The Only 3 Ways to Grow Your Business (Plus a Bonus on How to Optimize Profit)
Introduction
In a world where markets shift rapidly, technology evolves at breakneck speed, and consumer behavior is increasingly complex, sustainable business growth can feel like a moving target. Owners and leaders constantly seek reliable frameworks to guide them through the turbulence and toward long-term success. Fortunately, the fundamental principles of expansion remain remarkably stable, regardless of the latest trends or tools.
Drawing inspiration from the teachings of Jay Abraham—one of my key mentors, from whom I had the privilege of receiving personal coaching—and integrating the financial insights offered by Greg Crabtree—another mentor whose guidance on the Labor Efficiency Ratio (LER) has profoundly shaped my thinking—this guide presents a clear blueprint to help businesses of all types grow sustainably and profitably.
Jay Abraham’s groundbreaking perspective on growth can be distilled into three essential methods:
- Increase the number of clients.
- Increase the frequency of their purchases.
- Increase the average transaction value per purchase.
To these three pillars, we add a fourth strategy inspired by Greg Crabtree’s work and my own experience studying his methods:
- Manage your biggest expense – labor efficiency.
By focusing on these four levers in 2025, you will grow your business.
This guide will detail each strategy, explain how to implement it, and demonstrate how small, incremental improvements can produce significant results over time. We’ll incorporate the 10x10x10 framework—a simple model that shows how modest gains in each area compound into substantial overall growth—and we’ll illustrate how the Labor Efficiency Ratio plays a crucial role in maintaining profitability as you scale. I’ve had the pleasure from speak with both Jay Abraham and Greg Crabtree, both of who inspired me to apply and refine these concepts in my own business and with my clients.
Section 1: Increasing the Number of Clients
For any business, customers (or clients) are the cornerstone of revenue. Without them, no matter how efficient or streamlined your operations, you simply cannot sustain growth. The first core method from Jay Abraham’s foundational principles centers on attracting more clients. But how do you do this strategically?
1.1 Define Your Ideal Client and Niche Specialization
One of the most common mistakes business owners make is trying to appeal to too broad an audience. By attempting to serve everyone, you end up resonating with no one. In contrast, when you define a clear ideal client profile and focus on a particular niche, you position yourself as a specialist. Over time, this approach justifies premium pricing and makes client acquisition more organic.
Start by asking:
- Which customer segments have I served best in the past?
- What unique problems can I solve that others struggle to address?
- What is my passion?
1.2 Craft a Compelling Unique Selling Proposition (USP)
Your USP should clearly communicate why a prospect should choose your business over the competition. Perhaps you’ve developed a proprietary method for cutting manufacturing lead times in half or delivering your consulting insights in a fraction of the usual timeframe. Highlight such strengths in all marketing materials. When prospective clients see a direct, tangible benefit—faster results, higher ROI, more personalized service—they’re more inclined to become paying customers.
1.3 Leveraging Referrals and Partnerships
Referrals are among the best ways to get new clients. After delivering exceptional results, encourage satisfied clients to refer their colleagues, friends, or partners. Offer incentives like special discounts, priority support, or complementary services to both the referrer and the new client. Here’s another idea… Find a partner to sell your initial offer or lead magnet. Let them keep all the money from the first sale, you get the client and the repeat business going forward. These are the types of partnerships/referral strategies that are focused on getting other people to get you new business.
1.4 Expanding Acquisition Channels
While digital ads are the main go to these days. Try direct mail campaigns by targeting a list of businesses that fit your ICP. You can host educational seminars, workshops, or webinars that showcase your expertise. Be a guest speaker on podcasts or write articles. Focus on activities that build authority and trust.
Section 2: Increasing Purchase Frequency
The cost of acquiring each new customer can be high. One of Jay Abraham’s key insights is getting existing clients and encouraging them to buy more often can significantly boost Lifetime Value (LTV) while stabilizing your revenue streams.
2.1 Focus on Delivering Superior Results Consistently
Clients return when they trust you to solve their problems again and again. If you offer professional services, sell products, or provide a subscription-based model, ensure your clients see tangible, ongoing benefits. If you run a training program, track participants’ improvements and share these results regularly. If you offer software, highlight newly added features and performance improvements. The more consistently you deliver and communicate real value, the more inclined clients are to re-engage.
2.2 Communication, Engagement, and Relationship Building
Keep lines of communication open through periodic check-ins, monthly newsletters packed with useful insights, or quarterly business reviews. Take a proactive approach—alerting them to emerging trends, potential pitfalls, or new opportunities—you position yourself as a trusted advisor.
