principles of geometric business growth

Principles of Geometric Business Growth

Jay L. Abraham

© SBF – Emile van Essen

04/19/23 © SBF - Emile van Essen, for internal use only!

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Principles #

1. Upside Leverage2. Funnel Vision3. Three Ways to Grow a Business4. Optimization5. Strategy6. Power Parthenon7. Drivers


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I have a very simple philosophy on life:

You shouldn’t steal from yourself.

Stated differently, you must optimize--- every effort you take, every investment you make and every opportunity you pursue.


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P#1 Upside Leverage

Revenue and profit potential: if you only know how to identify and

utilize the opportunities which are all around you.


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Upside Leverage

1. Untapped and Hidden (“Off Balance Sheet”) Assets such as your customer list, the trust and goodwill of your customers and the desire of your vendors for your business to do well;

2. Overlooked Opportunities and opportunities which you do not know how to leverage yet;

3. Under Performing Activities, Systems and Processes. In every business, there are ALWAYS activities which can and should be optimized and improved - - - however, most businesses spend their time focusing, optimizing and fixing the wrong things.


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Upside Leverage

4. Under Valued Distribution Channels which you have OR you know someone else who has them. There are easy ways to leverage them - - - if you have a strategy in place;

5. Under Utilized Relationships such as your relationships with your vendors, your employees, your bank, the professionals you engage, the trade associations and journals within your industry - - -and even your competitors;

6. Under Appreciated Intellectual Property such as ads, proprietary processes, and the know-how the people within your business have;


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You have two choices:

• Either you can continue working hard for your business OR you can begin to build a business that works hard FOR YOU.


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Upside Leverage

• Your Two Greatest Sources of Leverage: Marketing and Innovation

Because its purpose is to create a customer, the business has two

- - - and only two functions - - - Marketing and innovation. Marketing and

innovation produce results, all the rest are costs.


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Upside Leverage

The Most amount of Quality breakthroughs on a continuous basis in four specific areas:

1. Strategy; 2. Marketing; 3. Innovation; 4. Management.


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Upside Leverage

Marketing is the process of:

Educating the customerof the value you bringto the marketplace.


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P#2 Funnel Vision vs. TV

You can’t begin to leverage all your opportunities and resources UNTIL you examine and evaluate all the other higher performing options, alternatives and opportunities that are out there .

And you can’t do that unless you are willing to travel outside of your industry.


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Funnel Vision vs. TV

• Each different industry has pretty much depended upon just 1 or 2 basic success practices to generate and sustain clients and sales.

• Of any 100 different industries you look

at, you’ll find at least 95 totally different success practices being used (most of which can be easily applied to all the rest).


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• Not just to sell, but if our goal is to find new prospects, what are 20 other industries doing to “find new prospects” other than what we are currently doing?"


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• If you are the first and the only company to introduce new selling approaches, strategic distinctions, and operating systems into your field that are matter-of-fact to others, it will knock your competitors for a loop, and it will distinguish you in such a powerful and preeminent way in your marketplace - - - that you will own it. You will literally own it.


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P#3 Three Ways to Grow a Business

• Increase the number of client;• Increase the average size of

the sale per client; • Increase the number of times

clients return and buy again.


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Three Ways to Grow a Business

Your goal should always be

to leverage your relationship with the client

to its maximum benefit, resultand mutual value.


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P#4 Optimization

• If you work on all three ways to grow a business at the same time, and all you did was improve all three ways by a mere 10%, it brings the power of geometry to bear.


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Optimization, start

Example of 1.000 Clients, $100 Transaction Value, Purchasing 2 Times a Year

# of Clients Transaction Value Per

Client

Transaction Per Year

Total Income

1.000 € 100 2 € 200.000


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Optimization, 10%

Example of 10% Increase Acrose The Board


Client


Total Income

1.100 € 110 2,2 € 266.200

vs. 200.000


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Optimization, 25%

Example of 25% Increase Acrose The Board


Client


Total Income

1.250 € 125 2,5 € 390.625

vs. 200.000


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Optimization

• Focus on geometric business growth• Bring the power of optimization to bear • Work on the geometry of your business • Otherwise you’re going to always work harder

for your company than your company will work for you.


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Optimization

• Your ultimate goal should be to build an asset - an enduring

asset that will be worth so many times more than the mere increases in income in earnings in salary or in dividends we can stimulate for you.


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Optimization

• This is a wealth-building play of the highest magnitude---if you understand it. AND if you execute consistently.


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Optimization, # of Clients

• Margin € 200 / first sale• € 20 to salesman, € 180 to company

• Customers buy 5x/year during 3 year• Margin value € 3.000

• Give all margin away for the first sale:• And it’ll boost your business!


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Optimization, Size/Client

• Have you ever been to a fast food restaurant and been asked by the cashier “Do you want fries with that?”

• Such is the power of add-ons, incentives and bonuses.


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• Preferred clients offers• By infitation only sales• Frequent buyers premiums

Optimization, #Sales/Client


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P#5 Strategy vs. Tactics• Being strategic means:

you’ve determined in advance an ultimate, meaningful long range goal, that you’d like to see your business achieve.

