One of the things that I do in my free time is to work on my small business. It’s nothing significant at this point, but it is slowly bringing me in money that makes it worth the time investment. If you are thinking about starting a small business, one of the most important things is increasing revenue. This is the goal of any business.
While offering a great service or product is necessary for any business, if you want to be successful, you have to bring it to the next level. You have to make it impossible for your clients to turn you down. Here are some simple steps that you can take to increase your cash flow. Many of these may seem counter-intuitive to increasing revenue, but many times you have to sacrifice a little to gain a lot.
If you are selling a service of some sort, the best thing you can do is offer a free trial. Many people are afraid to commit to pay a monthly fee without experiencing it first hand. I utilize this strategy with one of my businesses and it has helped me grow my client base significantly. I would probably have a fifth of the clients that I have today if it weren’t for this.
Whenever I go to the grocery store, local pizza place, or frozen yogurt place, I always make sure to either collect coupons or use my store card. Loyalty cards are effective because it convinces the customer that loyalty will be more valuable to them than if they were to shop for the best deal available. This is great for your business because it increases repeat business and allows you to increase your normal prices a little, thereby increasing your revenue twice.
Another way to generate a positive association with your business is to occasionally special discounts or deals. While this may take away from your cash flow right now, it will increase the popularity of your business and result in increased revenue. Any successful business owner will tell you to sacrifice profit now for a long-term reputation and success.
While it’s not always easy to increase revenue, it isn’t impossible. The important thing to remember is to be creative. If you try to compete with large businesses by doing exactly what they are doing, you will fail. You simply don’t have the resources for that. Instead, be true to yourself, don’t nickel and dime people, and keep customer service high.
How have you increased your business’ revenue?