Did you ever wonder how many ways there are to increase your business? One hundred ways? Two hundred ways? Five hundred ways? It can be intimidating to merely figure out where to start.
I have good news—there are only three ways to increase your business:
1. Increase the number of clients.
2. Increase the average size of the sale per client.
3. Increase the number of times clients return and buy again.
Let’s take a simple example.
• Calculate your number of clients.
• Figure the average amount they spend on each transaction or sale.
• Determine how often they make a purchase in a year.
Let’s say you have one thousand clients. They average $100 per transaction or sale. And they make two purchases in a year. But look what happens if you increase these three numbers by just 10 percent.
A mere 10 percent increase across the board expands your income by 33.1 percent. A 25 percent increase in these categories nearly doubles your income to $390,625. Very simple. But the results can be overwhelming. Focusing on this simple formula is just one small way people easily do increase their incomes or grow their businesses by 100 percent, 200 percent, or more.
But my simple geometric growth formula works just as well on nonfinancial goals. My good friend, a famous peak performance coach, used a version of it to propel the Los Angeles Kings hockey team to a stunning 9–1 victory over their competitors. How’d he do it? He got the Kings players to break down each key element of the game into an identifiable process. They then rated on a scale of 1–10 based on how they performed each successive period. At the break the coach would target two or three different processes like power plays and challenge the player to improve his rating performance that next quarter. On the chalkboard he demonstrated to them how much-improved their performance efficiency among two or three existing points in enough different categories produced exponential compounded overall impact. Once the Kings realized how to use the power of geometry to maximum competitive advantage, they went wild with it and trounced the competition.
Getting Everything You Can Out of All You've Got: 21 Ways You Can Out-Think, Out-Perform, and Out-Earn the Competition by Jay Abraham
“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.
— Charles T. Munger”
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Disclosure of Material Connection:
Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”