Introducing Growth Levers
Do you know what’s essential?
Many people would not admit it, but a LOT of things that we do in life and business don’t move the needle at all. So why does this happen?
We’re not taught how to distinguish between what matters and what not. But if you study business extensively, you’ll get to this conclusion:
Only a few things are essential, and the rest doesn’t matter.
It’s called Essentialism.
Focus on what truly matters and eliminate the rest out of your life. It’s the fastest way to your desired results. So how do you know what matters?
Do you know your Pareto?
A well-known theory is the Pareto Principle, which states that 20% of the input generates 80% of the output.
- 20% of your customers generate 80% of your revenue
- 20% of your customers cost 80% of your customer support time
- 20% of your salespeople drive 80% of your revenue
If you analyze what the inputs and outputs are, you can find these relationships in all businesses.
Many great entrepreneurs use this principle to make sure that they spend their time on things that make the most significant difference and eliminate the rest.
In short: The Pareto Principle will show you where to focus your time and effort on.
How narrow is your focus?
If you want to go even further on this principle, you should read the One Thing by Gary Keller and Jay Papasan. In the One Thing they state the following:
“Going small” is ignoring all the things you could do and doing what you should do. It’s recognizing that not all things matter equally and finding the things that matter most. It’s a tighter way to connect what you do with what you want.
It’s realizing that extraordinary results are directly determined by how narrow you can make your focus.
Getting extraordinary results is all about creating a domino effect in your life. The key is over time. Success is built sequentially. It’s one thing at a time. So focus your energy entirely on one thing at a time.**
What can you learn from this?
If you know what to focus on, you will be able to make a massive impact, as you won’t be distracted by everything else.
It’s all about finding focus, so you will move faster and easier towards your goal. Let me explain. Look at these pictures and notice two things:
1. If you focus your energy on one thing you will move faster and go further.
2. A small domino can trigger a more significant domino. So if you start small, you will be able to move bigger and bigger pieces.
Do you have a vision for your company?
Always start with the end in mind. You need to have a crystal clear picture of where you want to go. What’s the vision for your company? What are your revenue, valuation, and EBITDA goals?
When you have this picture in mind, you need to connect it with what you can do right now. You can unlock your focus with this question:
What’s the ONE Thing I can do such that by doing it, everything else will be easier or unnecessary?
So, it’s about extreme focus. You focus only on one thing at the same time and ignore the rest.
Can you narrow your to-do’s down to one?
No matter how many to-do’s you start with, you can always narrow it down to one by using the 80/20 principle until you have one thing left. So, take 20 percent of the 20 percent of the 20 percent and continue until you get to the single most important thing!
Let’s do the above numerically.
- (80/20)^1 = 80/20
- (80/20)^2 = 4/64.
- (80/20)^3 = 0,8/51,2
That means that if you do an 80/20 analysis, three layers deep that less than 1% of actions drive 50+% of your results. We were stunned when we saw these numbers.
0,8% of actions = 51,2% of output
99,2% of actions = 48,8% of output
So focusing only on that 0,8%, let’s round it up to 1%, is the most impactful thing to do if you want to grow your revenue.
You can see this 1% as the ultimate lever for your growth.
Growth Lever: a 1% action that generates over 50%+ impact on your growth
With my growth lever cheat sheet (you can download it here) I want to empower you to start looking for your Growth Levers and start implementing them successfully.
You can either try to find the one that you need right now based on your situation. Or you can implement the three growth levers from the sheet.
I’ve taken all the books that i’ve read, all the courses that I’ve followed, and my 10.000+ hours of growth experience and selected three growth levers for you to focus on:
Building a Dream 100, implementing a Value Ladder and Stress testing your revenue.
Why these three?
Not a lot of companies have them in place, but they do make huge impact if you want to grow your revenue.
They are focused on:
- Finding new customers
- Making more out of your customers
- Increasing the amount of revenue your organization is able to generate