The Revenue Ceiling
Greetings and salutations my friends. I hope this week has treated you well. Today I'd like to share an article from inc.com that discusses why businesses hit a "revenue ceiling" and what you should do if that happens. Let's find out...
They Max Out Their Personal ReachWhat happens: The list of personal and professional contacts has come to an end. Customer acquisition takes a toll on their bank account because it's difficult to sell to someone you don't know.
Why it happens: Often times, startups will lean solely on their own network instead of asking themselves a few make-or-break questions:
- Does this idea have legs and is the product any good?
- How much is the product worth?
- How should I market and sell it?
- Will customers adopt and use it?
What to do: Remove sales data for people in your network and figure out why strangers are buying from you and build from that.
They Exhaust Their Early AdoptersWhat happens: For every product that goes to market, a portion of that market will only try the product (likely only once) because it's new.
Why it happens: With new products companies will quickly shift the marketing from nice-to-have to must-have.
What to do: Find out what it is about your product that first peaked the interest of those early adopters. Use their feedback to create branches of your marketing campaigns that focuses on the highlighted benefits.
These are just a couple of the points mentioned about what to do if your business hits a revenue ceiling. Take a look at the full article linked above for even more info. Feel free to share any tips you have as well. Take care!