SME owners – and indeed all business owners – have the ultimate aim of increasing revenue – which is no easy feat. But for SME owners, who have far less capital, fewer customers and operate on a much smaller scale, this could be difficult. Especially considering that the founder most times functions as a jack of all trades, trying to be in multiple places at once, to ensure things are being done properly, or even having to perform tasks themselves to ensure they are up to standard.
Here are some ways SME owners can increase revenue without losing quality, or necessarily spending more.
- Use Social Media: Social media is a powerful marketing tool, as it’s an integral part of our everyday lives. SMEs and businesses who can utilize social media platforms, and make them work for them enjoy a far broader reach than those who cannot. Proper use of social media as a marketing tool can increase the visibility of your business and attract more traffic to your site. Ensure you use social media analytics tools like “Buffer” and “Sumall” to measure how effective it is.
- Employ Interns: As opposed to employing full-term staff, interns learn from you, for free, or far cheaper than a regular employee. They exchange their cheap work services for your experience and knowledge.
- Provision of Complementary Services: Complementary services are one sure way for SMEs to increase revenue. An example is an event hall service. Clients who host events in your venue are sure to require catering services. Provision of a this service increases profit – from the same source.
- Increase Your Local Popularity: To increase your popularity locally, you could do things like speaking at a local gathering – probably a town hall meeting, or local church. Or teaching a class pertinent to your field. These things give your enterprise more exposure, while they cost nothing.
- Bundle Your Products: Selling related products and services as a single set is another way SMEs can increase revenue. An example is a store selling ladies’ wears – the owner could sell complete outfits for a lesser price than the individual items. This will increase their profit margin.
- Increase frequency of customer transaction: The more transactions per customer, the more the revenue generated. This could be achieved by training your sales team to recommend the most expensive products first, and also by making promos and sales giveaways that ensure each customer purchases more.
- Compete intelligently: be completely aware of the prices at which the competition are selling and strive to offer cheaper prices for the same and similar products.
In summary, SMEs need the best of strategies to give them a much-needed advantage. And these outlined methods are sure to increase their revenue.