This episode is brought to you by Belay and they're offering to business accelerator listeners a free resource called 25 things you can delegate to an assistant to get that simply text ba to 55123.

That's ba to the number 55123.

Everybody it's Nick and last time we did this it went really well so we're doing it again we have some notes that you can have in download and reflect on about the content of this episode you can get them at business accelerator dot com slash sgm.

Business accelerator dot com slash sgm and that stands for strategic growth matrix so these are some notes that you can use to internalize what we've talked about on today's show and you definitely want to get it because you want to help grow your business strategically so there you go business accelerator dot com slash sgm.

Hi Michael Hyatt and I'm Megan Hyatt Miller and this is the business accelerator podcast we all busy but growth minded small business owners scale themselves in their businesses so they can win at work and succeed at life something we call the double win.

Hey Meg how you doing I'm great I'm excited to talk about our topic today I am too this is called the strategic growth matrix it's based on the and soft matrix and basically is a business owner you've got four strategic options when it comes to growth and I've rarely met a business owner that doesn't want to grow everybody wants to grow.

They're business and the reason for that is because it means more impact it means more sales more profit whatever your your reason is but there are only four possibilities and that's what we want to talk about.

Well of course there's a matrix I don't think anybody has ever loved a matrix more than Michael Hyatt and I as someone who shares half of your DNA also love a matrix but you know I think a matrix when I think about it is just like a nifty little box to put things in and I for one love to put things in a box at my house I have all my shoes and those little clear boxes from the container store and I feel like this is the business version of that so that's fantastic what I love about what we're going to get into

today is that there is smart growth that's really oriented toward profitable efficient growth and then there's growth that's less efficient and sometimes less profitable and definitely riskier and I think that this is one of those things that as a business owner it's easy to not even think about it all not put things in this category and this can become a filter so that you make sure that the way you're growing ultimately is going to drive profit efficiency joy in your life.

It's going to work all those things that we really want as business owners well and the cool thing is that you could download this worksheet this cheat sheet and have a conversation with your team about it yeah and just look at what your strategic growth opportunities are and I find myself hauling out this matrix whenever we talk about growth because again there's only these four strategic options and again if you imagine it is a matrix and you'll see this clearly in the tool when you download it but it's a two by two matrix.

One axis is products one axis is markets so you can grow your business through new markets you can grow your business through new products but it creates four boxes and that's what we're going to talk about we're going to talk about the simplest one first which is strategy number one market penetration now here's what this means this means you're selling more of your existing products to your existing markets and frankly this is the least risky option

because you don't have to invest capital or other resources in developing new products or new markets and making what I'd like us to talk about here is just some of the tactical options that are available to us for example you can reduce the price so you can make your products more affordable to more of your market.

You know maybe you decide that yeah we're going to make a little less on each product but we're not only going to make it up in volume but we're going to exceed it in volume because we've lowered the price that's a way to grow a strategy one.

Well you could also create a buy one get one free a bogo offer so that's another option you could create a seasonal or holiday offer you could create a frequent buyer program or a subscription program something that we've done with our full focus planner you could bundle product so that people pay less for each product but have a higher transaction value average order value you could increase your marketing spend or change your market.

Your strategy you could up sell people that are already your customers to hire price products or you could down sell those same customers into lower price products but I think the big idea here is you've already acquired the customer you've already paid whether that's through paid advertising or other advertising or sales team or whatever you've already paid to acquire these customers now you're really trying to drive their lifetime value and their average order value by having them purchase more things.

This is easy I think is a business owner to get maybe just a little bit bored with this and to basically jump out of this quadrant before you fully exhausted or fully exploited in the best sense of the word the opportunities are there and the problem with the other strategies that we're going to lay out is they do require some investment but you've already invested in your existing products you've already invested in acquiring your existing customers.

The first thing you need to do is just try to sell more of your stuff to them. So for in our case we have the full focus planner how many of those people are aware of our coaching program you know a lot of those people still to this day have no idea that we have a coaching program I mean it may sound inconceivable because we talk about it all the time and you listen to the podcast and you hear it all the time but there are lots of people in fact as it turns out a vast population of people that don't know anything about the coaching program.

Conversely I don't think this is the case but there are people that buy other products of ours probably not the coaching program who are not familiar with the full focus planner so before we go you know exploiting new markets before we go developing new products we need to ask yourself the question have we have we have we harvested you know the fruit that is in this quadrant already.

This is where memberships and subscriptions really come in you know you could consider like we did if you're if you have a physical product or if you have some kind of information product how could you make that a subscription where people are buying the same thing that they're already buying from you like we have people who buy the full focus planner once a quarter because they're using it on a regular basis it's a consumable product but they're not actually subscribers.

Well we want those people to become subscribers because then we're automating those repeat purchases I think the subscription model is the best example of this strategy number one market penetration because you're really maximizing the value of those customers in a very easy way for you and an easy way for them.

Another opportunity within this quadrant is basically to upsell people when they buy one thing everything you sell should sell something else.

So for example if you go to the back of the full focus planner there are ads for other of our products even if you go to my books it's the same case so I think that's an opportunity that we've got to make sure that we're always selling if we're going to optimize this market.

...