• Each tactic and opportunity you pursue must be deployed to advance, enhance, and deploy that strategy and realize your goal. It should never vary or deviate.


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5 Critical Strategy Idea

1. Marketing strategically produces a up to 100 times greater result. Plus---it gives you a tremendous competitive advantage.

2. Without you are destined to a mediocre and disappointing outcome, compared to your fully realized potential.

3. Undoubtedly it is today’s most important

business performance success factor.


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5 Critical Strategy Ideas

4. Right now, your biggest limitation, by far, is your TACTICALLY oriented mindset. You must overcome this key obstacle and bring down the barriers of tactical thinking to unleash the full potential of strategic marketing thinking.

5. Today, you must adopt to use a strategic mindset, to make your current competition practically irrelevant and meaningless.


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Strategy vs. Tactics

• The key to doing it lies totally

in your ability to

masterfully market strategically.


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P#6 Power Parthenon of Geometric Business Growth

• I believe 99% of all companies generate their revenue from only ONE primary revenue activity.

• work with revenue pillars - like the Parthenon in Greece - of additional primary, secondary and complimentary revenue and income-generating approaches.


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31 Strategies To Grow1. How to Increase Your Number of Clients: How you can Increase Your Lead or Inquiry Generation Through: 1. Referral systems; 2. Acquiring customers at break-even up front and make a profit on the back-end; 3. Guaranteeing purchases through risk reversal; 4. Host/beneficiary relationships; 5. Advertising; 6. Using direct mail; 7. Using telemarketing; 8. Running special events or information nights; 9. Acquiring qualified lists; 10. Develop a Unique Selling Proposition; 11. Increasing the perceived value of your product/service through better customer education; 12. Using public relations; 13. Sequential Integrated Internet, Website & Email.


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31 Strategies To Grow How you can increase your customer retention rate by: 14. Delivering higher-than-expected levels of service; 15. Communicating frequently with your customers to "nurture” them.

How you can increase your conversion from inquiry to sale by: 16. Increasing sales skill levels of your staff; 17. Qualifying leads up front; 18. Making irresistible offers. (i.e. Risk Reversal); 19. Educating your customers by giving "reasons why”.

2. How to Increase Average Transaction Value: 20. Improving your team's selling techniques to up-sell and cross-sell; 21. Using point-of-sale promotions; 22. Packaging complementary products and services together; 23. Increasing your pricing and hence your margins; 24. Changing the profile of your products or services to be more up market; 25. Offering greater/larger units of purchase.


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31 Strategies To Grow3. How to Increase Transaction Frequency: 26. Developing a back-end of products that you can go back to your customers with; 27. Communicating personally with your customers to maintain a positive relationship; 28. Endorsing other people's products to your list; 29. Running special events such as "closed door sales,“ limited pre-releases, etc; 30. Pre-framing or programming customers in advance; 31. Price inducements for frequency of purchase.


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Optimization, Sales/Client

• Stockbrokers offer occasional IPOs to preferred clients;

• Airlines offer frequent flyer miles;Why?


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P#7 Abraham Nine Drivers of Business Success1. Your Marketing: change your marketing, change your results. Enormous leverage, up to 2100% leverage in each improved activity you do, if you put a system together that’s not only operational, but also continually tests, monitors, and measures;

2. Your Strategy. Changing your business and marketing strategy, is the fastest, most powerful way to change your results;

3. Your Capital...human, intellectual, financial. Human capital is basically the people working for you. Intellectual capital is the intellectual property. It could be the proprietary systems, the procedures that are unique and distinctive to you. And obviously financial capital. Enormous upside leverage in all three of those;


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Abraham Nine Drivers of Business Success4. Your Business Model . The business model is decisively

different than your strategy. You can have a big, sweeping strategy, but the business model may be wrong. The strategy may perform OK, but won’t be optimal for you.

5. The Relationships you have. Your existing network of the business relationships, the professional relationships, the collegial relationships, the employee relationships, the mastermind relationships is the easiest, most cost effective driver to leverage.

6. Your Distribution Channels - and that’s a very broad concept that describes all the different means you have of impacting the market, from the advertising you do the selling organization you do the associations you’ve got - it's a very broad and sweeping area.


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Abraham Nine Drivers of Business Success7. Your Products and Services. The different products and services you have or you create will give you enormously greater or less leverage... frequency of purchase profit. It will give you enormously renewed ability to get far greater yield and sustained income from the relationships that you breed with clients;

8. Systems, Procedures and Processes. Your ability to systemize your marketing, your operations, your management gives you enormous freedom, even though they imply structure and rigidity;

9. Your Ideology . This is the whole mindset that you’re basing your operating system around. I’ve done entire seminars where we focus almost exclusively on your mindset. It’s that powerful.


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When you combine them together and execute them as a unified master strategy, they will produce geometric business growth in income, results and success as they have for thousands of other entrepreneurs.

Do not ask: “Am I worthy or do I deserve this goal,” Rather ask:

“Is this goal worthy of YOU?”

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principles of geometric business growth

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