10 Ways to Generate More Income From Your Business
Browse the business section of any bookstore, and an avalanche of titles promising a vast array of keys, secrets, and formulas to running a successful small business threatens to overwhelm you.
Many of these titles give useful advice, but the vast amount of information can leave entrepreneurs with the impression that running a business is complicated and difficult.
That's far from the truth.
Success comes from sticking to basic but simple fundamental principles.
Increasing your business income is no exception.
When you stop to think about it, there are only three routes you can follow toward making more money: 1.
Find more customers 2.
Make more from your existing customers by increasing the value of each sale 3.
Increase the frequency that customers buy Just three simple steps represent a foolproof way of increasing the revenue of your business.
If you can gear more resources to achieve one or more of these, you will almost certainly make more money.
The trick is to take this little list from the theoretical and make it practical in your specific context and circumstance.
The aim of this article is to help you do this by moving from some general suggestions to specific recommendations related to each of the areas mentioned above.
So, check out these 10 Ways To Generate More Income From Your Business: General 1.
Focus on a specific target market The old saying that you can't be everything to everyone is especially true in business.
Only the big department stores still have a measure of success with a generalist approach, although in truth, many of them are struggling to break even.
We live in an age where customers demand an ever increasing degree of specialization-make sure you are able to offer this by developing a target customer profile and a strategy for delivering what they want.
Turning away from the masses to service the few may sound slightly counterintuitive, but it remains the simplest way to build a loyal customer base that is appreciative of the fact that your business is geared toward meeting their specific needs.
2.
Deliver innovative products and services Marketing gurus often talk about the value of being "first in the mind".
This refers to the fact that the first company to offer an exciting new product or service will often become identified with that product or service to such an extent that they will remain the market leader for years or even decades.
Examples of companies that are first in the mind are: Microsoft (software) and Xerox (copiers).
You are perhaps not running a multi-national corporation, but the first in the mind principle can be applied on a local level by making sure that you offer innovative products or services that get people in your niche talking.
Selling products or services that are available elsewhere should not bar you from becoming first in the mind.
In such cases, you can attempt to ensure that the level of expertise and customer care you offer makes your business the first that people think of in your field.
3.
Tailor your marketing toward benefits rather than features The well-known features and benefits distinction is well worth repeating.
We often design our marketing efforts to highlight all the bells and whistles of our products while our prospective customers are simply asking: "What is in it for me?" Since the aim of your marketing efforts is increasing your income and not trumpeting your achievements, you should make sure that all of them focus on answering this question.
4.
Make technology work for you Some people still think that having a website is a wild and slightly exotic idea, while others sign up for every new gadget that comes along.
Steer a middle course by finding technologies that can truly deliver in terms of added value and cost savings.
To do this effectively means research, but the benefits are tremendous.
Chances are the technology is out there that can revolutionize your back-office or marketing.
Get more customers 5.
Create an effective follow-up system Customers who do not buy on a first visit are much more likely to do so on the second-if there is a second! Do your best to ensure there is a second chance by creating an effective follow up system to remind all prospective customers who darkened your door of the great services and products you offer.
Technology like e-mail auto-responders and e-zines can play a key role here.
6.
Make your current customers work for you No marketing technique is as effective as word-of-mouth advertising.
Ask for and use testimonials-where satisfied customers say nice things about your business, and referrals-where satisfied customers provide you with information about prospective clients who might benefit from what you offer.
Make more money per client 7.
Charge more This is perhaps the most obvious and also the most difficult way to increase revenue.
Most of us fear the loss of customers like we fear the plague if we raise prices.
In reality, price is rarely the single most important determinant of customer loyalty.
This could also be the case with your business.
Do your best to find out and act accordingly! 8.
Broaden your product range One of the best ways to increase income per client is to develop a range of products and services that suits different budgets.
This allows you to offer a value-added premium service to those who do not mind paying a bit more for something extra.
Increase purchase frequency 9.
Design strategies to keep customers loyal Never underestimate the value of initiatives to keep your customers coming back.
Regular customers tend to spend more and are also your best word-of-mouth ambassadors.
Make special discounts for regular customers, like loyalty programs, a part of your strategy.
10.
Stay in touch.
Investigate the best ways to keep in touch with your customers Communicate regularly-although not too regularly to annoy them-and focus on the benefits of your products or services.
Also, mention any new or additional offerings.
Many of these strategies may seem slightly counterintuitive, but taken together they represent a solid basis for growing your business income.
