THIS MONTH’S WEEKLY SPARK THEME: BUSINESS SUCCESS = MATH
In last week’s Weekly Spark: Do You Know Your Numbers? I discussed the importance of knowing your business numbers and introduced the concept of compound effect. Increasing a series of measurable components of your business by 10% to 15% will result in a compound effect of more than doubling your revenues. Yes, more than doubling your revenues.
Here the secret…
In order to double your revenues, you do not need to double anything. You do not need to do twice as much work. You need to focus on how your business makes money, how to break it down into specific elements and how to increase those elements by 10% to 15%
There are actually only 4 ways to increase your revenues in a business: sell to new customers, sell more frequently to existing customers, increase the value of each transaction, and increase your retention rate. Pretty simple when you think of it.
Breaking it down even further, there are 7 elements that apply to increasing revenues and 1 that applies to increase your profits. I call them “The 7 (plus 1) Accelerators”. Why Accelerators? If you focus on them, you can really accelerate your business growth; but if you don’t keep your eye on them they can actually become de-accelerators and your revenues will decrease.
Watch the short video below to see how increasing each of these Accelerators by 10% to 15% results in yearly revenue going from $100,000 to $177,000 – $231,000!
There is the magic in the math, the compound effect!
Do you know what your current Accelerator numbers are? Have you been tracking them in your business?
*********
The 7 Accelerator to Double Your Income Workbook
The 7 Accelerators to Double Your Income workbook has been designed to be interactive, practical and have an immediate impact on your business. I recommend that you set aside time after watching the video series to work through the workbook. The goal is to create some real actions based on the 7 Accelerators and start making small changes in your business. Sign in below to have a free copy of the workbook delivered to your inbox.
I love to see entrepreneurs follow their passions, serve more people and create the lifestyle of their dreams.
- When Life (or business) Give You Lemons 🍋 Made Lemonade - November 15, 2022
- The Power of Great Questions! - August 9, 2021
- Get Sh!t Done – The Power of Accountability! - August 4, 2021
Hate math, loved your article!
Shyla – LOL, I hear that from so many people. I hate math, but I also hear I want to grow my business, which means increasing their revenues. To do that without working harder you need to know your numbers so you can make small changes to get big results. 🙂
Takara; Thanks, you are right on. We should do…., here’s what everyone is doing…, but no one is saying look back a your business numbers and make sure it is working. I’ve been guilt of jumping on the next new thing and not looking at where it actually help grow my business.
I admit – I am not a huge fan of math! 🙂 But your breakdown of these accelerators and how they can impact your business is clear and not scary! These are important factors for any business! Thank you for sharing!
A. Lynn – thank you. That my mission, to break the numbers down so they are no longer scary and teach people to love their numbers and make them work for them.
Thanks for stopping by and commenting.
Thanks for sharing all this great information! Unfortunately as of right now I am still trying to get people to even look at my site in hopes they will purchase. But I have a lot more work to do.
Barbara: That is the point, how can you get just 10% more people to look at it. You need a goal to work toward that is manageable. If you were to work toward 10% more traffic and 10% more leads what would you do?
Such good information about increasing business… its great to realize that even 10% increase can give much higher profit. You did a great job of explaining it. Retention is very important. Thanks.
Pat: Thank you. Yes retention is very important but so are all of the factors. The whole point is to focus on each one. Small increments on each will help you grow your revenues.
Great way to take something kinda complicated and make it simple to understand, Heather! YAY! Took a few notes too… 🙂 Thanks!
Norma, that is great. I’ll be giving more information next week in the Video Series which will tie into your messaging as well.
I hate the fact that a present (or current) customer is treated differently than a new one. If an offer if made to a new customer for his business, then the same offer should be extended to an existing customer to keep him. But corporate America doesn’t see it that way.
Tina: I actually think a better offer should be extending to existing clients. That is the key to retention. Loyalty departments are around in some companies but they still under value the importance of existing customers.
Heather,
Great article. It is important to know how to make more money without working harder. The compound effect is powerful and often business owners forget all aspects of the sales funnel and the best way to make money with each.
Kim: You are so right, they forget or don’t know. The compound effect is the secret ingredient for business success. Thanks for you feedback.
I came across this through the ultimate blog challenge and I have never read an article like this. Wow! My husband and I recently sold our businesses, and I would love to have seen this in print prior to. I’ve never seen the figures and facts laid out like this and I must say, I am impressed.
Melody: Thank you very much for the feedback. That is great to hear from a former business owner and very encouraging.
Thank you for breaking this down and making it so understandable. I don’t look at my numbers as I should and this is helpful.
Lynn: You are not alone, many many entrepreneurs do not look at their numbers at this level either. Just image the difference you can make in your success if you start using your number to drive you decisions on how you spend you time.
Thanks for sharing.
This is great information. I am just getting started so focusing on the math from the beginning will help me stay focused. I appreciate the simple explanation and good “take aways”
Ines: You definitely had the advantage to create the right practices now that will create a foundation for success as you move forward. Thank for reading and commenting.
Too many people focus only on getting new customers and ignore their current ones (retention). Just look at cable companies for a perfect example of the wrong way to do it!
Scott – oh you hit my “hot spot” on the head. I’ve personally experience endless hours with my ISP/Cable providers. Their specials go to the new clients, so what happens? We switch back and forth, at great expense to the company and wasted time for the customer.
Retention is key to success. Locality has to be earned not expected.
May have told you I abhor numbers. I do look at them cause I have to. This post spells it out and makes it easier. Reluctantly thanks.
Roslyn: I understand, I hope this post and the upcoming Video series will make you abhor them just a little bit less. I want to turn it around so you can get excited about connecting the dots between numbers and results.
Thank you for sharing these steps to help me understand how I can increase my revenues. Helping break things down into smaller, simpler and more manageable steps helps me to see what areas of my business I need to work on.
Meryl: Thank you, it is so important to see the manageable smaller steps. We often spend so much time on the steps 1, 2, and 3, that we lose sight of the other items that can help ups grow our revenues.