Your hard work and dedication have helped start your small business, but now your profit margins aren’t where they should be to keep the business running or growing. To keep your business open, you need to increase revenue – which can be easier said than done. For many small business owners getting a small business loan was the key to starting and growing their business. But it can also come in handy down the line when you’ve become stagnant and need to grow revenue or are facing a crisis like COVID-19.
Thankfully, there are tips and tools to help you compete and stay afloat in your industry. Whether you have an online business, or a brick and mortar location, there are tons of great ideas to help generate more business revenue. Here are five ideas to get you started:
1. Upsell to Increase Average Transaction
One way to generate more revenue for your business is focusing on increasing average transaction size. This means getting each customer to purchase more. You can do this by upselling your goods and services. Upselling is a process in which the seller convinces the customer to buy more, through upgrades or other add ones.
For example, you’re working in a restaurant and a person orders an entree, offer them an appetizer, drink and dessert as well. The customer likely won’t buy something extra, unless they’re offered it. This is why upselling is such a great technique to increase revenue. The more items the customer purchases, the more money you collect in the end. Feel free to be creative with this technique and offer relevant deals to individual customers. This will increase sales and show the customer you care about their business.
2. Encourage Repeat Business
Many times, new business owners put so much energy into gaining new customers, they neglect or forget to retarget existing customers. This is a silly mistake to make when opening a small business, because the people who have already bought from you are prone to do business with you again.
Gain repeat business by encouraging all new and returning customers to join your email list. Email is an easy way to communicate with your customers, while keeping them updated on your latest offers and promotions. You can add a popup subscription on your website or hand out business cards at your store. Integrating email marketing into your plan will increase business revenue by persuading existing customers to purchase again.
3. Raise Your Prices
Raising your prices should come with careful thought and research in your industry. You can raise your prices to bring more revenue in, for the same amount of effort. You will collect more revenue every time a customer makes a purchase, which is also super appealing. Assuming the average transaction size and frequency stay the same, you will bring in more business revenue by raising your prices.
4. Take Advantage of E-Commerce
If you don’t have an online storefront, then you need to get one as it’s an easy way to generate more revenue for your business. Having a website is the best way to showcase your goods and services. So, if you don’t have a website for your business, you are missing out on tons of revenue.
Don’t be afraid to take your products to the web. Creating a website is easier than ever and will help your business be noticed. A website will drive traffic to your business and increase overall revenue. It’s a great platform to answer customer questions and build a trustworthy brand. A top-notch website will set you above your competitors and show your customers you know what you’re doing. Taking advantage of e-commerce opportunities is a great way to generate more business revenue.
5. Ramp Up Your Marketing Plan
Consider outsourcing your marketing to an agency or professional, so you can give your business the time and energy it deserves. Having a helping hand is a great thing and will allow you to focus on running a profitable business. Choose a professional who knows what works in your industry and who will make you more money than they cost.
Sometimes, despite your best efforts, you might not have what it takes to successfully market your business, and that’s ok. Knowing when to ask for help will help generate the most revenue for your small business. Creating a better marketing plan for your business will give allow your business to grow to its fullest potential. You can fund your new marketing plan with a small business loan. A small business loan will give you the funding you need, to hire marketing professionals.
The Bottom Line
When you start to implement these tactics into your business plan, you’ll begin increasing revenue today and opening doors for the future as well. Always remember to retarget existing customers, to get them to purchase from you again. Consider raising your prices if they’re not generating enough revenue and take advantage of the online world by creating a website.
Once you form a solid group of marketing professionals, who support your ideas, you’ll be able to increase brand awareness and drive sales. These tools will lead you to make great decisions, to bring about the most revenue for your business.
More From Seek
- How Does My Personal Credit Affect My Business?
- 7 Ways Small Businesses Can Reach New Customers
- 10 Lead Generation Ideas for Your Business
Photo credit: Jacob Lund/Shutterstock.com