TUCOWS ARTICLE

Four Keys to Your Revenue

You want more revenues right? Every business owner does. But do you know all the things that create your revenue?
Published: Sep 19, 2012
Author: Warren Coughlin

You want more revenues right? Every business owner does. But do you know all the things that create your revenue?

Donít answer too quickly.

There are four different sets of activities that produce your revenue. If you donít know what they are, itís kind of difficult to control them, isnít it? So, letís look at what they are.

The first thing to recognize is that you have essentially two kinds of prospects: new prospects and past/existing clients who may buy again. Bringing new leads to your business usually involves different tactics than those used to entice past or existing customers to buy again.

So, the first two sets of activities are:

1) New prospect lead generation
2) Past customer lead generation.

Now, do leads pay the bills? No. They havenít yet agreed to pay for anything.

Which means, you need to help them decide to buy from you. So this leads to the next set of activities:

3) Those that convert leads into customers

We still donít have a revenue total, though, do we? There is one more thing we need to know to determine our revenues and there is a set of strategies that drive that:

4) those that drive your average dollar sale. In other words, the average amount that customers spend on a transaction.

Do you right now have different activities strategically chosen to drive each of those drivers of your revenue? If you donít, youíre missing out on some potential revenue.

Finally, if youíre not tracking how youíre doing in each of these areas, it is almost possible to know how well theyíre performing for you. Sure, you will know youíre total revenue by looking at your Income Statement. But you wonít know which activities are driving those results and which are a waste of your time and money.

To control your growth, then, you must strategically determine and then consistently measure your activities in each of the four areas discussed.

Try it. You might just like it.


About Warren Coughlin

Warren Coughlin
ActionCOACH
Top Performing Canadian Coach
www.actioncoachwarren.com

I am a certified Business Coach with ActionCOACH, the Worldís #1 Business Coaching Franchise (Entrepreneur Magazine, Jan. 2004 & 2005). My goal is to help small business owners, such as yourself, spend less time working in your business and more time working on your business. In the end, you'll be spending less total time working and will be making more money. Iíd also like to help you put the FUN back in your business and your life.

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