In today's hyper-competitive business environment, companies need every advantage. That includes ensuring a steady flow of revenue and keeping as many customers as possible. Any company that can effectively manage its revenue stream has a higher chance of surviving an economic downturn.
Businesses experiencing revenue fluctuations tend to be more susceptible to economic failures. Whether you're just starting or in the game for a while, the chances are that your business has encountered highs and lows in revenue, but how you managed each situation is instrumental to your growth. One of the best ways to handle such situations is having the right tools in your company. With these tools, you'll most likely gain a better understanding of what's going on, what's causing it, and how to effectively handle it.
Here are some of the essential tools that you can use:
1- Online Loan Application Software
One of the most important ways to manage your revenue is to ensure that you have enough cash flow in your company. With cash flow, you can purchase inventories, employ more workers, and invest in other resources that will help to generate more revenue for your business.
One way to ensure you have enough cash flow in your business is by getting loans. Loans, such as cash advance for business and equipment financing, ensure you have the money you need when you need it.
Many online lenders offer quick processing times and low-interest rates, so you can receive funds quickly and pay them back over time. This allows you to access short-term liquidity without selling off assets or shutting down operations.
2- Property Management System (PMS)
Property management systems (PMS) are software applications that help property owners, property managers, and maintenance staff manage their rental properties. PMS are designed to make it easier to manage tenant relationships and keep track of rent payments, invoices, maintenance requests, and other tasks related to managing a rental property.
Suppose you're in the business of managing rental properties. In that case, this software is critical for keeping tabs on rent due dates, renters who are falling behind on their payments, and whether or not any properties are vacant. With this information, you can determine when to market vacant homes, when to collect rent, when to pay bills, and perform other tasks that will help you maintain accurate financial records. As a result, your revenue will be more stable, and you will be able to reach your revenue goal.
3- Rate Shopper
A rate shopper is a tool that assists businesses, particularly hotels, obtain various data points on how people book accommodations. Using a competitor’s data as a benchmark can help them make more informed pricing decisions. Furthermore, retail or e-commerce businesses typically use rate shoppers to track their inventory. It enables companies to assess the impact of altering prices on sales volume and profitability, allowing them to adjust their pricing accordingly.
The concept behind this technique is straightforward: if revenue suddenly increases, something has changed about the product or service being sold. Following the fluctuations over time can help you figure out what caused the increase or drop. As a result, if there is a sudden fall in revenue, you can monitor the source and make adjustments to ensure it returns to your desired level.
4- Channel Manager
Channel manager is a software application used to manage the relationships between two companies. This relationship can be a collaboration or a business relationship. Channel managers are used by companies with products or services they want to distribute through third-party sellers.
Channel managers often have an API (application programming interface) to connect with the company's website to track and monitor sales. These systems also enable companies to manage their inventory levels, pricing, and other sales factors in real-time. It forms a point of contact between the manufacturer and the retailer. It enables producers to make profiles for each of their retailers that contain data like:
- Address, phone number, and email address of those to contact.
- Product information such as product codes and SKU numbers.
- Pricing information, including discounts and price tiers
The software provides information and insights and enables businesses to ensure that all factors, including pricing, inventory, and customer relationships, are favorable for a steady revenue stream.
5- Business Intelligence (BI) And Data Analytics Platforms
Business intelligence (BI) analyzes vast amounts of data to understand your business performance accurately. Data analytics platforms are similar to BI applications but offer more advanced features and functionality. Benchmarking tools help you compare your company's performance against other companies in your industry.
Business intelligence tools include dashboards, reports, and charts that provide real-time information about sales, revenue, profit margins, and other metrics. They can be used by anyone in the organization who needs to see a snapshot of key performance indicators (KPIs). Business analytics platforms are designed to collect data from multiple sources and make it available in one place, so users can run complex queries against it without having programming skills or database administration experience.
6- Upselling Tools
Upselling is a sales technique that involves convincing customers to spend more money than they originally intended. It's an effective way to increase revenue.
Here are some of the most common upselling tools:
- Add-ons: Add-ons are additional products or services you offer your customers after they've already purchased something. For example, if someone buys a USD$50 pair of shoes, you might offer them an accessory like shoe polish for USD$5. This is a simple way to boost your profits without asking customers for more money upfront.
- Free trials and discounts are other popular ways to upsell your products or services. For example, if someone wants to sign up for your online course but doesn't have the budget, offer them a free trial period to try it out before paying anything.
It's critical to keep an eye on your company's revenue stream to ensure you have enough money to expand. On the other hand, many organizations cannot deal with revenue changes due to shifting market conditions, client behavior, and production issues. With the tools described here, you can keep a tight rein on your company's ups and downs.
Matthew Calloaway is an investor and business strategist. He also contributes to local publications and blogs to write about the latest trends in business. He is a proud husband and dad and spends his free time with his family.