Rather than trying to acquire new customers, direct your attention to the core customers you already have, suggested Bill Reilly, a Wisconsin-based auto repair entrepreneur. You can do this by implementing a referral or customer loyalty program or trying out marketing strategies based on previous purchasing behaviors to encourage repeat business, he said.This focus on your established market is especially important if you’re trying to get funding.”In the past, we would highlight our business goal to become a franchise, which didn’t resonate with banks,” Reilly said. “We learned to emphasize that there is a large market for what we do. This would pique a banker’s interest, because they care about the return on investment more than your business aspirations.”
How to Grow Revenue Quickly and Sustainably in Transformations
Growing revenue in a transformation is particularly important when the transformation is undertaken amid an economic downturn or industry-specific disruption. Our experience shows that companies with robust revenue streams are better positioned to respond to the risks associated with any transformation and to the urgency created by disruptive events. Using revenue levers can therefore greatly improve the odds that a transformation program will achieve its financial objectives and create both immediate and lasting impact.
The Why: Benefits of Rapid and Sustainable Revenue Growth
Rapid revenue growth in a transformation can have these near-term benefits:
Funding the Journey. Transformations typically require significant investments. Revenue generated in the early stages of a transformation can be reinvested to fund multiyear transformation journeys without hurting a company’s bottom line.
Generating Momentum. Organizational support across all levels of a business can have a positive impact on the trajectory of a transformation, one that is typically apparent within the first few months. Quick wins from a few well-executed revenue levers can help generate the momentum necessary for executing challenging, longer-term strategic efforts.
Boosting Investor Confidence. Meeting or exceeding revenue targets early in a transformation can signal to investors that a company is on the right track toward its broader transformation objectives.