Could it be possible to 10X your business over a decade? Not only is it possible, it is doable for virtually every business.
How do you get 10X growth? Let’s break it down: When you double business every three years you will 10X in 10 years.
Consider the following example of a business that is doing $1 million a year:
Now: $1M
3 Years: $2M
6 Years: $4M
9 Years: $8M
12 Years: $16M
Right around 10 years this business will hit $10M. That’s 10X.
The problem is that most businesses don’t experience this. Many businesses are stuck in flatline growth.
The financial world gives us the rule of 72. Divide 72 by the growth rate and you can see how long it takes to double your money.
Using this model, you can quickly see that a company growing at 10% year over year will double every 7.2 years. That business will get 1.5 doubling periods in a 10 year time frame, a far cry from 10X growth.
How can you accomplish 10X growth? You drive marginal improvement in two key areas simultaneously:
If you grow 1% a month (12% a year) in each of these areas, look what happens:
| Growth | Now | Year 1 | Year 2 | Year 3
Clients | 12% | 1,000 | 1,120 | 1,254 | 1,404
Revenue per Client | 12% | $1,000 | $1,120 | $1,254 | $1,404
Total Revenue |
| $1M | $1.26M | $1.57M | $1.97M
There it is in simple math. Business doubles in 3 years.
How could you pull off 10X growth?
In Atomic Habits, James Clear tells the story of how the British cycling team went from being the laughing stock of the sports world to Olympic Champions.
Their coach, Dave Brailsford, implemented the aggregation of marginal gains. The theory was that a 1% improvement each day would yield massive transformation over time. This proved out in going from last place to first.
The parallel to business is the aggregation of marginal gains in each of the two core revenue drivers: net-new and cross-sell revenue.
12% growth in each of these areas requires 1% growth per month or 3% per quarter. With this in mind, every leadership team has two questions to ask each quarter:
Get these two numbers right and you will break through to 10X growth in 10 years.
What does it take to make this happen? That’s why I explain in the Revenue Growth Engine® book. To get your copy visit www.revenuegrowthengine.com/book.