Owning an eCommerce shop means the sky’s the limit when it comes to growth. Everyone buys products and services online these days, so as long as you figure out how to reach your customers, you can grow and sustain your business.
While this sounds simple, we all know it takes a lot of strategy and sweat equity. So, let’s talk about growth from a couple different angles.
How to Double Your eCommerce Revenues
First, if you need to focus on revenue growth, you can use a simple formula to get to your goals. You can focus on increasing by 25% in three key areas to double your revenues.
The 25% Growth Formula
Suppose you have:
$100 average order
Frequency: 4 times/year
This would give you $400k per year in revenues—not a bad year.
Suppose you increase each by 25%, though.
Now, you have:
$125 average order
Frequency: 5 times/year
The magic behind the 25% increase in these three areas is the compounding growth.
The compound growth yielded in these areas would give you $781,250 per year in revenues—almost doubling your revenues.
Of course, these numbers are hypothetical and at Shopanova, we have eCommerce clients growing in each of these areas every month. So, if you’re feeling overwhelmed by all the metrics and data, step back and focus on these three numbers.
How to Sustain Explosive Growth
In 2019, Shopanova hit a plateau with growth. What our founders, Daniel Stafford and Robby Switzer, realized is that while they had figured out how to reliably grow revenues, they hadn’t figured out how to sustain that growth.
Looking back now on how they leveled up this year, they discovered these 5 principles of sustainable growth:
1. Intimacy sustains intensity
Daniel and Robby really focused on building a close-knit team from Day One. This kind of cohesive team is critical to sustaining growth, especially if your team is remote.
A healthy business culture is one where employees feel comfortable speaking up when they see something they want to bring to light. If you want to equip your team for excellence, make sure they are tight with one another.
2. Release control
This principle is probably the toughest one for leaders, but if you’re going to grow, you have to give up some control. Want to test how much control you’ve really turned over to your team? Take a vacation. If you have the right people and you let them play their roles, they’ll thrive when you take a few days off.
3. Create a low-stakes environmentace
One place where you definitely don’t want to release control is over the workplace environment you create. Yes, you can absolutely decide whether your company is high-stakes or low-stakes. Do you treat employees as if one little mistake will bring the whole place down? Or do you give your people room to mess up, clean up their messes, and move on—no shame, no walking on eggshells?
4. Your business will never outgrow your mindset
Fears come with the territory when you’re on a growth curve. Constant growth means you’re constantly challenging yourself and your team. For this reason, the best thing you can do to propel your business forward is make sure you’re healthy—mind, body, and soul.
5. Strong vision
The final key to sustaining growth is having a strong vision. As you become more successful, more opportunities come your way and you’ll need a vision to help you decide which opportunities to pursue.
When Shopanova plateaued, Daniel and Robby realized the problem was revenue goals could only take them so far. So, they came up with this vision: Instead of building a 5-year company, a 10-year company, they wanted to build a company that lasts.Shopanova will be a business that will be there for their kids to take over if they want it. It will also provide a strong career path through retirement for anyone at the company. Having this new vision provides the clarity they need to make good decisions for their future.
If you’re ready to take your eCommerce business to the next level, apply to be a client. Our systems are 100% turn-key and we give each client personalized attention. Let’s start building your multi-generational business today!
Nathan Otwell, is the CMO of Shopanova, a modern growth media buying agency for eCommerce shops. This phenomenal team has been able to grow their client’s revenues from 5 figures all the way to 7 figures and beyond. Click here to learn how to build a generational brand and scale your business to millions: shopanova.com.