• Home
  • Blog
    • Business Partner Magazine Archive
  • Resources
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

There are only 3 ways to grow your business!

August 18, 2014 by Sandra Hinshelwood

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
Grow Your Business

There are only 3 ways to grow your business!

Growing your business does not have to be complicated.

Marketing expert, Jay Abraham states that there are only 3 ways to grow your business.

1. Increase the number of clients.

2. Increase the average size of the sale per client.

3. Increase the number of times clients return and buy again.

With only three things to focus on, the task of growing your business becomes significantly less daunting, dare I say it, even easy.

The starting point is to figure out what a customer is worth to your business over a purchasing lifetime.  This is also known as the ‘marginal net worth’ of a customer.  This can be defined as “the total, aggregate profit of an average customer over the lifetime of his/her patronage – including all residual sales – less advertising, marketing, and product or service fulfilment expenses.” Jay Abraham

Do the following exercise to determine the marginal net worth of your customers.

Start by calculating the number of clients/customers you have.

Calculate the average sale and the average profit per sale.

Determine how often they come back to make additional purchases.  (Be conservative with these figures).

Example:

Let’s say you have 100 clients.  If the average transaction is £200 and they make two purchases a year, the total transaction income is £40,000

100 x £200 x 2 = £40,000

Once you understand what the customer will be worth to your business you will know how much you can afford to spend to acquire a new customer, instead of allocating an arbitrary amount e.g.5% of sales on advertising.

Now that you know what you can afford to spend to increase your client base, you need to next focus on how you can increase the average size of the sale per client.

A sale can often be upgraded by selling an “add-on”, e.g. supporting reference material to go with the training programme.  The opportunities in up-selling are enormous and can lead to massive growth.

So, if we look at our figures again you will be able to see the impact of increasing your client base by 10% and also increasing their average spend by 10%.

110 x £220 x 2 = £48,400

The next step in the plan is to increase the number of times a customer purchases from you.  The only way to do this successfully is to have a range of products or services that the customer can choose from. You must ensure that you have ‘back-end’ sales.  It is 5 times easier to sell to an existing customer than it is to gain a new one.  Do not waste this opportunity.

So using the same figures again, but this time increasing the number of times that the customer purchases from you from 2 to 3, you will truly see the power of focusing on these three simple elements to grow your business.

110 x £220 x 3 = £72,600

Your customers are your greatest asset and also an asset that you can leverage simply by giving them more opportunities to buy from you and the ability to do so more frequently.

You may also like: 6 Personal Branding Tips To Help Grow Your Small Business

About the Author

Sandra Hinshelwood

Sandra Hinshelwood is a business coach and mentor. Drawing upon her experience as a virtual assistant and team leader in the corporate world, she works with small business owners and solopreneurs to eliminate feelings of overwhelm and empowering them to focus on their goals and visions with greater clarity.

www.sandrahinshelwood.com

Filed Under: Business Skills, Business Success, Finance Tagged With: business growth, business success

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • What is Correx Board Printing by Banner World?
  • What are Haemotologic Malignancies?
  • While AI makes writing code easier than ever, CodeAnt AI secures $2M to make it easy to review
  • What Are Plant Biology Reagents?
  • Testsigma announces autonomous testing capabilities – ushering in the era of agentic AI

Categories

Archives

Tags

Accounting bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design Digital marketing ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal services legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

Innovation in Business MarTech Awards – Best SME Business Support Platform 2024 – UK

Innovation in Business MarTech Awards 2024 UK

CorporateLivewire: Innovation & Excellence Awards – Business Publication of the Year

CorporateLivewire: Innovation & Excellence Awards - Business Publication of the Year

Disclosure

We earn commissions if you shop through the links on this page.

Digital Marketing Agency

ReachMore Banner

Business Partner Magazine

Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

Have a look around the site to discover a wealth of business-focused content.

Here’s to your business success!

Copyright © 2025 - Business Partner Magazine·

x