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July 28, 2011 at 08:00 PM
As a child, we learned that any number multiplied by itself several times in a row will generate a much bigger number: for example, 2 x 2 x 2 x 2 x 2 = 32. We can also express that as 25 and we call that an exponential expression. Applying this mathematical concept to your business can help you double or possibly even triple or quadruple it.
The PGA Tour is a great example of how to get a huge result by multiplying a small improvement many times over. In 2010, Phil Mickelson won $3.9 million in prize money on the tour, had $52 million in endorsements, and his per round stroke average was 69.97. Contrast that with Justin Bolli, an unknown, unheralded pro who won $74,000 on the tour, had minimal endorsement money, and his per round stroke average was 72.89.
Phil Mickelson shot only three strokes per round better than Bolli, yet Mickelson earned 754 times more money. Mickelson’s three stroke advantage per round—multiplied over 76 rounds in 2010—translates into just a 4% advantage per round, but in the money column, it translates into a 75,440% advantage!
Just think, one missed putt or one wayward tee shot every six holes made the difference between mega-million dollar riches and complete obscurity. It’s the same in our business. One poor first impression, one ill-timed comment or one neglected marketing activity each week could be the difference between the President’s Club and the Pauper’s Club.
