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Posted on by Mike

Advice for Entrepreneurs and Small Business Owners

B2B Loves “Revenue Speak”

When you “think” and “speak revenue”, sales transactions are easier.  Not all businesses sell products or services that generate revenue, but if yours does, listen up.

When planning a new or expanding an existing business, “speaking revenue” is paramount.  So let’s put it this way.  Frugality and cost efficiencies, while necessary, are not worth thinking about unless your idea can generate enough revenues to even incur costs.

And that brings us to generating revenue.  The idea that revenue, (think sales), is king is no surprise.  That said, when promoting your product or service, “speaking revenue”, if possible, should be the first conversation.  That is, if your product or service can generate revenue for the owner, it will be your best sales line.  The fact that your product may save time or labor and thereby contribute to bottom line profit is not half as appealing as revenue generation.  And this is true, even if the revenue makes an identical profit contribution than cost saving features.

The next best thing to generating revenue is any product or service that lends marketing support to your sales force.  Take, for example, the consideration of hiring an appointment setting service that gets you appointments with qualified leads.  While not directly generating revenue, such a purchase will at least enable new revenue to flow into your company.

So why is “Revenue Speak” so important?  Well ask any salesman.  Trying to get the first dollar from a new customer is very hard to do.  So when you can tell that customer that what you are selling will put dollars in his/her pocket, it makes it a lot easier to justify the purchase.

If you ranked the reasons why businesses buy, the list would probably look like this:  The purchase

1.   Will directly generate revenue

2.   Will increase your sales success

3.   Will enable you to comply with the law or a regulation

4.   Will save a non-discretionary current expense

5.   Will avoid or reduce a planned expense

6.   Will make work easier

Remember, efficiency makes a business more effective and more profitable.  Revenue generation helps a company grow.  And for startups and small businesses, growth is the first priority.

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