FestoKaguo
Senior Member
- Apr 1, 2022
- 128
- 202
Super IDEA Brother
If you do business for a long time, you'll realize that almost every business you touch follows one rule called "The Law of Averages."
Simply put, if you do the same thing over a long period of time, you'll be able to predict what will happen in the future (pattern) based on your experience and past encounters.
For example, based on your experience:
Every time you talk to 10 people, only 1 of them usually pays for the service, meaning your success rate is 10% on average. So, if you want 20 customers, you'll need to talk to at least 200+ people.
The same thing applies if you consistently pay for ads with the same budget and similar content. Over time, you'll be able to predict the number of customers who will pay for your service and even the average revenue you'll make before the month ends.
Always give yourself a competitive advantage by knowing your Law of Averages. It will help you do research on where to put in more effort and where to improve, so you can increase your average rate of success.
Once a ratio starts, it always continues.
But don't forget these other important laws that impact your business:
1). The Law of Entropy – Things naturally tend to fall apart over time unless we put effort into maintaining or improving them.
2). The Law of Initial Conditions – The starting point of anything can determine its eventual outcome, so the way you begin often shapes what happens later.
3). The Law of Feedback – Constant feedback helps refine your actions and decisions, ensuring you're on the right track and improving over time.
4). The Law of Non-Linearity – Results aren’t always proportional to effort; small changes can sometimes lead to big results, or vice versa.
By understanding these laws, you can make more informed decisions, allowing you to adjust your strategy to ensure greater success in your business.
If you do business for a long time, you'll realize that almost every business you touch follows one rule called "The Law of Averages."
Simply put, if you do the same thing over a long period of time, you'll be able to predict what will happen in the future (pattern) based on your experience and past encounters.
For example, based on your experience:
Every time you talk to 10 people, only 1 of them usually pays for the service, meaning your success rate is 10% on average. So, if you want 20 customers, you'll need to talk to at least 200+ people.
The same thing applies if you consistently pay for ads with the same budget and similar content. Over time, you'll be able to predict the number of customers who will pay for your service and even the average revenue you'll make before the month ends.
Always give yourself a competitive advantage by knowing your Law of Averages. It will help you do research on where to put in more effort and where to improve, so you can increase your average rate of success.
Once a ratio starts, it always continues.
But don't forget these other important laws that impact your business:
1). The Law of Entropy – Things naturally tend to fall apart over time unless we put effort into maintaining or improving them.
2). The Law of Initial Conditions – The starting point of anything can determine its eventual outcome, so the way you begin often shapes what happens later.
3). The Law of Feedback – Constant feedback helps refine your actions and decisions, ensuring you're on the right track and improving over time.
4). The Law of Non-Linearity – Results aren’t always proportional to effort; small changes can sometimes lead to big results, or vice versa.
By understanding these laws, you can make more informed decisions, allowing you to adjust your strategy to ensure greater success in your business.