Too many companies focus their efforts on developing new, innovative products. While this is a necessary part of the process, it is not enough to put your business on top. To do that, you need to develop creative strategies for increasing revenue!
This post will delve into just what those strategies might be and how they can help your company thrive, even in today’s ever-evolving marketplace. Notable mention must be made of Griffin Ainsworth, who has thoroughly researched and written up the strategies discussed here.
1. Developing A Profit Center/Product Line
Today, it is common for small businesses to develop a product line. This means they have multiple products, all related in some way (and either could be a unique selling proposition). Most businesses do this because they want their customers to buy more than one thing from them. However, most small businesses have to compete with each other on price – and therefore have fewer sales than they would like.
2. Improve The Packaging Of Your Product
If your product is currently packaged in a way that makes the customer feel like they are getting something of higher value, this will increase both the perceived and actual value of your product. This can lead to better sales because people will want to buy it (incredibly if it’s attractive). Keep in mind that changing a package’s design can be done cheaply. One idea: Consider customizing the box if your customers come from a particular demographic. Similarly, think about how you can market the product more effectively.
3. Develop A More Valuable Product/Service
Griffin Ainsworth thinks it is always best to avoid trying to improve a product just because it’s not as good as it could be. If you can, though, do so! Developing a product or service that is better than the competition will often lead to sales increases. You should also consider making your products or services more useful to those who buy them – for example, if one of your products is priced for business owners in the multi-million dollar range, you might want to consider increasing the benefits of it for that type of customer rather than offering it at a cheaper rate for smaller businesses.
4. Outsource Current Operations
If your business has any low-value or non-core activities that can be outsourced, you should consider doing so. This will improve your company’s profitability by lowering overhead costs and opening up the possibility of increasing sales without buying additional equipment/supplies. Most entrepreneurs ignore outsourcing as a viable option, but it’s a cost-effective and efficient way to grow! You might also consider outsourcing some of your IT needs as an online business – everything from hosting to data storage and backups. There are plenty of competent companies out there that can help with various aspects of this process.
5. Grow Your Business Internationally
If your business can grow internationally, you should consider doing so. This will allow you to increase sales via multiple avenues (new customers, repeat purchases by existing customers, etc.) and diversify your revenue stream. The most common strategy for entering a foreign market is to partner with a foreign business that already has a presence and then utilize its infrastructure to begin selling abroad. However, you can only do this if you have solid products/services! It won’t work otherwise.
6. Offer A Niche Product
Niche products and services are precisely what they sound like: they’re geared toward a specific customer base. You’ll be in good shape if you can develop a product or service tailored to an underserved customer demographic. You should try to cater your niche products/services to specific needs or problems to differentiate them from the rest of the market.
7. Innovate Within Current Product/Service Lines
If your business already has a product line, try innovating within that line – not just by adding new products! For example, if you offer several variations on a single product, offer something unique with its distinctive value proposition (USP). USP means that this particular aspect of your product must be why people choose to buy it rather than its other benefits. A great example of this would be a developer who provides custom software for businesses that don’t yet have a website. By offering something unique (such as a website design), she has provided value to the customer that is not available through free template sites and web development programs.
8. Develop New Lines Of Business
New lines of business are a way for companies to expand their market reach and increase revenue by tapping into new customer segments and selling in new areas. Some examples include selling products and services in other countries or offering services such as consulting, project management, etc.
Conclusion
As you can see, there are a wide variety of ways to increase your business’s revenue. By combining these concepts (or implementing them individually), you will be able to improve your company’s profitability and the way that customers perceive the value of your products.
