How many ways are there to grow your business?
There are only 3, guaranteed.
- Increase the number of customers
- Increase the size of transaction
- Increase the frequency of repurchase
Most businesses, by default, focus solely on increasing the number of customers. Finding more people to give you money is the most logical place to start when you need to bring in new business.
But, do any combination of the three growth levers and you increase exponentially.
Don’t quite get it? Look at the math.
Let’s say a company has 100 customers with an average sale price of R1 000 and each customer buys twice per year. So every year, the company generates R200 000 in revenue (100 x 1 000 x 2).
What would happen if all three variables increase by 10% each? Your sales would increase by 33% to R266 200 (110 x 1 100 x 2.2).
A focused growth plan of 10% x 10% x 10% is highly achievable.
Get your business going and growing.