What 3 Areas To Target To Dramatically Increase Your Revenue
Who wants more money coming in every month? In every business, revenue is essential, because, if you don’t have money coming into your business, then you’re not going to be in business for very long.Today we are going to be talking about 3 target areas to dramatically increase your revenue, and you’ll be surprised how simple this is, and doesn’t really take too much work.
Today we are going to be talking about 3 target areas to dramatically increase your revenue, and you’ll be surprised how simple this is, and doesn’t really take too much work.
My name is John Venning and I help allied health professionals to grow their business. I’m a remedial massage therapist, business owner, and educator, and I’ve been in the healthcare industry for 30 years
So, revenue is also known as sales or income. It is the actual amount of money coming into your business. We’re not looking at expenses, or profit, or any other aspect of business today – just revenue or income.
There are 3 areas to target if you want to dramatically increase your revenue, and that is
- Number of clients
- Average spend of those clients
- Number of visits of those clients
Number of clients is easy to work out and you can do that either weekly, monthly or per year. We are going to go through an example, so I am going to use monthly clients
The average spend of the clients is how much money do they spend with you per visit on average. You can work that out right now by dividing your total income by the total number of clients
And the number of visits, is the frequency of each client to your business, such as monthly appointments, or fortnightly appointments.
Now, simply increasing any one of the factors will have a great effect on your business, but, I want to show you what can happen if you increase all 3
So, lets say our starting point is:
- 100 clients per month
- Their average spend is $100 per visit
- And they attend your business once per month
So by multiplying the number of clients, by average spend, by number of visits (100 clients x $100 x 1 visit = $10,000 per month)
Now, let say we can increase all 3 factors by just 10%
- 10% more clients per month is 110
- 10% more average spend is $110
- And 10% more visits is 1.1 (that is only 10 clients coming in twice in a month)
- So that is definitely achievable
When we calculate that out: 110 clients x $110 x 1.1 visits = $13,310 per month. That’s an extra $3,310 per month just by tweaking things by 10%
What if we could increase the factors by 25%? So now 125 clients per month, with an average spend of $125, and 1.25 visits per month, we would have a total revenue for the month of $19,531. Almost double our starting amount.
So, there you have a technique which can have a very powerful impact on your business. My challenge to you over the next few days is to calculate where you are right now, so work out your total number of clients per month, their average spend per visit, and the frequency of visits per month, then work out how much more money you could be making by simply increase all 3 factors by 10%, 20%, 25% and even 50%.
In upcoming videos and training, we will be going through some practical ways that you can increase all 3 of the revenue factors – getting more clients, increasing the average spend, and increasing the frequency of visits
Now, I’ve put together a spreadsheet to calculate these figures for you, so if you would like a copy, just type the word SPREADSHEET in the comment section, I will send them through. Also, remember to like our facebook page to keep up to date with new videos, content and giveaways
So, Thank you for your time and attention and I hope that you have found this content useful and have gotten some value out of it today. I look forward to seeing you in the next video