5 Ways to Increase Your Revenues

Contributor

January 29, 2013

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Are you generating the revenues you should? Are you overlooking ways to earn money?

While there is no pat definition of what you “should” be generating, there are factors to consider to make sure you are on the right track.

One of my clients, the Marketing Director of a small Internet company on the West Coast, was overlooking a customer base right in her own backyard! The company offers software products that allow website owners to easily add specific features to their websites. The company also offers web design and hosting services.

After going through a process, we discovered that there was no cross-selling taking place – customers of the web design services weren’t being offered the software products. The company had gone after an entirely different market for the software, overlooking a customer base right in their own backyard.

It’s easy to miss opportunities that are right under your nose.

Here are five areas that, when handled properly, could lead to a boost in your revenues. Think through the answers to the questions in each area. You may have revenues in your backyard, too!

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1. Target the right client/customer

Your great product or service won’t sell if you are targeting the wrong person.

  • Do you have a client/customer profile?
  • How did you select your target market?
  • Do they want the services/products you are offering?
  • Can they afford your services?
  • How are you reaching your target market? Do they know the range of your services?
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business fouls

2. Check your capacity

  • What is your capacity?
  • In other words, how many services can you provide in a week/month if customers were banging at your door?
  • How many products can you actually deliver/distribute?
  • Be reasonable about the number of hours you would put in to make this happen.
  • Is your business scalable?
  • Do you work alone or do you have employees (how productive are they)?
  • How are you using your time? Can you outsource small or administrative tasks?
  • Back to scalability. Example: E-book revenues require no real work after the book is written and posted to the Internet. Workshop revenues are limited by things like room size, your ability to travel, cost to produce, or hours in the day.

business debt

3. Fine-tune your product/service mix

  • What are you not offering that your clients need?
  • Are there services or products that would compliment your offerings?
  • Have you limited your services based on what you think others will buy without really knowing?
  • Do you offer enough variation in your product/service to meet the needs of potential clients?

You’ve been talking about it for years. However, all that talk has failed to lead anywhere. You’re still dreaming instead of doing. Why wait any longer? It’s time to finally take the plunge and start your business like you’ve always wanted. Here are some tips for overcoming the fears that are holding you back. No Support from Friends and Family Maybe your friends don’t want you to start a business. Maybe they think you have a good career and don’t want to see you waste it all. Whatever the case, don’t let this lack of support stop you. There’s no point in arguing with your loved ones about your choices. If they can’t be there to cheer you on, then don’t judge them. Instead, prove them wrong by making your vision come to life. One positive aspect of this journey will be that you will see who your real friends are. These true companions will stick by your side no matter how many hardships you endure along the way. Fear of Failure Obviously, failing in your business venture is a worst-case scenario. However, it’s important to have enough trust in yourself that you won’t fail. Invoke confidence and create a survival strategy to use just in case things start to go downhill. This will help you bounce back and avoid a complete loss in the event that your business just isn’t working out. Keep in mind the mantra that you can’t succeed if you never give it a try. Lack of Capital Image via Flickr by aronbaker2 One of the big things that is holding you back from plunging into the world of business might be money. Starting a business doesn’t come cheap. If you don’t have enough saved up, you might not be able to make the initial investments necessary to get off the ground. Luckily, there are plenty of ways around this, one of which is securing a small-business loan from Kabbage. With this type of loan, you’ll get the money you need without borrowing from friends or putting your own assets at risk. Even better, you’ll be able to keep control of your business, which is something you can’t do with an equity partner. Fear of Unpredictability It’s true – starting your own business is extremely unpredictable. The days of working a boring 9-to-5 schedule will be a thing of the past. You’ll have to put in long hours and probably go without a paycheck until your business starts to grow. While this can be hard to deal with at first, just think of how things will go after you’ve established yourself. Those hard days will wane, and you’ll find yourself excited to wake up in the morning because you’re doing something that you absolutely love. Tackling your fears and starting your business isn’t easy. However, it will be one of the most fulfilling things you can ever do. If you’re successful, you’ll be able to live a life of autonomy and be your own boss for the rest of your life.

4. Evaluate your focus

  • Are you spending the bulk of your time promoting and delivering a service that does not have high-profit potential?
  • What is your sales history (amounts, customers, trends [months, weeks, days])?
  • What sells well? Why? What does not sell well? Why?
  • Are you cross-selling? Up-selling?

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5. Review your pricing strategy

  • How have you priced your products and services? What strategy are you using? How does it fit into your overall strategy?
  • What is the net profit for each product or service (Be careful about assuming that if you didn’t outlay cash to provide the service that it’s all profit.)
  • How have you packaged your services? Can you bundle?
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Once you’ve answered the questions under each of these areas, you are better able to identify realistic revenue goals for the unique situation of your business. To get started, identify the three questions above that would make an immediate difference in your revenues if you were to address them right now. Use your answers to get started identifying strategies, changes, and new ideas to generate the revenues that you have targeted.

5 Ways to Increase Your Revenues

Read the following articles on how to increase your revenues:

Recommended Books on How to Increase your Revenues:

 

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