There are only 5 things you can do to grow your business...
Updated: Sep 8, 2021
Most people have heard of compounding interest - where your savings grow faster because interest is paid on interest earned. But what about the compounding effect of business improvement? And, are you aware of the impact that has on profit?
There are only 5 ways to grow a business:
(1) Increase your number of leads
(2) improve your sales conversion rate
(3) increase the number of transactions your customers make
(4) increase your average dollar sale
(5) increase your margin
At The Profit Club we call this the '5 Ways' principle and we teach it to every member. We have dozens of strategies to improve each of the 5 in any business.
Having trouble grasping the concept? Think about it like this. Numbers of customers , revenue and profit grow because they are the 𝘰𝘶𝘵𝘤𝘰𝘮𝘦𝘴 of actions taken elsewhere in the business. By working on and improving your '5 Ways' your customer numbers, revenue and profit all grow as a result.
And here is the crunch. If you can improve each of these '5 Ways' by a factor of 10% what do you think the final impact of your profit would be?
Up 10%? 20%? 40%?
The compounding effect of a simple 10% improvement across each of the '5 Ways' is a staggering 65% increase in profit.
And that is why we call ourselves The Hawke's Bay Profit Club. Because we know how to do stuff like this.