Income Sources Revenue Adjustments

The first change that one usually makes in the iteration process is to adjust the revenue for the various income sources. Look at the revenue generated by the different income sources. If the problem is inadequate total revenue, assess whether there are reasonable grounds to raise the revenue from any of the income sources. Again be reminded that you must be realistic in your adjustments and not change the figures just to meet the revenue required.

Start with the income source with the highest revenue and work downwards. For the main products/services,  look at the revenue generated by each product/service. For each product/service, you may want to explore further and assess whether the markup or profit margin can be raised. Alternatively assess whether the quantity you expect to sell can be increased. However be careful that you do not raise the markup or profit margin to an unrealistic level just to meet the revenue desired. Also explore whether you can reduce the markup or profit margin to lower the selling price. If the demand for the product/service is elastic, it may be possible to increase the revenue through higher quantities sold at a lower price. Here a good feel of the market for the product/service helps.

If you are still unable to raise the revenue much after the review, look at creating new income sources. There may be possible new products/services that you can offer to complement your main products/services. Perhaps you can get repackage your products/services into subscriptions or memberships. Alternatively you may be able to get advertisements on your blog, website or brick and mortar outlet.

 

Assess and Iterate

Income Sources Revenue Adjustments

Cost Structure Changes

Business Model Revision