What are the three ways to grow a business's revenue?

Get more customers, raise the average amount each customer spends per purchase, and increase how often each customer buys. Revenue is the product of the three.

Which lever should I work on first?

Usually the one you have neglected. For most small businesses that is average sale or purchase frequency, because both come from existing customers and cost little to test.

Why does a 10% improvement in each lever produce more than 30% growth?

Because the levers multiply rather than add. 1.10 × 1.10 × 1.10 is 1.331, so three 10% gains produce a 33.1% increase in revenue.

WithFunded › Academy › Sell more

The three levers of revenue growth

There are only three ways to grow revenue: more customers, a bigger average sale, and more frequent purchases. Many owners work only on the first one, which is usually the most expensive.

WithFunded Academy · Lesson 10 of 16 · 3 min read · Updated November 2026

Key takeaways

Revenue = customers × average sale × how often they buy.
The levers multiply. A 10% gain on each is a 33.1% gain in revenue.
New customers cost money to win. A bigger sale and a repeat visit come from people who already chose you.
Pick one tactic per lever and measure it for 90 days.

The formula

Revenue = customers × average sale × purchases per customer

A business with 800 customers a year, a $250 average sale, and 2 purchases per customer brings in $400,000.

Grow only the customer count by 10% and revenue rises 10%, to $440,000. Improve all three by 10% and revenue rises 33.1%, to $532,400. That is $132,400 more a year from three modest changes, because each gain multiplies the others.

Calculator

Three levers calculator

Revenue is customers × average sale × how often they buy. Nudge each one and watch them compound.

Customers per year Average sale$ Purchases per customer per year More customers% Bigger average sale% More frequent purchases%

Revenue growth33.1%

Revenue today: $400,000
Revenue after the changes: $532,400
Added revenue per year: $132,400

Estimates for learning only. Not an offer, a quote, or financial advice.

Lever 1: more customers

Ask every satisfied customer for a referral and a review. See getting more local customers.
Answer new inquiries faster than anyone else. See following up faster.
Partner with a business that serves the same customer before or after you do.

Lever 2: a bigger average sale

Offer good, better, and best. Many buyers choose the middle when the choice is laid out.
Bundle what goes together. The filter with the tune-up, the installation with the product.
Suggest the add-on at the moment of purchase, when the need is obvious.
Check your prices. A price increase is the most direct way to move this lever. See pricing for profit.

Lever 3: more frequent purchases

Book the next visit before the customer leaves.
Sell maintenance or membership plans that turn one-off jobs into recurring revenue.
Send reminders tied to a real need: a seasonal service, a reorder point, a renewal date.
Stay in touch between purchases with something useful, not only a promotion.

A 90-day plan

Write down today's three numbers.
Choose one tactic for each lever. Only one.
Track the three numbers monthly.
Keep what moved a number, replace what did not.

If a lever needs money to move, such as stock for a new bundle or a vehicle to add capacity, run it through when it makes sense to borrow to grow first.

Common questions

What are the three ways to grow a business's revenue?: Get more customers, raise the average amount each customer spends per purchase, and increase how often each customer buys. Revenue is the product of the three.
Which lever should I work on first?: Usually the one you have neglected. For most small businesses that is average sale or purchase frequency, because both come from existing customers and cost little to test.
Why does a 10% improvement in each lever produce more than 30% growth?: Because the levers multiply rather than add. 1.10 × 1.10 × 1.10 is 1.331, so three 10% gains produce a 33.1% increase in revenue.

Next lesson · Sell moreWhat a new customer costs, and what one is worthCAC, lifetime value, and payback: how to know if your marketing is working.

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Educational content. WithFunded Academy lessons are general information for small-business owners. They are not financial, legal, or tax advice, and they are not an offer or a commitment to lend. Figures are representative examples and WithFunded calculations, not quotes. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.