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Three small increases can make a huge difference

There are only 3 ways to grow your business.

The now famous three ways to grow your business formula is well known, but certainly worth looking at again.

1. You get more clients or customers

2. You increase the average value of an order or invoice
3. You increase the frequency of purchase – your clients buy more often

So, how do you use this to grow your business in a big way? Using a small increase in all 3 areas can bring huge benefits, as the formula below will show.

In this example let’s assume that you can increase your clients, value and frequency by 10%…

Clients x Value x Frequency = Sales Revenue

E.g a company with 1,000 clients x £1,000 average revenue x 2 times per year which gives a sales revenue of = £1,000,000 would see the following benefit in a 10% increase in all 3 areas…

1,100 clients x £1,100 average revenue x 2.2 times per year = £1,331,000 !!!

The net effect is not a 10% increase in your sales, BUT because of the compounding effect an increase is sales of 33.1%!

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