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Understanding Your Revenue Drivers

Understanding Your Revenue Drivers

For your business to make money, you need to generate revenue.

You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be.

But what actually drives these revenue levels? And how do you get in control of these drivers?

Knowing where your cash is coming from is more crucial than ever

As a trading company, you face the multiple challenges of a global recession, changed consumer buying and higher inflation, all this impacts trading, markets and buying expectations. The better you can understand the nature of your revenue and its drivers, the more you can flex, manage and control your ability to generate this income.

This helps your medium to long-term strategic thinking, and your decision-making, allowing you to be confident that you’re focusing on the business areas that deliver maximum revenue.

Import areas to consider will include:

      • Revenue channels – where does your revenue actually come from? Do you create income from online sales and ecommerce, through retail sales in bricks and mortar stores, or through wholesales to other businesses? You may focus on just one of these channels, or it could be that you use a mixture of two, three or more.
      • Revenue streams – your total revenue will be made up of a number of different ‘streams’ So, you might be a coffee shop, whose revenue streams include coffee sales, cake and pastry sales and lunch sales. Knowing which revenue streams you rely on, which are most productive and what return they are delivering allows you to make decisions. If 80% of your income comes from 20% of your products, perhaps you need to tighten up your product range and ditch some of the poor sellers. If you’re selling more services to one particular industry, perhaps you should focus more marketing in this specific niche, or downscale your sales activity in less profitable niches.
      • Product/service split – Do you know which products/services are the most profitable in the business? Which products/services have been resilient to market changes (giving you some revenue stability) and which have adapted well to change? The more you can dive into your metrics and find the most productive and adaptable products and services, the greater your ability is to provide constant and evolving revenue for the business.
      • Value vs volume – Is your revenue based on selling a high volume of products/services at low margin, or low volume at a high margin? Based on this, can you move your margin down to create a more attractive price point (and more value for customers)? Or are their ways to push volume up, shifting more units and boosting total revenue? By diversifying into new channels, new streams or new products/services you can aim to balance value and volume to create brand new sales – and higher revenue levels.

Talk to us about exploring your revenue drivers

If you want to boost revenue and increase your overall profitability, come and talk to us. We’ll review the numbers in your business, help you to understand your revenue drivers and will give you proactive advice on enhancing your total revenue as a company.

Get in touch to kickstart your revenue generation.

 

The following content was originally published by BOMA. We have updated some of this article for our readers.

How To Get Good Reviews for Your Business

How To Get Good Reviews for Your Business

Word of mouth is an extremely effective form of marketing and online reviews super-charge their already powerful effect.

Research shows that reviews have a very important role to play in customers’ purchasing decisions. According to Brightlocal 91% of people aged 18-34 trust online reviews as much as personal recommendations, and 93% of consumers admit that online reviews helped influence their decisions.

Here’s your guide to scoring five-star reviews every day.

1. How to get reviews

The best way to get reviews is to simply ask. Most customers who enjoyed a positive experience won’t proactively submit a review — you’ll have to request one. Just be polite about it.

If customers are vocally happy with your work, you can ask them to leave a review right there on the job. You’ll find that people might be more willing to get a one-minute task out of the way when you’re with them, rather than complete a review days (or even weeks) later. Just make sure to follow up if a customer says they will, but nothing shows up.

Here are some other things to be mindful of when asking for reviews:

Do:

      • Add links to your review profiles on your website, so people can find them easily.
      • Make requesting customer reviews part of your normal business processes when closing off a job.
      • Mention your review platforms on business cards and flyers.
      • Follow up on jobs with emails requesting reviews (add links here too).
      • Offer customers a choice, by signing up to different review platforms.

Don’t:

      • Hassle customers too hard for reviews. If they don’t want to offer feedback, leave it at that. Don’t ask more than twice.
      • Write fake reviews or pay third parties to leave positive reviews. Fake reviews are often easy to spot and you don’t need it coming back to bite you.
      • Source too many reviews all at once. This could trigger some review site spam filters and lead to reviews being deleted.
2. How to handle bad reviews

Misunderstandings happen, but there’s no way around it — now and then bad reviews will come your way. Rather than get all hot under the collar, take it as an opportunity to improve your service. If the feedback is constructive, make some changes, respond to the review, thank them, and let them know what you’ve done to resolve the situation.

If the review feels wholly unfair, still respond (in a controlled manner) and contact the customer offline to hear more about why they’re upset. Handled well, bad reviews can show that you’re transparent and responsive to customers. Fronting up and trying to make things right can build more trust than never making a mistake in the first place.

