How to Experience Consistent Revenue in Your Business

A business without revenue is a business without oxygen and the longer there is no adequate revenue, your business suffocates. The coronavirus pandemic has further dipped the negative numbers on business revenues this year. And if your business is one of them and if you wondering how to jumpstart that revenue, here’s how 

“At this point, we estimate US corporate revenue across public and private businesses will decline by roughly $4 trillion. That is a very dangerous decline, and, if not mitigated, it will lead to a long-lasting ripple. Since this hit to revenues is happening throughout the world, the total hole globally will be roughly three times that—about $12 trillion,” 

wrote Greg Jensen, co-chief investment officer at Bridgewater in a co-authored report. This further makes it extremely crucial in attaining the financial point in your business “Profit”. Many businesses are struggling to calculate the necessary points needed to make their business profitable and a lot of entrepreneurs still struggle to understand how profit works. 

The major mistake that landslides your business to revenue are: No adequate sales, Not understanding margins, Withdrawing from the price increase, Setting discounts to match competitors, No proper marketing, Still remaining old school - Non-Digital

The concept of revenue on the other hand is not the same in all sectors, it varies. Below are a few examples of what revenue means in the following sectors: Public Revenue | Corporate Revenue | Non-profits Revenue.

All business, mostly come under the following sectors. And if your business is one of them and if you wondering how to jumpstart that revenue, here’s how - 

Generate Leads: A successful business never stops looking for ways to expand its customer database as well as grow in their stream. The foundation to attaining this is to have a steady flowing stream of sales leads or in other terms (B2B). Identify your target clients and generate your leads through various promotional methods like updating your website, PPC (pay per click), blogs, social media, customer referrals, media advertising etc.

Turn leads into clients: So let's say, now your business has a number of leads, that doesn't eventually mean all these leads are going to be profitable clients. Once your lead has shown interest, the key is not to keep them waiting. Don't lose any opportunity and maintain proper customer care. Comfortability goes way ahead for any individual, make your clients feel important and create a bond while maintaining that comfortability. 

Turn clients into repetitive buyers: Growth in your revenue is proportional to the growth in repetitive client sales as well as new leads. Once your client has made a profitable sales in your company, making sure they come back is the key to developing your revenue. 

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” -Peter Drucker

A personal touch to your business: Being an entrepreneur or a boss, is no excuse to not get on and get your hands dirty. At the end of the day, your company’s profit is what determines your career's success. Collaborate with your staff, know what's going on, maintain your staff’s harmony and most of all know every aspect of your staff’s operations and decisions. 

Profit margin: Many entrepreneurs misunderstand and ignore what a margin is. Your entire revenue is not your profit. Divide your direct cost sales from your revenue and divide the number by the revenue, this is your gross profit margin. This is a direct indicator to your revenue and profitability. Let's say your revenue is $1000 and your labour, material and direct expenses costs $800, so the difference of $400 divided by $1000 gives you a margin of 40%. Be sure to calculate your margin likewise to make sure there is a consistent hike in your revenue.

Occasional price Hike: Many businesses refrain from increasing their price as they are scared to lose their clients. Let's dig in this deep with an example: let's say you have 30 customers and your revenue is $1000 per customer, so your revenue is $30000. With a 10% increase in the price ($1100), your new revenue would be $33000. So what happens if you lose 2 of your customers due to the price hike? ( 2 * 1100 - 33000 = 30800), that is 800 dollars more with fewer resources of the 2 sales with just 28 customers. 

Money in your bank is not business profitability: The common misconception is when you start to gauge the profit of your business as your bank balance. Here are a few examples that actually are making a loss in your business despite having a bank balance. 

Previous year profits, The expenses were not adjusted, Advance cash from clients, Payroll expenses, Pending payments to suppliers, Make sure you check all these aspects thoroughly.

Coupons, Discounts and Subscriptions

Dispersed through papers and magazines, coupons have for some time been a successful method to advance items and increment deals. When appropriately advertised, they make a massive purchasing opportunity for customers. The deals can be applied to limited items, for example, a limited classification like school supplies, specific brands or all items in a store-wide deal. Truth be told, you can make a deal situation for practically any explanation: 

Amount Discount: When at least two of a similar item are bought simultaneously 

Tie-In Discount: When at least two unique items are bought simultaneously.

Occasional Discount: When items are purchased inside a particular time period 

Contingent Discount: When the items bought are utilized or refurbished.

Conclusion

A number of business scholars guarantee that a business is either developing or declining. Fruitful organizations persistently rehash themselves by focusing on their clients and by adjusting their items, deal methodologies, and cycles to meet a continually evolving business revenue. Every one of these systems is incredible income generators in the correct conditions, however, the ideal decisions for your organization will rely on your comprehension and information on the clients you serve. While every one of the procedures can be executed alone, you can actually utilize a few of them at the same time for more noteworthy effect on incomes.