Category Archives: Tips & Advice

Generating Revenue Streams…. Ka–ching!

generate-revenue

Revenue stream is a mode of revenue. It denotes the different ways through which money comes into a company.

Revenue Streams can be generated in many ways:

  1. Asset sale
    Ownership rights are sold of a physical product. For example, Amazon.co.uk sells books, music, consumer electronics, etc. online.
  2. Usage fee
    Use of a particular service is sold, the amount to be paid is proportional to the usage. For example, a hotel charges customer by the type of room and nights occupied.
  3. Subscription fees
    A continuous or repeated access to a service is sold. For example, a gym sells its members a monthly or yearly subscription for access to its exercise facilities.
  4. Brokerage fees
    This type of revenue is derived from an intermediation services performed on behalf of two or more parties. Brokers and real estate agents earn a commission each time they successfully match a buyer with a seller
  5. Advertising
    Fees for advertising a particular product, service or brand form the basis of this Revenue Stream. Newspapers and the media industry generally, rely on this approach, which has spread to website advertising and to software sales.

These are a few examples (among the very many) of how to generate revenue streams.

 

If you want to read more about the examples stated, check out the source page: http://www.ecommerce-digest.com/revenue-streams.html

 

Insights PowerPoint Slides- Harris Adu and Steve Bridger

Harris Adu, CEO and Founder of PinU

aduLondon-Based Haris Adu is the Founder and CEO of PinU, an app that helps you discover and message your friends when they’re nearby. He has five years of experience in digital marketing and growth previously working for Transport For London and London based startups using Social Media and Email marketing to increase brand awareness, increase downloads and generate revenue.

As a digital marketing expert Haris has also previously consulted with UK based startups and provided strategies to help them increase their sales or users.

Steve Bridger, Author, Business Coach and Entrepreneur

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Marketing Copywriter, author, business coach and entrepreneur. Steve Bridger has a solid marketing background from advertising and integrated marketing communications.  His contribution is enhanced by running a mail order business in the gardening sector.  Please see:

www.thewritecopy.co.uk

www.successbeforestartup.co.uk

www.transformyourcommunicationskills.com

www.spanishrings.com

CLICK HERE FOR FULL INSIGHTS PRESNTATION SLIDES 

october-insights-2016-steve-bridger-and-haris-adu-pdf

 

 

 

 

 

 

 

 

How Should I Do This Idea Validation Thing?

 

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Idea validation allows you to save time and money as well as generate interest in your idea. You will also be exposing it to the marketplace. This process will inform you whether or not you should pay a lot of money to create an expensive version of a product that your customers may not even want, need or use.

Here are 5 steps to idea validation in the real world:

Step 1: Brainstorm internally

Step 2: Don’t ask family and friends

Step 3: Choose your interviewees

Step 4: Conduct your informal interview

Step 5: Review and decide

 

To learn more on idea validation, visit this webpage: https://fizzle.co/sparkline/real-world-idea-validation

 

How to Identify, Attract and Keep Your Perfect Target Customer in 5 Steps!

One of the biggest concerns of running a small business is finding new prospects to keep your sales pipelines full. You can panic if you have no systematic plan on how to identify who your perfect customer is, where to find them and how to nurture them to a sale.

Don’t neglect one of the most important aspects of marketing: identifying, attracting and keeping your ideal customer

Here’s how to discover your perfect target customer:

1. Defining the perfect customer

Defining your target customers means identifying the specific needs (“pain points”) and characteristics of the consumers or businesses who you believe will buy your product. This demographic profile for end-user customers can include age, gender, income, occupation, marital status (and family), hobbies and interests. For business markets, you would look at a particular profile, including industry, revenue, location and number of employees.

2. Find the perfect customer

Once you’ve gone through the exercise of identifying your perfect prospects, you need to find them. To do so, you should be where the conversations are. What are your potential customers discussing their issues and problems? Use search engines: Use keywords to search for customer problems that your company targets.

3. Nurture the perfect customer

To nurture a customer successfully, you should not only understand the difference between selling and marketing, but also between suspects and prospects. Marketing gets people who feel the pain your business solves (suspects) to identify themselves. Sales activities present those people (now prospects) with a specific solution to turn them into customers.

4. Market to your suspects

Your suspect list is large. It consists of anyone whose business problem your company can solve. Since it may not be economical to directly sell to each suspect individually, the goal is to get them to self-select. Tactics for this includes: Advertising, Direct e-mail, Trade shows, etc.

5. Market to your prospects

Your prospect list is a subset of your suspect list. It’s much smaller because the customers on this list fulfil three requirements: – You know they have a problem you can solve – They have the money to solve the problem – You know the decision maker

You should touch each of these prospects individually and as consistently as possible through a variety of media. The idea is to be there at the moment when their pain is so great, they must buy something.

