As a small business owner, you are always looking for ways to grow and expand your business. While this can sometimes seem to be a big challenge, there are really only three ways that you can grow your business. If you want to grow your business this year, improving in one of these three areas can make a big impact. If you choose to tap into all three of them, you can grow your business exponentially! So, how do you grow your business? Here are the three ways that you can achieve your goal of taking your business to the next level:
Increase Your Customers and Clients
The first way to grow your business is to increase the amount of customers or clients that you work with.
Increase The Average Sales Price of Your Product or Service
The second way to grow your business is to increase the average sales price of your product or service.
Increase The Frequency That Your Customer Purchases From You
The final way that you can grow your business is to increase the amount of transactions that you have with each customer or client.
While this seems simple, it should be! I know that you want to make this more complicated, but it doesn’t have to be. Additionally, if you grow by just a little bit in each of these three areas, you can have a big impact on your bottom line. As an example, let’s say that you sell widgets. You have 100 customers that each buy 2 times a year, and each sale is $100. Therefore, your total revenues would be $20,000. If you increase your customer base by 10%, then your sales will go up by 10%. In fact, if you increase any of these three areas by 10%, then you will end up with a 10% increase in sales.
However, what happens if you increase each of the three areas by 10%? If you did that, then you would have 110 customers buying 2.2 times/year, at a price of $110. You will end up with $26,620, or a 33% increase in your revenues. So, by improving just a little bit in each area, you have an exponential increase in your results!
As you can see, by leveraging each of these areas, just a little bit, you can have a big impact on your revenues. So, figure out how many customers you have, what your average selling price is, and how frequently they purchase, and then figure out how you can improve in these three areas to leverage your success!
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