Business By Hormozi #274: The Smart Hiring Strategy – Quality Over Quantity

The Hiring Trap Entrepreneurs Fall Into

"Entrepreneurs often think that to grow, they need to hire more people—but there are so many times I’ve found I need to trade bad people for better people, or raise expectations on the people I have (while supporting by deleting irrelevant work that somehow always expands)."

Many business owners believe growth means expanding their team. More people, more progress—right?

Not always.

In reality, hiring more people isn’t always the solution. Instead, hiring the right people and optimizing work processes often drive better results.

Let’s explore how an entrepreneur, Mark, transformed his struggling company by changing his hiring strategy.

The Mistake: Adding Instead of Upgrading

Mark ran a fast-growing startup. As sales increased, so did the workload. His first instinct? Hire more employees.

In a few months, his team doubled. But instead of smoother operations, problems multiplied:

• More miscommunication

• Delayed projects

• Increased payroll costs

• Unnecessary meetings and work expanding beyond control

Mark realized something shocking—his company wasn’t growing faster despite hiring more people.

The Breakthrough: Quality Over Quantity

One day, his mentor asked:

"Do you really need more people? Or do you need better ones?"

That single question changed everything.

Instead of hiring more, Mark decided to:

1. Identify underperformers and replace them with top talent.

2. Raise expectations for existing employees while ensuring they had what they needed to succeed.

3. Cut unnecessary work—reducing pointless tasks and meetings that drained productivity.

   
   

The Power of the Right Hiring Strategy

Here’s how Mark restructured his approach:

1. Trade Bad People for Better People

Some employees simply aren’t the right fit. Instead of hiring more, he let go of those who didn’t align with the company’s mission and hired high-performers who could drive results.

2. Raise Expectations on Existing Talent

People will rise to the level of expectation set for them—if given the right support. Instead of micromanaging, he empowered his team with:

• Clear goals

• Performance-based rewards

• A culture of accountability

3. Delete Irrelevant Work

Work has a way of expanding beyond necessity. Mark eliminated pointless meetings, redundant tasks, and unnecessary reports—freeing his team to focus on what actually moved the needle.

The Result?

• Fewer employees, but higher output.

• Lower payroll, but increased efficiency.

• Happier, more engaged team members.

Instead of just growing headcount, Mark grew his company’s effectiveness.

Conclusion

If you have low standards for friends, you will have many. If you have high standards for friends, you will have few.

You can’t expect to only befriend exceptional people and then be surprised when there are not many of them.If you have low standards for friends, you will have many. If you have high standards for friends, you will have few.

You can’t expect to only befriend exceptional people and then be surprised when there are not many of them.

"Entrepreneurs often think that to grow, they need to hire more people—but more often, they need to upgrade their team and remove distractions."

Growth isn’t about having the biggest team. It’s about having the best one.

If you’re an entrepreneur, ask yourself:

• Do you need more people or better people?

• Are your employees meeting expectations, or do you need to raise the bar?

• Can you cut unnecessary work instead of adding staff?

Master these, and you’ll see real growth—without the bloat.

Moral: "Hire smarter, not bigger."