#102 – Hairy Problems & Cialdini

Good morning everyone,

Hope you’re having a great week!

Let’s jump in.

read online on my website 

read time 3 minutes 

#102 at a Glance:

• Quote: If you truly believe in something...

• Podcast: Your business is not what you think it is.

• Framework: Cialdini’s 6 Principles of Persuasion.

• Article: Nobody Knows (Yet Again).

• Tweet: What are you waiting for?

Quote I’ve been thinking about:

Podcast I listened to:

The Game with Alex Hormozi Ep 724: Your Business Is NOT What You Think It Is

Another brilliant piece of content from Hormozi.

My biggest takeaways:

• Every industry faces a big hairy problem that needs to be solved in order for a business operating within it to be successful.

• Here are a few examples:

  • When Alex started out in the gym business, he thought he was in the business of getting people fitter. Turns out, the gym business is actually the business of sales and marketing, with the winner being the one who can build the best sales and marketing machine.

  • When he started out in the supplements business, he thought it was all about marketing the best possible product. Turns out, the supplement business is the business of branding, media, and distribution.

  • A cleaning company is not in the business of marketing and selling their services. They’re in the recruiting and training business. Finding, training, and keeping good talent who are reliable and competent within a cheap, boring industry.

• Frame the task of solving the ‘big hairy problem’ as the potential to massively increase enterprise value. The bigger the problem, the bigger the payoff.

• A good mental frame to analyse business problems is: “What is the maximised and fully optimised version of this business? What does it look like?”

Listen on Spotify, Apple Podcasts, or YouTube.

[Podcast Length: 42 minutes]

Framework I’ve been thinking about:

Cialdini’s 6 Principles of Persuasion 

In his seminal work, Influence: The Psychology of Persuasion, psychologist Robert Cialdini outlines six key principles that explain how people are influenced in decision-making processes:

1. Reciprocity: People feel obliged to return favours. By offering something first—be it a gift, service, or concession of some sort—you can increase the likelihood of receiving something in return.

2. Scarcity: Items or opportunities become more desirable when they are perceived as limited. Highlighting the uniqueness or limited availability of a product or service can enhance its appeal.

3. Authority: Individuals are more likely to be persuaded by those they perceive as credible experts. Demonstrating knowledge and expertise can increase your influence.

4. Commitment and Consistency: Once people commit to something, they are more inclined to follow through. Encouraging small initial commitments can lead to larger, consistent actions over time.

5. Liking: People are more easily persuaded by individuals they like. Building rapport and finding common ground can enhance persuasiveness.

6. Consensus (Social Proof): Individuals often look to others’ actions to determine or justify their own. Highlighting widespread approval or popularity can certainly influence behaviour.

Interesting stuff…

Article I read:

Nobody Knows (Yet Again) by Howard Marks

Howard Marks is an American investor, writer, and billionaire. He is the co-founder and co-chairman of Oaktree Capital Management, the largest investor in distressed securities worldwide.

His brilliant memos have long been heralded as a source of concise and clear wisdom over the years.

His most recent memo, entitled ‘Nobody Knows (Yet Again)’ is an incredible piece that draws a parallel between the uncertainty faced by global markets during the GFC of ‘08/09 and the economic climate we find ourselves in today.

Highly recommend this 10-minute read to anyone looking to climb above the noise for a moment and make some sense of this whirlwind.

You can read the memo here.

Tweet I liked:

What Are You Waiting For?

Thanks for reading! Grateful for your support.

Stay hungry, stay humble, stay curious. ⚡

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