What Makes The Perfect Business (5 Things)

The gist

1. Hormozi calls retention most important; churn is over 20% in month one, about 10% at month three, then near 2% after month six.
2. He says a clear upgrade path, like a $9 to $99 membership, can push net revenue retention above 100% even as customers leave.
3. On margins, he compares a $100 million business at 10% with a $20 million one at 50%, which earn the same profit.
4. He advises picking growing markets like AI, energy and alternative education, and avoiding businesses with high operational complexity, like restaurant chains.
5. For uniqueness, Hormozi favors brands, patents, trade secrets and upfront capital as moats, using Coke as an example of several advantages combined.