There is allot of planning that needs to take place in business; much that should be done proactively but all too often is done in response to issues that arise.  Regardless, without any type of planning, most basic operations would be difficult to manage and the overall cost of running the business would undoubtedly go up.

 

This is NOT Revenue Planning

So when it comes to finding new sources of revenue to support your business, how much planning do you do to insure your efforts and resources produce results?  Here’s a scenario that I find frequently from the businesses I come in contact with. 

 

One day, the owner of the business begins to realize that sales have fallen off and monthly expensive are becoming difficult to meet.  The sales declines are the result of fewer clients walking in the door, fewer visits from repeat customers and the realization that competitors are discounting feverously to capture what business seems to be left.  The owner begins to panic as the thought of this trend draining his/her cash and putting them in a position of reducing staff, store hours, inventory and services begins to set in.

 

So, the owner does what others around them do; discount products and services, buy more newspaper or mailer ads and up the budget for Google Adwords in order to generate new sales that will, hopefully, close the cash flow gap.  Sadly, this ‘hurried’ approach usually serves to aggravate the problem while robbing the owner of resources that could be put to better use.

 

Revenue Planning Insures Longevity

Good consistent revenue flow that generates healthy profits and allows the owner to run the business with confidence does not happen on the spur of the moment.  It’s less like turning on a faucet and more like planning a garden.   The most overlooked area of planning is ‘revenue planning’ and if done properly, it can insure a steady stream of good clients that continue to come to you over other ‘cheaper’ alternatives.

 

Revenue planning starts with the realization that ‘enough’ is never a good growth strategy.  The best businesses in every industry go through volume ebbs and flows.  The important thing to remember is, don’t stop planning for new revenue because you never know when existing clients groups will disappear for a variety of reasons.  Have a bold revenue target established for each month and be able to determine where it will come from.

 

Revenue Planning Allows You to Focus on Your Best Source of Growth

The secret to revenue planning is knowing where your sales are coming from and continually mining these sources.  I’m not talking about sales you picked up from participating in a seasonal flyer as this is only the vehicle that delivered your offer.  I’m talking about the people who decided to come to you vs. other options they may have.  Look at your sales for the last 6 months and figure out the sources of your revenue, i.e. client types, other businesses, particular uses for your service, etc.  Each specific channel will have a percentage of your overall sales and a different level of profit contribution.  These are the areas to continue cultivating more revenue.

 

Most of the businesses I have worked with were able to identify between 3-5 specific channels of revenue that they generated sales from but had not fully realized that they existed.  Let’s look at the dentist who routinely advertised for free cleanings as a low risk method of getting people to try him.  After going through a revenue channel analysis, he discovered that his best revenue returns came from people suffering from bite problems, headaches and little league teams needing mouth guards.  Interestingly enough, he had never advertised or marketed these services before.  Each of these areas of dentistry is considered a niche market and they all have potential if the right message is delivered consistently to the right people. 

 

Revenue Planning Connects You with Customers Who Want Your Specialty

Once you understand where your best sources of revenue come from, the next step is to figure out why your customers chose you over other available  options.  Before you attempt to answer this, understand that every customer has options including the option of doing nothing about the problem.  So figuring out why they chose you is essential to understanding how to communicate your specific value to other customers looking for the same service.  Here’s a hint- it’s not how nice you are or how hard you work.  Customers are only interested in getting the results they want.  If they value your service, they will take an interest in you.

 

Each revenue channel requires a specific method of marketing to reach the intended customer in that channel.  Let’s say you have a flooring business and you specialize in replacing old, worn out laminate flooring.  You should probably have a website to highlight your specialty and the available replacement options you provide.  You’ll also want to have a ton of well written testimonials that demonstrate your value and encourage people to contact you.  If you specialize in a certain home value level, you will also want to have a robust referral program to offer customers who really loved your work.  And, if you promote value heavily, have an offer for a year’s free floor cleaning or treatment that’s included.  Notice I didn’t mention running more newspaper ads!

