If you search the internet for ways to grow your business, then you will get millions of results. All very unique ofcourse.. But I can make it easy for you. In reality there are only 3 ways to grow your business.
- Growing the number of customers
- Growing the size of the transactions
- Growing the frequency of the transactions
If you are trying to grow your business, it is very likely that you focus on one of these 3 ways to grow your business. But if you do that, then you are missing out on the potential of your business.
Let’s say you have an automated process for your business and you focus mostly on getting new customers through advertising. This might give you a nice flow of income, but your growth will be related to your advertising budget.
If you are not investing time to think about ways to increase the transactions or the frequency of the transactions, then you are missing out on a huge potential for growth.
Let’s say you manage to grow the monthly amount of new customers by 10% through some more advertising. But along with that you also manage to grow the size of transactions by a factor 10%, because of an upsell opportunity that you created. Finally you also increase the frequency of transactions by 10% by bringing out new versions of your product faster, incentivizing people to upgrade to the new product. This is then not a 30% growth, but 33,1% growth.
Now you might think that cost savings are a way to grow, but I disagree. Cost savings do not grow the size of your business, they only provide a means to pay yourself a bit more, or invest in one of the 3 growth categories.
So if you have a business, then analyze for yourself if you are growing in all 3 categories. If you find that you have neglected one of them, then take some time to think about a way to change that. It might be the easiest way to realize growth at this time. But even if it isn’t, then still it could be worth looking at.
From now on, I encourage you to regularly ask yourself if you could improve on each of these 3 categories. If you do that, then I am sure that you will start to outperform the competition. Because generally businesses really only focus on one of these.
I’d love to hear what you think and help you figure out how to grow your business. So if you have any questions, then do comment and I will certainly give you an answer.
Thank you for reading and now grow that business!