7 steps to generate revenue when you are in a bind
I remember chatting with my dad a few years ago, right after one of his friends had stopped by — we’ll call him Charles.
Charles was asking for my dad’s advice because his company was in dire straits. He was broke. The advice my dad gave him was simple and yet profound.
“What is the quickest way to cash a check?”
It’s brilliant.
At that moment, there was no need for a five-year plan. Charles might not make it to the next payroll, much less five years.
Setting the table
The seven steps outlined below apply to companies that have services and products. Odds are, your business has more than one product or service. You are not just a consulting firm. You offer a comprehensive suite of consulting services. And you don’t just own a bookstore. You sell books that target all ages and demographics.
Even if your business is not in trouble, this is an excellent exercise to do. You might find that you or your sales team could increase revenue by shifting their focus.
Seven steps to save your business
- Call all of your old and existing clients. These people have purchased from you, and if you did a good job, they are likely to buy from you again. Be creative. Don’t offer the same old thing. Find a new spin that pushes them to purchase today. Now, if they are not looking to buy right now, then ask for a referral. Listen, you are desperate, don’t let pride get in the way. These people trust you with their business, and they are likely to trust you with their friends’ business as well.
- Offer a referral fee. You need sales, and someone knows the person you need to talk to. Be generous with your referral. Either make it a nice fee upfront or a reoccurring fee for the next few months. Take this offer and hit everyone in your network. Not only will this give you an excellent way to chat with your friends, but this also allows you to call your old and existing clients a second time. Finally, you can blast this new offer on social media.
- Call the clients who fired you. Hopefully, there aren’t many to call. The pitch is simple. “Tom, we ended things badly. We did not value your business properly, and there is no excuse for that. I need you to forgive me personally for not delivering.” Tom, unless he is a jerk, will forgive you. Then, close by saying, “There’s no reason for you to trust us with your business in the future, and I understand that. However, if you ever get in a bind and are really desperate, then I want you to know you can call me on my cell anytime, day or night.” Presumably, they were happy with your service at one point, and perhaps a mea culpa from you is just what is needed to make things right.
- After doing all of that, pull out your rate sheet or product list. Then, rank your products or services using two indicators: the highest volume and shortest sales cycle (we’ll call this a unit. it doesn’t matter if it is a product of service for our purposes, it is a unit). These two categories have to be together because, independently, they might not produce the best result. If the volume is high, but the sales cycle is months, that isn’t what you are looking for. If your shortest sales cycle is short, but you don’t move volume, don’t waste your time. Don’t overthink this. If your sales cycle is the same across the board, then pick the item with the highest margin.
- After creating your list, you need to determine how many units you would need to sell to stay afloat. With the data in hand, you should determine how many hours/days/weeks it will take you to keep your company going.
- Next, when you sell a unit, you need to be prepared to upsell. Again, look at the data. When you sell a unit, what else do customers buy? Or consider setting up a subscription service at a discount if they order today. Or free shipping if they spend over $X. Be creative. What can you package or upsell to get money in the bank? Do not start with the new package. This is an upsell, which means the offer comes after the first sale.
- Can you offer a discount, a one-time special, or another creative way to generate revenue if all of that fails? Remember, you are in a bind here. Even though you are pushing the product with the shortest sales cycle and highest volume, we still want to shorten that as much as possible. Unless you are days away from closing your door, wait to roll this out.
Even if your business is not in trouble, this is an excellent exercise to do. You might find that you or your sales team could increase revenue by shifting their focus.
This was originally published in the Five-wide newsletter www.ryanraysr.com/fivewide
