Growth and Operations
4 tips to take your email from dead to read
Steady revenue is key to business stability and longevity. Of course, it's normal for business revenue to fluctuate, but if it's dropping significantly and consistently, you may need to make some changes. Keep reading to learn more about why revenue declines-and how to increase revenue.
There are countless factors that can contribute to a decline in revenue, some of which include:
More often than not, a revenue drop is the result of a combination of different factors. For example, maybe inflation is squeezing your cash flow, a new competitor has entered your market, and you've made a few recent business strategy decisions to boost sales that backfired.
Before you can stop-then reverse-a decline in revenue, it's critical to pinpoint the source of the business growth problem. To do that, take some time to sift through your business's qualitative and quantitative data. Reviewing the numbers and patterns gives you a more holistic picture of your business's health-and helps you make more informed decisions going forward.
Aim to:
Once you gather enough insights into your business, you can determine how serious your revenue problem is-and what your response should be. Depending on your business's finances, industry norms, and goals, you may need to implement a big change or just make a few small adjustments. No matter what you do, though, it's a good idea to discuss your options with your business accountant and sales team first.
Now that you're in solution mode, consider one of these seven tactics to improve your revenue:
The way you position and promote your business's offerings can either help or hurt your revenue. To make sure your marketing strategies are supporting your business's growth and new customers' experience, start by taking inventory of the different tactics and distribution channels you've used since your revenue started slowing down.
From there, do some updated market research to find out where your business stands. Uncovering the latest customer trends and statistics, then comparing those to your recent marketing results, can give you some insight into what to change.
You may discover you need to update your value proposition to communicate something different, for example, change your advertising techniques to grab hold of different demographics, or focus more on community building and engagement. Better advertising means more revenue.
When you enhance your offerings, customers aren't just more likely to return-they're also more likely to refer your business to their families and friends. Making improvements might mean investing in higher-quality materials for your products or even offering an entirely new service. This will increase customer purchases and improve sales overall.
If, however, you can't spend more on the production process or final offering itself, consider how you can deliver more value with what you provide. Can you give your customers a complimentary gift with their purchases? Can you create an extended warranty plan? Can you make an effort to adjust pricing strategy price for specific items? Can you offer a special service as a low-price add-on?
When customers have a hard time navigating your website, making a purchase, or booking a service, they might be inclined to give up. That's why it's crucial to remove the roadblocks and make it as easy as possible for customers to interact with your business.
Start by reviewing your business's website. You want to be sure people can toggle between pages easily, filter their product searches accurately, find business information fast, and checkout with zero issues. There are countless ways to improve your website, including loading product recommendations for customers, adding a chatbot to answer basic customer service queries, and offering customers the option to check out as a guest.
If you have a brick-and-mortar store, consider your store's layout, product availability and accessibility, and payment options. You may want to update your point-of-sale system or change the location of your best-selling products to streamline the purchasing process.
Occasionally, a well-intentioned operational decision or growth initiative ends up setting your business back. If you recently made internal changes that coincided with your revenue drop-or if you've noticed a problematic pattern within your workplace-you may need to reevaluate and course correct.
For example, maybe you changed your business model to keep up with a competitor, but your sales channel is struggling to adapt and maintain the same output as before. Or maybe you stopped producing certain items so you could meet customer demand easier, but your customers haven't responded the way you thought they would.
Spend some time reviewing your employee policies and pay, operational systems, finances, and growth moves. Be willing to take ownership over your decisions and admit when one isn't working out. Getting back on track can take time-and money you didn't plan on spending-but it's an essential step toward generating better revenue and future-proofing your business.
Making small changes to your spending can free up cash flow and help protect your bottom line. Start by reviewing your balance sheet to tally up your fixed and variable expenses. Are there areas where you can cut back without significantly impacting your offerings, employee happiness, or customer service?
For example, maybe you can save money by switching to an all-in-one accounting and HR software. Or maybe you can cancel a monthly subscription or purchase inventory in bulk from your supplier to score a discount.
Just make sure that whatever you're cutting isn't critical to your business's sales efforts or short-term success. Otherwise, you might be setting yourself further behind.
While curbing your spending can help halt a revenue downfall, the most effective way to increase your sales revenue is to diversify your money-making opportunities. Consider how you could add a new revenue stream using the tools and resources already at your disposal.
You might be able to create an evergreen online product, like an ebook or course, start a monthly subscription for select business services, or rent out part of your business space to another entrepreneur.
7. Revamp your customer service practices
Taking better care of your customers pays dividends. The happier and more satisfied your customers are, the more likely your revenue will stay strong through a variety of different economic conditions-and continue to climb.
Paying closer attention to your customers starts with understanding their needs and goals. Take some time to read your customer reviews, brush up on consumer statistics and trends, and parse through customer survey feedback. Depending on the information you glean, you may decide to:
If you need to make a big move to improve your revenue long-term-like launching a new product or hiring more staff, for example-consider getting a loan with Funding Circle. Our small business term loans give you a flexible, affordable way to invest in your business's growth. Learn more about our options or apply now.
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