Seven Steps to New Revenue: What is your plan for future revenue?

“It was the best of times, it was the worst of times” is the opening line of Charles Dickens' novel, A Tale of Two Cities. It describes the possibility of having great joy as well as immense suffering at the same time. The quote is often used to reflect on the potential for good and bad to exist simultaneously.

We use it often in business, as every owner knows the feeling—sometimes daily.
How many of us have had a perfect day/week/year ruined by a single miscalculation? Maybe it’s just me, but in my experience, business owners have come to expect this “feast and famine” rhythm in operations.

My question to you though… why?

There are lots of phrases used in business:

• “Capture the low-hanging fruit.”
• “Keep your head down and everything will be alright.”
• “Don’t have all of your eggs in one basket.”

Everyone understands the concept: diversity is good in business. You do not want to be sole-sourced on anything.

Look no further than the current tariff situation. Companies relying on overseas parts, customers, or materials are struggling. A recent KY-MEP client had to retract growth plans due to this uncertainty.

Having a diverse offering and customer base is just as critical as supply chain diversity. One addresses the present. The other, the future.

• How diverse is your offering?
• Your customer base?
• What are you doing to diversify and grow beyond today?
• Are you looking to the future?

Long-standing companies plan for future change while maximizing the present.

As the saying goes:

If I asked my customer what they wanted, they would have said faster horses.

Often attributed to Henry Ford, this quote illustrates how he envisioned a different future—the Model T—and helped shape an industry. He had a vision for the future.

You might be thinking:

“That’s fine and dandy, but I’m not Henry Ford—we don’t make Model T’s. We’re just a...”
(Fill in the blank—I’ve heard it all.)

That’s not the point.

The point is: everyone should think strategically about both current and future operations. I’m sure you’re taking advantage of today’s opportunities…

• But what happens when those go away?
• What is your vision for the future that will generate sustainable revenue for years to come?

Here are the 7 steps I use with clients. Each business is unique. Some have robust resources; others need more support. Either way, the approach doesn’t need to be overly elaborate. You’re not Henry Ford—and that’s okay.

1. Data Capture

The process of envisioning the future starts the same. You need to better understand the potential future. Gather documentation, trends, industry standards, competitive knowledge, customer feedback, etc. Your future needs to be unique to you, and the best way to figure out that unique future is to start by gathering data. Data helps you with business decisions, helps you decide where to look—and more importantly, where not to look.

2. Business Strategy

Leveraging the data helps you understand the current state, and all business strategy focuses on is the future state. Where do you want to be in 3–5 years? What can you do to take full advantage of the “low-hanging fruit”?

3. Team Development

This is the hardest part: creating a culture that is conducive to growth. I am happy to tell you, the team you have probably is already there but simply needs some mentoring and coaching. Either way, a foundation needs to be set, and ground rules need to be applied. Resources are limited, and you need to ensure your valuable resources are being utilized in a way that is smart.

4. Project Ideas

It’s not enough to have strategies; you need ideas on how to employ strategies. That comes through ideation and idea generation. If you already know what you need to do, I will argue it’s not enough. You need a pipeline of ideas. Remember, “Don’t have all of your eggs in one basket.”

5. Project Management

In business operations, we employ PDCA (Plan, Do, Check, Act) cycles of learning to minimize waste and increase production. Why do we not do this in business growth as well? Those same PDCA cycles of learning can—and should—be employed in growing your business as much as keeping the business you currently have.

6. Marketing/Branding

You can have the best widget in the world, but if no one knows about it, it’s useless. Having a strategic marketing plan is important to educate the masses of your idea and tell them why they should care about you. Learn how KY-MEP helps manufacturers develop growth strategies.

7. Post Launch

Many companies launch a new service or product and think the work is done—then get angry at the wasted money after a flop. The fact is, part of your strategy needs to be tracking and measuring success (or lack thereof). Controlling your main variables is important for a lower-than-expected outcome. Many times, the lower-than-expected outcomes have very little to do with your service and/or product. There are other circumstances that were not taken into account. Those circumstances need to be identified and adjusted on the fly.

The above steps are for growing your business through new revenue based on new products and/or services. Some of you may feel your projects and offering is not the issue. Obviously, new revenue can also come through new customer leads and education.

Tune in for next month’s article where we will focus on the art of education in the form of marketing and branding. In other words—lead generation.

Ready to start building a plan for your business? Learn more about Growth & Innovation with KY-MEP.