The 3 Key Components of Rapid Business Growth
Wouldn’t you rather read something along the lines of “The Best Kept Secret of Business Growth”?
I would too. But the truth is, while there are hundreds of tactics and strategies you can try, but they’re only going help grow your business if they can successfully do one of three things:
- Increase the number of customers.
- Increase the transaction size.
- Increase the purchasing frequency.
That’s it. There’s no magic pill or step by step guide . If you’re not focusing on these three things, you’re not going to attain sustainable and steady business growth.
Most businesses focus only on increasing the number of customers. Reaching more people to give you money is the most logical place to start when you need to bring in new business (especially when it’s urgent).
And that can work. It’s just not the most efficient use of resources… and it’s kind of risky.
Jay Abraham, America’s leading business growth advisor, in an interview with Tony Robbins explains how optimizing all three strategies together will reduce your risk AND produce exponentially greater results.
Don’t quite get it? Let’s look at the math.
Let’s say a company has 100 customers with an average sale price of $1,000 and each customer buys twice per year. So every year, the company generates $200,000 in revenue (100 x 1,000 x 2).
- What would happen if any one of the variables increased by 10%? Sales would increase by 10% to $220,000 (110 * 1,000 *2).
- What would happen if two of the variables increased by 10% each? Sales would increase by 21% to $242,000 (110 * 1,100 * 2).
- What would happen if all three variables increase by 10% each? Sales would increase by 33% to $266,200 (110 * 1,100 * 2.2).
How do we get a 33% increase in the last example? If each of the 3 variables increase by 10% each, where’s that 3% bonus coming from?
This is what Jay Abraham calls leverage.
When you optimize just one of the variables, growth will be linear. But when you optimize 2 or 3 of the variables at the same time, your growth will be exponential because you’re creating leverage.
You can double check my math. But the numbers don’t lie.