Is Your Business’s Revenue in Decline?

Is Your Business’s Revenue in Decline?

If so, would you like to stop and perhaps reverse the trend?

In the current economic environment, many businesses are suffering from declining revenues, and some are taking drastic actions to either reduce losses or retain a level of profitability.  These drastic actions usually include a combination of cost cutting and staff reductions.  The downside to these actions is that when the economy improves, they will not have the capacity to ramp up to meet demand. And guess what? The economy is forecast to improve in 2025 which is only months away.

The Alternative

If you are a non-retail type of business, then 80% of your revenue usually comes from just 20% of your customers.

It is our experience from using our Rapid Profit Radar Diagnostic, that many businesses do not complete a customer analysis of their revenues, which means that they are unaware of either how well or how badly they are doing with most of their client base.  Sure, customer revenue figures may indicate how well (or not) their top 5 customers are performing, but businesses should be using the information retained in their accounting or customer management (CMS) systems to track a minimum of their top 20% of customers on both a monthly and annual basis.

Why Do This? Because if you know how your customers are tracking you can take action to improve your situation including:

• Communicating with declining customers to find out the reasons why. If one of those reasons is poor performance from your business, you will have the opportunity to arrest the slide before it’s too late.
• Analysis of, and communication with, improving customers as this may indicate possible new markets or a potential change in your product mix.
• Analysis of, and communication with, new customers to identify whether they are simply a new customer in the market or, more importantly, if you have entered a new market without realising it.

If, like many businesses, you don’t know how to extract this information from your systems then give us a call because we at Into The Blue NZ Limited are experts at extracting information from business systems and turning it into meaningful reports to help you manage your operation.

And we’re not afraid to put our money where our mouth is because, if you engage us, Into the Blue offers most mature businesses a Zero-Risk policy… No Improvement – No Fees.

For more information please either reply to this post or email profit@intotheblue.co.nz