketing.
7. Building a brand: A brand is what people say about a product behind a company's back. Businesses need to focus on improving product quality, keeping promises, and exceeding customer expectations to build a reputable brand.
8. Pricing power: Businesses with a strong brand can command premium pricing, leading to increased profits, without experiencing a decrease in demand.

Source: Biggest Mistake That Stopped Me From Getting Past $30M, Alex Hormozi