How to Increase Revenue Growth
Revenue is the lifeline of any running business and if it stops flowing in, things turn ugly for the owner of that business. Every business owner wants to see his/her business grow, but most of the time, things do not quite develop as the owners expect. Since increasing revenue requires a solid planning and patience, only a few have the courage to remain in the competition and dominate the market.
There are several ways to increase revenue, but following the basic fundamentals of revenue growth can help the business owner reel in hefty profits each month.
Every business model has its own distinctive structure, which means growth opportunities will also vary for them. Despite economic woes and financial crunch that hit the entire world a few years back, there are plenty of businesses that have continued to flourish on the back of great revenue growth.
Instructions
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1
Ramp up sales
Boost your sales if you want to boost your revenue growth. The more you sell, the heavier profits you will generate. Ramping up sales means that you must increase your customer base (attract more buyers) or sell more units/products.
Here’s how you can increase sales:
- Make an Effective sales strategy: Try to market your product in areas and niches that your competitors are still unaware of. You will have to increase the workforce in order to sell more.
- Increase the quality of your product: If you see that your competitors are staying in the business by selling an average-quality product, you can increase your quality to attract more customers.
- Avoid long sales cycles: When you sell a product and it takes you several days to receive payment for that, you get more and more of your cash locked up in the process. This is a severe blow to revenue growth. In order to avoid such a situation, you should rely more on cash sales (if it is possible), and less on credit sales. -
2
Lower price
If the competition is stiff, you can try bringing your products’ price down to give your competitors a hard time. Since low prices usually grab the buyers’ attention, this strategy often works. But keep a close eye on the number of units sold and if lowering the price cannot increase the sales, you should get out of the price war right away, as it will hurt your revenues. -
3
Cut back on expenses
You have tried increasing the sales and lowering the price but you are still not able to boost revenues - you should know this is time for serious cost cutting measures.
Here’s how you can cut costs:
- Effective cost management: Effective cost management ensures that the cost of each product remains within reasonable limits. You can employ some basic cost accounting techniques to trim the products' cost.
- Shrink the workforce: If it takes two workers to sell a product, there is no need to employ five workers to get that job done. You can use state-of-the-art technology to shrink your workforce and unnecessarily huge hierarchy.
