Seven Ways To Add New Revenue Streams For Your Business
When it comes to business, there will always be highs and lows. However, selling more of your basic services may not be the only way to increase the revenue of your small business.
Having multiple streams of income gives your company more room to survive the inevitable downturns that will arise. There are many opportunities to create additional sources of income for your small business. Here are the top seven ways to uncover new revenue streams in your small business.
Launch Complementary Products
Whether your business is associated with the food, entertainment, education or hospitality industry, there are always additional products and services that can create a new stream of revenue.
Start by examining your current services and consider what products could potentially complement this offering and will be useful to your existing customers. For example, yoga or dance studio owners may sell workout clothes and exercise mats, a medical facility can sell healthy snacks and magazines at the front desk, software developers can sell equipment or hardware, while a florist can stock vases and flower food.
Then make sure to do a little research and see if there is a demand for this add-on product or service. You may find that many of your clients are already buying it from another supplier, but they would probably prefer to purchase it from one source – your company.
Extend The Geographic Market Area
Many small companies limit their marketing and sales efforts to close proximity to the central location of their business. However, you can transform your small business from local to national and even from national to global. Because, why not?
You already have all the prerequisites for these transformational steps. Local success will tell you that you can quickly extend the geographic market area similar to where you have started your business. With modern technologies and possibilities that allow you to create an e-commerce website without spending a fortune quickly, you can instantly transform your small business from local to national and from national to global, which in turn will create new revenue streams for your organisation.
photo/ Gerd Altmann
Increase Your Customer’s Base
Attracting more customers will always increase your overall income. In many cases, small businesses have already reached the highest revenue caps from their current customer base. However, this can be a sign that they will need more clients if they want to continue growing.
One of the best methods is to focus all your efforts on acquiring new customers that will expand your existing customer base. Make sure to get to know your prospects and customers, offer great customer service, play to your strengths and improve your ongoing marketing strategy to reach more leads for your products or services and create new revenue streams for your company.
Communicate With Old Customers
Also, each business owner knows that it is easier to sell something to an old customer than to find a new one. Consider developing a marketing program to connect with old clients as well as your prospects and contact them on a regular basis. You can ask them for referrals and written recommendations, which will not only make them feel like a valuable component of your company’s success but also will help you improve your products or services or even spark some fresh ideas for your organisation.
Raise/Lower Prices
Since product prices are constantly changing, you shouldn’t neglect to consider price adjustments based on your goals or the market situation. A price increase means an immediate increase in revenues and profits of the company if a rise in prices does not negatively impact sales. At the same time, reducing prices will stimulate sales growth and take away market share from other suppliers.
Knowing how your products or services compare to similar offerings in terms of buyers, as well as the prices of competitive solutions, will allow you to better establish your prices in the market. However, price changes can shake things up, so you should be especially careful about how your customers and potential clients will react when the new prices come into effect. If the reaction is negative, you can make additional adjustments, including revert to old prices.
Consumers often ignore and rarely react to small price increases; therefore, you may also want to consider raising prices regularly. While a small price increase might seem insignificant compared to the full price, the impact of the increase in profits is magnified as the rise will have a direct influence on the bottom line.
Build The Right Team
Aside from your customers, the lifeline of every business is the right team. The skilled workforce can easily convert leads into customers. So, make sure to check out your employees, starting from those in leadership positions to those at the front desk. They should think strategically so that they can correct the course when necessary.
During the selection process, try to focus on hiring the right people. To do so, assess employee skills and competencies. Do they fit their roles? Look at the general pace at which the team is working. Does it work well with the current strategy and culture of your organisation?
Consider Seeking Government Help
No matter if you need to hire new staff or retain key people, open new locations or renovate existing space, add new product lines or upgrade technologies or maybe launch marketing and advertising campaigns, additional business funding can help businesses make needed investments that will move your company forward and generate significant revenue.
As nowadays the whole world is dealing with coronavirus pandemic, you can seek out government help through the use of grants like Small Business Grant Fund (SBGF), Discretionary Grant Fund, Retail, Hospitality and Leisure Grant Fund (RHLGF) or loans like Coronavirus Business Interruption Loan Scheme (CBILS scheme), Bounce Back Loan Scheme (BBLS) or Future Fund.
Making good use of as many grants and loans as you are eligible for is one of the best ways to save money that you can reinvest back into the business.
Author: Lucas Arlo
If We Can Work From Anywhere, Why Work From Here: Thoughts From Steve Kemler
