Three Ways To Grow A Business
Most people grow their business incrementally and linear, because they fix in only on growing more clients. But, if you grow clients and you focus on increasing the size of the transaction and you increase the frequency of each client’s purchase, you’ll increase your revenue and income 100%, 200% or more.
If you work on all three ways to grow a business at the same time, and all you did was improve all three ways by a mere 10%, it brings the power of geometry to bear. I have this quick exercise — it shows that if you had 1,000 active—clients, and if you had an average order of $100 for each time they were coming in, if they bought two times a year, that works out to an annual revenue of $200,000.
# Of Clients - 1,000 x Transaction Value per Client - $100 x Transactions per Year - 2 Total Income = $200,000
But if all you did was increase those three categories by a mere 10% each…
# Of Clients - 1,100 x Transaction Value per Client - $110 x Transactions per Year - 2.2 = Total Income $266,200
It would increase your annual revenue to $266,200—a 33% increase. And if you increased those three categories at the same time by 25%, it would almost double your performance to $390, 625.
SR Marketing & Advertising
If you don’t focus on geometric growth, if you don’t work on the geometry of your business, then you’re going to always work harder for your company than your company will work for you. Your goal is to get your company working harder and harder for you in a perpetual manner. To put systems in place that will sustain, thrive and survive so you’re building an asset-an asset that will be worth so many times more than the mere increases in income, in earnings, in salary or in dividends that linear thinking produces.
Check me out on LinkedIn @ http://www.linkedin.com/in/simonrosenzweig
Follow me on twitter @ http://twitter.com/Simonrosenzweig
