At Rhino Communities, we live by the mantra “Grow or Perish”—it’s our battle cry and our business philosophy. We believe that everything is either on the rise or on the way out. There’s no such thing as just staying steady.
Imagine trying to maintain your business as if it’s some sort of magical perpetual motion machine.
Spoiler alert: It doesn’t work that way. If your business isn’t growing, it’s basically shrinking. It’s a harsh truth I learned the hard way, with my businesses enduring some serious growing pains.
Here’s the deal: The market is like a hamster on a wheel, always speeding up. The stock market, for example, grows at a rate of 9% per year. So if you’re not matching that, guess what? You’re not just standing still—you’re falling behind. In booming markets, you might need to grow by 20-30% annually just to stay relevant. So, let’s ditch the idea of “maintenance” as a viable strategy. It’s a fairy tale for people who don’t want to face the music.
So, what’s the secret sauce for growth? It boils down to just three simple ingredients:
- Get More Customers: You need a steady stream of fresh faces walking through your virtual or physical doors.
- Increase Their Purchase Value: Make sure each customer spends more money with you.
- Get Them to Buy More Often: Encourage them to come back for more.
That’s it. Sure, there are a gazillion strategies to attract customers and boost their spending, but at its core, it’s this simple trio.
Here’s a quick example: If you bring in 10 customers each month, and each one is worth $1,000 over their lifetime, your maximum monthly revenue caps out at $10,000 (10 customers x $1,000 each). To grow beyond this, you either need to pull in more customers each month or make the existing ones shell out more cash or buy more frequently.
Author Note – The Simple Truth About Growth
To make things crystal clear: There are really only two ways to grow your business:
- Get More Customers: The more, the merrier.
- Increase Each Customer’s Value: This involves two main tactics:
- Increasing Profit per Purchase: Get them to spend more each time they buy.
- Increasing Purchase Frequency: Get them to come back more often.
