Build A Modern Revenue Engine

BUILD A MODERN REVENUE ENGINE FOR YOUR BUSINESS.

Build A Modern Revenue Engine.

If revenue is the lifeblood of any business then predictable revenue growth is the holy grail. The simplest approach for consistent and predictable revenue growth in any business is to build a robust revenue engine. 

In this article, we’re going to:

  •  Explore what a modern revenue engine is,
  • Share our simple formula for building one for your business, and 
  • Identify the benefits your business can gain from building a revenue engine.

What Is A Modern Revenue Engine?

Let’s start by exploring what we actually mean when we use the term…revenue engine… 

At Rainmaker Revenue, we define the modern revenue engine as simply ‘the total process of the coordinated actions, flows and steps a business utilises to generate and maintain its ongoing income or revenue.’ 

The key outcomes of building a revenue engine for your business are that it makes revenue generation: 

  • more predictable,
  • profitable 
  • sustainable, 
  • measurable, 
  • Able to be tuned & tweaked as required
  • scaleable and 
  • most importantly aligns with the business’s capabilities and goals. 

A revenue engine covers every step in the attraction, conversion, retention and expansion of revenue.

Every Business Already Has A Revenue Engine.

If your business generates revenue or income, then you already have an engine. 

This is true of every business but you probably arent looking at it in that way nor have you probably considered all the options now open to you to optimise its outcomes. 

Your revenue engine doesn’t need to be complex and regardless of the size, stage, or industry of a business there is a high likelihood you can get a lot more out of your current revenue engine.

What If You Have One But Don’t Know It Or Focus On It?

In our experience, organic evolution from the very conception of a business rather than as a result of any defined strategy, typically means businesses don’t realise there is revenue sitting in their business already. These businesses typically don’t look at their revenue generation efforts in terms of an engine, thereby missing the opportunity this unrealised revenue presents and therefore aren’t gaining their best net outcomes.

Many businesses in a similar stage of growth and with a similar mindset…

  • Don’t realise what is possible so don’t change anything
  • Rely on separate functions or departments in the business to individually provide answers
  • Are unsure how to relate to changing client buying habits and needs. 
  • That its not the business owners’ primary skillset and they’re focused on other areas
  • Not aware of the low cost, simple use technology, and tools opportunities now available
  • Limited budgets and have tried singular fix approaches [looked solely at Sales or solely at marketing]in the past that haven’t been successful. 

And this means a lost revenue opportunity that could be easily and cost-effectively unlocked.

Leaving Accessible Opportunity [+ Revenue] On The Table

A business can be profitable and growing without consciously having a revenue engine. 

But without a strategy and without the direction a revenue engine provides these businesses are missing lucrative opportunities  Simply put they are leaving a lot on the table,…the current cost per revenue dollar, along with the potential inconsistency and predictability of revenue that can often get businesses taking action on the subject. 

If you aren’t intentionally and strategically looking at your revenue generation in terms of a revenue engine, your efforts can often be more ad hoc and lack the ability to respond to change making it more difficult to tweak and adjust to line up against clients changing needs, market trends and competition.

Leaving Accessible Opportunity [+ Revenue] On The Table.

A Formula To Build Robust Revenue Engine For Every Business.

Our formula to build a robust revenue engine for any business is as follows:

The Modern Revenue Engine formula

Your Business Goals.

BUsiness revenue goals

Your business goals influence the style of revenue. The direction you want to take the business and desired timeframes should be a key driver in deciding what your revenue strategy and engine ultimately look like.

There is a range of strategies and styles of revenue that should be considered.

If a business, for example, has the goal of being optimised for sale, in terms of volume and style of revenue, within a year,  it will likely require a different engine setup than one whose goal is steady and sustainable growth without increasing headcount and no plans of selling in the near future

Resource Optimisation.

Revenue resources and assets

One of the greatest revenue-increasing opportunities can come from your current or accessible resources…and most businesses don’t understand the extent to which these resources with a revenue spotlight on them can lead.. So it’s critical to understand what you have to work with and where the new opportunities and options can lead before diving in and building your engine. 

Resources are typically categorised into four areas…

4 TYPES OF REVEUE RESOURCES

In our experience, every business can grow its net revenue from the resources and assets they currently have access to. It may be just a few % or it may be 100’s of %.

