For over two decades, I have heard from many experts on what a business expansion strategy should consist of. Some have been quite complex and some over simplified. I am not a proponent of either side. An answer is an answer and it is good to the degree that it works in the real world. Pragmatism is word and philosophy I utilize often.
While having coffee with a new found friend, Randy Suggs of Phoenix, Arizona, he shared with me a story that struck home. In fact, it is the most rational business expansion strategy that I have ever discovered. It involves mathematics and the principle of “Orders of Magnitude”, one the most common numeration schemes worldwide. The increase of one order of magnitude is the same as multiplying any quantity by 10. An increase of two orders of magnitude is the equivalent of multiplying any quantity by 100.
Business Expansion Strategy: Adding a Zero
Before you dismiss this simplistic business expansion strategy, let me tell you a quick story about Randy Suggs. In the last 20 years he became a millionaire in real estate. Randy then leveraged that money to become a co-owner of the Arizona Diamondbacks. He recently sold his shares of the team for a handsome some, but not before helping to build the team into a World Series Champion. The team beat the New York Yankees in the 2001 World Series, becoming the fastest expansion team in the majors to win a championship. And doing it in only the fourth season since their inception in 1998.
So lean forward and listen up to Randy very carefully.
Four years before the Dianmondbacks became a MLB franchise, that he had an epiphany in 1994 that changed his entire life and his level of wealth. “I decided to add a zero to everything that I was doing”, Randy told me.
The Power Of Zero For Your Business Expansion Strategy
In the early 1990’s Randy was already more successful than most. But his success was not occurring at the level he desired. Like most ambitious people, he wanted to accomplish much more. Randy realized that versus selling a $300,000 property, why not add a zero and start selling $3 million dollar properties?
Randy discovered that it did not require 10 times the work to achieve this level of success, yet he now was making ten times the money. The effort that he was putting into selling a moderate home was not really that much more in selling large commercial deals. While there was more paper work, regulations to overcome, and the like, it was definitely not ten times more work.
How Could Adding A Zero Work For You?
Any business expansion strategy begins with the conceiving of how to utilize existing resources to generate progress along a pre-determined path or purpose. This is true in life, military operations and in business. You want to go from point A to point B, and hopefully point B represents an ideal state of existence.
Now comes the estimation of effort. What will I have to do to get there? This is where you add that zero in your planning! Versus trying to get 5 new clients per month, what would it take to get 50? If you exerted that amount of effort to generate 50 versus only 5, you would surely produce more than 5 new clients.
Business Expansion Strategy & Executive Coaching
As an executive coach with over 20 years of C-level experience, I know how to help add zeros to plans and strategies. Call me for a free 1-hour executive coaching session to see how we can generate a level of success that you have been search for quite some time.