Two speakers argue MBA programs teach growth wrong. For home service businesses, throwing money at ads doesn't work. What matters is your booking rate, close rate, and average ticket size. Private equity firms know this and fix operations first.
Is that what they taught you in business school? It's really that easy to grow your business? We're going to buy this company, spend 3 to $5,000 on ads and start growing the business. We could probably double the revenue in the first year. It's just about running ads to grow your business. Don't you think I'd already have done that? It's really just about the customer acquisition cost. You get that number dialed in, then all you have to do is just increase the lead volume through ads and there's no way you can't grow the business.
We work with private equity companies all the time that are either buying companies that we work with or buying new companies and bringing us in to help them grow. The biggest issue is that it's not just increase the leads and your business is magically going to grow. It's all about the process that you have. Leads booking rate with your customer service representative, close rate with your salespeople, and then your average ticket. And the problem is in business school, they just say, oh, it's all about the levers of marketing. And you just increase the spend and then that turns into leads. And that's going to grow your business. That's good for an e commerce website. It doesn't work for a home service business because there's so many moving parts.
