How to boost revenue in business All businesses, except non-profit making ones, are established and managed to make money. A business might have other objectives as well, but if the company is not making money, shareholders, executives and board members might consider pulling the plug on the business. Even companies that are doing fine financially should still look for ways to increase revenue. Many entrepreneurs are finding it tough to cope in business. This may be because their customers are spending less due to harsh economic conditions, or because they are forced to compete on prices and have their margins squeezed, or a combination of both, experts say. Established entrepreneurs and management consultants, however, say each business has some profitable ideas capable of making it to succeed. They note that shrewd management of one’s data base of current and previous customers will ensure good profit margins for the entrepreneur. Below are some tips which will help to increase your profit, according to experts: Provide complementary products Experts advise that you provide your current customers with complementary products or services no matter the kind of business you do as an entrepreneur. They note that this will always endear your customers to your business outfit and will definitely grow your profit when customers’ loyalty is won. For instance, a company involved in carpet cleaning may offer complementary services in upholstery, drapery or a different type of surface cleaning that may include hardwood, stone, tiles or counter tops. These products should appeal to your customers and should closely fit what your business offers. Understand your customers The Managing Director and Chief Executive Officer, Carl Investment Limited, Mr. Thomas Adesheye, says that entrepreneurs must be able to identify specifically the products or services their customers want. This cannot be done unless the entrepreneur understands the customer, he says. Experts note that identifying who your customers are, and what is important to them will guide the entrepreneur. This, they say, will help him to increase his profit as his services will be more appreciated and demanded by his customers. They say entrepreneurs who do not know this may end up spending too much on marketing, advertising and promotions. By so doing, they may not appeal to their best customers and may lose customers’ loyalty. Let customers know all you offer Experts say the entrepreneur should list all the products and services which he offers. According to them, most entrepreneurs know all the different products and services which they offer, but this, most times, is not the same with their customers. Experts say most customers won’t remember everything that the entrepreneur provides as goods or services, adding that it is important for the entrepreneur to list these items elaborately. They note that entrepreneurs have to tell their customers on a regular basis what they offer and what value their offerings provide. This, they say, could be a simple brochure that outlines all the entrepreneur’s products or services, and may include his office/business address. This will make the customers know how you intend to make their lives easier and better when dealing with you as an entrepreneur. Identify other outlets where they shop The entrepreneur should also identify other businesses capable of luring his customers. He should know where else they do business. He should know where they shop for similar items and what services they intend to use which he may not be offering at a particular time. When these outlets or businesses are identified, the entrepreneur may approach them to see if they would establish a joint venture with his business or whether they would be interested in setting up a cross promotion. Experts say by setting up a joint venture, the entrepreneur can refer his customers to other businesses and they can also refer their customers to him. Know what customers want Adesheye says the best strategy to adopt when doing this in Nigeria is to interview your customers. In the process, the entrepreneur will understand what his customers’ challenges are. He will also know what they want and what they like best about his business. A simple survey of customers or an informal interview with clients who the entrepreneur has good relationships with helps him to know what his customers really want. Experts note that when the entrepreneur understands the wants of his customers, he will be able to meet these wants. This will increase the entrepreneur’s profit in the long run, they add. Develop good referrals Good referrals in joint ventures with other businesses will also guarantee increased profit, experts say. They note that the entrepreneur must look out for businesses that could be developed into good referral sources for his venture. He should also consider other companies or business outlets that offer services that his target customers often demand. A good referral source will refer potential clients to you and you in turn, may decide to pay the referral source a fee, or a percentage of the business that he generated for your company. Experts say the entrepreneur may also set up referral programmes for his customers. They note that existing loyal and satisfied customers are best referral sources. Adesheye says where the entrepreneur offers some good incentive or reward to his customer after any referral will gradually encourage a positive word of mouth advertising for his business.
Posted on: Tue, 29 Oct 2013 09:12:24 +0000
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