I originally heard about the theory, “There Are Only 3 Ways to Grow Your Business”, more than 9 years ago when I attended the Tony Robbins event, Business Mastery. At the time, I was running a company with 40 employees and more than $20M in annual sales and like every driven, growth-minded entrepreneur, I was always looking for ways to grow my business.
During the event, Tony proposed the concept, originally presented to him from marketing guru Jay Abraham,
“There are only 3 ways to grow a business”.
As I sat in the audience with some 2,000 other entrepreneurs,I flat out called BS! There is no way in hell that there can only be 3 ways to grow a business.
Well… I’ve spent the last decade trying to disprove this theory, and I can’t. In fact, I have not only proven the power of this concept with my own companies, but I have also helped hundreds of entrepreneurs implement this approach with INCREDIBLE RESULTS!!
The only 3 ways to grow your business are:
$$ Increase your average order
$$ Increase the frequency of orders
$$ Increase the number of customers
Is it really that simple, Mike?
Yup, it is.
If you can execute on any of these strategies, you will grow your business. If you can deliver on 2 or even all 3 of these strategies simultaneously, you can and will exponentially grow your sales. It really does not matter what industry you are in-if you focus on and dig deep into each of these three categories, I guarantee you will yield amazing results. However, the single most important word is focus. You have got to choose one thing, get it right, and do it exceptionally well before you jump onto the next.
Let’s Dig Deeper
So, I am kind of a nerd. I have a Bachelor’s and Master’s degree in mechanical engineering, so when someone fires out a theory like, There Are Only 3 Ways to Grow Your Business, I need proof. I’m talking detailed, mathematical, analytical, quantitative, real-life PROOF before I’m gonna buy in.
To this end, below I will share several examples of this theory in action and the specific ways some of the greatest companies on earth use this approach to grow their revenue, profit, brand, and market share. As you look at each of the “3 Ways,” think about your own business and how these concepts can be incorporated into your strategic marketing plans. If you are just starting your business, you may only have one product or one service, but as you look to grow, don’t over complicate things. There really are “only 3 ways to grow your business”.
PART #1: INCREASE YOUR AVERAGE ORDER
When it comes to increasing revenue, most marketers’ first instinct is to find more customers-but that is actually the most challenging way to grow. By increasing your average order instead of (or in addition to) trying to win over new customers, you can generate more sales from the customers you are already attracting.
NOTE: If you are ever presented an opportunity to grow your business without spending more on marketing, advertising, and other sales related costs, jump in.
Another way of looking at it: the higher your average order is, the more revenue you can earn from the same number of customers. That means you can increase revenue, and hopefully profits, without an incremental increase in marketing and sales spend. Let’s look as how some industries increase their average order.