I’m overwhelmed thinking about all the ways to grow my business. How do I decide what to do?

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.

 

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