Customer focus is critical to enable topline growth. A business is about putting money on the table. How do you grow your revenue daily?
How does a company ensure growth of revenues while lowering costs? If you are not selling, chances of going into cash flow challenges are high. Most businesses fail due to lack of sales growth. Even if you cut costs, there reaches a time where you cannot cut costs any further without closing the business. That is why focusing on revenue growth at the beginning is the best strategy.
The first line, 1. Turnover is the topline. As a business leader, your focus is to drive revenue growth. This is a discussion that should dominate your business meetings and interactions; at top leadership level. In your next SMT meeting, ask your colleagues:
How do we grow revenue? Ask this question whether revenue is growing m-o-m (month on month) or y-o-y (year on year).
- Increase volume of sales?
- Increase pricing of products and services?
- Introduce new offerings/ production to new customers?
- Introduce existing offerings to new customer segments?
- Sell new offerings to existing customers?
The ideal strategy depends on your understanding of the target market. At all times, you must keep your line 2. Cost of sales, lower than line 1. Turnover. That way, you have a profit.
Regardless of the kind of business you are in, failure to grow revenue through deliberate interventions and tactics, will lead to business stagnation at best and closure at worst.