For your company to succeed, eventually you will need to start increasing your revenue. Without additional revenue you will not be able to expand your operations by hiring staff, purchasing equipment, manufacture products, deliver services.
If you have low revenue, you have a hobby. If you have high revenue which is growing year over year, you have a sustainable business.
We’ve come up with 8 Easy-To-Implement Strategies to help you increase your revenue. You can implement one at a time or all 8 for the greater impact on your overall revenue.
Expand Your Geographic Market
Whether you’re a regional business or a national, look to expand your geographic footprint.
Perform market research to see where your competition is, you may find an undermarketed region.
Determine what the cost would be to expand into a new market, then estimate the number of customers and sales needed just to break even. If this is a realistic number, then go for it.
Don’t take on more than you can handle.
You can easily expand into one new market at a time. Prove you can handle the additional business and that the region is profitable, then expand further.
Accept Credit Cards
Allow your customers to pay by credit card. According to a study by Drazen Prelec and Duncan Simester of MIT, they found that shoppers spend up to 100% more when using a credit card instead of cash.
Using a credit card an easier and more convenient way to make a payment, this goes for both business and consumer customers.
So in addition to the increased revenue, you are also providing a better customer service experience.
In today’s digital age, setting your company up to accept credit card payments is easier than ever. Start by finding and setting up a merchant account.
Implement Subscription-based Sales
Is your business something that could offer a subscription-based product or service?
This type of model can create consistent sales throughout the subscription period, leading to higher revenue per customer.
A few examples:
- HVAC owners could offer a “Maintenance Plan” where for a certain fee and expert will come out to your house twice a year to check the performance of their heating and air conditioning unit.
- A restaurant owner could offer a monthly meal plan. For a certain price you get to choose any item up to a certain value each month
Incentives Repeat Business
Many companies put all their efforts into securing new business that they often lose sight of their existing customers.
As a business owner you should have a separate marketing strategy for your existing customers. Encourage your customers to opt-in to your email list and follow your business on social media.
Keep these customers engaged by providing them relevant content that they would be interested in. If they are engaging with your emails and social media posts, then they will be more likely to open an email or view a social media post that is pushing your product or service.
Incorporate an Upsell Program
An upsell program is a great way to increase your sales per order.
Do you have complementary products or services that you could offer with the initial purchase?
For example, if you sold shoes, you could upsell a pair of socks at a discounted price.
Cross Promote Your Business
Look for businesses that don’t compete with your product/service, they complement. Also look for complementary businesses that have the same target customer.
This type of strategy is a win-win for both organizations.
It will drive more traffic to your business, which will increase your revenue.
For example, if you own a movie theater, partner with a local restaurant. You could each sell a “Dinner and a Movie” package or cross promote each of your businesses by handing out flyer and coupons at your respective locations.
Implement a Social Media Strategy
Implementing a social media strategy is a perfect way to increase brand loyalty, increase your customer base, and ultimately grow your revenue.
The first step is understanding which social channel(s) your customers are using. Open a business account and start developing content.
You will turn your customers off to your social media page if the only post you have are offer related. Develop content that is informative and related to your business.
Offers, discount, and special promotions should be promoted on your social media page, just have a good balance between content and offer.
Encourage your customers to share or comment on each post, this will help your visibility and could potentially lead to more customers.
Consider Outsourcing Your Marketing
Are you performing your own marketing?
If so, it may be time to have a marketing company promote your business and increase your leads or online sales.
Before you hire a marketing agency, evaluate what success would look like. How many additional leads/product sales would you need to receive to justify the cost of the marketing agency?
You can either go all in with the agency or have them manage one marketing channel, such as digital marketing. Ensure they succeed in one channel before handing them all your marketing budget.
These 8 methods to increase your businesses revenue have been successfully implemented by many startup companies.
You can achieve their same level of success and eventually scale your business where you will begin achieving substantial year-over-year increases in revenue.