Insights from fast growing businesses
15 August 2023
- Nobody accidentally finds themselves on top of the mountain. You only get there by having a goal, working to a plan, and working hard to make it happen.
- Customer retention is a growth strategy. A KPMG study found that customer retention was businesses’ most important revenue driver. At the same time, Bain & Company calculated a high customer/client retention rate could improve earnings by up to 95%. In our experience, we find that businesses that are not growing their sales year in and year out it’s almost always due to poor customer retention. They are getting new customers constantly but losing customers at the same rate, so they are going nowhere. If there is a hole in the bucket, there is not much point pouring more water in the top (i.e. advertising to get new customers) until you fix the hole/leak (customer retention issue). Why might your business be losing customers? Identify the issues and solve them.
- Sell, sell, sell! Every business comprises two businesses, one that does the work (processing) and one that sells the work. You shouldn’t be in business if you don’t, won’t, and can’t sell the work. Consider getting a job instead – it will be better for you. You are more suited as an employee and not a business owner.
- Create a structured referral program. Word-of-mouth marketing and referrals typically generate 90% of a business’s new clients. If you build a structured, formal and scalable referral program, your new customer acquisitions will explode.
- Invest in yourself. The greatest investment you can make is in your personal and professional development. Secondly, to quote ‘Harry S Truman, ‘Not all readers are leaders, but all leaders are readers’. Stop using excuses for why your business is not growing or blaming external factors when the problem is likely to rest with you as the owner, not staying across what changes you need to make to fix the problems. Improve your knowledge so you can do more types of work, read advertising and marketing material, learn about motivation, how to source work, improve language skills and so on.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2