The ability to generate consistent revenue and income is a common business challenge and critical to:
- Grow and sustain a business
- Deliver a profit
- Expand and scale
- Attract and retain the right talent & resources
- Invest in systems and processes to operate the business
So how do you know if your business needs a revenue reset? How do you know if it’s time to hit the pause button? How do you know it’s time to reboot your revenue growth with new strategies and solutions?What signs or signals should you look for in your business?
“A business has to make money and a profit. Everything else is a hobby.”
Signs That Your Revenue Model Is NOT Working
WHAT IF ONE OR MORE OF THESE SIGNS APPLY TO YOUR BUSINESS?
If you recognize one or more of these signs playing out in your business today, it’s time to evaluate what’s working, what’s NOT working, and what you need to do differently.
Here are three important questions to ask and places to probe to start uncovering the root cause of the issue.
QUESTION #1: ARE YOU CLEAR ON THE CHALLENGES & PAIN POINTS YOUR PRODUCT OR SERVICE ADDRESSES?
See the 4 Types of Pain Points below:
- Financial – saves the customer money, affordable, flexible payment options
- Productivity – saves them time, makes a task more manageable
- Process – makes a process more efficient, explains or demonstrates the process
- Support – provides additional customer support, exceptional service, higher quality
Have you clearly communicated the benefits of your products/services to your target audience and customers? Identifying and solving those relevant pain points will be key in attracting, converting, and closing the sale with prospective customers. If they don’t see a connection back to their challenges, they will keep searching and place other brand or alternatives in their consideration set.
QUESTION #2: HAVE YOU DIVERSIFIED YOUR REVENUE STREAMS?
- One-Time Revenue Stream(Transactional or a one-time customer payment for a product or service)
- Recurring Revenue Stream(Ongoing customer payments to use a product or service, often referred to as predictable income such as subscriptions, memberships, etc.)
- Service Revenue Stream (Revenue earned by providing a service to customers based on time or hours)
- Project Revenue Stream (One-time projects with existing or new customers)
“Don’t optimize for conversions, optimize for revenue.” Neil Patel
QUESTION #3: ARE YOU CREATING DEMAND FOR YOUR PRODUCTS & SERVICES?
Believe it or not, there are only four methods or strategies to create demand.
And these methods are so simple and intuitive that it almost defies belief that most businesses are not using them to their fullest.
Increase the number of buyers (attract more buyers and increase conversion)Attracting more customers and bringing more people to your business.
Increase customer purchase frequency (get them to buy more often)Persuade customers to buy from you more frequently. If you increase the number of times they purchase throughout the year from 1x/per year to 2-3x/per year, you will increase revenue.
Increase average transaction size (increase how much they buy)Encourage related item purchases, upsell them, sell higher value items, and capitalize on every opportunity to increase the transaction size.
Increase the price they pay (raise purchase price)Raise prices on high value/high involvement items. The more meaningful and distinct differentiation a business has, the more they can charge for their products & services.
These are separate and distinct strategies to grow revenue and profit. A business can utilize one singular strategy by itself. Or they can elect to combine several methods to create a cumulative effect and grow revenue even faster. The key is to understand which strategies are the most effective in reaching their business and revenue goals.
To grow revenue and profit, you need to concentrate most of your efforts on the ideal customer or target audience who buys early, buys often, buys more, and buys higher value products & services.
If you stay focused on these simple strategies, you will generate revenue on-demand, breakthrough your revenue ceiling, and deliver the most profitable year yet in your business.
“Of course you want more revenue, but what good is it if it isn’t predictable?” Aaron Ross
If you are ready for a revenue reset, click the link below to DOWNLOAD the “MASTER YOUR MONEY FLOW GUIDE”. You will get new ideas & insights to reignite revenue growth in your business.
>>CLICK HERE TO DOWNLOAD YOUR COPY OF THE “MASTER YOUR MONEY FLOW GUIDE”.<<
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