Are you an small business entrepreneur based in Boston who wants to take your business to the next level by growing your revenues?
If you fall into this category, I will be sharing with you some surefire ways of doing that. However, it is not a small task. Luckily, when you have strategies laid down, it is simple. So if you are an SME entrepreneur who runs an orthodontist center, a contractor, a roofer, plumber or any other business, it within your reach to have your business revenues double or triple.
Within the many years, I have been in business consultancy field, I always find entrepreneurs who cannot differentiate “revenues” from “sales” and “income.” So that we have a good start let me start by demystifying the three words. Increasing revenues and increasing sales means two different things. To execute any of them, you will have to apply different strategies. When you understand how revenues and sales are different but at the same complimentary, you can optimize your profits and be able to market your products efficiently.
Sales- refers to how many products you have sold
Revenue- refers to how much money you raise from your sales
Income- refers to how much profit you make after making sales
There are many options for you to focus on to increase revenues. Nowadays, if you are not maximizing the utilization of the internet you are not only losing valuable revenues but you are losing market share to competitors that are maximizing the benefits that internet marketing can provide. A great first step for any business owner would be to get a compete and thorough website analysis from a firm like 21 SEO Consulting. They are clearly the leaders in Boston internet marketing, SEO, and lead generation. They can evaluate your current web presence and recommend action steps to help drive your company to #1 in reve nues in it’s niche.
After making sure we optimize a company’s web presence, we can now dive in to other ways to raise business revenues
To increase your business revenues, you can start by expanding the market you serve. Your market means, reach out to more potential customers and by extending your services/goods to new regions. To do this, you can do the following.
- Introduce a complimentary service/good to your existing goods/services
Adding complimentary products or services, is one way of attracting new clients as well as maintaining the old customers. When you record more sales, your revenues will be increasing. For example, if you are a contractor in Boston, you can start doing housing maintenance at a small fee to your old customers while at the same time attracting new customers.
Similarly, if you offer plumbing services, you can start offering consultancy services about plumbing either to upcoming plumbers and or the general customers.
- Extend the geographical area you serve
I often find many small entrepreneurs limiting their services to only their immediate neighborhood. To increase your revenues, reach out to more customers in new geographical areas. To do this, carry a market research to find out if there are competitors in those regions. If you find that there is no competitor, that is a lifetime opportunity, enter in that market. If there is a competitor, do not stop there, identify those competitors and analyze them. Find out if they are serving that market fully. If not, develop a strategy and enter the same market, but focus on being the best.
Luckily, accessing new markets has been made easier using social media and through online business. It is now possible to reach out to new customers using social media. For example, if you offer plumbing services, by using social media platforms, you can reach out to new clients from all Boston neighborhoods.
- Sign cooperation sales agreement
To use this strategy, identify businesses that sell a complimentary product or service of what you offer. Request them to help you sell your product or service. In return, you can be paying commission for all the sales and leads initiated by them.
For example, as a plumber, approach large hardware businesses selling plumbing materials and request them to refer you to their customers. These businesses attract many customers who seek assistance from them, and they may be very loyal.
- Reevaluate your pricing strategy
The price of a product or a service is one of the most significant elements that influence if a customer buys your products or services. When your prices are low, you can attract many customers. However, not all customers view low prices as a good deal. Others view low prices as low quality. This means, ensure that first, your products or services are of high quality and then lower the prices. It is a fact that a low priced product or service that is of high quality is a fast seller. Be careful when using pricing strategy so that when you alter the prices the customers will behave as you expected.
There are two ways of using pricing as a strategy
First you can lower the prices of your goods and services so that you attract many new customers. Meaning despite lowering your prices, your sales will go up. Secondly, you can raise the prices of your goods and services and then offer premium services. This strategy will only work if you are targeting the rich customers. Meaning you will have few customers, charge them high but offer quality goods and services.
While still on using product pricing as a strategy to increase revenue, you can use the tactic of “slight price increment” and then let everything else remain constant. This is one of the most effective ways if you have been recording high sales. This is because most customers will overlook a small increment as insignificant but the price increase can translate to higher revenue. However, be careful when using the pricing strategy so that you can understand the consumer behavior and be able to predict their response
- Bundle products
Another winning strategy to increase your revenue is by selling products together. For example, if you have a lady boutique at Boston, selling shoes, handbag and hats, you can bundle them together when selling.
For example, apart from selling each product separately, add another option of buying a hat, shoe, and a handbag together but at a price that is 30% lower. Also, introduce another option of selling any 2 products, but at a price that is 20% lower. You will be surprised that more than half of sales will be from the bundled sales
- Offer special discounts
Another way to spark your revenues is by using discounts. Discounts encourage buyers to buy even when they never expected. Introduce your discounts within a limited time frame so that consumers will see the need for buying before the prices rise again.
You can apply discounts on either all products or services or on limited products. Examples of discounts that can help increase revenue include:
- Quantity discount: when a buyer buys 2 or more pieces of the same product
- Tie-in Discount: when one buys bundled products
- Seasonal discount: applies when a buyer buys a product within a specific period
- Conditional discount: when a buyer buys a product that has been reconditioned or used
- Use coupons
Coupons are an effective way to advertise products and services and increase sales. You can distribute them through newspapers or your website if you have one. You can also list your business with companies that list businesses offering coupons since they enjoy a huge traffic, and will expose you to a larger market.
- Accept use of credit cards
One of the proven ways of encouraging buyers is by accepting credit cards. Allowing credit card enable those who have no liquid cash to afford to buy your goods and services. Apart from credit cards, incorporate other sources of credits that your buyers have to encourage them to buy from you.
Finally to increase your business revenue, you must focus on all aspects of your business. You must ensure your product are of high quality, price them well, market them well, understand and appreciate your customers, reach out to as many potential customers as possible. Diversify your product and services. And finally, develop and maintain good relationships with all your stakeholders.