If you would like to know more about this topic, visit this page in a bid to gather all required information you need: https://www.americanexpress.com/us/small-business/openforum/articles/identify-attract-keep-ideal-customer/

The Business Model Canvas

The Business Model Canvas

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Template produced by Jonathan Sandling (adopted from original source: Ostewalder 2008)

The Business Model canvass is essentially a one page overview that lays out what your business does and how it achieves it. It is normally displayed as a visual chart containing different elements including customer segments, value propositions, channels etc.

Customers

Defining your customer is arguably the most important step in the business canvass model and in business period! Without these guys you have no business in the first place. So how do you do this ?

 – Segment Dimensions  – Identify whether your business has a single or a multi sided market. A great example of this is ‘The Times magazine’. On one hand they serve the reader, writing engaging content to meet their needs, on the other hand they have the advertisers, who provide the revenue that drives the business.

Segment Composition – Above we discussed the segment dimensions, which represent the macro analysis of your customer base. The micro is the type of persona(s) you are trying to reach. The aim of the game here is to be able to visualise the persona in detail! What car do they drive, what’s their age? Try to get as detailed as possible  to know exactly who your business is trying to serve. This step should enable you to have an understanding on what your customer thinks, what they see, how they feel and  most importantly how they use your product/service.

Needs and problems – Ensure that you have identified with existing needs and problems, in addition, know what alternatives that your customers are currently using. The best approach to achieve this is by simply going out there and speaking to people to gain valuable feedback, which in turn will help you improve on the issues at hand.

Value Propositions

This is the collection of products and services your business offers to meet the needs and wants of your customers. Essentially, your value propositions are what make your business unique and what differentiates it from its competitors. Value propositions can be provided in various ways including design, branding, convenience, price etc.

Channels

Businesses deliver their value propositions through different channels. Channels? you may ask, these aren’t the ones found on your TiVo or Sky TV remote. Channels are the methods you use to communicate your propositions to your customer segments and the ways to sell to your customer. It is very important to think this part through all the way to the ‘customer journey’, be very specific.  A business can reach its customer segments via its own channels e.g. the store front,  through partners e.g. distributors or  a combination of both.

Customer Relationships

It is vital for any business to define the type of relationship  they wish to build with their customers,  ultimately ensuring its survival and success  . The form of relationship you have with your customer will highly depend on the type of service of product you provide, some  forms of customer relationships include:

  • Personal Assistance– This refers to the customer and employee interaction which is normally performed during a sale e.g. helping you find the right product, after sale e.g. upselling or offering complimentary products, or a combination of both.
  • Dedicated Personal Assistance- A very intimate and hands on personal assistant who handles all the needs of the customer e.g. ‘Apple Geniuses’.
  • Self Service-  This refers to the indirect interaction between customers and staff, utilising technology to facilitate the customer experience e.g. self checkouts in supermarkets.

Revenue Streams

It is pretty self explanatory why knowing the revenue streams of your business is important. At this stage you want to be able to clearly link how your business earns revenue from the value propositions identified earlier. There are a number of ways to generate a revenue stream, some of the most common types:

  • Selling Goods– The most common type is selling ownership rights of a physical product e.g. ASDA.
  • Usage fee– Generating revenue from the use of your services e.g DHS
  • Subscription fee– Generating revenue from selling a continuous service e.g. Netflix
  • Leasing/Renting- Enabling customers to get exclusive rights of an asset for a set period of time e.g. car rentals.

Key Activities

Key activities are the essential things that the business needs to do in order to deliver on its propositions and ultimately make the business work as whole. For example, a product driven company like Apple will invest a lot of time and money in learning about their users behaviours and new techniques to improve their products. Key activities for a business that delivers multiple things to its customer segment may include maintaining superior expertise on the segment, creating or acquiring products and services that ensure competitiveness. For an infrastructure based business this may include making the infrastructure more efficient and reliable for customers.

Key Resources

Key resources are the assets your business needs in place at a greater or more targeted degree than its competitors. The business model canvass proposes three core business types: product, scope and infrastructure.

  • Product Driven– Key resources for product driven business include key talent who posses critical areas of expertise.
  • Scope Driven – This type of business usually has a great depth of knowledge about the particular segment it operates in and implements a repeatable set of processes and in some cases posses infrastructure.
  • Infrastructure Driven- These types of businesses achieve economies of scale and have repeatable processes, for example grocery supermarkets are traditionally infrastructure driven with multiple branches across a region selling the same/similar stock. This type of business’s key resources are physical or virtual infrastructure.

Key Partnerships-

These are the suppliers and contractors that your businesses works with. There are a number of motivations for partnerships for different businesses.  The business model canvas outlines three common motivators including optimisation and economy, reducing risk and uncertainty and acquisition of particular resources and activities.  The important questions to ask here are :

  • Who are our key partners?
  • Which key resources are we acquiring from partners?
  • What are the key activities our partners perform?

Cost Structure

So far the business model canvass has illustrated how the key activities of your business drive and link with propositions and revenue. However, you have to also know how these key activities drive your costs and whether those costs are in alignment with the key value propositions. In addition you must outline whether your costs are fixed or variable as you test out different business models.

If you are a visual learner, click here to watch a video overview of the business model canvass.