Monitor your reviews

Customers have come to expect responses to their online reviews. This is where services like Google Alerts can help. Sign up and you’ll be notified every time your trades business is mentioned online. This will help you stay on top of the chatter and proactively manage your online reputation.

 

3. Online reviews and SEO

Online reviews have been shown to heavily impact purchasing decisions, but you need lots of them to make an impact. A handful of four or five-star reviews might not cut it. Focus on getting ratings and reviews from every job you do. Eventually, your customer review count will hit the hundreds mark, showing customers that you’re popular, reliable and consistent.

Reviews are an effective way to improve your SEO by associating your trade business with popular search keywords and phrases. For example, reviews that include who you are and what you do, e.g. ‘Plumber in Sydney’ and ‘Fixed my blocked toilet in London’, will increase your online credibility and raise your local ranking. That means more eyeballs, more clicks on your website — and more jobs.

 

4. Review platforms

As tradespeople offer local services, it pays to focus on localised sites. Here are our top picks for highly effective review sites for trade businesses, backed with local relevance.

Google My Business (GMB)
Creating a Google My Business listing is the best way to reach potential customers in your immediate vicinity. It helps Google users in your local area find and contact you through Google Search or Google Maps. The listing gives your customers additional insights too, like what your busiest time of day is, as well as review ratings.

      • Add as much information as you can, especially:
      • Business name & logo
      • Physical address
      • Phone number
      • Business type
      • Hours of operation
      • Website link
      • Photos

Facebook

Facebook is an ‘all-in-one’ resource for finding customers. When set up correctly, it can be used as an alternative to a website where people can message you directly and book appointments. The extra cool thing about Facebook is that when users leave a positive review, their friends will probably see it — exposing your trade business to a new network of potential customers.

Learn how to use Facebook for your trade business.

Online small business directories
Online small business directories can work wonders for your trade business. Customers who use them are actively looking for someone to hire. They generally categorize by trade and location, so to win business in your local area, you need to demonstrate why you’re the best. Use your reviews to do this.

Yelp
Yelp is another popular internet search and review service. ‘Yelpers’ rate their experiences on a five-star scale and are offered the option of leaving text-based feedback. Profiles are free to set up, and you can respond to any review you receive. When you set up a profile, be sure to request a “Find Us On Yelp” or “People Love Us On Yelp” sticker to stick on your car or van.

 

5. Streamline reviews with software

Getting customers to write reviews without asking isn’t easy, but with a little encouragement, they’re all too happy to shout out about your services. Cue modern software like AskNicely. Simply sign up to the service and AskNicely will automatically send basic review emails to your customers once jobs are complete.

If the feedback is above average, it’ll automatically prompt them to complete a customer review on a review platform of their choice. For low scores, the software follows up with a complaint mitigation email designed to find out where the experience went wrong. If you’re on a budget, Delighted offers almost the same service, at a cheaper price point.

 

6. Managing your online presence

Whenever you receive a great review, go through your list of online platforms and consider where it could help to generate brand awareness or enhance your online credibility. Take an excerpt from the review and add it as a testimonial to your website or share the quote as a social media post on Facebook or Instagram.

In the same way that Google loves fresh web content, customers respond far better to recent reviews. If your last review was over 12 months ago, people may trust you less.

 

7. Reviews pay back in spades

Online review ecosystems are immensely important. They’re one of many online marketing tools you can use to build a successful, long-standing trade business. Establishing a glowing online presence doesn’t happen overnight, but with a little time, commitment and proactivity, you can turn your customer reviews into key sources of leads to help you win more work.

For more tips and tricks on how you can create a stand-out online presence and get more work for your trade business, download our Marketing Plan for Tradespeople.

 

The following content was originally published by Tradify. We have updated some of this article for our readers.

6 Key Elements for Building Strong Client-Contractor Relationships

6 Key Elements for Building Strong Client-Contractor Relationships

Strong client-contractor relationships are a must for successful tradespeople.

They help to generate repeat business, word of mouth, and great reviews — everything you need to keep a steady stream of jobs headed your way.

1. Honesty is the best policy

Any strong relationship starts with honesty and trust. Never mislead or lie to your clients, and if you need to deliver bad news, be upfront and transparent about the issue. Your clients will value your honesty and can help you to find a resolution if they know the truth from the get-go.

