Tuesday, 6 September 2022

Strategies to Increase Revenue in Small Business

Starting a new venture come with a lot of hectic processes, you may gone through licensing stage, doing market research and devising the right marketing techniques to adopt. All of these but have you considered expanding your business beyond it present state? Many small business are happy to stay or maintain small operation in return for a decent limited income while other are drive by challenge of growing their business into more profitable venture.

If you are wondering about methods to adopt to move your business forward or wish to catch up with your competitors and outshine. If you wish to drive your business far beyond the level it is right now then there are higher risk accompany such strategies but there are compensations that comes with it. We have highlighted some of the strategies to adopt to improve your business in order to grow and expand it.

Take time to evaluate your business

For you to identify the desires of your customers, an evaluation of the overall performance of your core business areas such as the products, services render, your ideal customers, your distribution channels and geographies location of your business is very important. This can be achieved by measuring and benchmarking profitability and its number of dedicated customers.

Learn to develop a client-centred approach

Startups entrepreneurs should ensure that they always find their future clients first. Learn about what they buy, improve on the product or service and sell it to them. Get customers feedback and find out what problems they need to solved and come up with a better solutions that are currently not in the marketplace.

Consider about merger

One of the fastest way by which businesses grow is through acquisitions. Acquisition can be a massive source of profit and also a mean to growth if you carefully make a few key moves. Although acquisition can be time-consuming and expensive but there are businesses which are affordable and can be acquired.

Develop a unique selling position

There is a need to have mission and vision statement for a business in order to keep business owners focused and guide them in the right path. There is a need to do analysis of what your business offer to customers that no other competitors do in the marketplace with what you do. State the unique difference between you and the other competitors and form a sentence from it. Your unique selling point should be the basis for which your customers will patronise you rather than your competitors. After you have discovered your selling point, the next thing is to turn it into a long term goal by proposing the number of people required for the first year. Set an achievable goal and where you want to be in the next three years from now, then break it down to yearly, monthly and weekly goals.

Train your employees or team work

For you to build strong team, the first step is to identify dedicated employees at the levels, those who are willing to go extra mile and those who are willing to step forward and lead. As an entrepreneur you may have areas where some of your employees lack necessary strategies, therefore you can delegate such task to other team members known who great skills in such areas. Once you identify your weakness, learn to concentrate on hiring people who can fill gaps. They can take on all the responsibilities you are not good at or you hate doing especially if you can find team members who are naturally gifted in the areas you are not.

Using this strategy the team members will not only great at what they do, but will also be passionate about the business growth and their job as well. It is easier to hire self-motivated employees than those you have to cheer up and force to carry out their duties. For improvement, if you don’t have management skills, hire someone as soon as possible.

Learn to reward your employees We all know the level of excitement we get whenever we are asked to act like owners, when employees act amazingly with a sense of responsibility and set good business deals, when adequately rewarded and supported with resources. You should also note that leaders should not be penalised unless they consistently fail to learn from their mistakes. Kind gesture toward employees may start with a simple ‘thank you’ to show gratitude and this can be a way of supporting, you can also give bonuses based on productivity and the profit make from business.

All business except non-profit making ones, are established and managed to make money. A business might have other objectives as well, but if the company is not making money, shareholders, executives and board members might consider pulling the plug on the business. Even the companies that are doing fine financially should still look for ways to increase revenue.

Established entrepreneurs and management consultants, however, say each business has some profitable ideas capable of making it to succeed. They note that shrewd management of ones data base of current and previous customers will ensure good profit margins for the entrepreneur. Below are some tips which will help to increase your profit according to experts:

Provide complimentary products

Experts advise that you provide your current customers with complementary products or services no matter the kind of business you do as an entrepreneurs. They note that this will always endear yours customers to your business outfit and will definitely grow your profit when customer loyalty is won.

For instance, a company involved in carpet cleaning may offer complementary services in upholstery, drapery or a different type of surface cleaning that may include hardwood, stone, tiles or counter tops. These products should appeal to your customers and should closely fit what your business offers.

Understand your customers

Entrepreneurs must be able to identify specifically the products or services their customers want this cannot be done unless the entrepreneurs understands the customers. Experts note that identifying who your customers are, and what is important to them will guide the entrepreneurs. This, they will help him to increase his profit as his services will be more appreciated and demanded by his customers. They say entrepreneurs who do not know this may end up spending too much on marketing, advertising and promotions.

Let customers know all you offer

Entrepreneurs should list all the products and services which he offers. Most entrepreneurs know all the different products and services which they offer, but this, most times, is not the same with their customers. Most customers won’t remember everything that the entrepreneur provides as goods or services, adding that it is important for the entrepreneur to list these items elaborately.

Entrepreneurs have to tell their customers on a regular basis what they offer and what value their offerings provide. This, they say, could be a simple brochure that outlines all the entrepreneur’s products or services, and may include his office/business address. This will make the customers know how you intend to make their lives easier and better when dealing with you as an entrepreneur.

Identify other outlets where they shop

The entrepreneur should also identify other businesses capable of luring his customers. He should know where else they do business. He should know where they shop for similar items and what services they intend to use which he may not be offering at a particular time.

When these outlets or businesses are identified, the entrepreneur may approach them to see if they would establish a joint venture with his business or whether they would be interested in setting up a cross promotion. By setting up a joint venture, the entrepreneur can refer his customers to other business and they can also refer their customers to him.

Know what customers want

The best strategy to adopt when doing this type of business is to interview your customers. In the process, the entrepreneur will understand what his customer’s challenges are. A simple survey of customers or an informal interview with clients who the entrepreneur has good relationships with helps him to know what his customers really want. When entrepreneur understands the wants of his customers, he will be able to meet these wants. This will increase the entrepreneurs profit in the long run.

Develop good referrals

Good referrals in joint ventures with other businesses will also guarantee increase profit, entrepreneur must look out for businesses that could be developed into good referral sources for his venture.

A good referral source will refer potential clients to you and you in turn, may include to pay the referral source a fee, or a percentage of the business that he generated for your company. Entrepreneur may also set up referral programs for his customers. They note that existing loyal and satisfied customers are best referral source. Where the entrepreneur offers some good incentive or reward to his customers after any referral will gradually encourage a positive word of mouth advertising for his business.

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