Do you ever find yourself complicating how to grow your own business so that it’s difficult to solve your own growth problems? Well, if you do, here’s one simple way to strip business growth down to its core. The growth of your business is directly related to the number of offers you make, period.
Now, there are several ways you or I could qualify that statement (such as, “to qualified buyers,” or “to potential buyers who have an irrational desire for what you offer”) but let’s keep it simple for today. It’s all about how many offers you make to your target market, period.
That said, there are a number of critical factors that effect that simple equation—all of which should be evaluated by you and your business on a regular basis. For example.
1. The frequency of your offers. Most small businesses are terrible at making lots of offers. They get hung up on operations and service fulfillment and forget about making offers all the time. The classic example would be the professional service provider (attorney, accountant, doctor, consultant, etc.) who wonders why they don’t have enough clients until you ask them, “Well how many people have you asked for a referral in the past three months?” Or, “How many proposals have you sent out in the last three months?”
At the end of the day, regardless of what business you or I are in—the frequency of our offers does have a direct correlation to the amount of revenue we accumulate—which means that if we’re only sending out marketing messages a few times a year (for ex. around big holidays), then we’ve got a problem. On the other hand, if we’d simply increase the frequency of our offers, chances are, we’d make a whole lot more money.
2. The number of different kinds of offers you make. Another one of the limiting factors for a lot of businesses is that they keep making the same pitches to the same audience … over and over and over again. And whenever anyone keeps making the same offer over and over again, the efficacy of that offer drops precipitously.
For example, if I were to send you an email each week asking, “Have you bought Product X yet?” “Ready to buy Product X?” “It’s about time your bought Product X!” etc. the first few repetitions would increase sales, but after the fifth of sixth time, most people would simply glaze over the email and hit delete. Why? Because, even though I would be increasing the frequency (point one), I’d be boring people with the same offer.
What that means is that if you’re only offering your target market a few products or the same services over and over again, then you’re hurting your sales. Or to put it another way, if you want to increase your revenue, you’ve got to keep increasing the number of products and services you have to offer your target market. Why? Because everyone likes new and different, few like the same.
3. The price points of your offers. Note: This works both ways. If all of your offers are for high dollar amounts, you’re limiting the number of potential buyers in your market. By simply offering some lower price points in your offers, you could probably increase the number of people who buy from you.
On the other hand, there are always people who prefer to buy at higher price points. So if you’re only offering your standard pricing and don’t have some premium offers (like premium packages), chances are you’re leaving money on the table that could be yours.
So, how are you doing? Are you making enough offers? Are you making enough asks of your target market? Are you sending out enough marketing messages? Are you changing up your offers? Are you continually innovating and creating new products and services? And do you have a full product/service pipeline with the right products and services at a variety of price points?
If not, then you know what you need to do. Let’s not overcomplicate growing your business. Business ultimately comes down to making enough different offers to your target market at a variety of price points. Master that, and you’ll blow your competition away.
To your accelerated success!
P.S. If you want to make this real practical, take a look at the last quarter. How many offers did you make? When did you send them out? What did you offer your target market? How different were your offers? Which offers were most effective? Do you have enough different things to offer? And what were the price points?