Increase Income and Maximize Revenue of Your Business

April 3, 2013 | By | 1 Reply More

You need to grow your business to increase income and achieve the financial goals you have set for your business. However, you may sometimes find that your business is not achieving the goals that you set for it. You are not satisfied with the direction that your business is taking. Your business is simply not generating the revenues that you expected.

One reason could be your failure to maximize your revenues. In fact, there may have been a number of revenue opportunities that you have missed, or downright lost.

increase income

Loss of revenues could stem from a number of sources. It may be due to the lack of customer response to your marketing and advertising efforts. Or customers may show up in your brick-and-mortar or online store, but leave without making a purchase and instead shop (and buy!) from your competitor. Your loss of revenues can be due to the high percentage of returned purchases due to failed expectations and buyer’s remorse.

Below are ways that can increase income and maximize the revenue opportunities for your business:

Maximize financial returns

There are various ways of increasing your revenues – from looking at your cash flow to your distribution system.

One way is to develop a variety of sales channels for your products. If you are running a retail store, you can create an e-commerce presence and reach the global marketplace through the Web. Or try the catalog. You can sell also your excess inventories and returns in online auction sites like eBay. Also explore the possibility whether your product can be carried by a national chain or bigger retail network.

If you are rendering a service (e.g. web site designer, computer programmer), there are a number of ways you can maximize returns for your efforts. Evaluate the advantages and disadvantages of being paid on an hourly or project basis. As a small business owner, you may not be able to command high hourly fees, and some potential clients may want the comfort of knowing how much they need to pay for a project upfront. Also weigh in the benefits of working for one client at a time, relative to working on a project that has a wider audience and multiple potential clients.

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Maximize revenue from existing customers

It is easier to land a new customer than to retain an old one. In fact, there is a strong correlation between long-term loyalty and revenue. You can elicit trust and loyalty if you show that you understand your customers better than your competition, and consistently deliver a rewarding, highly satisfying experience through each and every transaction. You need to make your customers’ feel that you are giving them not only quality products or services but opportunities for a valued partnership that they cannot find anywhere. The key is to become your customers’ strategic partner.

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Price for competitive advantage

Revenue leakages can come from wrong pricing strategies. Your business may be under pricing your products and services, resulting in the loss of significant amounts of money. The problem often lies in an inadequate understanding of your costs, which leaves your business at a competitive disadvantage. Review your cost structure, and revise your pricing strategy without overpricing yourself out of the market.

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Maximize employee contribution

Many business owners have the vision and intestinal fortitude to turn a shoestring business into a multi-million success; yet many do not have the right skills to manage employees. Managed improperly, your employees can be your biggest source of revenue leakage. Their errors and mistakes could jack up costs; their discourteous service could turn away customers; and unhappy employees translate to poor productivity and lost revenues.

Teach your employees to care about your business. Let them understand their role in the company and what the success of your business would mean to them. They need to know what is expected of them with regular performance reviews. Communicate with your staff regularly, open the feedback process and let them know that you welcome their suggestions and ideas. Give your employees the environment essential to helping them do their best possible job.

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Maximize use of technology

One of the key steps to maximize your revenues is to automate business processes. Evaluate how and what kind of technology can make your operations faster and more dependable while reducing costs, improving efficiency, and maximizing revenue opportunities. Technology can help you effectively manage your inventory and manage customer relationship. Technology offers tangible benefits that can give your business the edge in a competitive marketplace.

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Maximize tax benefits

You should not pay more in taxes other than what you need to pay. Yet many small business owners fail to utilize their tax benefits to the fullest. With careful navigation of the rules and proper tax planning, your small business can maximize tax deductions, such as travel and entertainment. Seek the help of a tax professional or financial analyst to help review your tax return statements and find areas where you could save money.

However, the key step to maximizing tax benefits is through planning and documentation. Get in the habit of recording every transaction on a regular basis. Purchase an expense ledger or invest in accounting software to record all expenses.

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Maximize marketing

Many small business owners regularly market their products or services, yet fail to evaluate the effectiveness of these campaigns. Understanding which marketing campaigns result in more closed sales is often based on anecdotal evidence. You can increase your revenues if you undertake measures to fine-tune your marketing efforts to maximize the return on your marketing investments. You need to take time to gather information and data on how well you execute your campaigns, manage responses and track leads generated.

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Recommended Books on How to Increase Income:

 

George Rodriguez

George Rodriguez is a writer for PowerHomeBiz.com. An entrepreneur with experience in running several businesses, he writes on various topics on entrepreneurship and small business.

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Category: Financial Management

Comments (1)

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  1. Reinaldo Darjean says:

    I got what you mean, saved to bookmarks, great site.

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