If your revenue is not growing, your business is declining. Renew your business with these growth tips.
Revenue growth vs Sales
Growing revenue is important whether your business is a startup or at the maturity level. Revenue growth is different from sales. Revenue is the amount of money you make from all areas including investments (property, stocks etc.), royalties, client retention, and sales. A revenue strategy is your solution for making more money over the short to long-term.
Obviously, sales are the revenue you get from selling goods and services.
Every company goes through startup, growth, maturity, decline or renewal. If you are at the declining stage, maybe it is time for a renewal. Having a revenue growth strategy is important to help you successfully navigate each stage.
Here are a few recommendations to include in designing your revenue growth strategy:
1. Form mutually beneficial strategic alliances
Strategic alliances (SA) may sound like a scary word for some business owners. However, it is a great way to gain new revenue. A successful SA should be mutually beneficial. It should be approached as a partnership and not a competition.
Each party should put their interests and needs on the table to come up with a solution that benefits both.
2. Get more revenue from existing customers
It is easier to retain an existing customer than to get a new customer. Research and find ways to provide new and existing services and products to your current clientele. Revenue maximizing activities include:
- Frictionless customer service
- Customer relations management
- Customer success process
- The right team and appropriate compensation plan
The best customer is an existing customer
3. Double down on your competitive advantage
A survey of 3000 of the largest publicly listed companies showed that a business model powered by a competitive advantage is more likely to have a high return on invested capital. Customer service and a quality product are not competitive advantages in themselves. However, it is the how and why you deliver your services and products that will differentiate you from competitors.
Identify your competitive advantage and double down on it to increase market share. Establish what makes your brand different and use it to scale and grow your business.
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