Revenue Maximising Strategies for SMMEs National Small Business Chamber Revenue in any business is the “Life Blood” found at the heart of the enterprises sustainable growth. No capital injection, neither debt nor equity funding, can truly compensate for the fact that your current and expected turnover needs to support a profitable business model. Unfortunately, this is a common pitfall and there are many businesses with “failed feasibility” in spite of seasoned entrepreneurship. “Viability” as we understand it is also the key determinant for lenders of risk capital as well as traditional finance houses. However, once you’ve conducted your market-research and your due-diligence confirms that there indeed is a market for your goods and services – What next? You need to consider the establishment and growth of your business. Growth is key in any enterprise, particularly with SMMEs that compete with newly emerging competitors on a daily basis! In simple terms growth in turnover is regarded as measurable business success! Maximising your revenues by employing a few well executed strategies could be the difference between stagnation and impressive leaps in your turnover. Consider some of these revenue-maximising strategies below to help bolster your company to the next level. Expand your distribution channels Multiple distribution channels can help widen your scope, expand your offering, and naturally increase your profitability. A prime example can be found by observing South African cellular operators. Vodacom, MTN and Cell C have seen the value of selling both phones and sim cards through mass stores including the likes of Game and Checkers, rather than solely through their exclusive outlets. This has remarkably increased their sales; especially in the lower LSM market which would otherwise have been largely untapped. Develop a sound business model Your business plan should be a dynamic working document that serves as a blueprint of your overall growth plan. Your forecasts should be at least 3 years, but ideally a 5-year financial plan will add tremendous value to your model. Your business model should be designed around your industry, market competition, core competencies, marketing plan, HR plan and your administrative and supply chain systems. Boost productivity through staff incentives Many growing businesses sadly do not prioritise the importance of staff when it comes to revenue maximisation. A highly motivated workforce is either directly or indirectly your primary source of efficiency, customer service and production. FNB recently released a statement revealing some of their innovative tools for business success. Did you know that any employee of FNB, from the cleaners to high ranking executives, has the opportunity to claim R 1,000 000 if they propose an innovative idea on improving the institute, and it’s implemented. Incentive schemes, share participation and open recognition are the order of the day when it comes to boosting staff morale! Continuous improvement Developments in the corporate world have seen innovative and effective strategies emerge. This includes Kaizen, which entails ongoing learning and improvement, as well as upstream marketing which centres on focus groups and strong market research. These are not only useful tools but also tried and tested productivity and “revenue enhancers”. Sound business strategies, if well executed, clearly exert an influence on the successful establishment and growth of businesses in SA. Always remember to synchronise your revenue-maximising strategies with your industry as well as your business “Vision” and “Mission” for optimal benefits!
Posted on: Thu, 25 Jul 2013 07:10:48 +0000
Trending Topics
Recently Viewed Topics
© 2015