Ways to Increase Revenues
To grow any enterprise, You must develop strategies that will drive sales to ever-higher levels while ensuring that your growth in revenues translates into higher cash flow and profits. Essentially there are ways to increase revenues. Mastering any one will produce significant results.
Make More SalesThe first and perhaps most
obvious way to increase revenues is simply to make more sales. Of course, one
of the best ways to accomplish this objective is by expanding your customer
base.
Sell
More Often to Existing Customers
In addition to expanding
your customer base, you can also make more sales by selling more often to the
same customer. Customer acquisition costs can be enormous. Once you have
developed a customer, look for ways to increase the number of times you sell to
him in any given period. In addition to increasing your sales revenues, such
sales will also be more profitable.
Sell
Something Else
In addition to increasing the number of transactions per customer, you might also be able to sell the customer additional products. Increasing revenues from your existing customer base in this way is yet another example of capitalizing on your original customer acquisition cost. Ask yourself, "What else would someone who is purchasing my product or service be interested in buying?"
Make More Profitable Sales
To this point, we have covered four ways to increase gross sales revenues. But what is of paramount importance to any business is cash flow and profits. In addition to achieving this end by increasing gross sales revenues, you can reach the same goal by improving sales margins-that is, by increasing net sales. Examine the profitability of each of your customers. Also, determine the profitability of each product--you will find that some are more profitable than others.Reduce Your Selling Costs
Examine your sales processes.