A simple web search for “grow my business” can reveal thousands and thousands of strategies, methods and approaches to increasing your bottom line. Sifting through the pile to find the best option for your business can seem overwhelming.
The good news? You can forget about all those search results.
When it comes down to it, there are only four ways to grow a business:
1) Increase the number of new clients
2) Increase conversion rates
3) Increase the average transaction size
4) Increase the purchase frequency
Let’s look at this math in action.
A company has 100 clients; average sale price is $1,000; each client buys 2x’s per year. So every year, the company generates $200,000 in revenue (100 * 1,000 * 2).
- If only one of the variables increased 10%? Revenue would increase 10% to $220,000 (110 * 1,000 *2).
- If just two of the variables increased 10%? Up 21% to $242,000 (110 * 1,100 * 2)
- If just three variables increase 10%? Up 33% to $266,200 (110 * 1,100 * 2.2).
- If ALL FOUR variables increase 10% A whopping 46% increase to $292,820 (121 *1100*2.2)
What would happen if you only focused on growing in these four categories simultaneously instead of thinking of dozens or hundreds of ways? Imagine what kind of explosive growth you can achieve.