2.3 Back-End Products and Complementary Offerings
What additional products or services can you introduce on the back end to meet clients’ needs? If they hired you to build a website, offer ongoing maintenance or SEO optimization later. By anticipating and solving related problems, you naturally extend the customer lifecycle and encourage repeated transactions.
2.4 Upselling and Cross-Selling Through Better Sales Techniques
Train your team to identify opportunities during client interactions. Suppose a customer who initially bought a basic consulting package now faces new challenges that your advanced package can solve.
Section 3: Increasing the Average Transaction Value
Many businesses underprice their offerings due to fear of losing customers.
3.1 Embrace Value-Based Pricing
To charge more, focus on what your client gets rather than what they pay. If you solve a pressing problem that yields significant returns or savings, highlight that. Clients are willing to invest more when they understand your impact. Become the expert in your domain. Differentiate yourself from commodity providers. Clients will pay a premium when they believe you offer unique expertise or a proven track record of success. Think about how you can provide an “impact analysis” to your client’s when they buy. What do value do they get more than what they pay? That is the core definition of value creation.
3.2 The Power of a 1% Price Increase
Let’s apply the math. Suppose your business generates $10 million in annual revenue at a 10% profit margin, meaning you earn $1 million in profit. If you increase your prices by just 1%, that’s an extra $100,000 in revenue—no additional costs required. This extra $100,000 flows directly to profit, raising it from $1 million to $1.1 million. That’s a 10% profit increase from a minor change. You must know your margins to implement effective pricing strategies.
3.3 Bundling and Tiered Offers
Create tiered service packages—Basic, Standard, and Premium—to cater to varying customer needs and budgets. The presence of a premium tier, even if not chosen often, serves as a reference point (an “anchor”) that makes your mid-tier options seem more reasonable. Similarly, bundling related offerings (e.g., product plus maintenance plan) encourages clients to spend more per transaction because they perceive greater overall value and convenience.
3.4 Client Education and Transparency
Clients may resist higher prices if they don’t understand what justifies the increase. Educate your clients about the time, skill, and resources you invest in delivering exceptional results. Present case studies, success stories, and data that prove your value. When clients see the depth of your work, they’re more inclined to accept higher fees willingly.
Section 4: Optimizing Your Bottom Line Through Efficiency and LER
Beyond increasing revenue, sustainable growth demands that you manage costs and improve operational efficiency. According to Greg Crabtree’s teachings—insights I’ve personally learned from him and implemented—labor often represents one of your largest expenses. Understanding how effectively you transform labor costs into gross profit is where the Labor Efficiency Ratio (LER) comes into play.
4.1 Understanding the Labor Efficiency Ratio (LER)
LER = Gross Profit / Labor Costs
This metric tells you how much gross profit you get for each dollar spent on wages. A higher LER means you’re utilizing your team’s time and capabilities more effectively. Unlike simple headcount ratios or revenue-per-employee figures, LER directly ties your team’s labor investment to bottom-line profitability.
4.2 Common Mistakes in Labor Management
Most businesses might add staff whenever workloads rise. But they do this without ensuring that added labor correlates with increased gross profit. Or they might have highly skilled employees performing low-value tasks, dragging down productivity. Some businesses hire quickly but fail to provide enough training, resulting in inefficiencies and lower margins.
4.3 Improving LER: Tactics and Considerations
- Training and Development: Empower employees with better skills and knowledge so they complete tasks faster and with higher quality.
- Process Automation: Identify repetitive tasks—such as routine reporting or data entry—and automate them.
- Right Role Assignments: Get your experienced staff to concentrate on high-impact work. Delegate simpler tasks to junior staff or consider outsourcing.
- Align Compensation with Profitability: Incentivize teams based on efficiency and outcomes. By linking bonuses or pay raises to LER improvements, everyone understands their role in driving profitability.
4.4 Balancing Culture and Profit
Optimizing labor efficiency isn’t about squeezing employees for maximum output at all costs. It’s about aligning everyone’s efforts with the company’s growth and profitability goals. When done well, improving LER leads to a healthier, more engaged workforce and a more stable, profitable business.
Section 5: The 10x10x10 Framework—Combining All Four Levers
To appreciate how incremental improvements in each area—number of clients, frequency of purchases, average transaction value, and efficiency—compound together, let’s consider the 10x10x10 framework.
