There Are Only 3 Ways to Grow Any Business
Don’t believe me?
Read this and I’ll prove it to you.
Now, before I dive in. It’s important to note that this isn’t my theory. I learned this from a man by the name of Jay Abraham. If you haven’t already heard of him, I would highly suggest typing his name into google. This man has generated over 7 BILLION (Yes, that’s not a typo. That’s billion with a B) for his clients. So I, like many top marketers and business owners in the world, hold him in high regard.
This is a hugely important theory because as business owners, there’s constantly a million and one things that we could be giving our time and attention to. However, more often than not, what we’re focusing on isn’t something that’s going to move the needle in our business.
In today’s competitive world, it’s never been more important to be efficient with our time.
The only 3 ways to grow your business
- You can get more customers
- You can increase the average profit per customer
- You can increase the frequency of purchases
I’m going to dig into all these a little bit more for you however I would highly suggest that you stop reading this blog post right now and take some time to brainstorm different ideas on what you can do increase each of these areas in your own business.
1. You Can Get More Customers
Expect simple isn’t always easy. Let me make it a bit easier for you.
Here’s a short list of a few different ways you get more customers for your business
- Google Ads
- Build a marketing funnel
- Facebook/Instagram Ads
- Get shown on google and other search engines (SEO)
- Content Marketing (posting on social media – Facebook, Instagram YouTube etc.)
- Partner with complementary businesses
- Sponsor events
- Create a lead magnet
- Create lead nurturing campaigns
- Improve your sales process
- Create offers
As you can see there are countless ways to increase the number of new customers in your business. Coming up with ideas isn’t the hard part though. A quick search of Google will bring you endless results on the topic. Knowing the best routes and properly executing on them is where it gets tricky. There are many nuances that business owners continually fall victim to.
If you’re looking to increase the number of customers in your business, we may be able to help. Roughly 65% of businesses we speak with aren’t a good fit for our services. We can determine this in as little as 5-mins over a quick phone call. You can schedule a call with a member of our team by clicking here.
2. You can increase the average profit per customer
There are a few different options within this.
One option is to simply increase the prices of your products/services as is. This, of course, will give you an instant boost in profits however it can also lead to a loss in the number of customers or the frequency of purchases by customers so it’s very important to keep this in mind and deal with this carefully if you do decide to do take this route. Some industries are more price sensitive to others so this can also be a big factor at play here. However, don’t let this scare you from increasing your prices though. Many businesses fail to increase their prices in line with natural inflation and as they and their staff upskill overtime.
Another option here is to add additional products and services for your customers to buy. A high priced item for your hottest buyers is one of the best ways to make a big impact on your profit. However, you can also implement smaller items that don’t take much time and effort to implement and manage going forward. For example, a gym that sells a monthly gym subscription could also upsell a tub of protein powder with their membership.
While that may not seem like it has big potential, it can in fact have a big impact on your end of year profits.
For example, let’s say
- There’s 100 members
- 50 of these members decide to include the protein powder
- The profit on the protein powder is €10 per tub
Every month that’s an additional €500 profit. Over the course of the year that’s an additional €6,000.
This is all with one simple addition. Oftentimes there’s countless additional products and services you can easily add to your business to increase how much profit you’re making from your customers and clients without even realising it.
Imagine adding 2 or 3 or even 5 of these to your business over a year.
This could make all the difference to your business.
Another option here is to decrease the cost of fulfilling your products and services.
One item I would suggest adding to your monthly task list that will help you greatly with this is reviewing your bank statements line by line each and every month. This act will help you identify any unnecessary costs that you’re continually paying.
Apart from that, there’s a host of other methods to reducing your costs. Here’s a short list to help get your brain ticking;
- Negotiate better deals with or find new suppliers and sub-contractors (payment processors are one group in particular that I would highly suggest looking here)
- Develop more efficient fulfilment methods
- Identify areas that are sucking your time and hire or outsource others who are more skilled/faster at these tasks
- Reduce your customer acquisition cost (CAC) by implementing more effective marketing campaigns
- Automate time-consuming tasks
- Hire interns and/or other staff to help ensure your highly skilled staff aren’t spending time on lower-level tasks
This list is just to get your started. There’s countless other things you can do to decrease the cost of fulfilment. Start by looking at where you biggest costs are and begin with the lowest hanging fruit. It’s always good to start with this to get some momentum behind you.
3. You can increase the frequency of purchases
Now, if you’re already a client of ours – I’m sorry.
I’m going to let you in on a little secret here.
You may not have realised this but we bill every 4 weeks or 28 days, not every month. By billing every 4 weeks we can sneak in an additional billing cycle every year because there is in fact 4.34 weeks in a month.
This increases our revenue by 8%. And if you offer a service with a monthly billing cycle, you too can easily implement this by simplifying adjusting your contract and payment processing settings for all new customers and clients.
Now, not every business has the luxury of normal monthly billing. However just because this isn’t the norm in your industry doesn’t mean you can’t implement your own subscription model yourself. Please don’t fall victim to this way of thinking because subscription models are really fantastic. While it may not always be clear how to do this, a little bit of out of the box thinking should help you on your way.
For example, let’s take a car mechanic. They could offer a VIP membership service that costs say €50 a month where if your car breaks down, you get priority over all cars in the garage to get fixed. If only 10 people availed of this offer they would generate an additional €6,000 a year. Lol. I seem to have a knack for adding €6,000 a year to businesses today. This specific idea can be used across a wide range of industries. I must note that this strategy would actually fall under category 2 – increasing the average profit per customer. This example is here to help you understand that subscription models are possible but you may need to create a new product/service to work for you.
You don’t always need a subscription model to increase your purchase frequency. You sell something like coffee or maintenance services such as carpet cleaning. Let’s take carpet cleaning for example. And let’s say your average customer gets their carpet cleaned only once a year. In this case, you could create an incentive where your customer gets a 20% discount on their next carpet cleaning if they get it within the next 6 months. This way you would be generating 180% of the normal revenue you would have generated from this customer. If you were to continue this promotion after each purchase, this would dilute to 160% after the first year so do keep this in mind as you’ll need to look at your numbers to see what makes sense for you.
If you’re really not keen on discounting your services, you could add value instead. For example, you could offer a free mattress cleaning service.
These are the only 3 ways you can grow your business. This is an extremely valuable concept that can make a huge impact on your business.
Now that you have a clear & concise model of what actually grows your business – it’s much easier to know what you should be working on.
If you’re looking to grow your business, we may be able to help. Roughly 65% of businesses we speak with aren’t a good fit for our services however we can determine this in as little as 5-mins over a quick phone call. You can schedule a call with a member of our team by clicking here.