It’s a good idea to be clear with your clients about what a typical working day looks like for you. Start and finish times, potential noise levels, and the experience level of your staff are good places to start.

Take time to discuss your client’s ground rules if they have any. If you think that these rules are unrealistic, or you may find it hard to follow them, let them know early on so that you can come to a compromise together.

 

2. Provide details

While you may be an expert in your field, it’s likely that your client isn’t. Take the time to break down the details of the job and provide further explanation if needed. It’s always better to spend a bit more time going over the facts of the job, than to re-do a job because your client wasn’t clear on what you’d agreed on.

It’s a good idea to confirm any important details that you and the client have agreed on in writing. This way, if there’s any confusion about what was said, you’ve got something to refer to and send back to the client.

      • Take time to explain how you will protect the property you’re working on, such as:
      • How you will protect items of furniture and surfaces.
      • Whether you will wear shoe coverings.
      • If any household items should be moved during the project.
      • Closing and locking external doors upon entering and leaving the property.

This will go a long way in showing your client that you care about their property. It may seem simple, but it’s a small detail that many tradespeople miss, so it’s a great way to stand out from the crowd.

 

3. Enforce solid contracts

A solid contract that details the roles and responsibilities of everyone involved in a project forms the basis of a good working relationship. One of the essential things to consider when you first set up a trade business is to draft contract agreements for your work.

A solid contract should include:

      • Detailed scope of work: expectations, time-frames, and list of tasks.
      • The tradesperson’s responsibilities: things like tool stowage and clearing up after work is completed at the end of the day.
      • The client’s responsibilities: does your client need to provide access to their property at specific times? Do certain facilities need to be made available? Whose responsibility is it to move furniture before the project starts?
      • The total, final price of the work: have you provided a quote and does the client agree with your pricing?
      • Compliance requirements: planning, building regulations, party walls, utility companies.
      • Schedule of payments: will the materials be paid for in advance? How and when will the final bill be paid? Do you take an initial deposit before project commencement? Agree on how much is to be paid and when, and lay it out clearly in the contract.
      • Disputes: explain how disputes are typically resolved.

Even if you’re just completing a small job for a homeowner, a written contract sets out the boundaries for the project and can diffuse any potential disputes later on down the line. Make sure you spend time going through the contract with the client — that way you can make adaptations as needed and ensure that everyone’s satisfied with what’s being agreed upon.

 

4. Work together

Working together with your client on a project is beneficial for both parties. The key thing here is to understand precisely what your client’s needs are so that you can deliver them to the best of your ability. Ask your client plenty of questions and know what their project pain points are. Having upfront conversations like this will avoid problems later down the line and demonstrate your trustworthiness.

To make sure that you and your client are on the same page, create a list of questions to ask your client to manage expectations. Some general ideas for questions include:

      • Can you tell me about your budget for this project?
      • What would be the best results you would like to see?
      • Are you looking for an estimate or a fixed price for this project?
      • What worries you the most about this project?
      • What are your expectations regarding communication and progress updates?
      • What areas of your home can we not touch or enter?
      • When are you looking to start this project and when is your ideal completion date?
      • Are there any key milestones, important dates, or time constraints to be aware of?
      • Are there any other contractors involved with this project?
5. Encourage communication 

Regular communication throughout the duration of a project delivers reassurance to your clients. Establish who your main point of contact is and work out their communication style. While some clients may want to be kept up-to-date with everything going on on-site, others may be happy for you to do your thing and simply make contact when certain jobs have been completed.

Miscommunications can be the source of many disputes. What starts as a simple misunderstanding can escalate to bigger problems down the line and have the potential to damage your reputation.

Always keep the path of communication open and encourage questions from your clients. Willingness to demonstrate the project’s progress offers peace of mind and forges strong client-contractor relationships.

 

6. Embrace technology

Using the right technology can boost your client-contractor relationships in many ways. Chances are, like most busy tradespeople, you can’t find enough hours in the day to deal with all the other aspects of your business like finances and payments.

Some benefits of using technology include:

      • Making communication simpler.
      • Planning jobs quickly.
      • Simplifying the payment process.
      • Raising invoices with ease.
      • Providing accurate estimates.
      • Creating project visuals.
      • Securing future jobs

Modern tech can be confusing, but it’s important that you don’t find yourself falling behind. Explore whether job management software like Tradify, which handles enquiries, quoting, and invoicing, is suitable for your business. Tracking your jobs with pen and paper might be fine at the start of project conversations, but at some point, you’ll need to keep things a lot more organised — clients will expect this of you — it’ll help to deliver the project on budget, on time, and to their satisfaction.

