How To Generate More Net Revenue

"It is not what you bring in that counts, it is what you keep when it's over." Jim Cathcart

1. To maximize revenues: 1) generate more gross revenue, 2) incur less
expense, and 3) reduce the work required to produce the revenue.
2. Plan with net revenue in mind, by doing a bottom-up budget. Add your
least acceptable net revenue goal to your expenses to arrive at your
gross revenue goal. Then set a stretch goal. Remember, with
expenses set, everything over your target will go directly to the bottom
line.
3. Consider all expenses: product costs, people costs, lost opportunity
costs (what could have done instead?),
direct costs, indirect costs, and more.
4. Ask, "what sponsors might be willing
to pay this expense for us, or provide
these resources to us at no cost?"
5. Break larger revenue goals into smaller
pieces To raise one million dollars you can get: one million dollar
donor, two half million donors, four quarter million donors, or even one
million one dollar donors. Which is the best approach based on your
situation, your skills and your resources?
6. Consider all of your revenue opportunities and select those that are
aligned with the goals, mission, values and strengths of your
organization, including its resources. Revenue opportunities include: a
raffle, a silent auction, a live auction, a membership offer, an enrollment
event, a subscription, a monthly pledge, a bequest or endowment, a
naming opportunity, a sponsorship for others who are in need, a
scholarship, etc.
7. Determine the value of “silent auction real estate” by dividing your
revenue goal by the
number of items intended
for the event.
Communicate this to your
procurement committee
for more effective results.
8. When procuring items for silent and live auctions, consider the
adjusted value of the items after any consignment costs.
9. Consider all direct and indirect costs when pricing a product or service.
A $400 painting that requires $150 for framing, someone's time for
handling is no longer a $400 item. Price it accordingly with the "profit"
added on.
10. Don't try to do it all by yourself. Ask constantly, "who else could do this
for me/us?" Multiply yourself through others. None of us is as strong or
as smart as all of us. Dividing up goals also makes them less daunting
and more achievable.

LEADERTIP SHEET #4
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© 2006, 101 Leaders Institute