Revenue is the lifeblood of any company and finding ways to increase the amount of money is the aim of every business. Not only does revenue pay for everyday expenses like office space and salaries, but it is often reinvested for the future in areas like research and development. So if you got co-owners to please, expanding the top line might be a good way to make them happy. There are countless ways for businesses to boost their revenue but here are just a few that can be implemented by you.
Cross selling is when one division of the company sells products of another division to the same customer. As an example, let’s use an investment bank. The bank could help an entrepreneur take their company public on a stock exchange. This usually means a huge infusion of cash for the entrepreneur. A cross selling opportunity exists because the bank can then sell its wealth management services to them in addition to the service that they are already offering. Low hanging fruit might already exist within your customer base so review your current clients and see if you might be able to convince them of the advantages you could have.
Major Marketing Push
When was the last time your company had a major marketing campaign? There are limitless ways you can reach potential customers – print, television and internet are some of the most common ways. Marketing helps build your brand long term as well. If you want to reach as many “eyeballs” as possible, finding a campaign that reaches your niche can be a little bit tricky. One method that a lot of small businesses use is to do something hyper-targeted like Facebook’s online advertising platform as it is an extremely powerful tool. You might even consider a viral marketing campaign from TCA Partners to help increase your business’ revenue.
In Economics class, one of the first things you learn about is the Law of Demand – quantity of goods sold is inversely related to the good’s price. Although, lowering your price will decrease the amount of revenue you get for each item sold, it might increase the volume enough for total sales to increase. You might attract new customers, previously discouraged by your high prices. If you offer value, these customers should stay with you once you raise them to their previous levels.
There are all sorts of partnerships in the business world. Marketing partnerships are everywhere. For example, look at McDonalds and its happy meal toys. Often the toys are related to a media property like a movie. The studio gets massive exposure for its movie, and McDonalds gets a hot toy for its customers. What’s great about partnerships is that they do not necessary require a company to put up cash.
Increasing revenue is a key way to win in the marketplace. There are many ways to do this: Cross-selling, a marketing push, lower prices and partnerships are just some of the tactics your business can use.