For many businesses, 2020 was a record-breaking year for all the wrong reasons. Millions of business owners saw unprecedented drops in sales due to the pandemic, leading to layoffs, rollbacks, closures, and pressure to recoup their losses.
While there’s no telling what the future will bring, now’s the time to make plans about how to boost business revenue in 2021. In doing so, businesses big and small stand a greater chance of making up for the losses incurred in 2020.
With this in mind, let’s take a look at five ways for business owners to generate more revenue this year:
Offer more products and services
Due to the upfront investment and lack of guarantee, many business owners are reluctant to offer more products and services to their customers to increase revenue. However, when done thoughtfully, expanding your offerings is one of the most reliable ways to bring more money into the business. Whether it’s a doctor’s office providing ancillary services to patients or a dry cleaner that also does alterations, companies across all sectors stand to benefit from expanding their list of offerings.
Expand your market reach
Chances are you already have a business website and some form of online e-store available to customers. That’s a good start, but if you aren’t using it to reach more customers, you’re not making the most of your digital business infrastructure. For example, a corner bakery could be selling cookies to people seven states (or countries) away. All they need to do is optimize their eCommerce system and streamline their shipping arrangements.
Encourage repeat business
One of the most crucial lessons every business owner should learn is the power of repeat customers. On average, 60-70% of sales involve existing customers, meaning customer retention is key to business success. To determine your rate of repeat customers, divide the number of return customers by the total number of customers, then multiply by 100. If your figure is below the 65% mark, consider ways to encourage more existing customers to come back.
Invest in marketing
Similar to the idea of expanding their list of products and services, business owners are often hesitant to invest in effective marketing techniques as a means to boost revenue. However, there’s no denying the incredible power of customer outreach and efforts to improve brand recognition. After all, there’s a reason why so many companies invest so much in marketing. The return-on-investment is – more times than not – immediate and long-lasting.
Downsize your operation
If all else fails, take a hard look inward to determine ways to downsize your operation. Nobody wants to lay off employees, but if the numbers indicate that’s a sure way to boost revenue relative to expenses, business owners need to do what’s best and pull the trigger. It’s rarely pretty and never enjoyable, but tough choices in difficult times are how struggling businesses stay afloat.
Are you a business owner still reeling from the hit you took in 2020? If so, 2021 is the year to generate more revenue by any means necessary. Doing so will increase the chances of your business making it to 2022 and beyond.