growth | 3 ways to grow your business
DESCRIPTION
This is a compilation of best practises I have found globally on Growth. Version 1.0TRANSCRIPT
GROWTHCompiled by Jason Leo Carvalho
3 Ways To Grow Your Business: How to create consistent growth today!
Who Am I? • 12 Years | Customer Acquisition • Founded & Sold 2 Companies • 1st Employee to 3 High Growth • Sold $57M worth of Product &
Services in the last10 yrs. • Currently Co-Founder & Chief
Operating Officer of SF based StandDesk.co & Co-Founder of sleep app DiscoverShadow.com
• Board of Directors| Douglas College
• 2012 Business In Vancouver Top 40 Under 40 Award Recipient
High Growth Companies
$500K-40MM 3 Years
$500k-10.5MM 1.5 Years
$0-1.1MM 6 mo
STARTER
Most entrepreneurs spend, on average, 65% of their time developing or working on their product or
service, 25% of their time on business operations and a measly 10% of their time on sales &
marketing.
=#time-to-evolve
65% of your time, overall, should be spent sales & marketing, 25% improving and developing new products/services,
and 10% on your operations.
3 Ways to Grow A Business
• Increase the number of customers (clients).
3 Ways to Grow A Business
• Increase the number of customers (clients).
• Increase the average transaction value. -Increase product quality -Increase sku line of multiple products / bundle
3 Ways to Grow A Business
• Increase the number of customers (clients).
• Increase the average transaction value. -Increase product quality -Increase sku line of multiple products / bundle
• Increase the frequency of repurchase -get more residual value out of each customer
1000 $100 2
SMALL Company - Example Increase the # of customers
* *
Increase the Average Dollars
Per
Increase TheRepurchase Frequency Total
=
2.2
$200,000
1000 $100 2
SMALL Company - Example Increase the # of customers
* *
Increase the Average Dollars
Per
Increase TheRepurchase Frequency Total
1100 $110 2.2
10% Increase
* *
10% Increase 10% Increase 33.1%
=
=
$266,000
2.21330 125 3
$200,000
1000 $100 2
SMALL Company - Example Increase the # of customers
* *
Increase the Average Dollars
Per
Increase TheRepurchase Frequency Total
1100 $110 2.2
10% Increase
* *
10% Increase 10% Increase 33.1%
=
=
$266,000
2.2
33% Increase
* *
25% Increase 50% Increase 250%
= $500,0001330 $125 3
$200,000
10,000 $100 2
Larger Company - Example Increase the # of customers
* *
Increase the Average Dollars
Per
Increase TheRepurchase Frequency Total
11,000 $110 2.2
10% Increase
* *
10% Increase 10% Increase 33.1%
=
=
$2,660,000
2.2
33% Increase
* *
25% Increase 50% Increase 250%
= $5,000,00013,330 $125 3
$2,000,000
EXERCISEApply the formula to your business.
(10% Increase in Your Customers) x (10% Increase
in Average Dollars Per sale) x (10% increasein repurchase frequency) = YOUR TOTAL
“What distinctions, principles, or stories did you learn so far that can absolutely
change your business forever?
What actions can you take to implement those ideas?”
Q:
THANK YOU@jasonlcarvalho
Profit vs Growth • Soft Economy = Conserve
Cash
• More Complex or Defensible your business is the less speed becomes an issue.
• Smaller Market = Few survive.
• Positive Financing Climate = accelerate growth by accessing investors.
• B2C Business Need to Think “Faster” than B2B given consumer behaviour vs corporate behaviour
• 1st Mover = A+
• Larger Market = Everyone Can Thrive.