5 Steps To Reach Your Revenue Goals Wiser (Not Faster)
2024 is here and if you're a social impact founder you probably have set your revenue targets for this quarter.
Now that you know what numbers you're working towards, the question is: what are the most effective actions you can focus on to achieve your revenue targets?
Keep reading to find out our best practices!
But before I move into the HOW, let's look at the WHAT.
Your Targets Are Your Compass
The targets you set will define your growth strategy (the actions that will bring you to hit your targets).
This is why it's important to set targets that are realistically achievable and aligned with your key business objectives.
If you haven't set clear revenue targets or you want to run another strategy-check on the ones you have already set, I have some best practices for you!
Have a clear rationale for your revenue targets, don't set random numbers. Make sure you have a clear picture of your financial performance from the past year or two, and make a calculation of your revenue targets that is accurately (finance) data-informed (look at your actual costs at business' status quo!) and accounts for every expense and investment you're planning to sustain in 2024 (include ideal cost projections!).
Set realistic revenue targets that you can achieve with existing resources. Making (more) money (faster) needs money. If you set quarterly or annual revenue targets at an ambitious growth rate compared to your previous quarter or year, you need to make sure you have (or can invest in) the right resources (money, time, capacity, expertise) to achieve these. A realistic revenue target is a good balance between stretching (a minimum investment margin) and optimizing (improve in quality) the resources you have.
Don't settle on one figure. When setting revenue targets, make sure you always work on ranges. This means for example to take three scenarios into account: worst case, moderate case, best case scenario. Since we can only partially predict our income stream, it's important to set ranges that account for multiple performance scenarios. Two of these are crucial: the worst, which indicates your minimum revenue target to be able to sustain your essential business costs; the best, which includes the revenue target that ideally will help you actualize the most ambitious version of your vision.
Set your revenue targets on your product(s) or service(s) with the highest revenue-generating potential. It doesn't matter if your product or service are low or high ticket (e.g. a membership for 10$/month or a consultancy package for 5K$ per month). The most strategic approach is to optimize the product or service that has been vetted, has proven to be sales friendly, and can bring money in.
I help my clients review their financial performance and set smart revenue targets that point their growth strategy in the direction of the results they need and want.
Book a FREE Strategy Call if you want to know what this looks like for you and your business in 2024.
Do It Wiser, Not Harder (Or Faster)
Let assumed you have reviewed and set smart revenue targets for the year, and you know your numbers for Q1.
Let's focus on some strategic actions you can take today to reach your targets wiser.
I say wiser (not harder or faster), because it's about optimizing the resources you already have and ensure you compound their effect in the long run.
When you want to achieve your revenue goals harder or faster, this often involves using or investing more resources: time, money, capacity, expertise.
This can be an option, but if you can't invest into more resources or you prefer to play it safe, these actions will be ideal.
Re-engage your past clients and leads; Go check the list of clients you have worked with in the previous years and re-open the conversation. It's a good practice to reconnect and update them on what you're up to this year and invite them to discuss opportunities for collaboration. Do the same with people in your lead pipeline. Connect with those who mentioned to come back on a later point or who might be at a better stage now to consider your product/service.
Ask for referrals (or create a referral system); Don't feel shy about asking your network or your existing clients to recommend you within their network and existing clients. Opportunities coming through referrals are commonly safer and easier in terms of trust, buy-in and value alignment and can make the lead generation process way more effective (and enjoyable). You don't need to have a BIG network or a huge amount of existing clients to make referral work. One person or one client can make a big difference too.
Talk to your ideal clients; Some people might call it "cold pitch", I prefer "networking" and "genuine interes in connecting with relevant people in your industry". Often, people need what you offer, but they don't know it exists or that you're open for business. Being proactive in going to meet your ideal clients where they are (instead of waiting for them to find you) can unlock unexpected business opportunities.
Focus on your low-hanging fruits; Stick to what you can do best, and what's already in front of you. If you have tested marketing or sales tactics that have worked well in the past, keep sticking to these (e.g. promotional events, 1:1 coffee chats, paid adv, SEO, etc.). If you have people or opportunities in your pipeline that have remained dormant or need a push, start from there. If you have upcoming opportunities or actions (e.g. conferences, events, meetings, client work), focus on optimizing the quality and outreach potential of these, and strategize how to make the best out of theme to catalyze more opportunities.
Bring the right value in front of the right audience; Use your platforms to promote the value of your offer. Social media, blogging, industry conferences, podcast or blog guesting, and networking are great places or strategies to create more visibility around your product/service. This will help you position as a leader in your industry, expand your product/service outreach and bring the right value in front of the right audience. If you don't have one yet, focus on crafting a good content and visibility strategy, clarifying and elevating your USP (unique selling point) when you execute it.
These are only a few actions that can help you reach your revenue targets wiser in Q1.
Of course, your business is a unique case and it needs a more tailored strategy analysis to find actions that can really leverage its greatest strengths and existing assets.
If you want to boost revenue growth in Q1, I also recommend to check out my blog post:
What Essentials Do Impact Founders and Leaders Need for Confident Funding Readiness?
How to Negotiate the Right Business Partnerships for Your Social-Impact Organization
If you want to identify which actions are best to help you achieve your revenue targets this quarter and learn how you can put them in action, book a call and get an initial assessment with a FREE strategy intro call.