Let me ask you a question, how many ways do you think are available to you right now to grow your business? Do you think it’s over 50, over 100 or over 1,000? Well let me surprise you by saying in any business or industry around the world there are only 3 ways to grow a business!
That’s right! There are 3 and only 3 ways you can grow your business and they are…
- Getting more customers.
- Increasing the size of transaction per sale.
- Increasing the frequency of purchase per customer.
Now that makes growing your business a whole lot simpler doesn’t it!
Most people in business are constantly running around trying to get new customers into their business without trying the other 2 ways. Getting more customers is fine but it’s probably the most expensive and time-consuming way to grow a business!
Increasing the size of transaction per sale is very easy to accomplish. You simply offer the customer more products or services when they want to buy. Say, for example, you’re selling a mobile phone to a customer you’d offer them a leather case, a memory card, a car-kit, extended warranty, etc. You’ve just increased the size of the transaction buy a large amount and you’ve provided a much greater service to your customer’s lives!
Instead of selling a mobile phone for $299 you’ve just made an extra $170 from the additional products and it only took 5 minutes!
Increasing the frequency of purchase is another very simple and very effective method to grow your business and if you master this you should never worry about going out of business ever again! The best way to make my point is an example.
Say you run a computer store and a new customer walks in the door wishing to buy a computer. You sell them a computer that is just right for his/her needs and you also sell them a quarterly health-check for $30 every 3 months.
This has just added $120 every year from the customer and any other customer who purchases the service. They come in for the health check every 3 months, browse around the store and also buy additional products from you. Now because you’re keeping their data, computer and children safe while enriching their lives with your products who do you think they will turn to when they need additional software, upgrades or a complete new system?
Now this is the best part! What would happen if you increased each way to grow a business by mere 10%?
Your company doesn’t grow by 10% but a staggering 33.3% for a simple 10% increase across the board!
Just think what would happen if you increased each category by 30%!