Why does Growth matter?

You know that growth is important for your business, but do you really understand it? In my Coaching Tip today I explain what growth is and why you need it to be successful.

There are actually two kinds of growth: incremental and exponential. All the little steps that take you forward drive your incremental growth. What you see come together as a result by year’s end is your exponential growth. It’s taking the right measurements and knowing your numbers that show you how you’re progressing.

The primary number you need to focus on is your listings. From that you can calculate your growth percentage for the year. Then if you apply the Rule of 72 you’ll see how long it will take your business to double at your current growth percentage. Not only is it important to know your rate of growth, it should also encourage you to make a few small changes to speed up that growth.

Other numbers to track on include fee increases, sales, and advertising frequency because those numbers tell you which small steps are moving your forward. Your next most important resource is talent. Every new hire adds to your momentum and effectiveness if you’re hiring the best people for your team.

This brings us to the fact that growth is going to cost you money, but you have to remember you’re making an investment in your business. Spending just 5% of your gross fees on quality staff and marketing will deliver far greater returns than the cost of your initial investment.

Once you understand the importance of growth to your business, always accomplishing more each year and never losing ground you’ve worked so hard to gain, you’ll be able to make the best decisions to ensure your continued success.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.