For many small businesses, a double or triple digit revenue increase within a few weeks is likely the result of either a new product launch or a big endorsement from a popular figure.
Revenue increase is the single most important activity in which a small business should engage in. Increased cash-flow allows businesses to hire people, buy equipment, and manufacture products or deliver services. Without enough sales in terms of revenue, there is no future for a business.
In this post, we will be going through four unique strategies for small business to have a scalable increase in revenue;
1. Review Your Pricing Strategies
The prices of products constantly change, so you should not be reluctant to adjust your prices to meet your objectives or the market situation. An immediate price increase will bring additional revenues and profits to the company if the price increase doesn’t negatively impact sales. A price reduction will stimulate more sales and take market share away from other suppliers. Knowing how your products compare with similar products in the market from the buyers’ viewpoint, as well as the prices of competitive products, will allow you to best position your prices in the marketplace.
Changing prices may “shake things up,” so you should be particularly sensitive to the reaction of your customers and prospects as the new prices go into effect. If the reaction is not positive, you can make further adjustments, including a return to the old prices.
Also Read: How to develop growth strategies for Small Businesses.
2. Increase Your Marketing Spend
An obvious way to increase sales or revenue is to boost your marketing. Quantity doesn’t necessarily mean quality, so careful planning, test-marketing and monitoring your results maximises your sales. Conduct marketplace research to learn which messages speak to your target audience.
Run ads and promotions in limited locations and check the results before spending your entire budget. Incorporate some way to monitor marketing communications, such as using coupons, electronic codes or website traffic statistics.
3. Add Complementary Services to Existing Products
The more value you offer, the more revenue you could make from the product. Adding complementary services or products may help you gain new clients, as well as maintain existing ones.
For example, an electronic shop that sells household electronics like TV Sets or Fridges can include free home delivery or free installation as a complementary service to its product.
Also Read: How to Maintain Work-Life Balance As a Small Business Owner.
4. Ask Customers for Referrals
Your current customers are also a great asset in providing you with client referrals. If you know that a client is satisfied and happy with your products, ask him or her for the names and contact information of other potential customers who might also benefit from working with you.
You can also ask satisfied customers for testimonials and then use those on your website and in sales emails or newsletters. Always be sure to ask permission first when using a customer testimonial.