In this snack-able episode of Business Lunch, Roland breaks down a PRICELESS strategy for growing your business. He offers the quickest path to an extra 9 million in revenue. Roland has laid out everything he would consider for our listeners.
Listen as Roland Breaks Down,
Step 1 Achieve immediate 2X – What additional value can you add to your existing product/service line that will allow you to double your current prices? The easiest way to double your revenue is to add more value and justify raising prices.
Do Step 1 correctly, and your $1M business is now a $2M business, almost instantly.
Step 2 Achieve a 2X on the 2X you achieved in Step 1 above!
Run a product and markets expansion grid analysis to determine what extensions of existing products and what new products will sell to your existing market, and what extended markets and new markets will purchase your existing products and your extension and new products. Selling your existing products into extended and new markets simply requires minor adjustments to product/service offerings and tweaks to your messaging, and is one of the fastest ways to multiply revenue.
Similarly, creating extensions of existing products and new products to sell to your existing market provides immediate revenue expansion without the need to spend to acquire new customers, as these products will sell to your existing base.
Do Step 2 correctly, and your $2M business is now a $4M business within about 12 months.
Step 3 Achieve another 2X on Step 2 Revenue! Determine who already has large swaths of your ideal existing customer avatar and sells that customer base non-competing, complementary products or services. Make a list of at least 10 complimentary product/service providers and then approach them and form strategic relationships to offer your products/services to their customer base as part of their funnel/sales process. There is no faster way to get exposure to and convert huge groups of other people’s existing customers into your customers than to form sustainable long-term integrations with strategic partners who already have a large existing base of your ideal customer and also have predictable selling and customer acquisition systems in place that ensure a continuing flow of new customers en masse to your business.
With this step, you should achieve a double-sided benefit. 20% or more of each new strategic partner’s existing customers should buy your products or services (equating to a 1.2x increase in your revenue per strategic partner).
Additionally, 20%+ of your existing customers should buy the products or services of each of your strategic partners.
Therefore, if you add 5 strategic partners who have a similarly sized customer base to yours, then through this process in this fashion, you will add an additional 100% revenue increase from their customers buying from you (5 partners x 20% of total customers buy = 100% revenue increase) and you will add an equal increase in revenue from your customers buying your strategic partners’ products and services.
Do Step 3 correctly, and you now have an $8M business. Existing revenue of $1M x 2 from Step 1 = $2M x 2 from Step 2 = $4M x 2 from Step 3 = $8M.
Step 4 1.25x Step 3 Revenue With Acquisitions – after the first 3 steps you’re sitting at $8M. The fastest way to get to $10M from there is to acquire a complementary business.
The business you acquire should be generating 25% of the revenue of your then-existing business, so that would be ($8 x 25%) = $2M. The ideal acquisition candidate will add one of the following 7 components to your existing business:
• Team or resources,
• Services that you already buy from the target or that the target sells to your existing customer base avatar profile, 4) products that you already buy from the target or that the target sells to your existing customer base avatar profile,
• Supply chain manufacturers/producers or distribution chain distributors
• Intellectual Property, or
• Direct or indirect competitors.
You don’t need a lot of capital to make this acquisition, which could be paid for with 1) seller financing, 2) earn-out, 3) equity or asset swaps, 4) asset-based lender financing (ABL), 5) baseline payment structure, 6) SLiP financing via self-liquidating payments, etc.
At the end of 12 months, your $1M business will have “10xed” into a $10M business.
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