I have used this formula in the past in planning strategies but as one tend to do, I move to newer and "better" ideas.
The formula is simple, it's application not always.
Let's say you have:
100 customers a year
$100 average per sale
2 sales per customer average
That gives you $20,000 in sales. Right?
Now, to increase each of these components by only 10% to
110 customers per year
$110 per sale
2.2 sales per customer
shouldn't be too difficult, should it?
This 10% across the board increase increases your sales by 33.3% to $26,620.
How can you increase each of these areas in your business?