Your Business Goals & Revenue Resources

BUILD A MODERN REVENUE ENGINE PART 2 | Your Business Goals & Revenue Resources.

As we identified in Part 1 of Building A Revenue Engine Series, your revenue goals and the resources available in your business are the key inputs into building a robust, modern revenue engine. These two factors dictate the strategy you take moving forward when building your engine and are what make it unique to your business.  No two business will build the same revenue engine even if they sell the same product or service to the same audience because no two businesses have the same goals and the same resources available to them. This is why a cookie-cutter revenue solution is doomed to fail.

In this article, we’re going to explore the key inputs to your revenue engine:

  1. Business Revenue Goals 
  2. Business Revenue Resources 

Business Goals & Revenue

BUsiness revenue goals

Before you start any business-related activity, particularly something as groundbreaking as building a revenue engine… you need to be really clear on the direction you want to take with your business.  You need a goal to work towards and this is a key driver in deciding what your revenue strategy and engine ultimately look like.

Setting this goal could be optimising your revenue for sale within a year or even building steady and sustainable net revenue growth without increasing headcount and no plans of selling in the near future. These two examples may require quite different revenue approaches, models, and actions.

Your business goals should influence the style of revenue and how you look at it.

Regardless of the size of your business, setting goals that flow into your revenue strategy is an important part of success. 

GOALS GIVE YOU DIRECTION AND A CLEAR FOCUS.

When you’ve got clear and well-defined goals, decision-making becomes easier and it’s simpler to communicate your direction to those who need to know. 

As part of making any new decisions or setting new directions or actions ask “does this add to or distract me from my goal?:

GOALS GIVE YOU A WAY TO TRACK PROGRESS.

Goals are a great way to track your progress. Goal setting and subsequent reviews can also provide you with a set of criteria allowing you to see in what areas you’re succeeding and where you need a bit more work. You’ll also be able to see what actions and activities are paying off and provide the return based on how quickly or easily they are contributing to your goals.

Your Revenue Resources

Revenue resources and assets

The second input into your revenue engine is understanding the revenue resources currently available in or to your business.

 

One of the greatest revenue-increasing factors and opportunities in your business are your resources…and most businesses don’t really understand the extent of what they have at their disposal let alone utilise them fully. The key to a modern revenue engine is to recognise the opportunities presented by these resources as valuable tools in your arsenal that you have to work and play with.

 

All resources are revenue influencing to some  degree. The key is to think broadly and consider the historical, current and future uses of all your resources and understand where they can add value to your revenue goals.

Ask yourself  “Do I understand all the resources available to me? And if so ‘ How can I use them better, more effectively and more efficiently than I am currently?’ and ‘Can they provide benefit in achieving my revenue goals?”

 

Your resources should be considered a crucial input into your revenue engine and should be consistently revisited as part of continually tuning your revenue engine outputs.

 

WHAT IS A REVENUE RESOURCE?

So what is a revenue resource?   In the context of business, a resource can be defined as any action, function, data point (internal or external), intellectual knowledge or advantage, contractual obligations and advantages, financial arrangements, electronic or other hard assets that can be captured or listed.

The resources don’t have to be in current use, or they may not currently be written down. They don’t have to be what you may first consider a major component as often small areas can have strong impacts when they become part of the greater plan.

Importantly for your business take into consideration not just what they are now, but look at the new or additional opportunities your resources can open up.

TYPES OF BUSINESS REVENUE RESOURCES.

In order to identify your resources you first need to understand what they are:

There are four types of company resources:

  • Physical Resources
  • Human Resources
  • Financial Resources
  • Intellectual Resources
4 TYPES OF REVEUE RESOURCES

Physical Resources.

The physical resources include tangible items and assets of the company that are necessary and available for a business to function. Physical resources can be touched or seen. These are items that take space, have value, and are used in the operation of the company.

Physical resources are necessary for all types of business. Product-based businesses use physical resources for providing the goods for sale and for the operation of the business. Service-based businesses use physical resources to facilitate the delivery of the service, such as having a space to work, tools that are needed for the service, and resources used to support the service.

Physical resources can be dynamic in nature, as they can change over time and with the advancement of technology. When new technology is implemented, it may replace old machines with a new one for better performance.

You probably realise these types of  Physical Resources:

  • Machinery And Technological Tools
  • Real Estate 
  • Office Fitout + Furniture
  • Plant + Equipment
  • Raw material
  • Vehicles
  • Stock

Plus many more.

Financial Resources.

The financial resources of a business are the assets that are used for company activities like paying salaries, buying raw materials, etc. 

The best financial resources management approach is important to achieve the objectives and target of the company.

Example of Financial Resources:

  • Current client income
  • Available Cash/Finance
  • Insurances
  •  Debtors

Plus many more.

Human Resources.

Human resources are the building block of any company. We are referring to the people who work for organizations and their skills, Knowledge, Culture, and expertise. They play important roles in an organisation because human resources impact company performance and achievement and opportunity.

Example of Human Resources:

  • Your Employees
  • Unique Knowledge + Skills Of Your Employees
  • Contractors
  • Advisors + Consultants
  • Contacts And Network You And Your Staff Have
  • Potential Employees

 

Plus many more

Intellectual Resources.

The intellectual resources of a business can be intangible or tangible and often provide direction and open up the options and opportunities available to a business.

Examples of Intellectual Resources:

  • Brand exposure and reputation
  • Proprietary Knowledge
  • Patents + Copyrights 
  • Partner Relationships /Distributors
  • Customer Databases 
  • Software
  • Legal Contracts 
  • Rights To Franchise, Software & Equipment, 

Plus many more

Key Takeaway.

Having a clear goal in mind is critical to the success of your revenue engine. All resources are revenue influencing in some way…and each of these resources plays a critical role in revenue growth outcomes and can have a positive impact on a business’s revenue goals.

Conclusion.

  • Set your goals and build your revenue engine to suit
  • Resources feed into your revenue engine
  • Think broadly about what resources you have access to
  • Look for new why’s to optimise your current or newly recognised resources  
  • Cross-check your resource list and uses line up with your goals 

A revenue engine designed and fed by the right information  is the key to ensuring your business grows and thrives in uncertain times.  

The story continues next week with Part 3 of the Build A Revenue Engine Series…A C.R.O. View 

If you want to build a robust revenue engine to grow your business revenue and
take your business from good to great… Check out how we can help HERE.

 

 

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