There are three ways to grow a business:
- Increase customers
- Increase per transaction revenue (or AOV)
- Increase frequency
If you double any of these, you double your business.
If you increase 2 of them by 50%, you double your business.
If you increase all three by 33%, you double your business.
The calculations that I mentioned above are essential to being able to understand these three principles and to affect change in them.
Have you heard the saying “What Gets Tracked Gets Managed”?
You can’t begin to understand where you are, appreciate where you came from, or aim for where you want to go, without knowing and tracking these numbers. They are the speedometer, Tachometer and Odometer of your business.
Listen to this game-changing interview from Jay Abraham and Tony Robbins. It changed my view of business completely. I wish I would have just watched this interview rather than getting an MBA…