About Optimal Growth Strategies™
There are two paths you can take to grow your business. Which is right for you?
1) Traditional Business Growth Path
Most business owners know that for every 100 prospects generated, they convert a certain percentage into buyers, clients and customers. Their growth plan focuses on getting more prospects into their "pipeline" or "sales funnel".
Since getting more prospects is their focus, their business growth plan usually revolves around advertising and direct marketing. Meaning, in order to grow, they must spend more money on advertising and direct marketing campaigns.
There is nothing wrong with increasing your advertising and marketing budget (except you have to risk money up-front and out-of-pocket for a result that may be unsatisfactory)... but... what if there were away to grow revenue and profit without the risk associated with increasing your advertising budget? Would you be interested?
2) Optimum Business Growth Path
What few business owners understand is optimum business growth does not begin with more advertising and direct marketing campaigns. Increasing your promotional budget is the last thing you want to do.
Optimal Growth Strategies™ focuses on being more effective. Not prospecting more, but prospecting more effectively; converting more of your prospects into buyers, clients and customers; increasing the value of each buyer, client and customer... without increasing your advertising budget.
Since optimum growth focuses on doing more with what you already have, the growth plan does not revolve around increasing your promotional budget. Meaning, in order to grow your business, there is no need to spend more money on advertising and direct marketing campaigns.
How Do Traditional Growth & Optimum Growth Compare?
Let's take a quick look at how these two paths compare side-by-side.
Assumptions for illustration purposes: This example assumes a Profit Growth Target of 30% with a current budget of $1,000 to generate 100 prospects ($10 per prospect). Further, it assumes a prospect-to-customer conversion rate (conversion rate) of 10%. Meaning, 10 out of every 100 prospects become buyers, client or customers. Finally, it assumes a current gross profit of $500 per buyer, client or customer.
Traditional Growth Path |
||||||
| Budget | Prospects | Conversion | Clients | Profit/Client | Gross Profit | |
|
Now |
$1,000 | 100 | 10% | 10 | $500 | $5,000 |
|
After |
$1,300 | 130 | 10% | 13 | $500 | $6,500 |
| 30% Increase | ||||||
This illustration shows that, currently, to earn a gross profit $5,000, it takes $1,000 in promotional dollars. Most growth plans focus solely on acquiring new prospects through spending more advertising and direct marketing dollars.
With the Traditional Growth Path, a 30% gross profit increase is achieved by increasing advertising and direct marketing campaign budget by 30%. So, an increase of 30% in the promotional budget is needed to achieve a total profit increase of 30%.
The Optimum Growth Path is achieved by becoming more effective in how and what you do. There is a process that can make your current marketing 10%-20% more effective. There is a process that can increase your conversion rate 10%-25%. There is a process that allows you to increase the value of each buyer, client and customer by 10%-30%. These processes make up the core of the Optimum Growth Path.
The illustration below assumes you keep your promotional budget right where it is right now, and implement the core Optimal Growth Strategies™ into your business. By doing this, we'll take the lower rate assumption that, without spending any additional money on advertising, you will increase your advertising effectiveness 10% (you will generate 10% more prospects with the same budget). In addition, it assumes your conversion rate is 10% better and you increase the value of your buyers, clients and customers 10%.
Optimum Growth Path |
||||||
| Budget | Prospects | Conversion | Clients | Profit/Client | Gross Profit | |
|
Now |
$1,000 | 100 | 10% | 10 | $500 | $5,000 |
|
After |
$1,000 | 110 | 11% | 12 | $550 | $6,600 |
| 32% Increase | ||||||
With the Optimum Growth Path, a 30% profit increase is achieved by increasing the effectiveness your current promotional campaigns (increasing prospects by 10% and conversion rate by 10%) and your per customer profitability by 10%.
Notice, there is no additional money spent on your promotional budget. You only need to achieve 10 more prospects (per 100 you are now generating). You only need to increase your current conversion rate from 10% to 11%. And, you only need to increase your current client value an additional $50.
These small growth rates are almost always achievable -- regardless of your actual current numbers. And, they are achievable without spending any additional money on your advertising budget. Once you have optimized this process and have become more highly profitable, then (and only then) you could consider increasing your promotional budget.
To learn more about integrating Optimal Growth Strategies™ into your business, provide your name and email below to receive access to an exclusive set of planning tools to help you start the process.
Contact me to learn about guaranteed Optimal Growth Strategies™ for your business.
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