Best of all, none of them require a weeklong immersion in the latest secrets or formulas that most of us feel so guilty about not reading.
Many of these titles give useful advice, but the vast amount of information can leave entrepreneurs with the impression that running a business is complicated and difficult.
That's far from the truth.
Success comes from sticking to basic but simple fundamental principles.
Increasing your business income is no exception.
When you stop to think about it, there are only three routes you can follow toward making more money: 1.
Find more customers 2.
Make more from your existing customers by increasing the value of each sale 3.
Increase the frequency that customers buy Just three simple steps represent a foolproof way of increasing the revenue of your business.
If you can gear more resources to achieve one or more of these, you will almost certainly make more money.
The trick is to take this little list from the theoretical and make it practical in your specific context and circumstance.
The aim of this article is to help you do this by moving from some general suggestions to specific recommendations related to each of the areas mentioned above.
So, check out these 10 Ways To Generate More Income From Your Business: General 1.
Focus on a specific target market The old saying that you can't be everything to everyone is especially true in business.
Only the big department stores still have a measure of success with a generalist approach, although in truth, many of them are struggling to break even.
We live in an age where customers demand an ever increasing degree of specialization-make sure you are able to offer this by developing a target customer profile and a strategy for delivering what they want.
Turning away from the masses to service the few may sound slightly counterintuitive, but it remains the simplest way to build a loyal customer base that is appreciative of the fact that your business is geared toward meeting their specific needs.
2.
Deliver innovative products and services Marketing gurus often talk about the value of being "first in the mind".
This refers to the fact that the first company to offer an exciting new product or service will often become identified with that product or service to such an extent that they will remain the market leader for years or even decades.
Examples of companies that are first in the mind are: Microsoft (software) and Xerox (copiers).
You are perhaps not running a multi-national corporation, but the first in the mind principle can be applied on a local level by making sure that you offer innovative products or services that get people in your niche talking.
Selling products or services that are available elsewhere should not bar you from becoming first in the mind.
In such cases, you can attempt to ensure that the level of expertise and customer care you offer makes your business the first that people think of in your field.
3.
Tailor your marketing toward benefits rather than features The well-known features and benefits distinction is well worth repeating.
We often design our marketing efforts to highlight all the bells and whistles of our products while our prospective customers are simply asking: "What is in it for me?" Since the aim of your marketing efforts is increasing your income and not trumpeting your achievements, you should make sure that all of them focus on answering this question.
4.
Make technology work for you Some people still think that having a website is a wild and slightly exotic idea, while others sign up for every new gadget that comes along.
Steer a middle course by finding technologies that can truly deliver in terms of added value and cost savings.
To do this effectively means research, but the benefits are tremendous.
Chances are the technology is out there that can revolutionize your back-office or marketing.
Get more customers 5.
Create an effective follow-up system Customers who do not buy on a first visit are much more likely to do so on the second-if there is a second! Do your best to ensure there is a second chance by creating an effective follow up system to remind all prospective customers who darkened your door of the great services and products you offer.
Technology like e-mail auto-responders and e-zines can play a key role here.
6.
Make your current customers work for you No marketing technique is as effective as word-of-mouth advertising.
Ask for and use testimonials-where satisfied customers say nice things about your business, and referrals-where satisfied customers provide you with information about prospective clients who might benefit from what you offer.
Make more money per client 7.
Charge more This is perhaps the most obvious and also the most difficult way to increase revenue.
Most of us fear the loss of customers like we fear the plague if we raise prices.
In reality, price is rarely the single most important determinant of customer loyalty.
This could also be the case with your business.
Do your best to find out and act accordingly! 8.
Broaden your product range One of the best ways to increase income per client is to develop a range of products and services that suits different budgets.
This allows you to offer a value-added premium service to those who do not mind paying a bit more for something extra.
Increase purchase frequency 9.
Design strategies to keep customers loyal Never underestimate the value of initiatives to keep your customers coming back.
Regular customers tend to spend more and are also your best word-of-mouth ambassadors.
Make special discounts for regular customers, like loyalty programs, a part of your strategy.
10.
Stay in touch.
Investigate the best ways to keep in touch with your customers Communicate regularly-although not too regularly to annoy them-and focus on the benefits of your products or services.
Also, mention any new or additional offerings.
Many of these strategies may seem slightly counterintuitive, but taken together they represent a solid basis for growing your business income.
Best of all, none of them require a weeklong immersion in the latest secrets or formulas that most of us feel so guilty about not reading.
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