 

Make Revenue Planning a Regular Part of Running Your Business

Think of revenue planning like you would think about planning a vacation road trip.  You identify the destination, the route you will travel, the time you would be on the road and the things you will do along the way.  Your revenue can be planned the same way with your specific channel revenue target as the end destination, your customer profile as the route you will take and the specific marketing program as the means of getting your message there.  As for the time limit; there is no limit!  Revenue planning and marketing should always be part of the business you run.  It’s the best, most consistent way to keep your revenue growing. 

 

Revenue planning is best done when you don’t need it!  Trying to ramp up a solid plan while you’re on the verge of disaster is poor planning at its core.  While things are at a manageable level, start the process now.  You’ll be glad you did when the market gets soft and your competition is giving away the farm to stay afloat.

 

More Business Growth Resources:

If you would like more information on various topics having to do with small business growth strategies, tune in to Steve’s weekly Radio Show on BlogTalk Radio- ‘The Small Biz Growth Show’.  Each Tuesday at 11:00am (PST) and Thursday at 1:00pm (PST), Steve and his co-host, Cash Miller, discuss specific business building topics that small business owners can take action on.  http://www.blogtalkradio.com/the-small-biz-growth-show

If you need help to figure out where your best sources of growth are, sign up for my free business growth guidebook and learn where to look and what to do to improve your revenue, clients and overall health of your business.  http://www.growthsourcecoaching.com/business-growth-strategy-guidebook.html

Originally posted 2011-08-29 10:53:26. Republished by Blog Post Promoter

One of the reasons social networking has exploded in the last couple of years is people’s desire to connect personally with others that share similar interests or pursuits.  As life gets more and more hectic, the comfort of personal contact gets greatly reduced, either in frequency or in quality.

Small businesses have gradually improved in this area by adopting social media as part of an effective marketing strategy to develop personal relationships with other businesses, colleagues and customers.  When your business competes with one or more nationally recognized corporations, trying to outspend your way to your customer is a losing proposition.

The need to generate revenue, however, makes the idea of trying to ‘connect socially’ with your next customer a tactic that many small business owners struggle to embrace.  Developing relationships via the internet takes time, not unlike relationships in the physical world.  For many, it may seem more inviting to pay for ads, media time or have flyers distributed than to methodically search for people who would choose to do business with you after they get to know you.  In my current work as a small business coach, I find this shift in thinking to be one of the most challenging for small business owners. 

In reality, consumers or business clients want to know who they are dealing with.  They want to know that they can trust you and that what you offer is legitimate or right for their needs.  They will settle for a one-time transaction that offers them a ‘good deal’ but what they really want is a relationship that gives them peace of mind about the purchase they just made.  A good small business advisor can help you determine what constitutes a relationship of this sort so your efforts in the area of social media will gradually build relationships with customers who value what you do.

In the late 90′s, purchasing done on the internet grew so fast that the popular wisdom was making predictions about retailing going away entirely in favor of on-line merchants.  Brick and mortar businesses were viewed as becoming obsolete.  As a result, thousands of entrepreneurs and business types transitioned their businesses to the internet.  A decade later, physical establishments are still the dominant source of commerce.  The internet has become a mainstay in the world of buying and selling but people still want to make contact with businesses they patronize.

Likewise, networking groups have surged over the last 3 years as business owners attempt to make new connections in order to form relationships that might positively affect the growth of their businesses.  Today, the choice of whom to do business with is endless.  With the internet, you can do business in your local community, across the country or around the world.  Still, the dominant factor in deciding who to partner with or patronize comes down to who you know and what you know about them.

If you haven’t stepped into the pool of social networking or social media marketing, you should first consider why?  If  it’s a lack of understanding, seek out a small business advisor to help you get started.  If it’s a lack of relavence, you should get reconnected with the reason why you started your business.  Whatever caused you to embrace the business you now spend all of your time and resources on has a story behind it.  It’s your belief in what you do and your desire to serve customers who want what you sell, that people want to know about.

