|By: André Larabie, CBC, MBA, PhD|
If your company is facing bankruptcy or you are in the process of a business turnaround, it is likely that your revenue streams are not as
stable as they should be. Here are the 3 steps you need to take to make your company more revenue-stable:
Step 1: identify your current products and services. You need to list our each and every product and service that you use to derive revenue for your company.
Step 2: identify additional products and services with a high level of revenue stability. Use the concept of salability as a gauge for how much revenue stability a proposed new product or service has. Revenue stability refers to the amount of predictability and consistency in the revenue source. For example, revenue derived from annual contracts is much more stable than revenue derived from emergency calls.
Step 3: identify a Revenue-stability plan to include these products in your product line. This plan will include advertising marketing campaigns, along with a timeline. Each product should be assessed and gauged for the amount of revenue stability it will bring. The overall goal is to make your revenue streams more stable and predictable.
The list should be prioritized and those items with the highest stability should have top priority for implementation.
Hopefully, the discussion in this article has increased your awareness of revenue stability and the important role it plays in the durability and marketability of your company. If you have endured a recent turnaround, it is likely that prior to the turnaround, your product line was not very revenue-stable.
Now you can take the necessary actions to increase the revenue-stability of your products and services.