Revenue in any business is the lifeblood found at the heart of the enterprise’s sustainable growth. No capital injection, neither debt nor equity funding, can truly compensate for the fact that your current and expected turnover needs to support a profitable business model. Unfortunately, this is a common pitfall and there are many businesses with failed feasibility in spite of seasoned entrepreneurship. Viability as we understand it is also the key determinant for lenders of risk capital as well as traditional finance houses.
However, once you’ve conducted your market research and your due diligence confirms that there indeed is a market for your goods and services – what next?
You need to consider the establishment and growth of your business. Growth is key in any enterprise, particularly with SMEs that compete with newly emerging competitors daily. In simple terms, growth in turnover is regarded as measurable business success. Maximising your revenues by employing a few well-executed strategies could be the difference between stagnation and impressive leaps in your turnover. Consider some of these revenue-maximising strategies below to help bolster your company to the next level.
Expand your distribution channels
Multiple distribution channels can help widen your scope, expand your offering, and naturally increase your profitability. A prime example can be found by observing South African cellular operators. Vodacom, MTN, and Cell C have seen the value of selling both phones and sim cards through mass stores like Game and Checkers, rather than solely through their exclusive outlets. This has remarkably increased their sales; especially in the lower LSM market which would otherwise have been largely untapped.
Develop a sound business model
Your business plan should be a dynamic working document that serves as a blueprint of your overall growth plan. Your forecasts should be for at least 3 years, but ideally, a 5-year financial plan will add tremendous value to your model. Your business model should be designed around your industry, market competition, core competencies, marketing plan, human resource plan, and your administrative and supply chain systems.
Boost productivity through staff incentives
Many growing businesses sadly do not prioritise the importance of staff when it comes to revenue maximisation. A highly motivated workforce is either directly or indirectly your primary source of efficiency, customer service, and production. Here are some of the best perks at some of the top companies in South Africa. Incentive schemes, shared participation, and open recognition are the order of the day when it comes to boosting staff morale.
Encourage continuous improvement
Developments in the corporate world have seen innovative and effective strategies emerge. These strategies include Kaizen, which entails ongoing learning and improvement, and upstream marketing which centres on focus groups and strong market research. These are not only useful tools but also tried and tested productivity and revenue enhancers.
Sound business strategies, if well-executed, clearly exert an influence on the successful establishment and growth of businesses in SA. Always remember to synchronise your revenue-maximising strategies with your industry as well as your business’ vision and mission for optimal benefits.
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