As it appeared in the Daily Nation on December 10th 2019
Dr. Lucy Kiruthu
Africa is a fast-growing continent. Not only is our population growing but also the economies are expanding. It is no wonder that African countries have some of the fastest-growing GDPs. As such, the African marketplace provides a great opportunity for the growth of both local and international businesses. Businesses in Africa have enormous potential to grow across industries. However, not many grow and some are killed by growth. Growth in sales of goods and services as well as in manufacturing and in agricultural production is possible. As we get closer to the end of 2019, we need to be intentional about planning for revenue growth in 2020. This will not only steer our businesses forward but will also ensure their survival and continued growth of our economies.
The more businesses grow their revenues, the more likely they are to increase their profits. Have you already thought of potential ways to increase your revenues in 2020? Here are three key areas that businesses focus on to grow their revenues.
Focus on Existing Customers
Considerable growth in business originates from loyal customers. These customers come back for more and bring others with them. Do not ignore the customers you already have. To grow revenues in 2020, I believe you have been building strong relationships with your existing customers. These relationships emanate from the quality of everyday interactions. Seek to meet or even exceed the needs of your existing customers so that they can stay longer with you. It is critical to focus on already existing customers and retain them before looking for new ones. Your existing customers are the greatest source of revenue growth.
Develop a New Customer Base
Revenue growth in 2020 can also originate from new customers. Every smart company needs to consider potential new customers. A good starting point is to have a sales and marketing strategy geared towards acquiring new customers. Profiling your kind of customers and reaching out to them is critical. For a small business, networks are a good source of new leads. Make the most of the networks you already have to reach out to new customers. Every business should be proactive in looking out for new customers as a source of revenues.
Expand the Geographic Reach
Businesses can also grow their revenues by expanding their geographic reach. This means looking out for new markets. This is sometimes an expensive marketing strategy; it has worked for some but not for others. As a strategic market strategy, smart companies look out for new opportunities that have great potential. Some of these opportunities are likely to be found in a different location. Some businesses need to open branches in a new town, others need to go into other countries or expand internationally. One may also consider partnerships with others in your industry. This can also be achieved through joint ventures, mergers and acquisitions. Expanding the geographic reach has been a source of revenues for many businesses.
Dr. Lucy Kiruthu is a Management Consultant and Trainer. Connect via twitter @KiruthuLucy