All business growth is not valued equally

You've likely heard the adage that it’s far easier to cross-sell an existing customer a new product than it is to find a new customer. And if your goal is to grow at all costs, then cross-selling makes sense.

However, all of that sales growth may not do much for the value of your company. If you cross-sell your existing customers too much, it could make your business far less valuable.

When you cross-sell a customer so many products and services that they begin to account for more than 15–30% of your revenue, expect your value to drop. If a single customer represents more than 30% of your sales, expect an even deeper discount.

Customer concentration is one factor that makes up your score on the ValueBuilder assessment — it’s one of eight drivers that’s behind the research determining your business's value in an acquirer's eyes.

Essentially, the least valuable companies focus on selling lots of stuff to a few people. The most valuable businesses do precisely the opposite: by selling less to more people.

Identify a product or service that you can deliver REALLY well and focus on those. Identify a niche and sell them your focussed product or service. By doing this, you become known for your product/service in your niche.

If you are aiming for valuable growth because you want to have options for you and your business in the next several years, these are the types of considerations to factor in. Not all growth is considered equal if building a valuable business and legacy is your goal.

To learn more, come and hang out with us during our upcoming training where we talk about the Ultimate Freedom Method: the business owner’s path to building a long-lasting business, achieving business freedom and maximizing value.

We’ll discuss the principles behind sustainable valuable growth and so much more.

We would love to see you there and it will definitely be worth your time,

NOW is YOUR time.

Ariana

PS: To register for the upcoming training, click here.