Tricks to Increase Your Revenue
Business is booming.
Well, according to the NFIB. The 2017 Small Business Optimism Index report revealed that 27% of small business owners anticipate better sales and that around 30% say it’s a good time to expand. The report also discovered that “The percentage of small business owners planning to make capital expenditures in the next three to six months reached its highest level since 2006.“
But wait! Not every business in America expects higher sales and revenue. What are these successful companies doing to earn more? What’s their “secret sauce” to getting money into their pockets?
1. They make it easy for customers to pay.
Would you shop at a grocery store that only takes paper checks for payment?
Most consumers would happily drive on to the next store so they can pay with debit or credit cards, Apple Pay, or PayPal.
Don’t make it challenging for your customers to pay you. Consider these three tips:
- Give customers multiple payment options. If they want to pay with an ACH transfer or eCheck, be sure to accommodate it. Perhaps they prefer credit cards? No problem, you have the ability to handle that as well.
- Let customers pay online. Don’t limit them to mailing checks or calling you with a credit card number. Instead, offer them an easy-to-use yet secure online portal to submit payments.
- Mobilize payments. Perhaps customers can pay online. But what about via their smartphones or tablets? Most people won’t let their smartphones or tablets out of their sight. And both tools are common in businesses. Take advantage of that.
2. Offer recurring payments
Auto-payments rule the consumer world. Subscription fees for services like Netflix or your local gym deduct from millions of banking accounts each month. Why not tap into that to reinforce your cash flow and profits?
For example, Red Keep Cakes has a monthly order with you for flour and sugar. Why not approach them to set up automatic payments for their orders? It saves them time and effort, doesn’t affect their delivery, and ensures that you have that money in your account every month. You can even sweeten the pot with auto-pay incentives such as a small discount or gift.
But why would you want to do this? Easy, it offers cash flow stability. If your customers are auto-paying you regularly, that money lands in your account automatically each month. You can anticipate how your cash flow will look each month and make business plans accordingly. It also encourages customer retention. Your customers get what they want with little to no hassle.
3. Take advantage of technology
Increasing profit margins and efficiency go hand-in-hand. If you can efficiently provide a service at a lower internal cost, it opens up multiple competitive opportunities for your business. You can lower prices, transition to value-based pricing, or offer bulk rates. Or you can hold back longer on raising prices. These are all options your customers will appreciate.
But how do you foster efficiency? Let’s take a look at technology.
In a short amount of time, technology has shown a keen ability to expand efficiencies. Options such as bookkeeping automation and payment automation allow you to cut the internal time it takes to complete bill payments and invoicing by 50%. No need to stuff and stamp envelopes. No need to corral paper from point A to point B. Payment automation enforces your workflow, sends reminders, gathers approvals and makes it one-click-easy to pay. You can then trim resources or redirect them toward activities to better benefit your company.
Mobility also correlates with efficiency. Completing a task via your smartphone on-the-go, at the beach, or in an airport greatly amplifies your productivity.
4. Say no
While this is a simple directive, it’s powerful. All businesses have encountered a potential customer that isn’t quite the right fit. Maybe they’re too demanding or will never be satisfied. Maybe they require resources and infrastructure from your company that is cost prohibitive. Some businesses will opt to work with this customer. Some will evaluate the situation and choose to pass. Take the time to vet customers as stringently as they vet you. It can save you considerable time and profit down the road.
Now that you know how to build your revenue, why not adopt technology that can help?