Podcast Summary: Build with Leila Hormozi
Episode: Dig the Moat: The Real Work After the Win | Ep 278
Release Date: May 28, 2025
Host: Leila Hormozi

Introduction

In Episode 278 of Build with Leila Hormozi, titled "Dig the Moat: The Real Work After the Win," Leila delves into the critical transitions businesses face as they scale from their initial stages to becoming unshakeable enterprises. Drawing from her extensive experience in growing acquisition.com into a billion-dollar portfolio, Leila shares invaluable insights on evolving company structures, communication strategies, and the foundational work necessary to sustain long-term success.

Transitioning Through Company Versions

Leila begins by discussing the evolution of her company through different "versions." She introduces the concept of moving from acquisition.com 1.0 to 2.0, and now, as she emphasizes, toward acquisition.com 3.0. This progression signifies not just growth in size but also in operational maturity and strategic depth.

"We need acquisition.com 3.0 because we've had version 1.0, we've had version 2.0, but now we're taking it to acquisition.com 3.0."
— Leila Hormozi [05:30]

Awareness of Company Survival Rates

A striking statistic early in the episode sets the stage for Leila's discussion: only 5% of companies survive beyond five years in the fast growth category. This stark figure underscores the importance of proactive communication and continuous evolution within a company.

"Only 5% of people that are in year one of a company are going to make it to year five when it's a fast growth company."
— Leila Hormozi [04:10]

Key Inflection Points in Business Growth

Leila identifies several inflection points that businesses encounter as they scale:

• Startup to Early Growth
• Scaling to Scale-Up
• Scale-Up to Enterprise
• Enterprise to Corporate

Each phase presents unique challenges, primarily revolving around communication breakdowns and operational inefficiencies. Leila notes that without adapting operational methods, companies can quickly become mired in "friction and problems."

"As you grow from 3 million to 10 million, from 10 million to 20 million... the way that you operate no longer works to get you to the next revenue level."
— Leila Hormozi [07:15]

Importance of Structured Communication

One of the central themes of the episode is the shift from one-on-one conversations to broadcast communication. Leila emphasizes that relying solely on individual interactions can lead to misalignment and operational bottlenecks.

From One-on-One to Broadcast Communication

Leila stresses the necessity of sharing important information with the entire team to maintain transparency and alignment.

"You have to switch from one-on-one conversations to broadcast communication. If something's important, it should be shared with every single person."
— Leila Hormozi [12:45]

She shares her daily practice of reviewing the day's interactions to determine what needs to be communicated broadly. This approach ensures that all team members are informed and aligned with the company's objectives and changes.

"At the end of my day, I look back and ask, 'What do I need to communicate to the broader group?'"
— Leila Hormozi [15:00]

Shift from Individual Feedback to Group Feedback

Leila advocates for transitioning from providing individual feedback to delivering feedback in group settings. This method not only saves time but also fosters a culture of transparency and collective learning.

Benefits of Group Feedback

• Efficiency: Addressing multiple team members simultaneously.
• Transparency: Everyone gains visibility into common challenges and solutions.
• Collective Improvement: Teams learn from shared experiences, promoting a unified growth mindset.

"Making feedback a public part of how our company learns ensures that everybody has the opportunity to get better."
— Leila Hormozi [20:30]

She acknowledges the initial discomfort leaders might feel about this shift but reassures that the perception of feedback depends largely on how it's delivered.

"People will perceive it however you tell them to. If you make it sound like a big deal, they will feel that way too."
— Leila Hormozi [23:10]

Collaborative Decision Making

As companies grow, decision-making must evolve from siloed approaches to collaborative solutions. Leila highlights the pitfalls of isolated decisions, which can lead to unintended consequences across departments.

Moving from Siloed Decisions to Collaborative Solutions

Leila uses relatable analogies to illustrate the importance of inclusive decision-making:

• Family Vacation Analogy:
  "If you only inform one child about a vacation plan, the others might feel excluded and unprepared."
• Sports Team Analogy:
  "Like a sports team, you should never make plays without informing the whole team to ensure coordinated execution."

"In business, if you're running a sports team and you only tell the quarterback what the next play is, what do you think's gonna happen?"
— Leila Hormozi [28:50]

By involving key stakeholders in decisions, companies can anticipate and mitigate second-order consequences, ensuring that strategies benefit the entire organization rather than just individual departments.

"If I'm head of sales and I make this change with sales, how does that affect onboarding? How does it affect customer experience?"
— Leila Hormozi [30:20]

From Speed to Protecting the Castle

The final major shift Leila discusses is moving from a "speed over everything" mentality to "protecting the castle." Early-stage companies often thrive on momentum and rapid execution, but sustaining growth requires building robust systems that safeguard the company's achievements.

Emphasizing Discipline Over Speed

Leila argues that while speed can drive initial growth, discipline ensures longevity. Protecting the castle involves:

• Building Systems: Establishing processes that maintain quality and consistency.
• Sustainable Growth: Focusing on long-term stability rather than short-term wins.
• Intentional Scaling: Preparing infrastructure and teams to handle increased scale.

"Speed usually gets you there, but now discipline is what's going to keep you where you are."
— Leila Hormozi [35:15]

She acknowledges the discomfort that comes with this transition but reinforces its necessity for enduring success.

"If you're feeling that tension between how things used to run and how they need to run, that means you're at the edge of getting your company to the next level."
— Leila Hormozi [38:40]

Conclusion

Leila Hormozi's episode, "Dig the Moat: The Real Work After the Win," offers a comprehensive roadmap for businesses aiming to transition through various growth stages successfully. By emphasizing structured communication, collaborative decision-making, and disciplined growth strategies, Leila provides actionable insights for building an unshakeable business. Her candid reflections and practical advice make this episode an essential listen for entrepreneurs and leaders striving to scale their ventures sustainably.

Notable Quotes:

• Leila Hormozi [04:10]: "Only 5% of people that are in year one of a company are going to make it to year five when it's a fast growth company."
• Leila Hormozi [12:45]: "You have to switch from one-on-one conversations to broadcast communication. If something's important, it should be shared with every single person."
• Leila Hormozi [20:30]: "Making feedback a public part of how our company learns ensures that everybody has the opportunity to get better."
• Leila Hormozi [28:50]: "In business, if you're running a sports team and you only tell the quarterback what the next play is, what do you think's gonna happen?"
• Leila Hormozi [35:15]: "Speed usually gets you there, but now discipline is what's going to keep you where you are."
• Leila Hormozi [38:40]: "If you're feeling that tension between how things used to run and how they need to run, that means you're at the edge of getting your company to the next level."