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To small business owners, business success often feels dependent on serendipity and luck. Those can be factors, but experts say you can control more than you think. And relatively modest actions or changes in your typical approach often produce significant results.
What small business owner doesn’t want to increase sales and profits? Duh. There are concrete actions you can take. Entrepreneur, direct marketing expert and artist Charles George claims there are just three ways to increase your revenue and profit. Avoid over-complicating and over-thinking: These three principles are based on simplicity and common sense. Drawing on the power of a few fundamentals will help carry you through the rest of the year and lay the foundation for next.
- Increase the number of customers
Did you know that for established businesses, this is the least effective of the three strategies—and the most expensive? Acquiring new customers can cost up to eight times the cost of retaining current ones! The most efficient way to get new customers is actually motivating current customers with incentives to make referrals.
- Increase frequency of purchase
What if you could motivate customers who buy twice a year now to purchase four times? Boom! Instant doubling of income. And getting new customers to make additional purchases quickly increases the chances they’ll be loyal, long-term customers. This means staying in contact, through emails, direct mail and phone calls, and by making sure you’re delivering something of value with every contact.
- Increase transaction size
Small increases can make a big difference. Think about boosting an average spend of $100 to $125. Once customers have had a positive experience, they’ll be less price sensitive and will spend more freely.
There’s also bundling products or services. Maybe you pair a good seller with something that’s not moving as well. The hot seller leads the sale, increasing your revenue. The buyer gets two products for a lower price than buying them individually, and your inventory is reduced.
Executive educator and Fortune Magazine contributor Verne Harnish also offers advice on boosting your company’s revenue. We’ve added two of these to our list of revenue-boosting tips:
- Gather daily intel
Consider all your employees sales generators. They are the eyes and ears of your business, interacting daily with customers, vendors and others. As a result, they have valuable information to share. Check in with them regularly for a data download and to solve any issues they’re having. The results of making this a regular practice will flow to your bottom line.
- Raise your prices
Despite rising costs across the board, many business owners are reluctant to raise their own prices for fear of losing customers. But those who’ve done it say that, although they lost some customers, these tended to be among the least profitable. Without them, these business owners began to focus all their efforts on their most profitable customers and promising prospects.
The post Want to boost revenue? 5 ways for business owners to do it appeared first on Business Cash Advance.com.
