Everyone always wants to know the secret to earn more money from their company. However, if it were easy to do, then everyone would be rich. With the secrets for making more money being so closely guarded, most business owners go through a lot of trial and error. This is especially true when it comes to trying to make more profits from their company.
Luckily, not every method of getting bigger revenue streams is really difficult or takes a lot of time. Some of them need very little effort and are able to provide a lot of benefits as a result. With that being said, here are three of the best ways to get more revenue out of your business.
Introduce Subscription Plans
Not all businesses will have a type of product or service that is suitable for offering a subscription plan. However, for the vast majority of companies, this can be a great way to increase revenue. That is why the number of businesses using a subscription plan business model has increased by over 100 percent within the last five years.
The average business only receives revenue from its customers when they end up actually buying something from them. Depending on what products or services they offer, this transaction might only occur a few times a year.
However, if they are offering something that gets purchased on a far more regular basis, then subscription plans can be a great way to maximize the amount of revenue they receive from customers.
If someone is offered a small percentage off of anything they purchase by signing up for a subscription, then they will likely do so. This is even more likely if they are already a regular customer. If you are going to offer a subscription plan, then the optimal discount to give customers is 16.7 percent on purchases.
Even if a customer does not purchase anything one month, they will still be paying money. This small amount of money from the subscriptions can help your company cope with any slow seasons.
This subscription plan strategy should help to make your revenue stream larger. At the very least, it will help to make it much more consistent.
Trade Office Space for a Co-Working Space
If your business is one that you can operate entirely, or even mostly, online, then you have an incredible opportunity available to you. 20 years ago, almost every business needed some sort of physical office because remote work was very limited. However, as technology has progressed and the entire workforce has undergone a major transition, remote work has become much more common, growing over 160 percent in the last 12 years.
This has led to the demand for traditional offices going down by quite a bit, especially with the younger generations. Unfortunately, many businesses still feel like they need to have an office space. They might have also leased one back when they were larger and have since gone through layoffs, leaving them with far fewer employees. In either situation, they are going to have a lot of office space that is going unused.
All this empty space is costing your business thousands of dollars every month, which is devastating to your profit margins. However, you can quite easily turn this waste of space and money into an additional source of revenue.
While traditional offices are becoming less in demand, co-working spaces are more popular than ever. People still need a place to do their work but now they are able to do it anywhere with a plug-in and Wi-Fi connection. Therefore, they suddenly have a lot more options available to them. As a result, these large spaces are converting into group areas available to the public where professionals can go and get their work done. The best is that they are able to do it in a productive and cheap location.
You can easily take advantage of this co-working movement by turning your empty office space into a new co-working space. After this, the only thing missing is some eager professionals who are paying to attend the space.
Achieving this is now easier than ever before thanks to the many apps out there that are like Airbnb for office spaces. Simply get your space ready to be used as a new co-working location and then sign up for an account. Once that is done, the app should take care of the rest. It will let professionals in the nearby area know about your brand new co-working location.
After the professionals start arriving, you will receive a portion of the price that they pay to use the space. This will help transition the office space from a financial burden to an additional revenue source.
Create Product or Service Bundles
A big mistake that many businesses make is that they only offer their various products or services individually. While this may appear to be the most convenient way to sell items, it is actually costing you precious revenue.
When someone buys one of your products, chances are that there are other products that would go great with it. For instance, if someone ordered a new winter coat, then you might also offer a certain pair of winter gloves that would pair together perfectly. However, unless these items are bundled together, then the customer will probably not purchase both items.
This is because there is no motivation to purchase both items as opposed to just purchasing the jacket. By creating product or service bundles, you can offer several items for a slightly lower combined price. This will usually be enough of a reason to convince most customers to purchase several items together. There will be more items selling and more revenue-generating sources as a result.
Implementing all three, or even just one, of these tactics, will be a surefire way to help increase the amount of revenue that you are able to get out of your business.
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