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Capital equips you to start a business, but profit often determines your sustainability. A winning sales strategy is probably the biggest driver in any business venture. Therefore, Small businesses should develop good strategies that fuel sales and boost marketing. One key ingredient to building a commercially viable enterprise is balancing your short-, medium-, and long-term goals. And these proven strategies can increase your business revenue generation potential.
- Value repeat customers
Rather than setting a higher budget toward winning new consumers, you should focus on improving relationships with your existing customers. Small businesses will want to run cost-efficiently, knowing that their current customers are more likely to transact with the company for a longer term, given a nice treatment. Over-spending on attracting new customers may be a bad strategy, particularly in cases where returning customers are fading away. Once existing clients are well-served and appreciated, they will leave a good recommendation about your brand, creating opportunities to scale up sales.
- Target the right customers
Not only do prices largely determine profit levels, but the kind of customers you sell to can also impact revenue. It’s easier to increase revenue by targeting profitable consumers; that’s to say, losing less profitable buyers may not hurt much. You can use the Pareto principle to target the right end-users, also called the 80/20 rule, which suggests that 80% of your profit should be derived from 20% of your products/services. Moreover, 80% of your profit should come from 20% of your customers.
- Explore new markets
Businesses can improve their profits by exploring new geographic markets. Reports show many small business owners easily get struck with the fear of leaving their comfort zone. With that said, sticking to only one corner can stagnate your growth and hurt you with lower revenue. It’s advisable to venture into other commercial opportunities in different locations that your competitors have not discovered.
- Outsource when necessary
The sooner you outsource your business to experts, the better your chances of improving revenue generation. Some founders make the mistake of overburdening their workforces, thinking they are saving money. Outsourcing could be a smart way to reduce load and improve efficiency in your operation. More often than not, hiring the services of virtual assistants is worth it as they help free up time for you to focus on your business core activities. Do you own an ecommerce store? One way to boost revenue is to work with payment experts to handle your online credit card processing. As a tip, provide your employees and customers with convenient payment channels and benefit from industry-leading innovations.
- Offer discounts and price-slash
Revenue-wise, discount offers and price slashes can work wonders for your business. Customers easily get addicted to buying affordable products, so you may want to review your pricing model. Special discounts inspire buyers to purchase more products, increasing your sales revenue. Look at how best to reward your loyal consumers by reducing prices for their favorite products. Seasonal discounts are valid with time frames, but you can implement quantity-based offers like buy-two-get-one-for-free. Research shows that discounts are magnetic; when you prove to your customers that you don’t only care about the money, they will reward you with more profit.
