Strategies for increasing revenue

At Page Ivy we can provide businesses in the Chesterfield area with assistance and advice on a wide range of business issues. Here is a guide to strategies for increasing revenue...

One of the keys to successful profit improvement and sustained business growth is to develop strategies that increase revenue for your business.

A useful tool in developing such strategies is the product/market matrix:

  Existing products New Products
Existing markets 1 3
New markets 2 4

The matrix defines four areas where you might consider revenue-increasing strategies.

Although it refers specifically to selling products to customers, it can be applied equally effectively to selling services to clients.

1. Existing products in existing markets: Highest rate of return

As a general rule, strategies focused in the top left quadrant will require less resources and are more likely to generate the highest rate of return on your efforts, at least in the short term. Here you might consider:

  • Increasing the selling price to increase your margins
  • Reducing the selling price to increase sales volume or market share
  • Cross-selling additional products or services to existing customers or clients
  • Persuading customers to increase the size of their order
  • Upgrading, ie. encouraging customers or clients to purchase a more sophisticated version of the product or a higher level of service

Profit Point: Take care of your existing customers

It costs more to gain a new customer than to keep an old one. Make sure you look after your best customers.

2. New markets for existing products: Extending your market

Possibilities in the lower left quadrant include, for example, extending your market geographically or repositioning an existing product or service to occupy a different market niche.

Profit Point: Target new customers for high profit goods and services

New customers are expensive to acquire, but high profit items make it worth seeking them out. Decide upon the best geographic areas and sectors to start with, otherwise you risk spreading the message too thin.

3. New products for existing markets: Leveraging increased revenue

The top right quadrant is all about listening to your customers and meeting their needs.  Businesses that listen closely to their customers or clients will have no shortage of ideas for leveraging increased revenue from existing markets by introducing new products or services tailored to their needs. Possible strategies here include developing product line extensions and accessories or bundling new products or services with existing ones.

Profit Point: Understand customer demands

Make sure you have mechanisms in place for finding our what your customers think of your service, and what their real needs are. Don't just offer them what you think they want.

4. New products in new markets: Diversification

The bottom right quadrant represents perhaps the most ambitious possibility, and obviously calls for careful research before too many resources are invested in a new venture.

Though there might be dangers for some businesses in departing too early or too far from their core competencies, for others such diversification might provide more stability and a stronger cash flow in a volatile market.

Such growth can be achieved either by additional investment within your existing business structure or through an appropriate merger or acquisition.

Profit Point: Make alliances to move into new markets

Sometimes it can be very effective to arrange joint ventures with businesses that have complimentary assets or skills before venturing outside the sectors that are known to you.

If you are in the Chesterfield area and are looking for support and assistance from experienced accountants and business advisers, contact Page Ivy.

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After completing her A-Levels in 2017, Rebecca started her career in accounting by joining the Page Ivy team. Since then she has completed levels 2 and 3 of the AAT qualification and is currently studying towards level 4.

In the office, Rebecca works with our clients to assist them in preparing their VAT returns, assists with Xero Cloud-based bookkeeping and Accounting and is also trained in all matters of payroll.

In her spare time, Rebecca likes to, spend time with her friends and family, train dogs and more recently, has started to learn Spanish.

Since school Charlie has always had an interest in accountancy and followed up on his career aspirations by joining Page Ivy in 2017.

After three years of studying, Charlie is nearing completion of his AAT level 4 qualification and is looking to start his ACCA training imminently.

Charlie deals with the preparation of Limited Company, Sole trader and Partnership accounts along with preparing VAT and MGD returns.

In his spare time, Charlie enjoys watching football and spending time with his partner, friends, and family.

Danielle joined the Page Ivy team back in 2013 as an AAT Trainee, now qualified she is responsible for managing our Payroll  Bureau.

Her role includes processing weekly, bi-weekly, and monthly payroll runs, corresponding with HMRC on behalf of our clients,  preparing and submitting CIS 300 returns, assisting clients with all areas of payroll, HR, and Administration.

In her spare time, Danielle enjoys climbing, spending time with family and friends, and going on long country walks with her partner and dog.

Declan is the newest member of the Page Ivy team, starting with us in 2020.

Declan is currently studying towards level 2 of his AAT Apprenticeship and in the office, is getting to grips with data entry and analysis.

In his spare time, Declan enjoys country walking with his family and dog, sports events and more recently, learning to play the piano!

Megan joined our team in 2014 and has been ensuring that the Page Ivy office runs smoothly ever since.

Her role includes managing the team and their diaries,  handling client queries, and assisting with Administration.

Megan is a Xero certified Payroll advisor, meaning that when Danielle is on leave, Megan is on hand to run our payroll department.

Megan has two children, Isabella and Felicity, who like to keep her busy! In her spare time, she likes to keep fit, spend time with her family and online shop!

Abby started her career in accounting in 2009, working for a small practice in Chesterfield, alongside studying for her AAT qualification.

After three short years, in 2012 the opportunity arose to become Director of Page Ivy Accountants and she hasn't looked back!

Building long-lasting client relationships are of utmost importance to Abby, she has a passion for providing a high level of customer service and ensuring that our clients feel valued.

Abby is responsible for overseeing the preparation of VAT returns and MGD return prepared by the Page Ivy team; along with providing personal tax advice to a wide range of clients.

 

In her spare time, Abby enjoys, traveling, reading, and going to the gym.

Edward joined the team as a school leaver in 2012.  From here he went on to study Business Administration, AAT, and finally progressed on to complete his  ACCA qualification 2019.

Edward is a knowledgable, pro-active Senior accountant, who prides himself on providing high quality, in-depth, technical advice in a manner that is easily understood by his clients.

He is responsible for the preparation of Sole trader, Partnerships, and Limited Company accounts. As well as monthly and quarterly management accounts and conducting business reviews.

In his spare time, Edward likes to spend time with his friends and family,  spending time in his local pub and watching Derby FC collect 3 points.

 

Gareth started his career in accountancy in 2002. Since then he has worked in both small and medium-sized accountancy practices, working with a variety of clients from small businesses to advising quoted companies on Corporate Tax compliance and specialist claims, such as for Research and Development allowances. He places high importance on technical expertise, believing this to be essential to ensure clients can be safe in the knowledge they are fully compliant with HMRC’s requirements while minimising their tax liabilities. This is reflected in him being a fully qualified member of the Chartered Institute of Taxation, and a fellow of the Institute of Chartered Accounts in England and Wales.

He joined Page Ivy in 2012, since then he has taken responsibility for overseeing the preparation of clients Sole Trader, Partnership and Limited company accounts, as well as clients personal Self Assessment Tax Returns.

Alongside Abby he hopes to continue to develop both the technical expertise within the firm, and see the business continue to grow from strength to strength.

Outside of work Gareth has served as deputy leader of the town council, enjoys eating out, and fishing.

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