How would your life change if your business grew by 33% this year?
Would a 33% increase in your life allow you to hire someone new to delegate work that has been overwhelming you?
Would a 33% increase in your business mean you could finally take that much needed vacation?
Would a 33% increase in your business mean you could now pay for your daughter’s braces?
Would a 33% increase in your business enable you to give to your favorite charity?
What would a 33% increase in your business mean to you?
Let’s take this a step further.
What would change in your business and your life if your saw a 73% increase in your business?
For some people this would be a life changing experience.
Now what if your could replicate the 33% or 73% increase in your business every year?
What would your life look like in 10 years with a 33% or 73% increase every single year?
Take a few minutes now and write down what you would do with a business that had that kind of growth.
This type of growth is more doable than you may think if you simplify the ways to grow your business.
Here are the top three ways to grow your business.
- Increase the number of customers you have.
- Increase the average transaction value per customers
- Increase the frequency of purchase with each customer.
So if we want to grow the business by 33% here is the best way to grow the business.
Focus on growing each of the three ways by ten percent.
By growing each growth area by ten percent this year, your business will grow by 33%.
Let me show you how the math works.
Let’s say your business currently has 100 customers that spend on average $100 and they purchase from your business one time per month.
Based on these numbers your business would generate $10,000 per month.
Now we are going to increase each growth area by ten percent.
Now your business has 110 customers.
Now the average transaction value of your business is $110.
Now your frequency of purchase is 1.1 times per month.
When there is a 10% growth in each of the growth areas, your business now generates $13,310 per month.
Getting a ten percent increase in three areas is much easier than getting a 33% increase in one area.
Let’s say we get better results and we get a 20% increase in each area.
Now you have 120 customers.
Now the average transaction value of your business is $120.
Now your frequency of purchase is 1.2 times per month.
When there is a 20% growth in each of the growth areas, your business now generates $17,280 per month.
That works out to a 73% increase in your business by increasing each of the growth areas by 20%.
This is the small improvement approach to business that will have a large impact.
The lesson to be learned here is small incremental improvements will have a dramatic impact on your business.
By the way if you’re looking to grow your business profits and having more cash in the bank, send me an email at firstname.lastname@example.org with “PROFIT” in the subject line… tell me a little about your business and what you’d like to work on together, and I’ll get you all the details!