Every business, no matter the type or size, has one primary objective- to sell. Sales generate revenue which makes continuity possible. So when you are not selling enough, you are most likely not to remain in business for long. Think about it – you have to pay your workers, buy and manage equipment, pay your rents, and so on. Without making enough sales, how will you be able to settle these bills?
In recent years, many companies’ especially small start-ups have been affected by the non-progressive economy, making it difficult for them to grow. As a result, most of them are hardly surviving while some had to be shut down due to lack of resources to run their activities.
However, in spite of the harsh economic situation, many new businesses are rising while some of the existing ones are generating more revenues. How? By focusing on their customers and inventing better ways to serve them.
Whether you run a business that seems to be struggling or one that is already pretty successful but also need expansion, there are various ways you can increase your value. And significantly improve your transaction size and generate more revenue.
Here are five suggestions that can help you achieve great results:
How to Strategically Increase Revenue from your Startup Business
Strengthen your internal operations
This involves all the activities performed in the daily operation of your business to keep it moving. Usually, maintenance and administration are the most important areas to look into.
For instance, if you run a manufacturing company, then you need to ensure that the machines that are used for production are regularly inspected and serviced. This will ensure that they continue to produce at maximum capacity. Without adequate maintenance, production machines are likely to wearout which in turn will lead to a decrease in supply. Apart from reducing your revenues, this can also favor competitors.
Add Complementary Services to Existing Products
Adding complimentary services to existing products is one of the easiest ways to expand your market. This is very important especially if your company provides a service. Adding complementary services to the ones that already exist can attract new clients to your company.
For instance, a web design company can add graphic design to their service for a little extra cost. So, instead to looking for help elsewhere, clients who want both services can easily pay them. Similarly, a company that sells computer products might add installation or backend training. You can offer as many services as you can as long as they appeal to customers and are within your company’s capacity.
Don’t be afraid to copy complementary services from competitors, as long they are relevant and important to customers. But make sure you personalize it in order to make it special and unique.
Extend the Geographic Market Area
One of the ways small businesses grow is by extending their reach. So, don’t get too comfortable in one geographical market area or location, launch out in the larger market. Although this will attract more promotional cost, it is nothing compared to how much you can make if it works out well. The market extension has always been the fastest way to increase revenue, without it your business will never skyrocket. This article by AppTivo explains more on geographical market area.
Increase Your Prices
Raising prices is another way to make more money. However, you need to be careful while doing this. An untimely hike in price can make you lose customers or clients. This is why your action must be properly planned out before execution.
Ideally, your customers should be educated on the need for the raise and make sure it isn’t too much. You might also plan to offer a superior service or improve product upon increasing pricing.
Keep in touch
Regular communication is necessary to keep your customers engaged and earn their loyalty. It enables you share useful information and ideas and also help you identify changes in their taste. Common communication means include phone, mail, newsletters, social media, and online chats, amongst others. Never underestimate the importance of customers’ feedback.
Finally, when properly implemented, each of these strategies will help you to quickly boost your business value and increase revenues significantly.