Episode 68: 6 Steps To Increase Revenue Today

Every business owner wants to increase their revenue. We will outline six simple tips to help you grow your business today. Once you implement these easy steps, you will see an increase in revenue.

Roger: Welcome to Local SEO Today. I’m Roger Murphy.

John: And I’m John Vuong.

Roger: We want to welcome our viewers today. We want to talk to business owners about ideas of how you can increase revenue in your business today. What sorts of, John, really what sorts of strategies? As business owners, what’s out there so that they could say, “Listen I’m an X number of dollars right now per day. I have all these costs. What can I do to improve my revenue, my top-line revenue for my bottom line profit?”

John: So there’s six things that I believe that you can actually start and do today to increase revenue so the first thing is just add a service or product in terms of your service offering.

Roger: Current thing, okay.

John: So if you are, I guess a dentist and you’re not offering dentures already, maybe that’s something that you can offer as an additional service, right? Or if you’re not offering invisaligns or veneer insurance.

Roger: So or maybe even in the service industry, let’s say you’re a roofer. You’re Great Shingles but there’s many, many people that require flashing repair and flashing of course is the…It’s the part where the shingles come next to the brickwork and it will…If the material breaks down over time and it starts leaking so you don’t need shingles repaired but you need flashing repairs so as a roofer just make yourself available so, “Hey listen, shingles they’re good for 10 years but your flashes need maintenance.” So those are things where you could add as a strategy, add more revenue to your business right away.

John: Exactly, and plus with the summer that we’ve had here in Canada, the wind storms. It’s just repairing and patching shingles that definitely would add value to your top-line revenue as well.

Roger: There’s seven, everyone has seven days a week in terms of a calendar if your business is open five days a week right now or open six days a week or you know, you’ve got certain hours. Consider what it would mean to answer the phones after hours and certainly for service- based businesses and I’ve had experience also in our world where you take a call in the early evening all of a sudden you know, people don’t buy and don’t shop, John. Do they like nine-to-five anymore?

John: Exactly, so if you’re able to extend your hours or work more per week. One hour extra throughout the weekday or you know, even on the weekend opening half a day or a full day that would drive more revenue because that fixed cost of rental of that storefront or whatever you may have. Well, guess what if you can actually generate revenue during those times that will add more revenue for you.

Roger: And it actually shows how professional you are as a business owner if you’re prepared to help people after hours or work with extended hours so people look upon you favorably because, “Oh, my god. I thought…” You know, they phone in and they thought, “I was just gonna get a voicemail. I was gonna leave a message but you actually answered the phone.” So that strategy of just answering the phones or extending your hours just a little bit can make a difference to your revenue today also.

John: Exactly, so that was number two. The third tip would be to, if you have additional, I guess space or even within your office or exterior say parking. You can actually rent it out, right? So there’s always a need or demand for people who are commuting or traveling or need an extra sublet of an office, right? If it’s not used today and there’s an opportunity for you to actually generate some rent or some revenue from that, right? A new space.

Roger: I was in a Business Association meeting just earlier this year. They rented at 7:00 am, the restaurant or the restaurant of a local you know, restaurant in Midtown Toronto. All of a sudden they’ve got a captive audience of 30 to 50 people. They’re all paying. They have a breakfast and a coffee so it’s worth it for their staff to come in and they get an early push on their day so the restaurant repurposed space that wasn’t being used for a special business event.

John: Exactly, so just make sure that you’re utilizing all your fixed assets, right? So number four would be if you are offering a product or service, there’s an opportunity for you to generate more of a loyalty, so a membership or a VIP card where you’re giving something up but you’re getting something in return. Which is more points or loyalty in terms of someone recurring, coming back constantly. This also increases your revenue but also you know, your reputation in terms of getting more referrals is improved as well.

Roger: How about loyalty, it becomes sticky, right? Because you’ve got a membership card or loyalty card as you say you’re giving a little discount away today but what if you get a little…A membership like Costco. They take a membership every year for your, I guess you know, to join the club so you can buy at discounted prices but whether it’s a salon, whether it’s you know, it could be a photo store. Name any kind of business where you join the membership card or something. Think of ways in your business or your industry what you could do to offer a little bit more to them and all of a sudden you’ve got more loyal customer.

John: Exactly, so number five would be making some of your services, a combo so what I mean by that is say you’re a multi-disciplinary physio/chiro, massage, orthopedic kind of shop. Acupuncture. If you’re able to combine some of the services say a physio of treatment with a massage that gives you more revenue, top-line revenue but someone’s already in so you’re able to actually get them to do two different services and increase your revenue.

Roger: That’s right. It’s sort of, it would certainly introduce your patient or your client to other people you have, other professionals or other you know, technicians or whoever’s in your operation. People get to try them, your patient or your client gets added value but you get to increase your revenue by you know, incremental values.

John: Exactly, but it gives them more exposure, right? So they see what else you can offer because someone’s so used to just coming to you for a physio. They don’t know how your massages or your acupuncture services, right? So if you’re able to combine that and give more of a combo that would also help your top-line revenue.

Roger: Pretty good so number six.

John: So the last thing I would really recommend you considering is offering more of a bulk purchase up front so for instance if you were to buy ten of my physio packages sessions today, I’m able to give you one free however you get the bulk payment up front, right? So that helps with revenue right not off the bat.

Roger: Exactly, my wife is members of a you know, a workout, exercise facility in Toronto. Sometimes they’ve got specials on and it was Pilates I believe so it was a matter of buy this many sessions ahead of time, here’s the discount but you pay upfront so they received increased revenue right off the bat and then my wife is able to use it down the road as she saw so…

John: And it’s very similar to all these daily deal sites like Wage, Groupon, LivingSocial, etc. I mean if you’re able to still make money from that Groupon then of course go for it but there’s a lot of companies that lose money because it’s more of a loss lead, right? So people are giving a significant discount as well as giving another 50% on the actual site. So you have to know your numbers. You have to know exactly what your margins are in order to get into that space.

Roger: Exactly, so give more…Just in the big picture, give more but an upfront amount from the client that builds revenue to your business. It has to be profitable to your point let’s say Groupon. It can be very effective for your business but you’ve got to know your numbers going in, John. And I remember a story. This is the early days of Groupon. I think it was a butcher shop, gave away thousands of dollars worth of meat and lost.And they thought, “Oh, no. I’ll get these customers back.” No, you’ve got to be able to break even or make money on every transaction. You cannot give you know, you can’t lose money that’s not the way business works today.

John: Exactly, so these are the six tips in order to increase your top-line revenue immediately for small business.

Roger: Well, thank you for your information, John. I think that was very helpful.

John: Thank you, Roger.

John: Thank you and see you again.