How to Increase Business Revenue – 6 Proven Strategies
By Mikesh Raithatha
It’s the oil that keeps the engine running, but business owners can sometimes lose sight of this key business driver. It’s often talked about, but more so over a coffee or a rushed meeting, without clear focus. Implementing strategies to increase your revenue should be a focal point for all business owners and their management team.
Based on our experience from working with business owners and their management teams, the following strategies have proven to bear fruit:
- Determine your goals. Be clear on what success looks like and develop a route to get there. Defining your revenue goal is the number one step. The question is whether to go realistic or aim for the moon? Trick question- do both! This is why we sit clients down as part of our Advisory process and ask them to map out their minimum revenue targets, the absolute non-negotiable. We also ask clients to map out that moon target, it’s achievable but it’s going to require a significant amount of effort from everyone involved.
- Focus on existing customers. They’ve bought from you once, and if you provided a good service there is no reason for them not to buy again. Keep your existing customers front of mind, especially when there is potential for repeat business. Also, as they are already acquainted with your product/service, word of mouth and referrals from existing customers could be the most powerful source of new revenue. Take the time to connect with your existing customers.
- Hone your pricing strategy. When was the last time you increased or adjusted your prices? In this inflationary environment, there can be a hesitation to increase prices. However, don’t be fearful- if you’re providing value then it should not be an issue to increase your prices periodically.
- Use effective marketing strategies. Google advertising, SEO, social media, sponsorship, events & webinars – there are myriad options. The key is to identify which are the right strategies for your business. Do you keep track of where clients come from? Monitor and measure what is working and where you are getting the best return on marketing investment.
- Understand your revenue streams and increase them. Do you keep track of your different revenue streams? Or does everything get bunched into the one sales code? Revenue segmentation can be powerful tool to identify where to focus your energy and where you will be able to increase revenue.
- Increase revenue from existing customers. This is typically the low hanging fruit for businesses where repeat purchases are possible. It takes a lot less time, effort and money to sell to people who already know and trust you than to find new customers. Having an effective CRM system and monitoring your customers purchasing behaviour will better enable you to identify new opportunities for upsell / cross-sell. Take the time to stay in contact with your customers, whether by email or in a more personal way for services businesses.
The thing that keeps a business ahead of the competition is excellence in execution. Focus on the execution piece. Try one or two of these strategies at the one time so your attention isn’t scattered.
Contact us today if you are seeking help with increasing your business revenue.