Without revenue, businesses die. When companies stop innovating and bringing in increasing amounts of revenue, things get stagnant and may begin to recede. No matter what your short-term goals are, such as hiring more employees, nailing down a bigger office space, paying off debts, or becoming profitable as a business, bringing in more revenue is crucial. Be sure to check your business credit score for free with Nav for more context to help your business be successful. Here are four ways you can increase your small business’ revenue and reach your goals.
1. Direct (or Indirect) Marketing Campaign For New Customers
There are people out there with money just waiting to be spent on your product, you just need to reach them. An investment in direct marketing can pay off if done well. Bulk mail or email campaigns, TV or radio ads, B2B tactics and more can be used to bring in those new customers and keep your business growing.
You can also use indirect marketing tactics such as search engine optimization (SEO), referral marketing and center of influence networks to find new customers and bring in more money. Consider taking an online course to learn more about SEO and how to improve your website to increase your online visibility and drive sales.
2. Increase Prices
While this may not be the most popular move among your current customers, it can be a way to increase income from customers you’ve already acquired. This money-grab tactic can be effective if you have leeway with your customers, and even a small percentage raise in prices can be a quick way to get more cash for your business.
Be cautious, for obvious reasons, to not raise the prices too much if you choose this path. Being too aggressive can chase customers away and take away your cash flow in a hurry.
3. Promote Value-adds and Upgrades to Current Customers
Promoting or advertising upgrades or add-ons to your current customers can be a way to bring in cash from your existing customer base. Suggestions like upgrading to a premium product or pushing newer products can help drive revenue without as much risk of losing customers as increasing prices carries. Just think of your business like a restaurant, and decide which products can be super-sized or what “sides” you can offer to your customers. If done tactically and in good taste, it can be a great move to bring in more cash.
Both increasing prices and promoting add-ons or upgrades are simple ways to increase your average transaction value and perhaps helping you to focus on higher quality customers.
4. Get More Value out of Operational Assets
Your operational assets include human capital and, depending on the type of business you own, equipment. Getting more out of your operational assets may be as simple as pushing for more productivity. If you can do so without affecting morale, asking your employees to get more done during the workday can increase your business’ output and, therefore, bring in more revenue. Take time to review your business’ production and consider ways to get more out of your employees.
As you look to meet your goals and continue growing your business, consider using these suggestions to bring in more revenue and make your business dreams come true.
This article was originally written on May 10, 2018.