How well do you understand what drives your business revenue?

We can help you review your numbers, identify your revenue drivers, and discover what could help grow your total revenue as a company.

Understanding your revenue

For your business to make money, you need to generate revenue. You produce revenue through your usual business activity — making sales, getting your invoices paid, or taking cash from paying customers. The better you are at selling your products or 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 multiple challenges — a global recession, changed consumer buying, and higher inflation. All of 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 understanding supports your medium to long-term strategic thinking and decision-making, allowing you to confidently focus on the business areas that deliver maximum revenue.

Important areas to consider

• 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 wholesale 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’. For example, a coffee shop might have streams such as coffee sales, pastry sales, and lunch sales. Knowing which streams you rely on, which are most productive, and what return they deliver allows you to make better decisions. If 80% of your income comes from 20% of your products, perhaps you need to refine your product range. If one industry dominates your sales, you may want to double down on that niche.
• Product/service split – Do you know which products or services are the most profitable in the business? Which have stayed strong through market changes, and which have adapted well? Diving into your metrics helps you identify the most resilient and productive offerings — strengthening your revenue stability.
• Value vs. volume – Is your revenue based on selling a high volume of low-margin products/services, or a lower volume at a higher margin? Depending on this, could you adjust margins to hit more attractive price points? Or find ways to push volume up, shifting more units and boosting total revenue? Exploring new channels, streams, or offerings can help you balance value and volume to drive 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 understand your revenue drivers, and provide proactive advice on enhancing your total revenue as a company.

Get in touch to kickstart your revenue generation.