Revenue growth is an important concept for businesses of all sizes. It is a key indicator of a company’s financial health and success and often serves as the foundation for future investment, expansion, and other growth opportunities.

Revenue is at the top of the income statement because it’s the beginning of all calculations — money in from goods or services sold. As we mentioned in point one above, without revenue, you can’t have profit (even with revenue, you’re not guaranteed profit).

There are two types of revenue: operating and nonoperating revenue.

Operating revenue is revenue your company earns from its main business activities. For example, sales to customers are operating revenue.

Nonoperating revenue is revenue your company earns from activities that aren’t directly related to your business. For example, you might earn nonoperating revenue from investing or renting your building to another business.

Revenue is what keeps your business alive. Beyond being a lifeline, revenue can give you key insights into your business.

If you want to increase your business profits, you need to increase your revenue. By keeping an eye on your revenue and focusing on increasing it, you can also increase your profits.

By tracking your revenue across consistent accounting periods, you can compare it over time. For example, you can compare your business revenue between years or quarters.

Below are the various ways to boost your revenue

Offer discounts and promotions

One of the ways to get more people to purchase your product and services, is by giving discounts and doing promotions through adverts, digital marketing, email marketing, etc

Add more value to your products and services
Find a way to reward loyalty of customers who keep buying from you, this would increase your customer retention, you can also add more value by adding additional benefits to what you are already selling and then increase the price

Eg, a shaving blade adding more blades, a toothpaste adding herbs, a powdered milk adding chocolate and the list goes on.

Expand your product or service offerings

Find out another niche that you can offer your product to, a market segment that hasn’t been sold to and expand your product to fit in or solve their needs

Cross selling and upselling

You can sell your products with related goods either supplementary or complimentary goods.
Upselling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, while cross-selling invites customers to buy related or complementary items. Though often used interchangeably, both offer distinct benefits and can be effective in tandem.

Upselling is a sales strategy when a customer is encouraged to buy anything that would make their primary purchase even better. It’s like an upgrade to an existing order. Marketers often use this tactic in their campaigns to generate more sales.

The upselling technique also provides value to customers because it offers them to pay a little more but wind up with a better product

Cross-selling is another great practice to encourage people to buy more. Here how it works: a customer is shown a variety of products that may complement their needs. For instance, you are purchasing a pillow. The related products will be a set of sheets or pillowcases. In fact, marketers often suggest those products that a client would buy anyway. They just do it at the right time and place.

Automated processes, reduced overhead cost and optimise your supply chain

Find ways to reduce cost, when some processes are automated, it reduces the cost of paying people to take care of certain programs and roles that can be and would be repeated.

The economies of scale can be maximised especially in the supply chain, cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods

Leverage Social Media and website

Social media is a way to maximize and increase your revenue, most of your customers won’t be able to see you if you don’t become visible enough on social media and have a website that can make it easy for new customers to know, like and trust you before buying.

Invest in marketing
Great marketing helps position your brand in the target market. Your positioning can lead to increased referral sources, as more people know of your services. It can also lead to you being able to charge higher fees, as your brand is seen as a premium service.
This is why marketing exists; to make more people know your company, your products or services. It’s useless for you to make an entire investment in a company that you are not going to publicize, and if only your friends and family know it, you are not going to grow as much as it could. If you want to grow big, you must make yourself visible

Hope you have learnt how best to increase your revenue

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