5.1 The Baseline Scenario
Start with:
- 10 clients
- $10 average transaction value
- Each client buys 10 times a year
Revenue = 10 clients x $10/transaction x 10 transactions = $1,000.
5.2 Incremental 10% Improvements
Increase each metric by just 10%:
- Clients: 10 → 11
- Transaction value: $10 → $11
- Purchases per year: 10 → 11
New revenue: 11 x $11 x 11 = $1,331.
That’s a 33% increase from a mere 10% improvement in three key areas. This demonstrates the compound effect of small, systematic enhancements.
5.3 Dramatic Increases by Doubling
Double each metric:
- 20 clients x $20/transaction x 20 transactions/year = $8,000 total revenue. This is an 800% jump from the original $1,000 baseline, illustrating how impactful combined improvements can be over time.
5.4 Layering in LER Improvements
Now, add LER optimization. Even if you achieve the revenue gains outlined by the 10x10x10 framework, poor labor efficiency would mean you fail to translate that revenue into profit. By improving LER—through training, better role allocation, and automation—you ensure that each incremental dollar earned retains or enhances its margin contribution.
Section 6: Implementation Roadmap
How do you implement these ideas?
6.1 Baseline Measurement
Get these numbers right.
- Current number of clients, average transaction value, and purchase frequency.
- Your profit margin and LER metrics.
These benchmarks allow you to measure the impact of any improvements.
6.2 Setting Realistic Goals
Define clear, attainable targets:
- Increase clients by a certain percentage over the next quarter.
- Introduce a small price increase, say 1%, and monitor client reactions.
- Offer a new complementary product or service to encourage repeat purchases.
- Set an LER goal—for example, improve from an LER of 1.8 to 2.0 within a year.
6.3 Incremental Actions and Prioritization
You can’t do everything at once. Pick the most critical lever first. If you struggle with profitability, start by improving LER or increasing prices slightly. If you lack stable revenue streams, focus on retention and repeat purchases.
Roll out changes gradually. Test a price increase with a subset of clients or pilot a new service offering with a small portion of your customer base before going company-wide.
6.4 Continuous Review and Refinement
Review progress monthly or quarterly. Are you gaining new clients as planned? Has the price increase improved margins without damaging sales volume? Is LER trending upward?
Section 7: Drawing on Mentors
Everything discussed here—these four levers and the emphasis on incremental improvement—is inspired by two individuals who have significantly influenced my approach: Jay Abraham and Greg Crabtree.
- Jay Abraham: His universal principles on growing a business through more clients, more frequent purchases, and higher transaction values have long inspired me. Having received personal coaching from Jay, I’ve seen firsthand how his methods transform a company’s mindset and reveal untapped opportunities.
- Greg Crabtree: Greg’s insights on financial clarity, profit optimization, and especially the Labor Efficiency Ratio (LER) have shaped how I counsel businesses on cost control and operational efficiency. His approach brings financial rigor to otherwise nebulous concepts of efficiency and productivity.
I count myself fortunate to have been mentored by both Jay and Greg. Their teachings, combined with my own experience practicing their methods, give me the confidence to say that these four levers—enhanced by LER—form a powerful, trustworthy framework for sustainable growth.
Section 8: The Bigger Picture and Sustainable Success
The pursuit of growth often tempts business owners to chase flashy tactics. But growth can really only come from these four areas.
- Attracting more clients who truly value your offering.
- Encouraging those clients to engage more frequently, increasing their LTV.
- Raising your average transaction value through better pricing, bundling, and emphasizing your unique worth.
- Optimizing your bottom line, ensuring that your people, processes, and systems work efficiently, guided by metrics like LER.
These are not complex “growth hacks”—rather, they are fundamental strategies that exist for all businesses.
Conclusion
Growing a business sustainably involves combining multiple strategies that reinforce each other. By working on increasing clients, purchase frequency, transaction value, and improving efficiency (especially through tools like LER), you create a virtuous cycle where each gain compounds the other.
Implementing these methods need not be overwhelming. Look at your business and pick the method you think is the biggest constraint right now and focus on implementing that.
The guidance of mentors like Jay Abraham and Greg Crabtree has profoundly influenced my perspective. Their frameworks and philosophies have proven invaluable in real-world application. I’ve practiced their teachings, witnessed their impact, and can attest that while growth tactics may change with the times, the underlying principles remain evergreen.
Implement these fundamentals and you will deliver greater value to your customers, generating stronger profits, and building a more resilient company for the future.
