The simplicity of growth – Achieving 10% revenue growth

When managers are asked to increase their revenue target by 10% it is rare to hear a positive reaction. The reason being the request for an increase does not come with any understanding of how that can happen.

Take for example a bakery / Café company that has some of the best looking shops in the industry as well as fabulous food products. When discussing this exact issue with them they commented that they could not get good people. The business owner believed the 10% gain was easy. However that same vision and can do passion was not reflected in the store managers and customer service reps.

For the record we agreed in principle with the Owner, but not for the same reasons. While the owner was working on passion and commitment to his vision – and convincing his workforce to buy into it, we felt there were much simpler ways to get the outcome. So rather than go for the grand and inspiring picture of the company, we simplified it to a point that enabled each person in the business to understand how they could make a difference.

To be specific, we used the following example:

A customer comes into the shop and buys a coffee each day. If you can get them to buy a muffin once a week, you will increase revenue from that customer by 10%. The simple step the customer service person has to take is to ask that customer if they would like a muffin each time they buy a coffee.

When we think of revenue growth we can lose sight of how simple it can be. We can look for the big bang options, the sexy marketing approach or the brand new sector which all takes significant investment.

10% increases in revenue can be achieved by deploying the five simple steps noted below.

1. Define the target – be clear on what you want to achieve
2. Enlist help – experts are worth the investment bringing fresh eyes and well defined skills
3. Give everyone an opportunity to contribute – great ideas come from unexpected areas.
4. Make it simple – this ensures you are spending time on the things that matter
5. Be very disciplined – build confidence through consistent implementation of the plan

And it can be done quickly, with limited investment, using the resources already at your disposal.

It can be simple!

If you want to explore any of the points highlighted in this article contact Damien at damien@10khr.com.au