Boosting revenue is one of the key ways to conquer your debt. This is true for individuals and also for businesses, small and large.
Today I attended a cooking class at one of my favorite restaurants. The experience was productive on several levels. The chef taught us to make four great dishes and served them to us for lunch as well. But the real lesson here is what this chef did to hone his strategies to both survive the current downturn and prosper after the recovery.
Rather than develop a lower cost menu, cut advertising, reduce staff or shorten hours, the chef did the opposite. By relying on his ingenuity and investing more of his own time, he tapped a new revenue stream from his existing customer base.
For two hours each week the chef conducts cooking classes for about 25 participants. He simply moves the tables around the perimeter of his small storefront restaurant and sets himself up in the center to demonstrate his selections for the day. While he cooks and answers questions, his staff prepare the same items in the kitchen and at the end of the demonstration they serve a beautifully presented plate for each participant to enjoy. Yummy? Yes! Smart? Very!
At $45 per person, the extra $1000 a week adds nicely to the restaurant’s bottom line with very little expense other than the food and a few extra hours for the kitchen staff. For any small business, an extra $1000 a week dropping to the bottom line can make a significant difference.
Plus, nearly every participant comes back with family and friends when they are going out to dinner. Given that the restaurant industry nationwide is down 5-12% in sales, with small independents suffering the most, this restaurant’s success is inspiring.
What are you doing at home to boost revenue? Or at work? It takes creativity, skill and timet to innovate and build new revenue streams. But it’s well worth the effort.