Four Key Revenue Drivers in My Venture PDF

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How is Revenue a critical area to drive business profits...

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Four Key Revenue Drivers in My Venture What are the four key revenue drivers in your venture? To understand this better let us suppose that you want to open a coffee shop. What drives revenues at an establishment like that? 1. The first driver are the potential customers. How many customers will come into your coffee shop? How much are they willing to pay to stay? How will you attract customers to your location? 2. The second key driver is frequency. How often will your customers come into your coffee shop? What incentives can you offer to keep them coming back? May you be able to increase frequency by adding additional services, or online coffee sales? 3. The third driver is selling process. How much time will you be able to sell? What kind of upselling or cross-selling opportunities can you find? For example, you might add products such as snacks to sell alongside the unlimited free coffee to generate more revenue? 4. The fourth driver is price. If you think your price should be higher than what your competitors charge, what are the factors that increase the value of your product? If you raise or lower prices, what will be the impact on your customer base?

Now, let us think about answering similar questions for your own venture. Describe your thoughts as you consider similar questions for the business you think about launching.

1. Revenue levels as they relate to customers. How many are you likely to have? What does it depend on? How will you attract them?

2. Revenue levels as they relate to frequency. How often will they make a purchase? What does it depend on? Are there any good ways in which you can increase the frequency of purchase? How will you attack customers to come back? 3. Revenue levels as they relate to selling process.

How much time will you be able to sell? What kind of upselling or cross-selling opportunities can you find? If you need to offer some time to make a payment (like it may often be the case in business-tobusiness, manufacturing, wholesale, etc) how may you encourage your clients to make the payment faster?

4. Revenue levels as they relate to price. If you think your price should be higher than what your competitors charge, what are the factors that increase the value of your product? If you raise or lower prices, what will be the impact on your customer base? What pricing strategy (Ch 10 discusses several) may be the most appropriate for the product or service you want to sell?...