Strategy to Increase your Business Revenue

Choosing Out on Tips/ Strategy to Increase your Business Revenue:

Before deciding whether or not to choose a particular business strategy for improving your company’s revenue, an assessment should be carried out to judge whether the strategy is acceptable. When judging the strengths or weaknesses of a proposed strategy, the strategy should be evaluated for its:

• Suitability: Does it address the strategic requirements, given the circumstances and the situation?

• Acceptability: Does it address the strategic requirements in a way that will be acceptable to significant stakeholders?

• Feasibility: Is it practical? Strategies might be suitable, and they might succeed in achieving their business objectives. However, if the expected financial return is too low, or if the strategy could only be implemented at a loss, it should not be undertaken. An assessment of strategy must always consider the financial aspects.

How To Increase Your Sales Revenue:


Following are the four key areas for the successful revenue strategy development:

• Product scope: The entity should make clear the product or market areas in which it expects to operate. For example, selling a standardized product, using the same marketing methods, in different markets, in this way, the entity will benefit from economies of scale and lower costs.

• Competitive advantage: The entity should identify those product-market areas in which it intends to operate that will give the entity a strong competitive advantage over its rivals.

• Growth vector: A growth vector is the direction in which the entity is moving from its current product position. It indicates where the entity sees its future growth. The growth vector might be a new product area, a new market, or both.

• Synergy: An entity should also indicate how it might expect to benefit from synergy by moving into new product/market areas. Synergy is perhaps best described as the ‘2 + 2 = 5 effects’.

What are the most used tools to convert sales?

• Digital Marketing with a pop-up live chat service: It is the most effective and affordable advertising medium to convert sales through the pop-up live chat which gives an ability to a business owner to track the geographic of a potential customer and demand of the product to correct or adjust  the campaign  accordingly. The conversion rate is too high of this service, but it is very technical and may be a very few people across the world know this art. DueClix.com is one of the most recommended companies know this art. This is the most decent way to send a message to your audience.

• Electronic Media: It is a very expensive business promotion medium to reach out the targeted audience, but it is very effective.

• Ground Force Sales Team: It is one of the old fashion marketing tools to increase revenue.

• Blind Calls: Cold calls are the least encouraging advertising medium to advertise a business.

• Create Alliances: This advertising medium promotes your products and services faster and control the market. This is also one of the most successful sales tool to increase revenue.

Example:

Multi Products

Instead of making just one product, making two different products with the same equipment and getting better utilization of the equipment as a result.

Cross Sale:

Selling two products with the same sales force, instead of selling just one product. Synergy can therefore provide extra benefits from making and selling two products instead of one, or making and selling a product in two different markets instead of one.

How to add value to Products to Gain Market Share:

• Becoming the lowest-cost producer in the market. A company that can make products or provide services at a lower cost than competitors will succeed, by selling at lower prices and winning the biggest share of the market.

• Making products or services that are considered by customers to be different from those of competitors and because they are different they are better. A company that is not the least-cost producer can therefore succeed by offering a product or service that customers will pay a higher price to obtain.

What Strategic Choices are available to you?

Strategic choices must be made about the direction that the entity should take. For companies to increase their market share and revenue, strategic direction is often expressed in terms of;

• The products or services that the company wants to sell.

• The markets or market segments it wants to sell them in.

• How to move into these product areas and market areas, if the entity is not there already.

To achieve growth in the business, an entity must:

• Sell more in its existing markets (try to make its existing markets bigger).

• Sell new products in its existing markets.

• Sell existing products in new markets or new market segments (for example in other countries).

• Sell new products in new markets.

Product-based Strategy: With a product-based strategy, a firm should identify the products that it wants to sell and the markets or market segments in which it should sell them. The focus of attention is on which products are likely to be the most successful in their market, and so the most profitable.

Resource-based Strategy: It provides a basis for deciding which new product/market areas to enter. It is a more flexible approach to strategic planning than the selection of target products and markets as part of a formal, long-term business plan.

Price strategy: Customers expect value for money. Pricing is therefore an important element of the marketing mix. In most cases, if the price is too high, customers will not want to buy it. (There might be occasional exceptions, such as the sale of works of art, where buyers are often not price-sensitive). Pricing can also be used as a means of selling products or services. For example: Commercial customers might be attracted by good credit terms and bulk purchase price discounts. Consumers might be attracted by money back coupons of two-for-the-price of-one offers, or short-term price discounts in supermarkets and stores for products such as cars that are often bought with a personal loan (for example on hire purchase). Other examples of pricing strategy in the marketing mix are as follows. A supermarket will usually sell several branded products of the same food item, such as breakfast cereals and ready-made meals. It will also sell own branded items of the same product (items with the supermarket’s own brand), usually at a lower price. The pricing strategy is to attract customers by offering the same/nearly the same quality of product for a lower price.

Financial Measures to Evaluate Performance and Increase Revenue:

The finance function within an organization provides a system for setting performance targets and measuring actual results against the targets. The finance function, therefore allows management to monitor and control actual performance against strategic, as well as shorter-term, financial targets. If an entity uses a balanced scorecard approach to setting objectives, performance should be measured against the targets of performance for all four aspects of the balanced scorecard.

Analysing financial performance: Following are some of the techniques and ratios for analysing financial performance of a business entity and thus help to increase or improve the sales revenue. Typically, you might be required to analyse:

• Annual sales growth over a period of time. Sales growth may be divided into sales volume growth and sales price growth.

• The gross profit ratio and the net profit ratio.

• The ratio of expenses to sales revenue (for example, the ratio of marketing costs to sales revenue, and the ratio of administration costs to sales revenue).

• The total borrowings of the business entity, measured as a financial gearing ratio, and

• The ratio of interest costs to sales revenue.

• The ratio of non-current assets to sales (how efficiently are non-current assets being used to generate sales?).

• The ratio of inventory to sales, or the average inventory turnover time (showing how efficiently inventory is being managed).