The speaker emphasizes the importance of choosing the right customers to serve, as many businesses fail due to serving volatile or unreliable customers. For example, small businesses often have high churn rates, which can destabilize a service provider's revenue. The speaker suggests targeting larger, more stable customers who can provide consistent revenue and are less likely to churn. This approach is exemplified by large ad agencies that focus on big clients rather than small businesses. The speaker also highlights the importance of product iteration based on customer feedback. By asking customers what they value most and what they could do without, businesses can refine their offerings to better meet customer needs. This process involves identifying actions that successful customers take and encouraging new customers to adopt these behaviors. Additionally, the speaker advises against pretending to be something the business is not, such as a service business trying to masquerade as a software company, as this can lead to unrealistic expectations and valuations. Instead, businesses should focus on their strengths and improve their core offerings over time.