Fish, Grenades, and Business Growth

Read Growth Brews #030 listening to:
Oasis - “The Masterplan”

Ever feel like you're running a three-ring circus instead of a company? Trust me, I've been there. Let me paint you a picture...

You're at a carnival, trying to win that ginormous teddy bear for your kid. Sound familiar? Well, swap out that teddy bear for "business growth," and you've got a day in the life of most small and mid-size business owners I know.

So, what do you do? You start playing every game in sight. 

• Email marketing? Check. 

• Social media blitz? You bet. 

• That weird TikTok dance challenge? ...Maybe not, but you get the idea.

Sure, you might win a few small prizes here and there. A lead here, a sale there. 

But before you know it, your budget's gone, your team's burnt out, and that big growth goal is still smugly hanging there, mocking you.

That, my friend, is the "spray and pray" approach to business growth. 

And let me tell you, it's about as effective as trying to catch fish with a grenade—sure, you'll make a big splash, but all you'll end up with is a bunch of dead fish and a hole in your boat.

The Hidden Cost of Chaos

Here's the kicker: this grenade approach isn't just ineffective—it's downright expensive. And I'm not just talking about your marketing budget.

Think about it:

• You're spreading your resources thinner than dollar-store peanut butter

• Your team's running around like caffeinated squirrels, chasing every shiny new trend

• Your customers? They're more confused than a chameleon in a bag of Skittles

Plus, while you're busy playing whack-a-mole with every marketing tactic under the sun, you're missing out on the real opportunities. 

You know, the ones that could actually 10x your revenue or even 1000x your results like I showed on "Is Exponential Growth Real?"

But here's the good news: there's a better way. A smarter way. 

A way that cuts through the noise and gets you straight to the heart of what really moves the needle for your business.

And the best part? It works. 

Time and time again, I've seen businesses double, triple, even 10x their revenue by doing less, but doing it better.

It's time to put down the grenade and pick up a sniper.

Precision Over Pandemonium

Imagine you're a chef (stick with me here, I promise this isn't a cooking newsletter). 

You wouldn't just throw every ingredient you have into the pot and hope for the best, right? Unless you're going for "Mystery Stew Surprise," in which case, bon appétit and good luck.

No, you'd carefully select the flavors that complement each other, the ones that'll make your dish sing. 

The same goes for growing your business. It's not about doing everything; it's about doing the right things.

The key? 

Identifying your high-value targets like a sniper—the customers, products, or channels that have the potential to really move the needle for your business.

Let me hit you with a mind-bender: Would you rather keep 50% of $500,000 or 10% of $1,000,000?

I'll wait while you do the math... Done? Great.

If you picked the 50% of $500k, congrats! You just pocketed $250k instead of $100k. That's the power of precision, baby.

Think of it this way: 

You don't need to boil the whole ocean to make a perfect cup of coffee. 

You just need the right beans, the right grind, and the right brewing method. Focus on nailing those elements, and you'll create something truly exceptional.

It's about doing less, but doing it better. It's about creating something remarkable instead of just adding to the noise.

What does that have to do with growing a business?

Finding Your Sweet Spot: The 80/20 of Growth

We've all heard of the 80/20 rule, right? It's like that one friend who always brings it up at parties. (If you don't have that friend, congrats, you are that friend.)

But here's the thing: it actually works. 

After diving into the data of hundreds of businesses over the past 13 years, I can tell you that about 80% of your revenue probably comes from just 20% of your efforts.

And I'd bet my last cup of coffee that 80% of your headaches come from 20% of your clients. (Okay, that last one might not be scientific, but you know it's true.)

Here's a real-life example: I once worked with a client who was selling everything from socks to luxury watches. 

They were stressed out, always putting out fires, and trying to manage a huge inventory.

But when we looked at the numbers, we found that 80% of their revenue came from their watch line. 

So, we made a bold move: we cut everything else and focused solely on watches.

The result? They doubled their revenue in a year, with half the stress and a lower cost, too. 

That's the power of the 80/20 principle. It's about finding your zone of genius and doubling down on it.

