One question that small business owners tend to grapple with is on how to grow their enterprises’ revenues. This issue typically bothers small business owners who feel that their enterprises’ revenue growth rates have stagnated. So they seek to know about the strategies they can use to get their business’ revenues growing again. In this article, we will be highlighting some 9 practical things you can do, to improve your small business’ revenues:
1. Advertise aggressively
The objective here is simply to get more people within your target market to know about your small business and the products (or services) it is dealing in. Just getting the targeted groups of people to know about your small business is a huge victory. You would be hoping that at least some of the people who get to know about your business and the products or services it is dealing in would be tempted to consider buying them. And this is something that is almost certainly bound to happen, if the advertising campaign is designed in the right manner, and targeted at the right audience. Ultimately, if as a result of the aggressive advertising, you have more people buying the products or services you are selling, that should translate into higher revenues. You just need to ensure that the resultant revenues/profits are higher than the amounts of money you spend on the advertising campaigns.
2. Offer discounts to your customers
The logic here is simple: your targeted customers are likely to buy more of the products or services you are selling if they are offered discounts. The most important thing is to ensure that the discounts you offer are huge enough to be tempting, but not so huge as to cause you to suffer losses. It is also important to ensure that as many of the targeted customers as possible get to know about the discount program as soon as it is launched. That way, they can take advantage of it, resulting in bigger sales and higher revenues.
3. Hike your prices (where appropriate)
There are scenarios where you find that you can improve your business’ revenues significantly by just hiking the prices of your products or services slightly. The challenge is in ensuring that the prices hikes are not huge enough to cause you to start losing customers. So you may need to understand what your competitors are selling similar products or services for. That would inform what you can get away with, in terms of price hikes. Even where the price hikes lead to loss of some customers, you may realize that the extra revenue you stand to earn would more than compensate for the lost customers.
4. Lower your prices (where appropriate)
The idea of lowering your prices to increase your revenues may be counter-intuitive at first. Yet there are cases where it can work very well. See, in a price-sensitive market, if you lower your prices a bit, you are likely to attract more customers. That should translate into more sales, and thus more revenue. The most important thing is to figure out ways of getting the targeted customers to know about the lowered prices, so that they can take advantage of them. It is also important to ensure that you don’t lower the prices to a level where you start making losses. In any event, lower prices are likely to mean that you make less profit per sale than you would have made with the previous prices. The challenge is for you to figure out whether the higher sales you will make after having lowered your prices will compensate for (and exceed) the profit you would have made with the previous prices.
5. Accept many payment methods
If you accept a wide variety of payment methods, it means that doing business with you is easy. For each extra payment method you accept, you will probably get customers you’d otherwise have missed out on – customers who prefer to pay using that method. For instance, if you were previously only accepting hard cash payments, and now you start accepting credit cards as well, that could translate into more sales.
6. Offer free delivery services
The free delivery services deal is likely to entice customers you may otherwise have missed out on. If nothing else, it is likely to differentiate you from competitors who may not be offering it. It is likely to give the targeted customers a reason to buy from you, and not from your competitors. The most important thing is to actually get the targeted customers to know that you are offering free delivery, so that they can take advantage of it. It is also important to ensure that the extra revenue/profit you stand to get by offering free delivery services is more than the cost of offering those services.
7. Establish new branches
The idea here is to increase the geographic reach of your small business. Establishing new branches means that you will probably get to reach [new/extra] customers that would otherwise have been beyond your reach. This is one of the most straightforward ways to increase your business’ revenues. You just need to ensure that you don’t end up spreading yourself too thin in your bid to establish new branches.
8. Offer your products or services on credit
If you offer your product or services on credit, you are likely to attract more buyers, translating into more revenues. You just need to be sure that the people to whom you are extending credit are trustworthy. You also need to make a provision for bad debts: as some of the folks to whom you extend credit will almost certainly fail to pay. The most important thing is for you to ensure that the extra revenue/profit you stand to make, once you start offering the credit facilities, is huge enough to cater for the bad debts you will inevitably get.
9. Employ direct sales teams
The idea here is to get hire salespeople who can contact the targeted customers directly and try to get them to buy the product or service you are selling. If you do it correctly, it can help you reach sections of the market that would otherwise have been out of reach for you. The most important thing is to ensure that the salespeople are properly incentivized — with good commissions — so that they can go the extra mile in trying to get customers for you. The extra sales you get to make in this way should then translate into higher revenues for your business.