A short YouTube monologue by Nate Tilley that presents a simple, quantitative approach to growing a business: measure how much a lead/customer costs, compute the value of a lead, pick a revenue goal (e.g., $1M/$10M/$100M), and reverse-engineer how many leads and how much ad spend are required to reach that target.
Growing a business is mathematics. That's literally it. Once you've got a firm grip on those numbers and you know for how much a lead is worth to your business, basically what you can do is you can pick a goal, like a financial goal for your business that you want to hit, and it might be a million dollars a year. Once you start running some ads for a while and some advertising and start getting attention and getting leads coming in or getting sales coming in, you can find out what it costs you to get a customer. Then you can divide how many leads you need to get in order to get a customer and you can work out exactly how much a lead is worth to your business. If we come back to that 1 million dollar target, or a 10 million or 100 million dollar target, and then you can just back into that, you can reverse in and go, okay, cool, I want to get to a million. This is how many leads I'm going to need to get. This is how much I'm going to need to spend in order to get those leads, and this is how many customers it's going to generate from my business.
