These five simple questions will take just a few seconds to complete and are designed to test if your business strategy is revenue focused.
All done. So let's summarise your answers ...
Q1. GOOD YOUR BUSINESS OBJECTIVES FOR THE NEXT 3 YEARS ARE SPECIFIC
Well done, specific objectives and clarity of purpose are essential for setting revenue targets. Consider how objectives are shared among your team, how well they are supported by key stakeholders and critically how often you review them.
Q1. IMPROVE MAKE SURE YOUR BUSINESS GOALS ARE CLEARLY DEFINED
Businesses with clear objectives have more focus and resilience which makes them more robust. Clarifying objectives will help you prioritise resource allocation, streamline operations, and provide more control over revenue performance.
Q2. GOOD YOUR REVENUE REQUIREMENT IS CLEARLY STATED
Well done, in the context of managing cost, specific revenue targets are essential for determining priorities and making decisions. Make sure you cascade targets into your business operations to focus and synchronise resources on a common objective.
Q2. IMPROVE MAKE SURE YOU HAVE TARGETS FOR ACHIEVING YOUR GOALS
Businesses that express their objectives numerically are more effective in articulating goals and determining the most efficient use of resources. Quantifying objectives will provide a framework that will have immediate positive impact on your revenue performance.
Q3. GOOD YOU HAVE A GOOD UNDERSTANDING OF YOUR MARKET
Well done, developing a good product/market fit is essential to ensure that your business goals are achievable. Vigilance is vital and you should anticipate changes in market structure so you can adjust strategy if and when your revenue streams are threatened.
Q3. IMPROVE MAKE SURE YOU UNDERSTAND YOUR REVENUE STREAMS
Successful businesses monitor the structure of their market and their audience profile. Market intelligence will both reduce marketing distribution costs and optimise the revenue flows you require to support your business ambition.
Q4. GOOD YOU HAVE EXPLORED STRATEGIC OPTIONS
Well done, consideration of alternative approaches to achieving objectives increases your market awareness and operational flexibility. Setting benchmarks and regularly reviewing them will give you early indications where intervention might be required.
Q4. IMPROVE IMPROVE BUSINESS RESILIENCE BY DEVELOPING YOUR STRATEGY
Businesses that evaluate strategy achieve greater efficiency in their use of resources. Strategic choice allows you to evaluate the impact of operational alternatives and helps you benchmark progress against your revenue expectation.
Q5. GOOD CONTINGENCY PLANNING IMPROVES BUSINESS RESILIENCE
Well done, all businesses will encounter challenges at some point and your early planning will give you opportunity to adapt your revenue model in response. Remember to maintain regular market intelligence to discern between long and short term interruptions.
Q5. IMPROVE PLAN AHEAD FOR CHANGES IN YOUR BUSINESS ENVIRONMENT
Businesses with flexibility built into their strategy can pivot or change according to the severity of the interruption and the size of the revenue shortfall. This is a controlled characteristic that you should be planning for well before any manoeuvre is required.
SO THAT'S IT!
These five key elements combine to create a solid revenue model. These elements should feature in your business plan and be reflected in all your trading activities:
OBJECTIVITY - clear, specific and shared business objectivesTARGETS - financial measurement required to achieve the objectiveSTRATEGY - a commercial delivery plan to achieve your revenue goalsAWARENESS - detailed intelligence of your commercial trading environmentCONTINGENCY - an internal evaluation of your strategic choices
How did you do?
If you answered ‘YES’ to all of the question in this mini survey, then you are on a solid trajectory to achieving your goals.
However, if any of your responses were ‘NO’, then you will benefit from doing some work on configuring your revenue model.
The good news is, however well your revenue model is developed, help is at hand!
Need some help?
Revenue Works specialises in revenue planning. We offer a number of services aimed at helping business owners identify, plan and deliver the key activies they need for their business to succeed.
Before you go ...
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