How Many Ways Are There to Grow a Business?
Ask any business owner and you’ll probably get answers ranging from hundreds, if not thousands. You might be surprised in the answer. It probably isn’t what you expect.
This comes from marketing legend Jay Abraham. He states there are only three ways to grow any business. Yes, three ways, not twenty-seven, not eleven, but three ways to grow any business. 1-2-3.
The three ways to grow any business, in any market are;
1. Increase the Number of Customers
Well, duh! This is the most obvious one and probably the one 90% of businesses focus on from day one. Get more customers. So many business owners focus on “hunting” (generating new customers) and not enough focus on “farming” (taking care of your current customers).
The downside of this method is that it is the most expensive, the least profitable and can be quite time consuming.
Here are a few ways to generate new business;
- Implement a direct mail campaign
- Invest in Facebook advertising (very cheap & effective compared to Google Adwords)
- Start producing content and giving it away for free
- Create a referral system
- Invest in search engine optimization (SEO)
- Build a network of strategic alliances (the fastest way to growth, but often times overlooked)
2. Increase the Average Sale per Customer
This can actually be done WITHOUT raising prices. How so?
One word: McDonald’s
What does McDonald’s say to you after you have ordered?
That simple question, asked by every employee while taking your order, is responsible for millions of dollars for the fast food chain. It is called an upsell. If you’re not using them in your business, you should start.
The beauty of an upsell is it costs zero to implement and will increase your profits immediately. This is the fastest way to add more to your bottom line. All you have to do is ask.
Here are a few ideas on how you can increase your transaction size;
- Combine products/services/widgets together in packages
- Offer a monthly maintenance service
- Offer a better deal at the point of sale
- Increase your pricing
3. Increase the Number of Times Customers Return to Buy
It can cost six times as much to sell to
a new buyer than to resell to an existing buyer
(Click to Tweet)
That is a lot of money. You have already “cracked the hardest nut” by getting someone to buy from you, why not ask them to buy from you again?
This is why I love social because it is a great retention tool. Keeping your business top of mind for when they’re ready to purchase, they know who to call. Email is another great retention tool. We live in a very busy world and staying top of mind with your current customers is important for business growth.
Here are a few ways to increase the number of times your customers buy from you;
- Start collecting their information (email works great and is very affordable)
- Run promotions on your social media channels
- Offer bonuses when customers buy on a regular basis
- Set up reward programs for the customers who buy more frequently
The True Power of Exponential Growth
Now that you have a better idea of how to grow your business, why not improve all three areas simultaneously? If you improve all three simultaneously, your business will grow exponentially.
Let me explain…
In the chart below, you have 1,000 customers, spending an average of $100 with you, twice a year. That is $200,000 in revenue. If you increase these three areas each by only 10%, you increase your bottom line by 33%!
$66,200 (gain) / $200,000 (revenue) = 33.1% Increase!
So if you focus on these three areas; generating new customers, get them to buy more items (upsell/cross-sell/down sell) and get them to buy more often, you should increase your bottom line…exponentially.
Doesn’t seem that hard, does it?