What marketing channel should you use to grow your business?
How should I grow my business?đ°
There are so many options. Email, Linkedin, SEO, PPC, hire a sales rep, events, channel, content, outsource, cold calling.
What to do? Itâs 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 clientâs lifetime value?
Until you know what a customer is worth to your business itâs 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.
Letâs say a client pays you ÂŁ40K in revenue over their lifetime and the gross margin is ÂŁ20K.
In this example your budget to acquire new clients is circa ÂŁ6500. (33% of CLV)
If you convert on average 1 in 10 leads you have a budget of ÂŁ650 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.