In a marketplace where many small business owners focus on incremental improvements, Jay Abraham says the real opportunity lies in thinking differently.
During a recent episode of Strategic Edge, the longtime business growth strategist outlines practical, data-backed methods entrepreneurs can use to increase revenue, improve profitability, and unlock overlooked growth opportunities.
Breaking out of the incremental zone
Abraham described what he calls the “incremental zone,” where businesses chase marginal gains instead of transformative ones.
He gave the example of a pizza group in Florence, Italy, that relied heavily on digital marketing while overlooking the 80,000 tourists walking past its restaurant daily. Despite seating 400 guests daily, the company had done little to stand out among the many nondescript restaurants in the square.
Rather than increasing ad spend, Abraham focused on the underleveraged assets already in motion. The solution, he notes, included simple yet strategic changes such as dressing hosts in eye-catching attire, redesigning menus with compelling descriptions and imagery, placing oversized menus outside to eliminate customer hesitation, and even using aroma blowers to carry the scent of fresh pizza into the square.
The result was not incremental growth but a dramatic lift in revenue and profits, which was achieved without adding new locations or increasing advertising budgets.
“You’ve already got what I call velocity in motion,” Abraham explains. “You’ve got them walking by.”
Not every lead is the same
A central theme of Abraham’s discussion was the misconception that all leads, customers, and salespeople carry equal value.
Most businesses allocate marketing budgets or commissions using arbitrary percentages, Abraham said. But this flat approach overlooks a critical factor: lifetime value.
While certain buyers purchase more frequently and others opt for higher-margin products, some return year after year, while others make a single purchase and then disappear. Abraham argues that treating all of them the same leads to misallocated resources.
“Spending is speculating… we want to know what different actions yield so that we are investors for predictable yield.”
Instead of focusing solely on revenue minus expenses, Abraham encourages what he calls “3D thinking,” which involves evaluating the long-term yield of a distribution channel, a lead source, or a specific buyer category across the entire buying cycle. When businesses understand the full lifetime profit of a customer, they can justify higher acquisition costs, stronger incentives, and more aggressive growth strategies. This ultimately creates a sustainable competitive advantage.
Three core ways to grow
According to Abraham, there are only three core ways to grow a business, though most owners focus on just one.
- Increase the number of buyers
This is where most companies concentrate their time and money, but it is often the slowest and most expensive growth lever. - Increase the size of each transaction
By advising customers on higher-quality options, bundles, or complementary products, businesses can significantly raise profitability without adding new customers. - Increase purchase frequency
Encouraging repeat buying, subscriptions, or additional services can dramatically amplify revenue.
He illustrates the power of what he calls the “geometry of business” with a simple example. A company with 1,000 customers spending $100 twice a year generates $200,000 annually. Increasing each variable by just 10% results in a 33% increase in revenue. Doubling each variable creates an 800% increase.
Beyond the three foundational levers, Abraham outlines advanced strategies that many small businesses overlook:
- Entering a new niche market annually
- Adding complementary products or services
- Acquiring weaker competitors or consolidating sales forces
- Partnering with organizations that already have access to ideal customers
In some cases, acquisitions can be structured with little upfront capital, using profit-sharing or revenue participation agreements to create win-win outcomes.
The common denominator, Abraham said, is identifying underutilized assets, whether they are a customer list, brand credibility, a distribution channel, or a sales team.
AI is not a replacement
With artificial intelligence (AI) reshaping small business operations, Abraham urges entrepreneurs to adopt AI strategically while preserving human connection. He asserts that AI can improve revenue generation, optimize sales processes, reduce expenses, and analyze customer trends. However, he does caution against over-automation, especially in high-value or emotionally driven transactions.
He emphasized the importance of “prompt mastery,” noting that AI output is only as strong as the guidance it receives. While generic inputs produce generic results, detailed context and strategic framing yield more differentiated outcomes. Although AI might give early adopters a competitive advantage, Abraham argues it will quickly become a basic requirement.
The real edge will come from how effectively AI is utilized, not just from its adoption, Abraham believes.
The overlooked growth opportunity
When asked which growth lever business owners neglect most, Abraham pointed to reselling and increasing customer value after the initial sale. He asserts that many businesses invest heavily in acquiring new customers but fail to nurture repeat purchases, upsells, and deeper advisory relationships.
In service-based businesses, especially, this oversight leaves substantial profit untapped. Ultimately, Abraham’s approach centers on disciplined experimentation, empirical validation, and long-term value creation.
“Most people follow the herd,” he said. But growth, he undoubtedly believes, comes from logical, strategic thinking.
“Spending is speculating… we want to know what different actions yield so that we are investors for predictable yield.”
ASBN, from startup to success, we are your go-to resource for small business news, expert advice, information, and event coverage.
