As a venture advances in age, there will be a need to increase the revenue accruing from it. IFE ADEDAPO writes on how this can be achieved
Professionals say most people start their business with the hope and dream of working for themselves and aiming for a financial independent life after working for other people.
However, experts say their dreams may turn into nightmare if care is not taken, because most small businesses find it difficult to cope with marketing, customer service, personnel, and product or service fulfilment all at once.
To sit back and relax after years of investing requires hard work and dedication at the beginning.
According to them, one of the most important intentions of every business owner is to make a profit. In the quest to make more money, meeting the needs of clients and contributing to the society significantly, experts say financial independence has to be attained.
After venturing out for some years, they advise that small businesses should diversify as a way to make more money using the following means:
Don’t cut back on expenses, earn more
Business consultants advise that earning more makes business transactions easier than when expenses are reduced. According to them, there is a likelihood of reverting back to spending extravagantly after strictly adhering to a budget due to weak willpower. To a prevent this, they advocate increased focus on strategising other avenues of raking in more income.
A business consultant, Mr. Debo Akingbade, says money saving techniques often indulge in by small businesses include avoiding impulsive spending when shopping, eating homemade food rather than eating out, exploring energy saving options, and cutting back on business inputs and personnel.
He says taking time to think critically on how to leverage the existing clients’ base to offer other services can prove valuable. Akingbade adds that spending more time to develop a new product or service, in line with the present business, and then launching them will prove more profitable.
As long as the delivery is satisfactory, experts say the money will keep flowing in and the hearts of more clients will be won. This, they say is better than restricting expense that will not improve the baseline income.
Albeit financially gratifying, they say it can be intellectually rewarding as well because the skill acquire from the business expansion is an added value.
Keep your financial records
Professionals say good record keeping gives an insight into the performance of the business over time. Moreover, they say keeping a clear financial record makes it easier to pay taxes regularly and promptly.
According to them, appropriate and up-to-date financial records provide the necessary information for managing the business efficiently and making sound business decisions.
In addition, Akingbade says when business owners are familiar with their income and expenditure pattern over time; they will be able to predict future bottlenecks in business operations and financial constraints.
He says timely actions taken can help to prevent financial loses that may arise.
Present your services as products
The aim of every business manger is to build a sustainable business. Therefore, experts say to achieve this, techniques for increasing patronage and revenue should include the presentation of services as products.
Akingbade suggests that the service businesses can breakdown their business transactions into modules for trainings and phases with a name attached for other consultancy services to ease pricing.
He says transforming the service into ongoing programmes, which require subscription at intervals, can increase sales.
Expert says clients prefer it when several options are presented to them with varying price tags attached and the ability to convince them of great results at the end.
They say buying a package builds confidence because purchasing a product with a name attached makes it feel much more tangible than simply buying hours.
Communicate with your clients
Through continuity strategies that include free seminars, business clinics, e-books, audios, retreats, international conferences and online forums, experts say regular communication with clients can be achieved all year round.
Regular emails when there is an upcoming event to offer new products and also at festive periods can be harnessed to keep in constant touch with them, business consultants posit.
They say email will be serving as an important communication tool for pitching clients.
Target different customers
For increased revenue, experts suggest targeting different clients with variety of products available or by offering exclusive deals and discounts for first-time users.
They say this has as a double advantage because it ensures that people can only be first-time buyers once, but once their contact details have been documented, they can be reached based on their preferences.
Offer more products to the same client
It is crucial to retain more customers that will bring in a constant stream of income than getting new clients, Akingbade says.
He says once the needs of a client have been identified, business managers should be able to envisage other related business needs and offer them on a continuous basis.
For instance, a travel agency, which offers advisory services and organises various attractions of the country and presents them to the tourists, can also assist in providing foreign language classes for the same client.
He says handing out new products as incentive to existing customers can provide a means of launching a new product that will be offered at a price later.
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