Would you like to double your turnover in just three years? It might sound ambitious, but achieving this goal is more straightforward than you might think. The key is to increase your growth rate to 26% year on year for three consecutive years. But here’s the question: how do you consistently drive 26% growth over a three-year period?
Many business owners believe that to reach this level of growth, they need a flood of new leads. While generating leads is certainly valuable, it’s not the only lever you can pull. In this post, we’re diving into a powerful concept called the business growth levers.
The Growth Levers help you understand the different ways to boost turnover in business. Of course, to grow your business, you need more customers, but there’s more than one way to bring them in. You could increase your leads, or you could improve your conversion rate. Ideally, you’re working on both. By increasing both leads and conversions, you create a compound effect that brings in more customers than focusing on leads alone.
Once you have more customers, the next step is to maximise revenue from each one. Encourage them to come back frequently, and aim to increase the amount they spend each time. This involves getting your customers to make repeat purchases and boosting the average order value. By focusing on repeat business and encouraging higher spending, you can increase turnover without solely relying on new leads.
If you’re aiming for 26% year-on-year growth, a 6% improvement in each key area will do the job. This means focusing on getting 6% more leads, a 6% better conversion rate, 6% more transactions, and a 6% higher average order value. When each of these metrics improves by just 6%, they compound to drive a 26% growth rate in turnover.
The Growth Levers concept is an incredibly effective tool, but to make it work for you, it’s important to understand how each lever applies to your unique business model. This might mean customising these strategies to fit your market, tracking your numbers closely, and knowing your own “secret recipe” for growth. This kind of strategic focus is what will keep you moving toward your goals and growing your business to £10 million and beyond.
If you enjoyed this insight, make sure to catch the next session where I’ll be diving deeper into the Growth Levers and how to optimise them in your business.
Ready to drive real growth in your business? My business coaching services are designed to help you implement strategies like the Growth Levers and fine-tune them for your unique goals. For more insights, explore Mind Your Own Business, where you’ll find resources to help you make real, measurable progress.
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