Raising revenue is often one of the key objectives for small and medium-sized businesses (SMEs), however it can be a difficult process to navigate.
The last two years have had a damaging impact on UK businesses, with closures due to coronavirus restrictions and a lack of consumer confidence contributing to the 6.5 per cent of businesses closing in the year leading up to January 2021.
With the inflationary pressures impacting consumer pockets, this could also weaken the opportunity to generate sales revenue, however the higher interest could have a beneficial effect on any savings the business holds.
There are some steps that your business can take to target revenue growth:
Have a plan in place
Your business may have other goals to meet, alongside raising revenue, and the fundamental first step is to create a realistic plan to meet these goals.
Your goals will adapt alongside the stage that your business is at, so it is important to review the aspirations at regular intervals.
When initially starting out, revenue goals are likely to be centred around making enough profit to survive.
However, once settled, aspirations will likely change to focus on raising enough funds to allow for business growth and expansion.
Focus on customer retention
By providing exceptional customer service, alongside a high quality good or service, your business can develop a strong brand reputation which will benefit it in the long run.
In turn, this could lead to repeat customers, as well as more brand recognition to generate new sales.
Whilst bookkeeping is not going to magically generate revenue, it is important to keep track of all the business’ assets, liabilities and equity on a balance sheet in order to monitor its financial status.
You may wish to consult an accountant to assist with keeping your financial records, especially with the requirement for all VAT-registered businesses to comply with Making Tax Digital rules being less than two weeks away.
If you require support with related matters, contact our experts today.