Often business owners work hard to advance their business but do not see the financial results they should. Below are tips that will help you maximize the profitability of your business by generating more revenue.
Improve profitability by generating more revenue
Increase prices
It may seem absurd at first glance, but increasing prices is easy to do without deterring customers. Do not increase prices by 40% but be patient and steadily increase them. It may take several months or years, but ultimately you will see a financial payoff for justifiably increases prices. You can feel confident raising prices when you:
- Analyze the competition. If your business is the only one in your geographical area, you will increase your rates.
- Focus on quality. Your customers will not be deterred if your product or service is quality and of a certain caliber.
- Encourage your customers to leave reviews on your site. The more positive customer reviews you have, the more people will give you their business. Do not delete a negative review but contact the person to find out what is wrong and make a commercial gesture if necessary.
Focus on high margin products
Today, many leaders are focused on revenue growth, but high turnover at a low margin is not necessarily a viable solution. It is important to pay attention to your different products/services. If one of your products is not selling at a beneficial rate, then revamp it or remove it from your inventory. Be careful to retain and highlight a flagship product that generates a large margin.
Expand your business
Your business may reach its maximum potential in a sector. In this situation, it is time to develop a new product or service, enter a new market, or expand locations. However, when venturing into a new area, be careful to compare the advantages and disadvantages of expansion in terms of market, budget, and competitor intensity for each location you are considering.
Expansion does not necessarily mean entering an international market. You can easily establish yourself in another department with high customer potential and low or nonexistent competition. Do not hesitate to market your expansion; this will allow you to attract new customers quickly and increase your profitability.
Building your network of prescribers
A prescriber is a person who recommends or prescribes a product, a material, a service, a care, etc. To make it clearer, a prescriber is a person who will recommend your company to his friends, family, clients, customers, or prospects. Leveraging a prescriber is a great way to save on communication costs, and you can continue to build your “address book.”
Here is a small list of examples of prescribers:
- Satisfied customers
- Accountants, notaries…
- Actors in a field of activity close to yours
It is important to build a network of prescribers and grow it. Here are some ways to develop your network:
- Interact with your customers because they can become true ambassadors of your brand.
- Attend rallies where companies are likely to be interested in what you offer. Offer samples, demonstrations, exchanges, etc.
- Do not neglect companies offering you complimentary services, but a competing company (even partially) will NOT be a good prescriber.
- Direct client to your colleagues who you cannot service. Generally, they will return the favor and refer customers to you for service developing a partnership.
- Keep your network informed about your business news, interested in your contacts, etc. In short, notify your network so you can rely on it at the opportune moment, and they will have a vested interest in your successes.
Once the prescribers in your network are actively engaging with you, you will be able to sign more contracts or generate more traffic, increasing your profitability and revenue.
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