Owning your own business is the American dream. Sometimes, when you take the leap, everything looks great in the beginning. You’re your own boss, you’re making money, and people really appreciate the work you’re doing. Then, after a few months or years, business starts to stagnate and, no matter what you try, revenue won’t go up. Try one of these 6 tips to increase your small business’s revenue.
#1: Avoid Lower Margins
Which clients, products, or services make the most money and have the most potential for growth? Which clients products, or services make the least money and have the least potential for growth? Every business owner knows exactly which category their clients, products, or services belong in. Dropping low margin and high headache clients, products, and services is a scary prospect because it’ll initially lower your revenue. But, it’ll lower your blood pressure and free up time for you to focus on growing your business.
#2: Embrace Technology
Chances are, if you have a problem, technology has a solution. Whether it’s organizing business cards or posting to social media, there’s technology for everything. Embracing technology and automating processes can free up precious time.
#3: Experiment With Pricing
Raising prices is the most obvious and simplest way to increase revenue. It’s also the hardest because there’s a very real risk of losing clients. But, if you provide high quality products or services many of the clients driven away by high prices are the bargain-oriented customers. Before raising prices, test the waters by discussing it with your clientele.
#4: Bundle Products or Services
Mega corporations like Procter & Gamble and General Electric have their hands in every industry. Small businesses tend to specialize in a single industry or niche. That makes many of their products or services complimentary to one another. When bundling complimentary products or services consider slightly discounting the prices to incentivize clients to buy the bundle.
#5: Maintenance Contracts
Speaking of bundling, we can’t forget the quintessential add-on, the maintenance contract or warranty. Maintenance contracts can generate a steady revenue stream for months or years to come. When developing maintenance contracts, clearly list what is and isn’t included.
You can only expand so much in one town or region. Sometimes, you have to consider expanding to another geographic market. On Long Island, that can be as simple as running ads in the next town over. Take advantage of Long Island’s density and widen the geographic region your business serves.
For some small business, growing revenue seems impossible. Saturated markets and slow economies can dampen the most optimistic outlook. But, if your revenue is stagnating, making one of these six changes.