I want to tell you about Jay Abraham’s Three Ways To Grow A Business.
This is very different from the famous Ansoff Business Growth Model which can be thought of as the four ways to grow a business.
The Power Of Business Models
One of the big advantages of uses a “business model” is that it helps create a shared view of the way the business works and the way it can be improved. That’s the same when you use a strategic model to look at the environment like Michael Porter’s Five Forces.
I make this point in my Profit Tipping Point Report, but there is a tendency to over-complicate business and focus on too many tactics without getting the bigger things right.
The Three Ways To Grow a Business
The three ways to grow a business are:
- Increase the number of customers who buy
- Increase the average sales transaction value
- Increase the number of times a customer buys
It’s a very useful framework because often when you look at strategies to grow the top line, the automatic focus is winning more customers (method 1) and little attention is given to getting more sales from the existing customers in terms of selling more and more often.