3 Ways to Increase Your Revenue
If your franchise business isn’t adequately providing for your needs or is, in fact, taking more away from you, it is never too late to make the necessary changes. No matter what stage you’re at, it is always a good time to get clarity over your numbers and adjust your business model to make it work for you.
A common mistake I see when people are looking for more money is that they go straight to trying to increase their number of client leads. By default, and lack of business education, lead generation is where most business owners consider they can make the most significant difference in their business profits. They think that if they have more customers, surely, they will make more money. Not necessarily. This is usually the last place I recommend focusing on because it generally costs money to generate more leads, and it doesn't guarantee a higher profit in the business.
If you know you need to increase your revenue but not sure how here are my top 3 ways to build your revenue:
1 Increase Your Conversion Rate
Do you know how many leads you’re getting in – per day, per week, per month? How many of those are successfully converting to clients? The first step to increasing something is knowing where you’re currently at, so if you’re not tracking & measuring your leads, this is the first step.
Next, look at what you can do to improve your conversion rate. You might want to look at implementing a better pricing system, being more efficient or timely with your sales process, sending better educational material out, or training your team.
Consistency is key; If you consistently market your services with a consistent message, if you consistently follow your sales process and deliver the same excellent customer service, and if you are solving your client's needs, you will build a rapport and improve your reputation: a better reputation = a higher conversion rate.
2. Increase Average Dollar Sale
Of the sales, you're currently getting, what strategies do you have in place to increase each customer's average dollar sale? There are many different opportunities to do this; through upselling, educating your team and clients, and providing something superior to your competitors’ service offerings.
Upselling is about offering something else to your existing customers when they purchase from you. What can you suggestively sell as an add-on to what your customers are already buying, that will increase the value of the sale?
If you can upsell to the clients who already buy from you (and trust you), it's far easier than getting brand new customers. For every sale you make that is higher in value, your average dollar sale will increase, and your revenue will grow. A small increase to each transaction, compounded over each year, can make a huge difference to your bottom line.
3. Increase Number of Transactions
Having a repeat business culture will help your business to continually generate consistent sales revenue in the future. How can you get your clients to come back, over and over again? What do your clients want, and are you doing everything you can to provide that? Is your customer service up to scratch?
Are you providing friendly service to your customers, and treating them like royalty? (After all, they pay your wages!) Building relationships with your existing customers will mean they’re more likely to come back as they build trust with you.
Another (often forgotten) method is following up with your customers. Were they happy with their experience? Do you have a follow-up system? Just imagine if you increased your number of transactions by only one per cent, how much would this increase your revenue long term?
These three strategies can each dramatically impact your bottom line, but if you don’t map out and track your financials, you won’t be able to identify the gaps, ascertain the actions required to bring you closer to your targets, or see where your efforts are resulting in the desired outcomes. Financial success doesn’t happen magically – you have to plan it, strategise it and work for it.
Suzzanne Laidlaw is an internationally accredited business coach, a global leader in business planning and author of the new book, What’s Your Plan? Passionate about supporting business owners to achieve their dreams, Suzzanne knows what it takes to overcome adversity and function at the top level to achieve extraordinary results. For more information visit www.suzzannelaidlaw.com.au