For most businesses that would make a huge difference in all aspects of the business as well as the life for the owner and any employees.
In addition to having more cash available to run the business and compensate the employees and the owners, things would be significantly less stressful if the revenue coming in the door was twice as much as it is today, and it is a fairly simple formula to make that happen no matter what business you are in or what business model you are using.
- More Leads
- Higher Conversion Rate of Leads into Customers
- Increase the Frequency of Transactions
- Increase the Average Amount of each Transaction
You only need to grow and improve 19% in each of these 4 areas of your business in order to double the revenue you are generating.
Simple Double Your Revenue Formula
( Leads * 19% growth) + (Conversion * 19% growth) + (Frequency * 19% growth) + (Amount * 19% growth) = Double Revenue
What would it take to do that in your business?
When you think about each of the items independently, it isn’t such a big, unsurmountable task.
What would you have to do to increase the number of leads you are currently generating by 19%?
Add in 1 new lead source? Add a few more leads from each source you are already using?
How about increasing your conversion rate by 19%?
Get a little bit better at how you are presenting your offer? Make your offer a little more compelling?
To increase your transaction frequency by 19% that is getting a customer that normally buys from you every 30 days to now buy every 25 days instead. Not a huge difference is it?
And the same for the average transaction amount. You would just need to bump that from $100 up to $119. There are many ways to do that from increasing your prices to packaging up products & services to encouraging people to add things into their cart.
Think about those 4 areas in your business…
What could you do to grow each area by 19%?
In the worst case scenario where you don’t reach the 19% in all 4 areas, what will happen?
Most likely you are going to grow all 4 areas even if they don’t reach all the way to 19%.
Maybe that only adds to a 50% increase in your revenue instead of doubling.
Isn’t a 50% increase still a good thing? Are you still much better off that you were?