How should I grow my business?💰
There are so many options. Email, Linkedin, SEO, PPC, hire a sales rep, events, channel, content, outsource, cold calling.
What to do? It’s confusing.
How to grow your business is a dilemma most founders find themselves having.
To answer this question, ask some different questions first.
The first question to ask is what is your client’s lifetime value?
Until you know what a customer is worth to your business it’s difficult to plan what acquisition strategy to use?
I like to use a rule from the SAAS industry which is to try not to spend more than 1/3rd of your client value (income) on acquiring new clients.
Let’s say a client pays you £40K in revenue over their lifetime and the gross margin is £20K.
In this example your budget to acquire new clients is circa £6500. (33% of CLV)
If you convert on average 1 in 10 leads you have a budget of £650 per qualified lead.
We should also ask:
How much time can I dedicate to these tasks?
Do I want to learn how to do it?
How much money do I have right now to invest?
How quick do I need a payback?
The answers to these questions will help you pick the right strategy.
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