Generating more business, and increasing sales and revenue is the ultimate goal of the entrepreneur. But, I see many entrepreneurs struggle a lot to generate more revenue in the business. To help them today, I am going to talk about 3 Proven and successful ways to generate more revenue for your business.
Now, business sometimes people make it way too complicated than it needs to be. But believe me, businesses are not complicated but people are complicated.
I always say business is simple but people are complicated.
Finding the right people or building the right team, because every single individual is different.
So that’s a little bit more complicated.
But when it comes to business, it’s quite simple. There are only three proven ways for you to grow a business, to grow a company.
So if you are –
- struggling with your sales
- struggling with cash flow
- struggling to grow your business
I would recommend you look at one of these three proven ways and see what you need to work on.
3 Proven Ways to Generate More Revenue for your Business
#1 Getting more customers
How do I get more people in for you?
You want to get more customers, we all want more customers
so we can generate more revenue.
Now it depends on your business type. You might have a two-step process, meaning you may not get a customer directly, it may not be a direct sales scenario.
It could be a two-step process where you generate a lead.
Maybe you generate a lead online and then you convert
that lead to a sale, so a two-step process.
So you have the lead generation process and then you have the conversion process.
It doesn’t matter.
The bottom line is that’s what you focus on, that what most entrepreneurs focus on, how do I get more customers?
The challenge is if you have been in business for any length of time that the biggest payoff, sometimes the highest paid leverage points that you have within your business may not be getting more customers because it costs a lot of money to acquire customers nowadays, right.
When you’re running traffic, when you’re doing any kind of advertising, it costs a lot of money to acquire that first initial customer.
If you are a startup, yes, then focus on getting customers
because you need customers to survive, but if you have been in business for a while, then I want you to consider some of the other ways to increase your revenue, to grow your business.
#2 Getting your customers to come back more often
The second proven way to increase your business is to get your customers to come back more often or to increase the frequency of purchases.
Now this is a very big deal because getting customers
are very, very costly, right, the cost of acquiring a new customer, but if you have customers who are already buying from you, they know you, they like you, they trust you, they have done business with you, very often.
I find that this is the part that most entrepreneurs neglect.
They spend all their time, it could be 80, 90% of their time just focusing on let’s get more customers, let’s get more customers.
That’s where the revenue comes in instead of nurturing the relationships they already have.
Let me give you a perfect example.
Let’s say if you run a retail business and you are some kind of service provider, a massage therapist, maybe acupuncture, maybe you run a salon, it doesn’t matter, and you have people coming to you, let’s say once a month.
Once a month they will visit your store, they will visit your shop and they take you your services, and you’ll get paid and that’s 12 times a year, once a month.
Now, I want you to think about this.
Imagine instead of once a month, by the time let’s say you
finish the service, let’s say you finish doing their hair, and before they pay you ask them to book the next appointment.
We call that rebooking, right, in business terms, rebooking the next appointment.
And you encourage them, instead of coming back every four weeks, you say why don’t you come back three weeks, every three weeks.
Now, you may not think that’s a big deal.
Let me tell you why that’s a big deal.
If they come back once a month, that’s 12 times a year, once a month, that 12 times they will transact with your business
in a year’s time.
Now, what if now they come back every three weeks instead of every month.
Do you know what that does to your business?
That’s now 17 times they will come back to your business.
So instead of 12 times a year, now they’re coming back
to your business 17 times a year.
That’s five times more.
Imagine what that does to your revenue. And it didn’t cost you anything extra? Nope.
All you need to do is ask and suggest, hey, instead of four weeks, why don’t you come back every three weeks.
Now you need to find out, what are some of the things that you can do to get your customers to come back to your business, to visit your business, to buy from you more often?
#3 Getting your customers to spend more money on each visit
The third proven way is getting your customers to spend more money with you each time they do business with you, each time they visit you, or what we call increasing the transaction size.
Now, this is very simple.
Let’s go back to maybe the retail example.
Let’s say each time your customer visits you they spend Rs.10000 with you, hypothetically, right.
Rs.10000 and that’s cool, but if each time they come back and you do some kind of upsell and you get them to spend a little bit more, an extra 10 or 30%, instead of spending Rs.10000 each time, they spend Rs.11000 or maybe Rs.13000.
It may not seem like a big deal, but when you take that out three months from now, six months from now, a year from now,
in a given year, that’s a huge amount of profits.
That’s additional profits and revenue for your company without a lot of extra work.
When you buy a pair of shoes, when they upsell you to that shoe polish, you’re already buying that pair of shoes, that shoe polish.
Do you know the margin on those things? It’s outrageous.
A perfect example of this would be McDonald’s.
Most of you have visited McDonald’s. You might also have ordered Supersize Pizza, Supersize french fries, and a combo meal with a cold drink.
Whoever came up with the idea of, hey, would you like to supersize that?
That one little line, right.
Imagine you’re buying a meal, going to McDonald’s, and the salesperson asks you – Would you like to supersize that?
Most of the time you say whatever, okay, sure.
For just a couple extra bucks supersize the drink and supersize the fries.
They’re already making the fries, they already have the drink in the machine, it’s just a bigger container, a bigger little box and there you go.
But for them, that couple extra bucks, the margin on that, it is huge because you think about that, any given day, think about how many people go into McDonald’s every single day.
And all they need to do, come with the line, a perfect upsell, increasing the transaction size, getting you to spend a couple of extra bucks each time you visit.
Hey, would you like to supersize that?
You’re like, sure, right.
From there each person, each cashier from that, let’s say only 10%, 15% of people say yes, hey, I’d like to supersize that.
Cool, a couple of rupees extra in profit, in revenue, and then from there you take that every single day, you take that 365 days, now you take it to all the locations.
That is worth tens of millions of dollars, if not hundreds of millions of dollars to the bottom line.
Just think about that.
That’s increasing the transaction size. You are there.
You’re buying from McDonald’s anyway.
So think about in your business, don’t just focus on getting more customers.
We all need more customers, but how do you get more value?
How can you sell existing customers more, and be able to deliver more value to them?
So don’t just think of how to get more customers.
Over to you
So the three ways to grow your company, the three ways to generate more revenue, are very simple.
Get more customers, customers should come back more often, and spend more money with you.
If you focus on that, what can I do today, what can I do this week, what can I do this month to get more customers, to get more customers to come back more often and spend more money with us, that’s what you need to find out.
So which ways do you use to increase your business & revenue? Send me your ways and suggestion at email@example.com or firstname.lastname@example.org.