You know those lofty revenue goals you set at the beginning of the year? Let's reach them! Whether you're a project-based business or a service provider, there are multiple ways to increase revenue in your small business.
Here's how to increase sales and make more money in your small business. (If you're just now launching your small business, start here!)
"Can't I just sell more?"
When most of us set higher revenue goals, we assume we should just sell more of what we already offer. And while that's a perfectly good way to make more money in your business, it's not the only way.
This also isn't the easiest way to increase your revenue. Selling more of what you already offer can mean investing more time and money into your marketing efforts. If you're not ready (or can't currently afford) to expand your reach, no need to worry. You can still make more money through the audience you already have.
How to Increase Your Small Business Revenue
1. Raise Your Prices
If you're reading this, chances are it's time to raise your prices. As you grow as a business owner, your value naturally increases. You get better at what you do, become more efficient, and provide better customer service.
Not sure whether or not to raise your prices? Here are a few signs you should:
You've never raised your prices. If your prices are the same today as they were when you first started your business, here's your sign. You've grown as a business owner. Your prices should reflect that.
You've been working with a client for more than a year. After a year of working with a client, you'll know their business inside and out. That knowledge makes you more efficient and helps you provide a service that's perfect for your brand. Plus, a client who's been paying for over a year isn't likely to run when you increase your prices.
The value of your service has increased. Have you invested in self-education, learned more about your trade, and gotten better at what you do? Increase your prices!
You're providing additional services or the scope of work has increased. This could look a million different ways. Maybe your social media management package didn't involve graphics but now it does. Maybe you're offering more check-in meetings. If you're doing more work for the same price, you should be asking for more.
Your costs have increased. Are you using higher-quality materials for your products? Or maybe you invested in some fancy new software for your service-based business? If so, calculate those into your price increase.
Your client's business has grown, thus adding additional work to your plate. We all want to see our clients succeed. If you've played a part in their growth, you should be paid accordingly.
Remember that raising your prices also means you should increase the value of the service or product you're selling. (The exception is if you've been undercharging for a while. We call that a price correction.)
A note for product-based businesses: Here's how to calculate the price of your product:
COST (how much it costs you to acquire/make the product)
+ LABOR (any labor required to create the product and get it to your customer)
+ PACKAGING (boxes, labels, wrapping paper, stickers, etc.)
Multiply this total by 2 for your wholesale price.
Multiply it by 2 again for your retail price.
Update your calculation as your costs change (new packaging, more expensive shipping, etc.). That way, you'll always know when it's time to raise your prices and by how much.
2. Find New Customers
Okay, this one might seem obvious. The more customers you have, the more you'll sell. That being said, be careful increasing your customer base. A few things to consider:
Make sure you're prepared for the extra workload and don't overbook yourself. The extra money might be tempting, but slow and steady growth is almost always better than rapid, uncontrollable growth.
Find clients that fit with your workflow. When you vet your clients in advance, you'll be more likely to sign on clients you enjoy working with. This means fewer headaches down the line.
Be prepared for extra expenses. Chances are, you'll need new software and more labor to accommodate your new customers. Plan for these expenses before you bring on new clients.
3. Resell to Current or Past Customers
Have a new offering? Reach out to current and past customers! They already know and love your brand, so the cost of converting them will be much lower than it would be for new clients. If you can provide new value to them, there's nothing wrong with prioritizing their sales over new ones.
Here's how to convert your current or past customers with a new service:
Make sure your client experience is top-notch. You want to create raving fans for your business. Provide amazing services and great customer service, and they'll love you.
Create new offers that appeal to them. These work best if they complement what you've already done for them. If you just designed a client's website, sell them on a custom template suite to match. If you sell bath products, market a branded bath rope or makeup bag. Get creative!
Not only will these strategies help you make more from your current customers, but they'll also increase your referral rates through those raving fans. Score!
4. Increase Your Average Order Size
Upsell, upsell, upsell!
Got a digital product? Your sales process should include a coordinating upsell that complements your product. Offer a monthly retainer package? Upsell to a higher package with more services.
Your customers come to you with a pain point, and they trust your expert advice. You know what they need, so offer them a solution. Buyers are always more willing to purchase when they already have their wallet out, so incorporate an upsell or add-on to your regular sales process.
Let's set some goals and increase your revenue!
I love helping my clients set and reach their goals. If you want to increase your revenue this year, book a strategy session with me. We can create a plan to get your finances exactly where you want them.
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