 

7. Client-contractor relationships that last

Without heading down the live chat software route, there are other ways to provide exceptional customer service and stay ahead of your competitors.

Building strong client-contractor relationships is not hard to achieve with the right mindset. By encouraging two-way conversations where possible, and being honest about deadlines and project progress, you’ll foster a transparent partnership with your clients to create an excellent service.

 

The following content was originally published by Tradify. We have updated some of this article for our readers.

How Can Small Businesses Compete With the Big Chains?

How Can Small Businesses Compete With the Big Chains?

In tough economic times, small businesses can struggle.

Big multinational chains often have the scale to undercut local competitors and survive even when times get tough.

What can small businesses do to retain and attract customers in a competitive market?

Identify your business’s advantages

Think about what your business can offer that a multinational operator cannot. For example, you might have the edge on:

      • Local knowledge
      • Close relationships with customers
      • Personalised service
      • Easier parking
      • Specific products and services
      • Immediate availability of products
      • An excellent loyalty scheme
      • Community support
      • Local events

If you’re not sure what your big selling points are, ask your customers.

Show off your advantages online

Leverage your business’s selling points through your online presence. While it might be prohibitively expensive to build a whole new office or store frontage, your online shop-front can be impressive at a fraction of the price.

Step up your social media activity, paying particular attention to sites where local people are active. Invest in outstanding photography, too.

Invest in reviews

Can you find a way to nudge your best customers into providing online feedback? Positive reviews are a vital tool for small businesses to grow their customer base.

      • Make it easy for people to leave reviews – send them an email reminder with a link included.
      • Address negative reviews immediately and professionally.
      • Consider an incentive to provide a review, such as a free extra item immediately or a $5 discount code off their next order. Alternatively they could go in the draw to win a bigger prize. This may also encourage them to shop with you again.
Be boutique

Lean into being small. Customers are willing to pay more for businesses that employ great people, provide quality service and a high-end experience. Invest in providing a polished experience for all your customers.

Appeal to ethical customers

Many shoppers are happy to pay more for sustainable, ethical products and services. Have measurable sustainability credentials and show them off whenever you can.

We’re here to help

For more ideas that are tailored to your business, we can help. Drop us a note or give us a call – we’d love to hear from you.

 

The following content was originally published by BOMA. We have updated some of this article for our readers.

The Value of Cashflow Forecasting for Your Business

The Value of Cashflow Forecasting for Your Business

Projecting your cashflow pipeline forwards is vital.

To be able to navigate the future path of your cashflow, you need to start forecasting – so you can map out your financial position over the coming months and can take the appropriate action to safeguard your cash position.

Plus, when you have access to detailed forecasts you can scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.

Forecasting your future cash pipeline

Remaining in control of the cash coming into (and going out of) the business is the real focus, so you can accurately predict your financial position and can resolve any issues.

Key ways to get more from your forecasting
      • Run regular forecasts – The financial landscape is changing on a daily basis at present. A cashflow forecast is not a document that remains static. Variables and external drivers are literally changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent.
      • Use the latest cashflow forecasting apps – cashflow forecasting apps, like Fluidly, Float, Futrli Predict or Fathom integrate with your accounting software. They give a drilled-down view of how your cash inflows and outflows will pan out over the coming months – information that will inform and justify the decisions you make during these extremely challenging times.
      • Explore the right revenue streams – most sectors will have seen their sales change over the last 18 months. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. This could be offering a new product or service, or working with a new partner. The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.
      • Get proactive with cost-cutting – if you can reduce cash outflows to a minimum, that will have a real impact on the health of your future cashflow. Pare back your operations and aim to reduce things like unnecessary software subscriptions, or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help.
      • Review your staffing needs – it’s never great to make anyone redundant, but you can also look at ways to reduce the costs of staffing and resourcing without getting rid of staff completely. Reducing working hours or redeploying staff in different roles are all options that reduce payroll costs, while also looking after your staff.
      • Run a variety of scenarios – changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan once conditions improve. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.
      • Look at various ways to access funding – if forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.
Talk to us about setting up cashflow forecasting

Forecasting is an important step to give you the business intelligence to support your decision making.

Get in touch to improve your control over cashflow.

 

The following content was originally published by BOMA. We have updated some of this article for our readers.