Is revenue growth a top priority for your small business? Have you been evaluating different ways to generate additional sales? Are your revenue sources producing the results that you want? Small business owners must continually evaluate their revenue model and make changes on where they focus their time.
There are four basic ways to generate additional revenue:
1. Retain your current customers
2. Add new customers
3. Increase your product line or services
4. Change your pricing model
Insuring your current customers are satisfied and continue to do business with you is a revenue channel that should be at the top of your list. Current customers have already made the decision to do business with you, and keeping them happy is key. A happy customer will not only buy more from you, they will also recommend your business to others. Developing a feedback mechanism, like a survey or comment card, will allow you to better understand what your customers like, and also what improvements you need to make.
There are a lot of ways to attract new customers. Enhancing your marketing programs to reach potential customers or expanding the geography in which you market your products and services are two of many ways to increase the visibility of your business to new buyers. Using social media can also expand your reach to others by spreading the word.
Many small businesses expand their current and new customer base by offering new products and services. Typically, a small business has “core” products and services, things that truly represent the business. They then add additional products, many of them unique, which open up a totally new revenue channel. You see this going on all the time in large corporations, with companies like Wal-Mart adding grocery products to their department store model.
A final way to grow revenue is to change your pricing model. Charging more for products and services that are in high demand, or offering discounts on items that are not turning over, can help grow top-line revenue. Many retail organizations attract customers to their business with specials, knowing full well that while they are there they will buy other products.
To grow top-line revenue, make sure you have a strategy and plan for retaining current customers, attracting new ones, enhancing your product and service lines, and optimizing your pricing model to maximize your business results.