A formula is a method used in order to achieve something – to succeed. Wouldn’t it be great to know the formula to grow your business to its fullest potential? Brad Sugars shares with Dale Beaumont the five ways to grow your business. Apply this formula to your business and watch it grow!
Brad Sugars is Chairman of Action International, currently the 16th fastest growing franchise in the World and World #1 Business Coaching Company.
You say that there are only five ways to grow a business. What are they?
That’s right. Most people that come to one of our Action coaches generally want three things – more customers, increased turnover and higher profits. However, you can’t change those things on their own because they are simply the result of other factors in the formula. So here are the five ways to grow a business:
- LEADS (prospects or potential customers) X
- CONVERSION RATES (the difference between those that could have bought and those that did) = CUSTOMERS (the number of different customers you deal with) X
- NUMBER OF TRANSACTIONS (the average number of times each customer bought from you that year) X
- AVERAGE DOLLAR SALE PRICE (the average price of the item you sell) = TOTAL REVENUE (the total sales of the business) X
- MARGINS (the percentage of each sale that is profit) = PROFIT (something every business owner wants more of)
It’s important that you work at improving each of these five areas simultaneously. If you don’t, it’s a bit like going to the gym and only working the muscles in your right arm for one month, then the muscles in your left leg for the next month. It doesn’t make any sense.
Fore more on Small Business Growth and this interview check out Secrets of Male Entrepreneurs Exposed!