Most businesses [around 76%] underutilise the resources at their disposal meaning there's often lots of opportunity for revenue growth currently being unrealised.

A CRO View.

A CRO View

Reimagining how you look at revenue is the key to unlocking realised revenue in your business.

We call this taking ‘a CRO View’.

A C.R.O. or Chief Revenue Officer’s role is to look across an entire organisation at ALL of the potential revenue influencing areas and put in place an integrated revenue strategy that aligns them all in a way that promotes consistent growth against the goals. This perspective allows you to uncover and recognise where new doors can open up and where you should maintain and further tune.

Revenue Alignment.

Revenue Alignment

The prevailing model of revenue generation views marketing, sales, and sometimes customer service as separate functions.  This thinking limits a business’s ability to develop predictability and consistency in its revenue activities.

Modern revenue engines are built as whole systems, fueled by aligning all the potentially revenue-contributing functions in the business with end-to-end work and data flows that support orchestrated potential and current client engagement. 

Every step and stage is tracked by metrics to encourage continuous improvement and the flexibility to pivot and recalibrate to changing conditions and outcomes.

Alignment ensures that all your resources are working together, in sync…

The Engine.

The Revenue Engine

A simple exercise to start the process yourself is:

Document all the potential revenue influencing functions that you currently have and their primary associated actions and put them in a sequence of how they currently occur.

Then evaluate them by asking if they are effective, are they repeatable, do we do them consistently, and do we measure and modify them to optimise the outcomes on a regular basis.

Do This Activity.

A simple exercise to start the process yourself is:

Document all the potential revenue influencing functions that you currently have and their primary associated actions and put them in a sequence of how they currently occur.

Then evaluate them by asking if they are effective, are repeatable, do we do theM consistently, and do we measure and modify them to optimise the outcomes on a regular basis.

By simply doing this exercise you are starting to recognise what your current revenue engine looks like and areas where you can start to define and refine it for better performance.

 

 

 

 

One Size Does Not Fit All.

Every business is unique, has its own goals and requires a unique revenue engine solution. Even two businesses selling an identical product or service should still approach what goes into creating their revenue engine differently. While in some cases the model may be similar,  the implementation, actions, and final strategy will differ.

The Formula Overview.

  1. Understanding your revenue goals and the direction you want to take your business.
  2. Define all the resources and functions in a business and then 
  3. Cast ‘a CRO view’ over these, to  highlight where the opportunities lie
  4. Results in a revenue engine strategy. 
  5. Align the many functions so they work in a coordinated manner so they power your revenue engine. 
  6. Define the engine steps.
  7. Maintain & Tune your engine over time in line with changing internal and external drivers. 

That doesn’t mean that an engine needs to be a complex solution, however. Revenue engines can be very simple in design and implementation, or they can have multiple complexities and technological influences.

The Benefits Of Building A Revenue Engine.

A well-built and finely tuned engine will deliver

  • Higher net profits and growth along with increased predictability and reliability of income.  
  • Accurate metrics to help predict your revenue trajectory.
  • Shared goals and objectives between operations teams allows for focus on the most important strategic initiatives for the company, instead of the individual teams. 
  • Build the capacity to adapt and pivot your business rather than it becoming a victim to the vagaries of an unpredictable future…
  • Future proof your business so you don’t have to leave your business’s destiny in the hands of outside powers…a hiccup in the economy, a new regulatory requirement, a new competitor, or the loss of a major client.
  • Continually open new doors and opportunities.
  • Optimise your $ return on investment in revenue generation activities.
  • Provide an engaging and comprehensive process to attract, convert and retain clients and opportunities..
  •  

Key Takeaway

Every business has a revenue engine… the key to consistent revenue growth is to fine-tune and tweak it in line with your business goals and objectives and through optimising the resources available to your business. 

Conclusion.

Understanding what a revenue engine is and the benefits building one will give to your business 

When a business recognises and acknowledges its revenue engine and begins to tweak it in the right way it will increase its scalable, repeatable, and predictable outcomes.

A revenue engine is key to ensuring your business grows and thrives in uncertain times. 

 

If you want to build a robust revenue engine to grow your business revenue and
take your business from good to great… Check out our Services 

IF IT’S REVENUE-RELATED, WE CAN HELP.
Find Out How…