Pretend for one moment that you are in the position of preparing to sell your business. Buyers evaluating your business would need to view your last three years of financial information in order to gain a realistic idea of what your business is worth from an objective perspective? Would you proudly hand over your paperwork?
Like many small-business owners, you are the nuts and bolts of the operation and often, as an owner, you are so busy working in your business that you do not afford yourself the luxury of standing back to have a really good look at your business from an outside perspective.
If you have not yet grown your business into your dream come true, you can breathe a sigh of relief, as whether you are a primary industry, secondary industry, service industry, quaternary industry or the creator of goods there are four surefire ways to increase your revenue stream starting today.
1. Gain more customers by listing in more places and marketing well. You can always find another place to list your business in order to gain more customers. With advances in technology your revenue is no longer limited to who can physically walk through your door. You can benefit from listing in a marketplace, having a professional give new life to your website or focusing on marketing through Facebook or Instagram.
2. Increase your average transaction size by collaborating and packaging items. Sometimes we have our blinkers on and cannot see the wood for the trees however if you really look around you might find someone like you who wants to reach more people and together you may achieve more than individually. A wonderful example of this can be found when viewing clothing sales as the models also have sunglasses, a hat and a bag.
3. Increase the frequency of transactions per customer by re-targeting them. With the introduction of online features such as Mailchimp and Campaign Monitor it is easier than ever to re-targeting previous customers and track if they have opened your email and if they have clicked any links within your newsletter. Consider what problem you are solving and aim to grab your target markets attention through emails offering solutions and extra services. Don’t forget to offer something for free such as a great tip that they might be interested in. For example, if you own a camera store offer free photography advice.
4. Consider raising your prices. If you are in a highly competitive market surrounded by competitors, then raising prices may not be the best move for you and one of the above three tips may be your key to increased revenue. In other businesses and especially if you are in a niche, there is no reason to retain your current price. While being fearful of losing sales may be real for you, it is important to be mindful that perception is not always reality and if you never ask then the answer will always be no.
For many small businesses the beginning of the year affords time to step back and plan for a successful year ahead. Spend a day updating your business plan and always try and keep your focus on the next three years. Allow some time to reap the reward so that one day you can sell your business and walk away with a smile.
Leisa Papa, Founder, Little Kids Business