Your organisation may face a revenue challenge of either stagnating or reducing revenue levels due to a number of reasons. The situation becomes more complicated if costs are on the other hand increasing. With this situation the capacity of your organisation to survive in the long run is in doubt if nothing is done to increase the revenue levels. This article concentrates on only enhancing the revenue of an organisation and the cost reduction issues will be covered in my next article. The only way out for organisations faced with stagnating or reducing revenue is to design and implement a revenue drive strategy. The aim of the strategy is to profitably increase the revenue levels of the business on a sustainable basis. The effective revenue drive strategy should take the following issues into consideration;
Current state assessment
It is extremely difficult to design and implement revenue drive strategy unless you know where you are and challenges that have made you to be where you are. The stagnation or reduction in revenue situation is often as a result of lack of internal capacity to identify and exploit the viable opportunities. The current state assessment will enable you to know exactly where you are and whether there is effective demand for the type of products you are producing before you embark on revenue drive. The current state assessment will be much easier if an organisation has an effective business intelligence unit for collecting information about the market that will enable management to make correct decisions.
Create a positive mindset
You require a positive mindset in order to move with confidence from where you are to where you want to go. The organisation will encounter so many challenges along the way to its mission. It is the positive mindset of staff that will enable the organisation to overcome the challenges along the way. You can only win in the competitive market if the mindset of the staff is focused on winning as guided by the business plan. Remember winning in the market is achieved through deliberate concerted effort of the team.
Think Big in order to win big
The organisation will only achieve its mission if it has programmed its big mission in the mind of its entire staff. The staff tend to lose the determination to carry on once the plan in their mind is achieved. It is therefore only possible to achieve a big mission if that big mission is clearly programmed in the mind of staff. The staff have to think big, to act big and to talk big in order to achieve big. But this is only possible if the big mission is achievable.
Provide unique, innovative and quality products and services
You can only attract customers to yourself if you are offering unique, innovative and quality products and services that offer better value to them than they are currently receiving from their suppliers. The value package should include all that is involved in attracting, serving and retaining customers. Once the value package is right, the customers should be in position to pay the maximum price equivalent to the value they expect to receive through consumption of goods and services. Your organisation therefore requires innovative and creative ability in order to offer unique, innovative and quality products and services.
Provide right information
Customers are always looking for update information about new unique and innovative ways that will have a positive impact on the people, technology and processes within the organisation. You have therefore to be prepared to provide useful information to the current and potential customers about the value of the products and services that you offer. The organisation should have effective communication channels both internal and external that will ensure right information is communicated.
Author: John Muhaise Bikalemesa
Director: Big Drum Advisory Services Limited