Get really clear about why you do what you have choosen to do and make sure the people you connect with know it.  Eventually, you will have given them a reason to select you over the other business choices they have- big or small.

Originally posted 2010-04-02 10:23:14. Republished by Blog Post Promoter

After attending more than 300 networking events in the last 5 years, I have only met a few business people with introductions that caused me to want to know more about them. It’s not that they were not good people; they just could not entice me based on what they said during their introductions.  If you could put a price on all this lost opportunity, millions of marketing dollars have been wasted! 

Ten seconds is more valuable than you realize:

The typical marketing pitch or elevator pitch as they are sometimes called (the approximate time it takes to travel on an elevator down 10 floors) attempts to cram in as much detail about a person and their occupation before the elevator door opens.  The reality is most people have an attention span of about 5-8 seconds so if you do not get their attention quickly, they can zone out before you get through your last name. 

Creating an impactful and memorable introduction is not as easy as you may think.  Go ahead, try one on someone you know causally.  Deliver your best elevator pitch and then ask them what they think you do and why they would do business with you.  The responses will shock you most of the time.  But shock is good because if they don’t get it, real prospects are not getting it either.  The big mistake most business people make is assuming that what they have to say is important to the recipient.  Now you might have important things to tell people but if your delivery blows the opportunity, you have just bought the equivalent of TV time at 2:00 AM! 

All pitches are not alike:

An elevator pitch is not a sales pitch.  Sales pitches are designed to sell someone something.  At most networking events, the purpose of an elevator pitch is to make connections that will lead to referrals or a business relationship down the road.  If everyone you meet thinks you are trying to make a sale, you will think you have contracted a contagious disease that everyone can see from 15 feet away.  An effective elevator pitch should also quality the people you meet so you do not waste too much time with people who are not interested in who you are or what you do.    

So how do you deliver a compelling, engaging introduction that will have someone you have never met to say “wow, how do you do that?” Keep in mind that people tend to focus on what is important to them.  Does your pitch convey a benefit or a possible issue right from the start?  If you are a Chiropractor and someone asks what you do, what sounds better; “Hi, I’m a Chiropractor” or “Do you know how it feels to have to sit on the sideline because your back is out of whack? I help people get the most out of their leisure time”.  At the very least, your new contact is probably going to say; “really, how do you do that?”  Your follow up should be something like; “I identify alignment issues before they become major physical problems”.  The point is, you may be in a networking sessions with 5 other Chiropractors.  What makes you stand out is how you introduce yourself from the start. 

If its natural, people will respond to it:

So, before you attend your next networking event give serious thought to your pitch.  Once you fine-tune it and have a trusted friend review it, practice the heck out of it.  It should come out reflecting your style and be on a conversational level.  After all, the real reason people go to networking events is to make connections that will lead to eventual clients.  They do not go to be sold something they do not need or want.  If they understand the benefit of what you do, they are more likely to engage you to find out more.  

Do not leave a prospective client wondering what you do for a living. 

More Business Growth Resources: 

If you would like more information on various topics having to do with small business growth strategies, tune in to Steve’s weekly Radio Show on BlogTalk Radio- ‘The Small Biz Growth Show’.  Each Tuesday at 11:00am (PST) and Thursday at 1:00pm (PST), Steve and his co-host, Cash Miller, discuss specific business building topics that small business owners can take action on.  http://www.blogtalkradio.com/the-small-biz-growth-show  

If you need help to figure out where your best sources of growth are, sign up for my free business growth guidebook and learn where to look and what to do to improve your revenue, clients and overall health of your business.  http://www.growthsourcecoaching.com/business-growth-strategy-guidebook.html

 

Originally posted 2011-09-19 16:28:28. Republished by Blog Post Promoter