I hope you're convinced this works at this point. So, let's see how to make it happen.

The Art of Strategic Patience (or, How to Avoid Becoming a Statistic)

Here's the thing about the business world: everyone wants results yesterday. 

Here's a fun fact you probably know. But stick with me, I will deep dive on this in a way you haven't seen before: 

About 50% of new businesses close in the first 5 years. But did you know one of the top 6 reasons for that is expanding too fast?

It's like trying to cook a gourmet meal in a microwave. Sure, you might end up with something edible, but it's not going to win you any Michelin stars.

A not so common data shows that if you manage to stay in business for 10 years, you're more than 90% likely to remain in business and that's the game I like to play.

I bet you didn't know this one, did you?

Here's the source if you want to check it out.

Growth isn't a microwave dinner; it's a slow-cooked masterpiece. 

It takes time, patience, and strategic planning. 

The businesses that win in the long run are the ones that have the patience to build a sustainable growth engine.

So, if you're not seeing instant results, don't panic. 

Keep your eye on the prize, trust the process, and remember: good things come to those who strategically wait (and have a killer precision strategy).

Your Precision Toolkit: Doing Less, Better

Alright, time to get practical. What does precision growth actually look like in action? 

It starts with focusing on the right metrics.

Here's a hint: it's not just about customer acquisition cost (CAC). 

Sure, that's important, but it's just one piece of the puzzle. You also need to look at things like customer lifetime value (LTV), retention rates, and profit margins.

The goal is to find the metrics that really matter for your business—the ones that are directly tied to your bottom line. 

Once you know what to aim for, you can start crafting your precision toolkit.

Here are a few simple strategies to get you started:

1. The "One Thing" Exercise: Ask yourself, "What's the one thing I can do today that would have the biggest impact on my business?" Then do that thing. Rinse and repeat.

2. The "Hell Yes" Rule: For every opportunity or idea that comes your way, ask yourself, "Is this a hell yes?" If not, it's a no. Focus only on the things that truly excite and energize you.

3. The "MVT" Approach: Instead of trying to improve everything at once, focus on making Minimal Viable Tweaks. Small, targeted changes can add up to big results over time.

You can get deeper on the 3 strategies above in my content "You Should Be Eating Frogs."

Remember, it's not about doing more; it's about doing the right things, better.

Your Business's Buried Treasure

Now, let's talk about something exciting: hidden revenue. It's like finding money in your old jacket pockets, but way better.

Most businesses are sitting on a goldmine of untapped revenue, but they're too busy chasing new customers to notice. 

Here's where precision comes in handy:

1. Look at your existing customers. Who are your top 20%? What do they have in common? There might be a whole segment of similar potential customers you're overlooking.

2. Analyze your products or services. Which ones have the highest profit margins? Could you create a premium version or an upsell opportunity?

3. Check your processes. Are there any bottlenecks or inefficiencies eating into your profits? Streamlining these could unlock hidden revenue.

Remember, sometimes the biggest opportunities are right under your nose. You just need to know where to look.

From Chaos to Clarity: Your Next Steps

Alright, we've covered a lot of ground here. But knowledge without action is like a Ferrari without gas—it might look pretty, but it's not going to get you anywhere.

So, here's your mission, should you choose to accept it:

1. Identify your 20%: Take a hard look at your business and figure out what's really driving your results. Double down on those areas.

2. Pick one key metric: Choose the metric that's most closely tied to your business goals and make it your North Star.

3. Craft your precision toolkit: Choose one strategy from the toolkit section and start implementing it today.

4. Uncover hidden revenue: Pick one area (customers, products, or processes) and dig deep to find untapped opportunities.

Remember, the journey of a thousand miles begins with a single step. I know, cliché, but still true.

You don't need to overhaul everything overnight. Just start with one small, strategic move, and build from there.

Until next time, keep your aim true and your coffee strong. Here's to precision, profits, and saying goodbye to business chaos!

P.S. If you found this newsletter helpful, I'd love to hear from you. Hit that reply button and let me know what you thought, or what topics you'd like me to dive into next. Your feedback is my fuel (well, that and coffee).

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