Choosing the right revenue strategies for your new business is crucial to the success of your business.
As an entrepreneur, you should focus not just on building the best offerings, but also on ways to sell them effectively. The right revenue strategies can help you create different revenue streams and boost your revenue potential right from the start.
What are these revenue strategies and how can you implement them?
In this post, we have discussed five of the most important revenue strategies for starting a new business. Use a mix of these strategies to drive your business growth.
1. Take Pre-Launch Orders
One of the best revenue strategies for starting a new business is selling your products before making them.
This is so important because it tells you whether there’s a real market need for your product. Moreover, you can get some revenue advances that you can use to build a good product. Many startups fail because they run out of revenue, so taking pre-launch orders is a great way to avoid that pitfall.
This is one of the revenue strategies that are great for startups and new businesses as it solves two problems simultaneously. You get money upfront to cover the product design and development costs, and you test the market demand for your product.
Design a pre-launch campaign and offer early-bird discounts and offers to get people to place orders in advance.
2. Use Multiple Distribution Channels
When starting a new business one of the revenue strategies that you should use is diversifying your distribution channels. Whether you set up a Sole Proprietorship firm or a big Corporation, this revenue strategy is relevant for businesses of all sizes.
Why sell only through a physical store, when you can also sell online? Why not sell on social media when most of your potential customers are active there?
Increasing the number of distribution channels increases your revenue streams. This is a good strategy for a new business as it puts your products in front of consumers on different channels. This way, you won’t miss any potential customers who may only be active on one channel and not the others.
3. Offer Complementary Products
This is one of the classic revenue strategies for both new and existing businesses. Offer complementary products in product bundles to increase your average order value.
You can do this by creating product bundles with complementary products and offering more value for buying the bundle instead of individual products.
If you sell razors, also sell blades. Better yet, create a product bundle to sell both together. If you sell milk and cookies separately, why not create a bundle to sell both together?
This revenue strategy is great for combining best-selling products with low-performing products to increase the sales of the latter. People may buy product bundles because they provide more value, even if they wouldn’t have bought some of the products in the bundle separately.
4. Find Ways to Earn Recurring Revenue
This is one of the revenue strategies that are not suitable for all businesses, but only those that offer products that people need to buy frequently.
How exactly does it work?
Identify products that people use on a regular basis and need to refill after certain intervals, and create a subscription for those products. You can create product bundles or even curated boxes with different products every month to make it more lucrative to your customers.
The idea is to create a recurring revenue stream and get repeat purchases from existing customers.
For a new business, it’s very important to have a steady revenue stream and a few long-term customers, and starting a subscription model helps achieve that.
5. Differentiate Your Brand for Premium Pricing
This is one of the simplest revenue strategies for new businesses that offer unique and innovative products.
If you can differentiate your offerings from what is currently available in the market, you can charge a higher price for them. The key is to inform your customers why your product is different and what value it can offer them that justifies the high price.
Use research and technology to create differentiated and high-value products that solve a key market need much better than existing products.
This is one of the revenue strategies that require effective marketing strategies to work. You may create the best product in the market, but it will not sell until people know that it exists and that it offers more value than the products they’re currently using.
Ready to Boost Your Revenue?
These are some of the tried and tested revenue strategies that have worked for businesses in the past and will work for your new business as well.
Choose a few or all of these strategies to boost the revenue of your new business and create steady revenue streams. Don’t forget to use the right marketing strategies to complement these revenue strategies to further boost your revenue. All the best!