What would it take to double your revenue?
Recently the question was posed to me, “what would it take to double my revenue?” What could I offload or have someone else do that would free me up to generate more revenue? What activities could only I do that would bring in the revenue? How quickly could I generate that additional revenue if I had the space to execute?
I didn’t have an answer to the question, but it got me thinking. What would be required to push my business that aggressively?
Doubling revenue may not be an aggressive push for you. Perhaps it’s adding $50,000 in revenue or even $1,000,000. Whatever the number is for your business, spend time asking the question:
What needs to happen to generate the additional revenue?
The key in answering the question is not choosing the answer “do more”. Yes, more needs to be done to generate more revenue. Yes, you could do more of what you are currently doing, but then you would likely find yourself stretched thinner and with less time to do the things you enjoy. Rapid, significant growth will not be successful if it all falls on your, the business owner’s, shoulders.
Once you have picked the number you want to stretch for, you need to build the plan to get there.
You need to first determine what it will take to hit that number. To generate more revenue, you need to understand what it takes to acquire and deliver each dollar of additional revenue. Answer the following questions across each of these areas as a starting point for building your plan.
Product/Service Mix
What product or service do you want to offer to generate the additional revenue?
What is the combination of your current offerings that will get you the additional revenue more quickly?
Are there new products or services you can offer that will attract customers more quickly?
Do you need to explore changes to pricing as a source of increased revenue?
Customer/Client Needs
How many additional customers/clients are required to achieve the additional revenue?
Are there opportunities to get more revenue from existing customers/clients?
What is required to acquire a new customer?
How long is your sales cycle?
Employee Needs
Will you need additional employees to deliver the revenue?
Are your current employees delivering at the level you need?
Do you have employees that could take on more responsibility or take on a new role?
Are there outsourced resources that can support you in achieving your goals?
How much lead time do you need to find the right team members or outsourced resources?
Budget
What will your budget look like at the higher revenue level?
How will your expenses change as you deliver the additional revenue?
What tools or equipment will you need to purchase?
What is the impact of additional employees or outsourced resources on the budget?
If you do not have a budget, now is a great time to start building one so you have a tool to help you plan. You can learn more about how to start building your budget here.
Your Tasks And Activities
What is on your plate that only you can do as the business owner?
What are you doing that someone else could take on with training?
What could be automated or streamlined through technology?
If you are not sure all that is on your plate as you think about what to offload, this post provides an exercise for assessing all that you do.
After walking through these questions, you should understand what is required to get you to your higher revenue goal. Write out what you plan to do to hit the target. Whether it is daily tasks or monthly objectives, having specifics you are targeting will allow you to focus your energy on the right activities.
I was caught off guard when I was asked the question about doubling my revenue, but when I blocked off the time to determine what I would need, I got more and more excited about the greater impact I could have on business owners. It might not be easy, but knowing what is required will allow you and I to prioritize our days and weeks to achieve a significant growth goal.