In this article we’ll be discussing how to boost your revenue.
There are many ways to increase your revenue, but we’ll be focusing on some of the most practical steps you can take today.
When you’re considering these strategies, remember that boosting your revenue often has an effect on other aspects of your business and requires careful consideration of how it will impact other areas – such as customer experience.
Before we dive into the nitty gritty, let’s first define what revenue is, what it means for your business and how to boost it.
Why A Revenue Boost & Cash Flow Is Important
Revenue is the total amount of income generated by a business over a certain period of time (also called: Turnover).
The most important thing to remember about generating revenue is that most businesses need a healthy cash flow in order to stay alive. If you have enough revenue, you can pay for employees, supplies and utilities – plus a lot more.
That’s why it’s important to know your numbers.
In other words, if your business doesn’t have a healthy cash flow, it likely won’t be around for very long.
This is the main reason why most business owners are so passionate about increasing their revenues.
How To Boost Your Revenue Today
Start by asking yourself these 5 important questions:
How much do I make on average?
Are my revenues constant or trending upwards/downwards?
What are the biggest factors contributing to my revenue?
In which areas can I improve that will have the biggest impact on my bottom line?
How can I increase revenues to create a healthy cash flow?
Businesses lose money for a number of reasons. One of the main reasons is because they don’t generate enough revenue.
To increase your revenue you need to take action. The following steps will help you improve your business’ revenue and cash flow.
So let’s discuss how businesses can boost their revenues starting today.
5 Practical Ways You Can Boost Your Revenue Starting Today
This can be done in a number of ways, but let’s first discuss the ways that you can do so efficiently:
Optimize your existing sales and marketing activities (such as using social media, email marketing, etc) to generate more leads and have better conversion rates. As mentioned earlier, having an improved conversion rate is a must if you want to increase your revenues.
Add new methods to your sales and marketing activities. This could include: • Expanding your marketing strategy to include more channels (such as: offline marketing, newsletters, etc) and using the channels that have a higher ROI (return on investment). • Changing your sales strategy to improve conversion rates and increase the number of leads you're generating. • Adding new channels that complement your existing activities (such as: offline marketing, public relations, etc). • Understanding what your target market likes and offer them more of that (in the right context). • Testing new strategies and tactics that will drive more sales.
Increase your revenue by offering more products or services . In other words, you can increase your revenues by adding a new product or service to the mix - in which case you also need to increase your expenses accordingly
Increase your revenue by lowering expenses (if possible). One way to lower expenses is by reducing energy costs, which can help boost revenues.
Increase your revenues by using more efficient ways of doing things or improving a process that you're already using (such as: automating processes, etc).
These actions will increase your margins and therefore enhance your revenue. Boosting your revenue is a vital part of business success.
Why You Should Boost Your Revenue
Businesses that are cash flow positive are more profitable and have more options.
By that we mean they have more choices, because they don’t need to rely on their bank or borrowing money from another source to stay afloat.
Businesses that are cash flow positive ultimately have more income to use in the following areas:
- Increase their marketing budget
- Increase their employee payroll (if needed)
- Invest in new products and services that can increase revenue.
- Pay off debt, usually with a lower interest rate
Cash flow is one of the Top 3 metrics that investors look at when they evaluate a business. In most cases, a business that has a consistent cash flow is more stable, which is why it’s advantageous to aim for cash flow positive over time.
If you’re serious about boosting your cash flow and increasing profitability in your business, we recommend working with an accountant or bookkeeper who can help you with your numbers.
They’ll also be able to give you some actionable advice on how to improve your revenue and cash flow.
Knowing Your CLV Is Important
When it comes to boosting your revenue and staying cash flow positive, knowing your CLV (Customer Lifetime Value) is important.
CLV is a metric that helps you determine how profitable a product or service is over time. It’s essentially the average amount of money you make from a customer over their lifetime in your business.
If you know the CLV then you can determine what the LTV (Lifetime Value) is worth to your company and use it to help boost your revenue. This is especially valuable when you scale deep into a market.
It’s no secret that advertising is getting more expensive. Knowing your CLV and LTV will allow you to breakeven on the front-end whilst making a huge profit on the back-end.
If you’re not comfortable determining your CLV, then use our CLV calculator to do the work for you.
The calculator will give you accurate numbers that can help you boost your revenue.
So while your competitors are fighting over cold traffic, high frequency campaigns and front-end profits, you’re focused on building up a more profitable customer base who will pay you back for all the money you spent + a lot more over time.
The Best Way To Boost Your Revenue Immediately
As we have alluded to above, paid advertising is where the real money is made. If you’re looking for a way to boost your revenue immediately, that’s where you want to start.
So let’s take a look at a platform that allow you to do just that.
Facebook Ads - The Powerhouse Of Paid Advertising
If you’re looking for a way to boost your revenue immediately, Facebook Ads is where the real money is made.
Facebook has become the de facto platform for paid advertising.
In fact, Facebook are adding new features all the time that make it far more powerful than ever before.
Facebook Ads have helped many entrepreneurs and small businesses boosting their revenue.
If you do it right, these ads can generate a lot of revenue for your business because they’re shown to the exact people who want your product or service.
How To Create Your First Facebook Campaign
Before you start spending your money, you want to create a Business Manager. You can do that right here.
Once you’ve created your Business Manager, you can now set up your first ad campaign. Facebook Ads give you the ability to create a campaign in less than 2 minutes.
To get started, just click on the Facebook ads icon (the one that looks like a bolt of lightning) and then select the most appropriate ad type for your business.
The different types of ads you can choose from are:
- Facebook Page Post Ads
- App Install Ads
- Conversions
- Lead Ads
The great thing about Facebook ads is that you can start with an extremely low budget and still get results. Split testing different audiences at $5/day per ad set is a very common strategy.
This means that you can potentially get started collecting data/customers for as little as $5 a day.
Keep in mind that the CPA (Cost Per Action) and CPL (Cost Per Lead) usually depend on the price of your product/service
