'How can we increase our revenue?'
Like all other great business owners, you have asked yourself and your team this question time and time again.
Behind this question needs to be a thorough understanding of exactly what is driving your revenue.
Before looking for new sources of revenue, it's often very worthwhile first analysing where most of your revenue is currently being generated from and looking for ways those processes could be optimised.
For example, a great revenue driver is referrals and for some businesses it's their main source of new business. A sound strategy then would be to regularly examine your referral generating processes and look for things you can do to enhance the way you're currently generating referrals. What could you do better? What more could you do? Are you still doing things that are no longer yielding any benefit? Are you getting the most out of your relational capital?
Small improvements to your current systems and processes can have a significant 'force multiplier' effect with little to no cost and they often have a quick or immediate impact so it makes so much sense to start by looking at what's already working well.
Notwithstanding the importance of exploring new ways to market yourself and improve your business, one of the main keys to realising maximum profit and performance potential is to optimise and enhance everything that you do and ensure that simple and effective opportunities aren't overlooked.
Keep track of your revenue drivers. Know what are they and how much business each driver generates. Look for and consider new drivers that could create additional streams of income for you.
Your drivers might include:
Website/Online sales
Referrals
Email offers
In-store sales
Repeat buyers
Your follow up or recall systems
Online ads
Partnerships and collaborations
Sponsorships
Networking groups
Understanding where your business is coming from is a simple way of knowing where to focus your resources and how much of your resources to invest in each driver.
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