How to increase revenue in business is a question that is often asked? To address this desire, a business may set goals throughout its functions; however, this common approach for increasing revenue can lead to playing games with the numbers and unhealthy, if not destructive, behaviors.
Another approach for how to increase business revenue is to arbitrarily create strategies (from the gut) that are believed to be beneficial, which the organization will then undertake. This ad hoc approach may initially lead to some beneficial opportunities; however, often silo efforts result that don’t benefit the big picture.
An alternative that addresses the question how to increase revenue in business (which I suggest) is for organizations to consider that their enterprise is a system of processes where improvements to the constraints of these processes, for example, can lead to significant overall bottom-line benefits. With this approach, not everything needs to be improved to benefit the ?big picture, ? only areas of the businesses that are determined high potential areas through blending of analytics with innovation.
Comparing a Traditional Increasing Revenue Approach to an Enhanced Enterprise Process Management Methodology
To illustrate a traditional approach for answering the question ?how to increase revenue in business?, I asked several people for five steps on what they might do to increase business revenue.
After describing one received response, I will then provide my thoughts on a more general approach to address the same question using a targeted process improvement driven approach to determine ways to increase revenue through the use of analytics.
One Person’s Response Overview to the Question of How to Increase Revenue in Business
In today’s world, there is a lot of competition, especially in the business market as you will have to be on full alert and capitalize on the few opportunities you get whenever or wherever they may come from. In a business you will have to make tough decisions such as cutting down on your expenses as the best strategies are the ones which involves trying to figure out different techniques and tactics that will help to reduce costs as well as improve the income without hindering the quality or the value of your product or services.
Owners of small organizations would often look for ways on how to increase revenue in business, rather than discuss or even consider the option to slash down the costs – without realizing how much this beneficial would be for them. The economy of today’s world requires you to rethink all your plans and altering your whole mindset in order to open your eyes to the whole new set of creative ideas that are guaranteed to improve your profit margin as well as revenue. Since expanding your revenue indicates the growth of your company, all new businesses must try to reduce the costs irrespective of the development. Many big organizations have figured out to utilize this concept and went on to become a huge success. Here are tasks that organizations can undertake when answering the question: how to increase revenue in business.
Step 1 of their Response: Affordable & Reliable Technology Based Administration
Most small businessmen often rely on the manual administration, which is not a good strategy if you do not want to reduce the profit margin because the manual workers may have unexpected pay demands as well as excessive needs fulfilled in order to get the best work out of them. However, this can be solved by using computers and various business technologies which can perform all the administrative-based procedures as well as automating the day to day tasks. This helps to increase profit margin as you can cut off the labor charges and your revenue increases, since there will be no human error or misplacement of your dealings as they will be safe and secure on your computers.
Step 2 of their Response: A Shared Workplace
This mainly depends on what type of business you are running, but simply sharing the workplace can actually manage to save a lot of your money. Just by distributing their facilities, many big organizations have used this fantastic tactic and have easily been able to increase the profit margin as well increase the revenue. If there is a place you can lease or if you have your own space, then look for another startup or enterprise which can use as your office when you are not present.
Step 3 of their Response: Lower the Work Hours
Another how to increase revenue in business action while maintaining a stable profit margin is by reducing the operating hours. Many businesses are afraid that this might damage the infrastructure; however it is the opposite because reducing the working hours of your employees will result in decreased payroll as well as a reduction on their work expenditures. Even closing up on the slowest day of your organization can provide with valuable time to make future strategic plans for your business venture.
Step 4 of their Response: Workforce Privileges
The smartest business owners know that their workforce is not always looking for a raise, what they want is a good environment and with not too stressful demands. Money is not always the case as value added deals such as easy and flexible working hours as or even excellent added autonomy can make a big difference. Set a small payroll and include attractive value added deals; the workers will not be greatly bothered by with bonuses or pay demands because making them comfortable is what counts the most if you want to run a successful business.
Step 5 of their Response: Economical Supplies
It is best to find a good and affordable deal on your businesses’ supplies, even if already have a well-established suppliers with whom you have years of experience. When searching for how to increase revenue in business without hurting your profit margin, it is best to look for new suppliers as a form of leverage for very good economical deals on your inventory. Researching the internet, you will always be able to find suppliers, each of whom can offer you a better and more improved deal than the previous seller.
A System for Addressing Ways to Increase Revenue
A better description of what was provided in the above ?five steps? is that instead five tasks were provided that could be undertaken to answer the question of how to increase revenue in business.
These tasks may be valid considerations that an organization could undertake and benefit from; however, the 9-step Integrated Enterprise Excellence (IEE) system provides more of a step-by-step process for analytically examining the business as a whole to determine what could be done so that the enterprise as a whole benefits. This system integrates and goes beyond Lean Six Sigma process improvement efforts and the business process management (BPM) methodology.
The IEE system is described in detail in a series of books. Call or e-mail us if you would like to discuss how the techniques could be applied to a particular situation.
I am looking forward to your comments and social-media inputs relative to the above discussion on how to increase revenue in business.